Press Release
February 25, 2009

Press Statement of Senator Loren Legarda

On WB meets with senators, stands firm on findings

Anomalies in the bidding process for government projects have become a pernicious problem requiring drastic solutions. They waste taxpayers' money in a grand scale whether funding for them are sourced locally or through foreign lenders.

The irregularities result in overpriced projects of dubious benefit to our people and, in the case of unnecessary undertakings financed by official development assistance (ODA) loans, push our country deeper into indebtedness.

I, thereby, propose that the most insidious form of these irregularities - bid rigging and collusion among bidders as alleged by the World Bank in its report - be made a non-bailable crime like plunder, for which stiffer penalties must be prescribed.

"To do this, amendments must be made to the Reformed Government Procurement Act to give it more teeth and keep it attune with the ever-changing modus operandi being used by those who want to make a killing from government projects.

On GMA stimulus 'likely to fail'

With the President's own economic adviser criticizing her P330-billion economic stimulus package, the government must be ready to start afresh in drafting measures that would help our country weather the global economic slowdown.

As I've pointed out a few weeks back and now confirmed by Albay Governor Joey Salceda, most of the P330 billion do not represent new money to address rising unemployment and poverty, but are part and parcel of the already approved national budget for 2009.

Let me be clear though that there's absolutely nothing wrong with stimulating the economy, creating more jobs and addressing poverty by working within the approved budget for the year. What's lamentable is the apparent misrepresentation of this P330 billion, which would only give our people false hopes.

On EDSA

"The EDSA people power revolt in 1986 was an affirmation of the concept that state power emanates from the people, and that a government ceases to have any claim to legitimacy the moment it turns it back on the mandate to serve the people.

"But what is worse than dereliction of duty by government is when it becomes too drunk with power to relinquish a mandate from the people that had either been withdrawn or which had already expired.

"Those in power will forget the lesson of EDSA only at their peril. As declared by a wise statesman, those who forget history are bound to repeat it."

On exporters seek emergency aid

The government should respond immediately to the cry for help of the Exporters Association of the Philippines that is being hit badly by the global financial crisis. Already 177 members of the association have closed shop, throwing thousands of Filipinos out of work. More thousands are expected to lose their jobs unless the government acts quickly to aid the exporters that also earn for the country much-needed foreign currency.

I appeal to the administration to release immediately the P1 billion Export Promotion Fund which President Arroyo herself had reportedly promised the association. Let us open for debate and revisit the 12 percent value added tax imposed on raw material imports of the export sector. The VAT on the raw materials impose an additional cost in the production of export products, pushing up their prices domestically and internationally, thus making them less competitive in the world market. It is dragging down our export sector that provides employment and earns foreign exchange.

The government should admit the reality that our country cannot escape the impact of the global financial crisis that is considered the worst since the Great Depression of the 1930s. It cannot be in a denial stage forever as the suffering among our people spreads. No less than Gov. Joey Salceda, the President's economic adviser, has said that the stimulus package bundled by the administration is inadequate. I suggest that the President call a meeting of business, labor and government sectors to craft a comprehensive program to meet the national economic emergency facing our country.

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