The current flood control corruption scandal gripping the nation will pull down other countries’ level of interest in investing in the Philippines, Philippine Ambassador to Washington Jose Manuel “Babe” Romualdez.

This admission came during a media interview about the trade relationship between the Philippines and the United States as the former continues to negotiate for lowered tariff rates.

“All I can say is any kind of publicity like this is never going to be good for the Philippines. Any kind of large scale corruption in any country will always bring down the level of interest,” he said on Tuesday, Sept. 9.

“You know, I've always said this, and I will continue to say, we should really resolve many of the domestic issues that we have. It needs to be done, but we can actually lose a country if we don't take care of what we need to do,” he warned.

While he did not elaborate, the envoy underscored the need to “manage” the current issues and “not really make this as the main issue that we face in this country” because “this is nothing compared to the problems we face outside.”

Romualdez said that as these scandals can impact the country’s economy, “it’s important… to solve these problems.”

His remarks came a day before the announcement of South Korean President Lee Jae-myung on Facebook that the country is halting the implementation of a 700-billion won (P28.7 billion) infrastructure loan to the Philippines, citing its “potential for corruption.”

The loan, which falls under Seoul’s Economic Development Cooperation Fund (EDCF), was reportedly meant for President Marcos’ program to build some 350 modular bridges in rural areas nationwide, Korea’s center-left daily The Hankyoreh said in a report.

“The project, which was deemed a substandard project with potential for corruption, was immediately ordered to cease proceedings,” a translation of Lee’s post read.

The anomalous flood control projects—worth billions of pesos—have prompted investigations by the Senate and House of Representatives, including the formation of an independent investigative commission, to look into the collusion between contractors and politicians and government officials.

Meanwhile, Romualdez expressed confidence that there will be more US investments coming into the country, particularly after the announcement of US State Secretary Marco Rubio of a financial assistance package for the development of the Luzon Economic Corridor.

“On the economic front, there is a lot of movement in that sector, and I think that we will be able to see more of these types of investments, coming not only from the private sector in the United States, but also from the United States government,” he said.

Noting that the funding for the Luzon Economic Corridor is a “very big investment,” the envoy pointed out that this move will also “attract more investment from other countries.”

“So, all in all, I think our relationship over the past eight years has been very good,” he added.

Romualdez shared that they are currently waiting for the Trump administration’s response to a letter they sent about possible tariff exemptions on several Philippine products, including those from the agriculture and semiconductor industries.

This came amid the 19 percent tariff rate—up from 17 percent—that the United States imposed on Philippine goods entering the US. The rate is one of the lowest imposed by Washington.

While he admitted that there were “quite a number of challenges” between the Philippines and the US, the relationship between Marcos and Trump has evolved and became stronger.

Marcos will be in the United States once more for the United Nations General Assembly after an earlier trip there upon the invitation of Trump himself.

“And so I see it that the future of our relationship will continue to be strong and very much stable and sustainable,” Romualdez stressed, adding that Marcos also invited Trump to attend the Association of Southeast Asian Nations (ASEAN) Summit in Manila next year.