And we thought we’ve had enough of Gloria Macapagal Arroyo. Just when we thought she was ready to fade away and that we’ve heard the last of her administration’s shenanigans, another questionable disbursement that would dwarf the P728-million fertilizer fund scam was revealed last week.
On July 14, just a day before Arroyo, her husband Mike and son Dato were photographed lining up for immigration check on their way to Hongkong, Dominique Lebastard, economic counselor of the French Embassy, revealed in a press briefing that only three months after the signing of a P10.5-billion loan agreement with the Agence Francaise de Developpement (AFD), the entire loan amount had been fully disbursed.
Just like magic, P10.5 billion was gone in three months!
Although Lebastard did not directly question the unusual speed with which the amount was spent, it was obvious that the French government was concerned that the loan was not used for the specific purpose that it was granted. Lebastard made it very clear that the loan was in support of the Philippines’ effort to protect the environment and mitigate effects of climate change.
There was, of course, a valid reason for suspicions being raised about the sudden disappearance of the P10.5 billion. In the first place, the Philippine government couldn’t have spent the amount without any research or studies first being made and a comprehensive plan laid out, which would have taken months to prepare. In the second place, how can a government spend that amount in just three months without anybody seeing any shipment of instruments or equipment arriving in our ports?
Lastly, and more importantly, the disbursement was made starting February until May, which incidentally was the campaign period for the last election. Remember that the P728-million fertilizer fund scam was alleged to have occurred during the campaign period for the highly controversial 2004 presidential elections, in which Arroyo was accused of massive cheating.
Former Finance Secretary Margarito Teves was quick to admit that the loan was used for “budget support” to plug the government’s widening budget deficit of P325 billion, which was after all the result of outrageous spending by the Arroyo administration.
Teves said the disbursement could not be attributed to the elections, which was hard to believe considering that the Arroyo administration had also previously mysteriously spent P728 million in funds meant for fertilizer subsidy to farmers just months prior to a presidential election.
Even if we assume Teves’ statement to be true, the disbursement of the P10.5 billion for purposes other than for what it was originally appropriated can be deemed illegal. The loan was obtained for mitigating the effects of climate change and, therefore, appropriated as such, and should not be used to cover the budget deficit.
Even if we assume for the sake of argument that the transfer of funds was legal as claimed by Teves, it was still a clear breach of contract or, to say the least, a breach of trust by the Arroyo government. The French development assistance agency granted the loan on the condition that it would be used for environmental purposes, but apparently not a single centavo was spent for the original purpose.
If even a small portion of that amount were spent to purchase more modern weather forecasting equipment, the weather bureau would have been able to “mitigate the effects of climate change” by promptly warning the people of the correct path of typhoon “Basyang.” With the full amount gone, we will have to expect more devastating typhoons and droughts in the coming years. Thanks to Arroyo’s profligate spending that resulted in the huge P325-billion deficit.
Even Climate Commission Change Chairman Heherson Alvarez was dumbfounded to know that the French development assistance agency had released 150 million euros to the Philippine government. He said he came to know about the loan when representatives of the French agency asked him on June 23 what the Philippine government had been doing to mitigate effects of climate change.
As correctly pointed out by Malaya, the “hijacking” of the (P10.5 billion) 150 million euros loaned to the Philippines by the French government for climate change effect mitigation and spending it for other purposes is a national embarrassment. Indeed, which foreign government or international funding agency would entrust the Philippine government with any development assistance or loan?
Arroyo is leaving the country not just a legacy of a culture of impunity with regards to extra-judicial killings, but also impunity in illegally spending the people’s money.
On the other hand, the government of President Benigno S. Aquino III will have to find a way to cover Arroyo’s huge budget deficit, while at the same time finding ways to pay the huge foreign debts, such as the P10.5 billion owed the French government, and to explain the misappropriation of several of these debts.
Does Arroyo have any more surprises hidden in her closet for the already numb Filipino people?