MCA-P vows judicious use of $434-million US grant

MANILA, Philippines - The Millennium Challenge Account-Philippines (MCA-P), the entity tasked to manage the multi-million grant from the United States, yesterday gave assurance that the assistance given to the country would be used properly.

MCA-P admitted that ensuring the judicious use of the $434-million US grant is “a herculean task” as foreign aid use in the Philippines has been examined closely by various groups.

“Foreign aid use in the Philippines has been the subject of close scrutiny by, among others, Congress and civil society because of allegations of fraud and irregularities by previous administrations,” MCA-P said in a statement.

“As a result, either huge foreign-assisted projects were suspended by the Philippine government or foreign donors have shelved their assistance, both to the detriment of target beneficiaries,” it added.

MCA-P managing director and chief executive officer Ma. Victoria Añonuevo, nevertheless, is optimistic that the grant would be used properly under the current leadership.

“We will make it right. We have all the elements to make it right this time. We have our national leaders who have the commitment, integrity and honesty to do the projects on time,” Añonuevo said.

“We have the support of the local government leaders and civil society organizations in ensuring that the projects are implemented transparently and graft-free,” she added.

Añonuevo said she found commitment and integrity in the heads of the state agencies that would benefit from the projects to be funded by the grant.

The MCC grant would bankroll projects of the Department of Social Welfare and Development (DSWD), Department of Public Works and Highways (DPWH), and the Department of Finance (DOF). 

Añonuevo said DSWD Secretary Corazon Soliman, DPWH Secretary Rogelio Singson and DOF Secretary Cesar Purisima have been praised in various occasions by President Aquino for their leadership.  

The grant will support three projects namely the $54.3-million Revenue Administration Reform Project, which seeks to increase the efficiency of collection agencies while reducing corruption; the $214.4-million Secondary National Roads Project, which would involve the construction of a 220-kilometer Samar Road to improve access to markets and services; and the $120-million Comprehensive and Integrated Delivery of Social Services, which consists of projects that will benefit five million people over the next 20 years.

Añonuevo claimed that civil society groups are also supportive of their efforts to ensure transparency in the use of the multi-million grant.

 “CSOs (civil society organizations) and NGOs (non-government organizations) have their eyes and ears in our board and in the grounds so people can rest assured that our projects will be transparent and everything will be above board,” she said.

Añonuevo said among the civil society groups helping them in these efforts is the Samar Partnership for Peace and Development led by Fr. Cesar Aculan.

The MCA-P and its partners have signed an Integrity Pledge as a commitment to ethical business practices and good corporate governance, Añonuevo added.

The MCC is a US government company formed to support developing countries that promote good governance. It assesses countries’ eligibility to secure assistance through indicators such as “ruling justly,” ”investing in people,” and “encouraging economic freedom.”

The MCC bases its assessments on third party information from groups like the World Bank, United Nations, World Health Organization, International Monetary Fund and civil society groups like Heritage Foundation and Freedom House. 

In 2008, MCC tagged the Philippines as eligible to apply for assistance due to its supposed gains in fighting corruption. The MCC approved the Philippine’s application for assistance in August 2010.

A month later, Philippine officials led by Aquino received from MCC a $434-million grant intended to support programs that will fight poverty and promote economic development.

The signing of the multi-million grant coincided with Mr. Aquino’s week-long visit to the United States, his first overseas trip since he assumed the presidency.

Show comments