“There is significant meaning in preventing the unnecessary waste of 700 billion Korean won in taxpayer money and preemptively blocking risks that could lead to poor management and corruption,” President South Korea Lee Jae-myung said.
AS NEWS OF the South Korean president ordering a halt to the proceedings for a loan to fund a P28-billion project in the Philippines went viral, the Department of Finance (DOF) replied that “that no such loan exists.”
“As regards [to] the supposed P28 billion official development assistance (ODA) loan between South Korea and the Philippines, the Department of Finance categorically clarifies that no such loan exists,” the DOF said.
Also, the DOF explained that financing support for the P28 billion PBBM Rural Modular Bridge Project is being discussed with France and not South Korea.
“As part of standard practice, the Philippine government explores financing options with multiple development partners for key projects,” it said.
The DOF further said that the project was initially considered for funding through South Korea, but the Department of Agrarian Reform (DAR), said to be the project proponent, decided to stop discussions last year due to non-alignment on scope and other key technical specifications.
And in the last quarter of 2024, the government decided to look for other bilateral partners for the project.
“Hence, there is no existing loan for the said project with South Korea,” the DOF said.
“The government is now in advanced negotiations with the French Government to finalize the project’s technical and financial terms,” it added.
A FIRM STATEMENT FROM SOUTH KOREA
No less than the President South Korea Lee Jae-myung made the statement saying his government is suspending proceedings for the project. Also, the Philippine proposal was rejected by the South Korean Ministry of Strategy and Finance in April 2024 over governance concerns.
However, the proceedings for the project proposal was resumed under pressure from Representative Kwon Seong Dong and then-Minister Choi Sang Mok.
“President Lee Jae-myung stated on the 9th, regarding a report that a project denied government loan support due to concerns over poor management was resumed under pressure from People Power Party Representative KweonSeong-dong,” the Chosun Daily reported last September 9.
Lee also said he was thankful that no fund releases for the Philippine project were made, as this meant savings in billions of Korean Won.
“What is most fortunate is that the project has not yet commenced, meaning funds such as the Economic Development Cooperation Fund (EDCF) support have not been expended,” he said.
“There is significant meaning in preventing the unnecessary waste of 700 billion Korean won in taxpayer money and preemptively blocking risks that could lead to poor management and corruption,” Lee added.
The South Korean president also credited the media for helping check corruption and allowing his countrymen to know the truth on the issue.
“The media serves as a watchdog of power and a salt that prevents societal corruption, playing a pivotal role in building a fair world. I deeply appreciate the media’s courage and efforts in widely revealing the truth through this investigative report and ensuring the public’s right to know,” he said.
