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South Korea scrapping P28-B loan? Gatchalian says it’s ‘embarrassing’
South Korean President Lee Jae-myung ordered an immediate halt to a P28.7 billion infrastructure loan project to the Philippines, citing potential corruption and taxpayer money waste.
The loan was intended for the construction of 350 bridges through South Korea's Economic Development Cooperation Fund (EDCF) and had not yet commenced, with no funds disbursed.
This action coincides with a corruption scandal in the Philippines involving contractors, officials, and lawmakers.
However, the Department of Finance (DOF) categorically denies the existence of any such loan agreement with South Korea.
Senator Sherwin Gatchalian described the supposed loan cancellation as "embarrassing" for the Philippines and warned of potential impacts on the country's infrastructure development.
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The Philippines is seeking funding from France for the P28-billion Rural Modular Bridge Project after halting discussions with South Korea.
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South Korean President Lee Jae-myung has halted proceedings for a multi-billion development loan for the Philippines' PBBM Rural Modular Bridge Project due to allegations of fraud and corruption.
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The Embassy of the Republic of Korea in the Philippines has clarified that the suspension of a feasibility study for an infrastructure project is an internal decision not linked to the Philippine government.
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