BCDA in 'fake joint venture' with Malaysia firm for SEA Games venue —Hontiveros

The Malaysian partner of the Bases Conversion and Development Authority in the P9.5-billion joint venture deal for the construction of venues for the 2019 SEA Games did not spend any capital for the project, Senator Risa Hontiveros said on Tuesday.

In a privilege speech, Hontiveros said the project was funded by a loan taken out by MTD Capital Berhad from the Development Bank of the Philippines only a month after BCDA and the Malaysian firm inked their joint venture deal for the facilities.

Hontiveros added that the BCDA then used taxpayers' money to pay for MTD's loan.

"Ang ambag ng BCDA para sa joint venture ay ang lupang gagamitin para sa proyekto. Ang ambag naman dapat ng MTD Berhad ay ang kapital. P8.5 bilyon ang dapat ay ilalabas ng MTD Berhad para sa construction ng proyekto," Hontiveros said.

"Subalit, ayon sa aming pagsasaliksik, mukhang hindi sa kanila nanggaling ang pera," she added.

"Ang pera ay galing sa Development Bank of the Philippines, na siyang nagpa-utang ng P9.5 bilyon sa MTD Berhad. Wala na ngang cash-in ang MTD Berhad, dinagdagan pa ng isang bilyong piso ang proposal nila," Hontiveros said.

"Kinuha ng BCDA sa bulsa taumbayan ang pambayad sa mga Malaysian developer. Kung susuriin ang 2019 budget, binigyan ng DBM ang BCDA ng P9.54 bilyong piso para bayaran ang utang ng MTD Berhad," she added.

Hontiveros asked if the government entered into the BCDA-MTD joint venture to skirt public bidding requirements.

"What is this supposed joint venture for?" Hontiveros said.

"When BCDA paid the amount to MTD using public funds appropriated in the 2019 national budget? Punung-puno ito ng bahid ng pagiging pekeng joint venture," she added.

The BCDA has stressed that the Office of the Government Corporate Counsel, in its Opinion No. 182, s. 2018, confirmed that the provisions of the joint venture with the Malaysian firm are in compliance with existing laws.

But Hontiveros pointed out that such was not the initial opinion of the OGCC.

"Habang nangyayari ang lahat ng ito, pinalitan ang hepe ng OGCC, at biglang binawi ang una nilang opinion. Para sa bagong head ng OGCC, above board transaksyong ito, taliwas sa dating sinabi ng opisina," Hontiveros said.

Hontiveros pointed out that MTD Berhad's loan had been swiftly processed, saying it could be considered a "behest loan."

"February 2018 nang pirmahan ang joint venture, and by March 21, may P9.5 billion pesos na sila. That’s very fast. Bakit kaya hindi ito magawa para sa ibang proyekto ng gobyerno? Hindi kaya naglabas agad ng loan ang DBP dahil nilakad ng BCDA?" Hontiveris asked.

The senator stressed that the P9.5 billion used for the sports facilities whom she feared could become a "white elephant," could have been used for COVID-19 response and recovery efforts for victims of super typhoon Rolly.

Hontiveros has sought a Senate investigation on the loan obtained by MTD Capital Berhad from the DBP by filing Senate Resolution No. 567.

In a statement, the BCDA maintained that its joint venture agreement with the Malaysian firm for the construction of the New Clark City sports facilities was above board.

"There was no undue advantage accorded to MTD Capital Berhad as its unsolicited proposal underwent a rigorous negotiation process and a Competitive Challenge," the BCDA said.

"The joint venture agreement between BCDA and MTD passed the scrutiny of applicable Philippine laws, rules and regulations," it added.

'World-class facilities'

Senator Pia Cayetano defended the BCDA and its president Vince Dizon, saying the agency managed to build 'world-class facilities' for the 2019 games.

"I do not have the details, wala akong hawak na papel but I have to stand up for BCDA, for the architects, for the engineers, for every single construction worker that worked overtime!" a visibly irate Cayetano said.

"I am embarrassed that we choose to make a political issue out of a world-class facility," she added.

"Kaya tuloy wala nang mag-aabalang magpatayo ng matino at kahanga-hangang infrastructure dito sa Pilipinas dahil magpatayo ka lang ng maganda ay sasabihin na may kalokohan ka," Cayetano said.

"Eh, ano, puro bulok na lang tayo para walang pumansin? Ganoon?" she added.

Cayetano claimed Dizon is one of the highly respected people in the government.

"He was pulled in to assist the IATF with the testing, capacity building, putting up quarantine centers," Cayetano said of Dizon, who had been tapped to oversee COVID-19 testing.

"Hindi mag-aabala si Vince Dizon na mag-cut short lang ng corners para lang batikusin nang ganito. Ginawa niya 'yun para mapatayuan ng maipagmamalki namang stadium ang Pilipinas," she added.

Hontiveros, in response, said that she used the Senate floor hold people to account, not to besmirch the projects of the government nor the sacrifices of the Filipino athletes. -NB/RSJ, GMA News