An official of a foreign chamber of commerce has expressed hope that the government will be able to address issues regarding anomalies in infrastructure projects, noting that it has been affecting investors’ sentiment.
European Chamber of Commerce and Industry Executive Director Florian Gottein spoke on the sidelines of the Arangkada Philippines investment forum at the Marriott Manila in Pasay City, last September 25.
Gottein said that member-investors have been in a wait-and-see stance not only because of the infrastructure corruption scandal, but also because of red-tape issues that hinder ease of doing business in the country.
“But we trust in the government and the responsible government organizations to investigate and immediately act on the findings as well,” he said.
President Ferdinand R. Marcos Jr. signed Executive Order No. 94 on September 11, creating the Independent Commission for Infrastructure (ICI) as a fact-finding body mandated to investigate alleged corruption, irregularities, and misuse of funds in government flood control and related projects over the last 10 years.
The Senate is also conducting its own inquiry to dig deeper into the flood control projects in several parts of the country, particularly in the province of Bulacan.
Several Department of Public Works and Highways (DPWH) officials have been sacked as a result, and charges against several others, including contractors, are being readied.
A ranking DPWH-Bulacan official has returned several vehicles allegedly procured using funds acquired through the anomalous infrastructure projects, while several others have been ordered to explain their lavish lifestyles.
Several senators and at least two high-ranking members of Congress have also been implicated.
Gottein said the issue has been indirectly affecting some of their members who are involved in the production of construction materials.
“Because some of those projects that are being put on hold have already experienced a reduction in sales,” he said. He clarified that the companies are not directly involved in government projects.
The ECCP head added that although anomalies in these projects have raised concerns among investors, they are more worried about the ease of doing business in the country.
Asked if these issues would impact the country’s free trade agreement (FTA) negotiations with the European Union (EU), Gottein said this would depend on “how fast the government and the responsible agencies can dig into the matter, kind of investigate, and then set the next steps.”
“We also hope that we will see safeguards in place that will prevent similar situations from happening again in the future,” he added. (PNA)
