"Who will benefit from these transactions?"
The administration has been persistent in its assurance that vaccines will soon be available in the country. While we hear of the government’s efforts to procure vaccines from different manufacturers, the uncertainty of its arrival amid the surge of COVID-19 cases rouses the curiosity of many as to where the money for the vaccines have gone.
At present, according to Finance Secretary Carlos Dominguez, the allocation for the procurement of the COVID-19 vaccines is P82.5 billion, with Php 2.5 billion sourced from the 2021 budget for Department of Health, P10 billion from Bayanihan to Recover As One Act (Bayanihan 2), while the bulk amounting to P58.4 billion will be coming from foreign loans, and P11.6 billion from additional Official Development Assistance. The Department of Finance clarified that the amount of the total foreign loans secured by the government will not be used solely for vaccines, but will also be allocated to other projects such as the procurement of personal protective equipment, improvement of the health care system, logistics, and waste disposal.
The President assured us that the money remains corruption-free. The funds from the loans are reportedly still in the lending banks. Secretary Dominguez explained that they opted not to hold the money so as not to incur interests yet.
In loan agreements, there are usually two parties. One who needs the money, and the other who has the money and who may, at the same time, also make money. This scenario is not new to us since most loan agreements charge interest. Now, the loaned amount is said to remain in the banks, and the banks will be the ones to pay the manufacturers directly. Looking at it from the outside, it seems to make more sense to let the banks transact directly with the manufacturers. However, there may be parties, other than the lender, who may also possibly make money in these loan agreements.
While the current scenario seems to point to banks as the direct beneficiaries of the accumulated interest from the money in deposit, let us be wary of the possibility of third parties unjustly benefiting from these financial gains. This applies to all aspects and transactions by the government apart from the purchase of vaccines. The longer the money stays with the banks, the more money they can make.
We are in a pandemic. Our priority should be to make the vaccines available as soon as possible, and inoculate as many qualified Filipinos as possible, starting with our health care workers. This crisis has been a test of character and strength. It demands from us utmost integrity as we continue to serve the Filipinos amidst the challenges of this pandemic. We are all on the same boat. Let us help one another keep it afloat until the tides of the pandemic have turned.
