De Lima files bill ensuring transparency, accountability on all gov't borrowings
By AJ Siytangco
Published Feb 17, 2018 11:35 am
By Mario Casayuran
Detained Sen. Leila de Lima has filed a bill seeking the establishment of a “Comprehensive Debt Management System’’ that ensures transparency and accountability on all government borrowings in order to save the country from a debt trap.
Senate Bill 1675 that de Lima filed mandates Congress to exercise its oversight powers to scrutinize all foreign and domestic borrowings negotiated, contracted, or guaranteed by President Duterte.
Senator Leila de Lima (REUTERS/Romeo Ranoco / MANILA BULLETIN)
De Lima, a member of the Senate minority bloc, said: “It behooves us to remember that it is unlikely that any administration goes into a borrowing spree with the intent to fall into a debt trap.”
“Therefore, assurances aside, there remains a need to institute reforms and safeguard to avoid a recurrence of the Marcos era ‘death trap,’” she added.
Under Senate Bill 1675, to be known as the Comprehensive Government Debt Management Reform Act, the State shall pursue a Comprehensive Debt Management System that will “holistically manage all
government borrowings through a unified government debt management policy.”
De Lima explained that the debt management policy should be “characterized by a stable and consistent long-, medium- and short-term debt management and planning” and be able to “recognize the common pitfalls of poor government debt management,” among others.
“The foregoing problematic aspects of public debt exposes the country and its people to the risk of imprudent debt accumulation,” she said.
De Lima noted the need for a holistic debt management system is made even more urgent in light of the current administration’s push for a “golden age of infrastructure,” which is expected to push the government’s debt level to even longer debt servicing timeframes.
She said there is a need to make sure that the government’s spending and debt management policies match the country’s macroeconomic, social and other overall policies.
De Lima cited reports that the present Duterte administration plans to roll out more than P8 trillion in public infrastructure projects from 2018 to 2022 funded mostly by foreign loans and overseas development assistance (ODA).
She also underscored the need for a Congressional oversight committee on debt management to ascertain if the President’s borrowings are done for the best interest of the country and its people.
It is also part of the mandate of the committee to review all existing laws, and implementing rules and regulations, and executive issuances relating to foreign and domestic borrowings.
“The committee is empowered to require all government agencies concerned, including the Office of the President, to submit all pertinent information and data on foreign and domestic borrowings; Provided, however, that information or data that are privileged shall be furnished the committee only in executive session,” she said.
Senator Leila de Lima (REUTERS/Romeo Ranoco / MANILA BULLETIN)
De Lima, a member of the Senate minority bloc, said: “It behooves us to remember that it is unlikely that any administration goes into a borrowing spree with the intent to fall into a debt trap.”
“Therefore, assurances aside, there remains a need to institute reforms and safeguard to avoid a recurrence of the Marcos era ‘death trap,’” she added.
Under Senate Bill 1675, to be known as the Comprehensive Government Debt Management Reform Act, the State shall pursue a Comprehensive Debt Management System that will “holistically manage all
government borrowings through a unified government debt management policy.”
De Lima explained that the debt management policy should be “characterized by a stable and consistent long-, medium- and short-term debt management and planning” and be able to “recognize the common pitfalls of poor government debt management,” among others.
“The foregoing problematic aspects of public debt exposes the country and its people to the risk of imprudent debt accumulation,” she said.
De Lima noted the need for a holistic debt management system is made even more urgent in light of the current administration’s push for a “golden age of infrastructure,” which is expected to push the government’s debt level to even longer debt servicing timeframes.
She said there is a need to make sure that the government’s spending and debt management policies match the country’s macroeconomic, social and other overall policies.
De Lima cited reports that the present Duterte administration plans to roll out more than P8 trillion in public infrastructure projects from 2018 to 2022 funded mostly by foreign loans and overseas development assistance (ODA).
She also underscored the need for a Congressional oversight committee on debt management to ascertain if the President’s borrowings are done for the best interest of the country and its people.
It is also part of the mandate of the committee to review all existing laws, and implementing rules and regulations, and executive issuances relating to foreign and domestic borrowings.
“The committee is empowered to require all government agencies concerned, including the Office of the President, to submit all pertinent information and data on foreign and domestic borrowings; Provided, however, that information or data that are privileged shall be furnished the committee only in executive session,” she said.