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NEWS RELEASE
15 July 2008
For Reference: REP. LIZA LARGOZA MAZA 0920-9134540
Jang Monte (Public Information Officer) 0917-4049119
NORTHRAIL PROJECT IS A BURDEN TO THE PEOPLE -MAZA
Gabriela Women's Party Representative Liza Maza today called for the
immediate termination of the Northrail contract saying that the issues
now being raised by the China National Machinery and Equipment Corp.
Group (CNMEG), as well as price adjustments amounting to over US$ 299M
corroborate allegations of bribes and anomalies that have hounded the
US$ 503M Northrail Project.
According to the Gabriela solon, "The termination of the Northrail
contract and the prosecution of those involved are long overdue. The
Arroyo government has already wasted millions in taxpayers' money and
should not be given the opportunity to waste even more."
Reports reveal that since January 2005, it has reportedly been paying
about $400,000 in monthly interest. The government has allegedly drawn
USD$105 M of the loan in 2004. Moreover, with the price adjustments,
the total cost of the project would now amount to at least US$ 802M.
"Why the government insists on carrying on with the project despite
its already huge and rising cost is in itself dubious and
questionable, " Maza further said.
The Northrail Project, a deal financed by a disadvantageous loan of
around US$ 503M from the Export-Import Bank of China and awarded to
Chinese contractors, was overpriced and allegedly involved some US$
50-100 M in commissions and kickbacks to high-ranking government
officials. "These allegations that surrounded the Northrail project
from the very beginning have yet to be resolved."
"This project is a burden to the people. The $400,000 monthly interest
that the government is now compelled to pay can be used for subsidies
and other projects for the poor and marginalized. Terminate this
project now so we can be spared from the burden of paying for the
kickbacks and anomalies that have long surrounded this project." sais
Maza.
"Moreover, we believe that the reason why the Arroyo government
insists on collecting the 12% VAT, is because of its commitment to pay
these overpriced and anomalous ODA loans such as the northral project."
Research conducted by the partylist group meanwhile reveal that US
$50-100 M commissions fromt he Northrail project could have produced
4,000 classrooms or 3,636 houses or it could have treated 2,000 women
with breast cancer at P1M per treatment.#
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