The Department of Finance (DoF) on Wednesday categorically denied the existence of a P28-billion loan from South Korea to fund hundreds of bridges in the Philippines.
The DoF issued the statement after South Korea’s President Lee Jae Myung on Tuesday ordered the suspension of the proposed 700-billion Korean won (around P28 billion) loan to the Philippines due to concerns over corruption.
“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.
The Philippine government will continue to uphold transparency and accountability in ODA-funded projects, it said.
“Nevertheless, we reaffirm to our bilateral partners that the Philippine government will match their trust and confidence with full transparency and accountability,” the DoF said.
In a Facebook post, Mr. Lee said he ordered the proposed loan for a Philippine bridges project, which has yet to start, to be immediately halted due to its potential for corruption.
“Most fortunately, because the project had not yet commenced, no funds, including support from the Economic Development Cooperation Fund (EDCF), were spent. This is significant in that it prevented the unnecessary waste of a staggering 700 billion won in taxpayer money and preemptively prevented the risk of corruption and mismanagement,” he said.
Mr. Lee made the statement after the South Korean news publication Hankyoreh reported that the proposed Philippine loan was being revived despite earlier concerns of corruption.
Hankyoreh reported the Philippine Department of Finance in November 2023 requested a loan from the EDCF to build 300 modular bridges around the country.
The news report noted that the South Korea’s Ministry of Finance officially notified the Philippine government in April 2024 that it will not support the project due to possible corruption and mismanagement.
Despite this, the project was revived recently after lobbying by certain officials, Hankyoreh reported.
Mr. Lee had praised the South Korea media’s crucial role as a watchdog to prevent corruption.
“I express my deepest gratitude to the media for their courage and effort in widely revealing the truth and guaranteeing the public’s right to know through this investigative reporting,” he said. — Cathy Rose A. Garcia
