HOUSE Speaker Feliciano Belmonte Jr. on Tuesday supported a call to investigate the Peace Bond float in 2001 that allowed the non-government Code-NGO to earn P1.4 billion in commissions, but said Congress could not withhold the payment of P35 billion next year to redeem the bonds. “Rufus raised legitimate questions about the Peace Bonds,” Belmonte said, referring to Cagayan de Oro Rep. Rufus Rodriguez, who has filed a resolution seeking an investigation of the bond float.
He said the House committee on good government would likely pursue the investigation when Congress resumed its sessions next week.
In his resolution, Rodriguez asked why Code-NGO, which used to be led by Social Welfare Secretary Corazon Soliman, was allowed to earn a windfall commission for the float.
He urged Congress to withhold the payment of P35 billion next year to redeem the zero coupon bonds, which raised P10 billion for the government in 2001, until all doubts about the float were removed.
“For the sake of transparency and accountability, we want to find out where the money went and who benefited from the P10 billion and P1.4 billion that were made out of the deal,” Rodriquez said.
“The people have the right to know because they would be made to pay for the P35-billion allocation.”
House Deputy Speaker Jesus Crispin Remulla said he was particularly interested in how Code-NGO was able to do what it did.
“What Code-NGO got and their undue benefit is the issue,” he said.
But Valenzuela City Rep. Rex Gatchalian, spokesman of the 50-strong Nationalist People’s Coalition, said the House had no choice but to approve the Palace-proposed allocation of the P35- billion payment because it was listed as an automatic appropriation for debt service.
Sixto Donato Macasaet, Code-NGO executive director, said the P35 billion represented the 12.75-percent interest over 10 years and the principal of P10 billion.
“Zero bonds are valid financial instruments. We have to pay it as it was issued by the sovereign republic,” Remulla said.
“I don’t think we can withhold the P35-billion payment,” Belmonte said.
“Whatever the results of the probe, we have to approve the allocation of P35 billion” for the 10-year zero coupon bonds, which mature in October 2011.
“The intent of the probe was to prevent such deals from happening again if they only benefit one group at the expense of the rest of the taxpayers many years later after the deal was clinched,” Rodriquez said.
Manila Standard Today
