Lawmakers caution gov’t on China-backed projects, debt trap

The Duterte administration is being urged by several lawmakers to take its cue from Malaysia’s decision to withdraw from China-sponsored projects, saying it should prevent the Philippines from falling into a debt trap.

Sen. Leila de Lima, who chairs the Senate committee on social justice, welfare and rural development, said the government should be wary of these suspicious Chinese loans and look at the long-term repercussions of all the planned infrastructure projects and investments into the country that are funded by China.

“The Philippine government must take its cue from Prime Minister Mahathir who decided to cancel three China-backed projects amounting to US$22-billion to avoid his country from falling into a debt trap,” de Lima said in her latest statement.

“We need to take heed before it’s too late,” the detained senator stressed.

Malaysian Prime Minister Mahathir Mohamad earlier confirmed that three China-backed projects would be cancelled until Malaysia can find a way to pay its debts.

The projects include a railway connecting Malaysia’s east coast to southern Thailand and Kuala Lumpur, and two gas pipelines.

De Lima emphasized that entering into loan agreements, especially those that are not obtained through competitive procurement, “can put not only our country in dire debt and cripple our economy, but also undermine our sovereignty and national security.”

Sen. Joseph Victor “JV” Ejercito echoed de Lima’s sentiments, saying that from the start, he is already apprehensive on China being friendly and offering its assistance to the Philippine government to finance and undertake big infrastructure projects.

“For sure it will have strings attached. And knowing China, it will come at a heavy price too.” Ejercito said when also sought for comment.

“It is business for them and I don’t think they are really sincere to help,” he said.

Ejercito also frowned at China’s continuous efforts to build military infrastructure on disputed islands in the West Philippine Sea.

“Ginigisa tayo sa sariling mantika. Friendly kunwari pero inaagaw naman ang territoryo ng Pilipinas,” he said.

“I would trust Japan more than China. There is sincerity in their offer of assistance,” Ejercito further said.

Resolutions have been filed at the Senate seeking an inquiry into the various investment deals entered into by the Duterte administration with China.