Recent Changes in the Powers of the NEDA and Investiate the More Publicized Corruption Cases in Official Development

Rep. Maza’s Privilege Speech at Committee on Oversight Public Hearing

Distinguished colleagues, good afternoon.

In my privilege speech in celebration of the International Women’s Day, I pointed out that joblessness and poverty among women are severe and unprecedented. But when they turn to the government for help in the face of abject poverty, they find that social services are diminished because of low government subsidy in favor of debt payments. Social services such as health and education are increasingly being privatized making such services expensive and inaccessible to poor women. Worse, as women are suffering from poverty, the Arroyo government is embroiled in corruption scandals. Many of these government projects reportedly involved in corruption were funded through the Official Development Assistance (ODA). Thus, if we are to address the poverty of our people, one of the issues that we need to look into is how the ODA has become a venue for large-scale corruption and a venue for divesting us of the much needed resources for services.

It is the privatization of social and infrastructure projects and the preference for ODA availment of the government which intensified and further systematized large-scale corruption. As a result, there has been a sharp increase in the ODA inflow and infrastructure projects have become supply driven rather than dictated by social needs.

I also mentioned that by the ODA Law, the NEDA and COA were mandated to approve and audit ODA projects. A Congressional Oversight Committee was also formed for the same purpose. An Inter-Agency Coordination Committee (ICC) was also formed to screen foreign assisted projects but recently, the ICC has been stripped of its functions after Mrs. Arroyo created and authorized the so-called NEDA Cabinet Group and the Pro-Performance System Steering Committee to approve projects and evaluate projects without going through the ICC.

The weakening of government agencies such as the NEDA in evaluation, procurement, bidding, and the entire process of ODA approval destroys transparency and accountability while it paves the way for larger irregularities.

I gave examples of these irregularities. The Bohol Irrigation Project has two different project cost-P2.4 billion by the NEDA-ICC and P3.6 billion by the NEDA Cabinet Group. The project was inaugurated by President Arroyo at a higher cost which was the proposal of the NEDA Cabinet group despite disagreement of the NEDA ICC.

I also mentioned numerous cases where bids exceeding budget costs by wide margins have been awarded aft all, such as the North Rail and the Cyber Education project and of course the controversial NBN ZTE project.

Some financial experts have warned that foreign funded projects may sink the country into a debt crisis since ODA loans are cheap, lenient and concessional. According to Ibon Foundation around 40% of the outstanding foreign debt may be attributed to ODA availment.

Thus, I urged the House to reinstitute and ensure government control not only on the ODA process but also in the overall direction of development. I also proposed to revive the oversight committee and strengthen its role in the ODA evaluation and review the changes in the powers of the NEDA. I also urged the House to investigate the more publicized corruption cases in ODA projects including looking into the COA report. Finally I asked for a review of the laws that relentlessly liberalized the economy and aggravated the conditions of poverty in the country.