Two senators on Wednesday filed a resolution calling for a debt audit and inquiry, in aid of legislation, on the foreign loans contracted by the country.
Senate Resolution No. 253, authored by Senate President Aquilino Pimentel III and Akbayan Senator Risa Hontiveros, called for a comprehensive debt audit to verify whether the loan agreements the Philippines has entered into are legitimate.
The resolution also aimed to enact measures that will ensure the prudent and proper use of foreign loans.
“I am happy that we found an ally in no less than Senate President Pimentel in the crucial first step to free the nation’s coffers from illegitimate debts and/or loan agreements riddled with questionable processes, contractual obligations, purposes and use,” Hontiveros said.
“Carrying out a legislative audit of public debt could lead to the repudiation of the illegitimate part of the country’s debt and free funds to augment the government’s social spending and guide us in reformulating our policies based on the principles of the United Nations Conference on Trade and Development,” she added.
The senators said that it is the duty of the government to verify whether the country’s loan agreements entered into with different international financial institutions were in accordance with the principles on promoting responsible sovereign lending and borrowing.
Hontiveros underscored the need to conduct a debt audit first before the country joins other international financial institutions, including the China-led Asian Infrastructure and Investment Bank.
She said in the 2016 national budget alone, P214.5 billon has been allocated for debt servicing.
Earlier, the Freedom from Debt Coalition scored former President Benigno Aquino III for being the “biggest loan addict” among leaders since 1986.
“He was a total failure in addressing the Philippines’ entrapment in a cycle of debt dependence,” FDC said, adding that Aquino left his successor with P6.4 trillion ($134.46 billion) in national government outstanding debt, of which P4.16 trillion ($87.39 billion) were borrowings made during his term.
