Let us denounce the P7.5 billion sovereign guarantee in LRT contract

10 Sep

The Riles Laan sa Sambayanan (RILES) Network strongly condemns the recently-uncovered P7.5 billion sovereign guarantee that the Aquino government plans to pay the Pangilinan-Ayala consortium Light Rail Manila Corporation.

We are calling on the public to condemn this most unconscionable use of public funds sourced from the taxes of all Filipinos. The sovereign guarantee will benefit a few big capitalists at the expense of the Filipino taxpayer.

RILESguarantee

The huge amount is unfair to the Filipino people who will shoulder the said cost. It is a clear evidence of the Aquino government’s collusion with big capitalists. The Aquino government willingly entered into a 32-year contract that’s onerous to Filipinos and one-sidedly favors big capitalists.

We find it revolting that while LRMC can pay only P935 million in concession fee at the start of the contract, the government has the obligation to pay penalties to the consortium should it fail to deliver on the contents of the agreement.

We are also aghast that the Aquino government alloted P30 billion to its so-called Risk Management Program Fund. This fund is nothing less than government subsidy for the profits of big capitalists under its Private-Public Partnership program.

Here we see one of the reasons why Filipinos suffer from heavy traffic. The Aquino government treats mass transportation as an opportunity for big capitalists to amass huge profits, not as a social service that should be provided to the Filipino people.###

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