Palace to invoke secrecy on Northrail

MANILA, Philippines – Malacañang will not hesitate to again invoke “executive privilege” once the Senate investigates the Northrail project.

Deputy presidential spokesperson Lorelei Fajardo said the Senate is free to reopen its inquiry into the controversial project as a co-equal branch of government.

“However, the executive shall exercise its rights during the conduct of the hearings,” she said. “Public records are for public consumption while matters of executive privilege shall remain as such.”

The executive will exercise its right to protect the national interest, she added. The Supreme Court has ruled that there are some matters that the President cannot divulge to the public under the principle of executive privilege.

Fajardo said the administration will look into the allegations of overpricing in the project, which aims to link Metro Manila with the Clark Special Economic Zone via a train network.

“The President is committed to ensure the proper implementation of the project,” she said.

“Concerns on overpricing will be dealt with and the President shall not tolerate such things. We trust that said issues will be properly ventilated in the proposed hearings and the President shall act in accordance with their findings.”

‘Chinese bank holds money’

Edgardo Pamintuan, North Luzon Railways Corp. president and chief executive officer, told The STAR yesterday China Export and Import Bank (CEXIM) continues to hold the remainder of the loan given to the government for the North Rail project.

“Nasa kanila pa yung pera,” he said in an ambush interview when he accompanied President Arroyo in the distribution of the livelihood assistance packages yesterday.

The project contractor, China National Machinery and Equipment Group (CNMEG), is drawing the money from Cexim Bank, he added.

Earlier, Pamintuan belied allegations that $150 million has been withdrawn from the $403-million North Rail loan.

Only $120 million has been drawn and spent for sub-structure works, piling works, refining structures, soil stabilization in selected areas, embankment, temporary facilities, design, preliminary testing like soil boring which impact the railway design, he added.

Pamintuan said he is confident that the project will be completed by 2010 when Mrs. Arroyo ends her term.

“We only have two years and we will see to it that tracks will be laid down and trains rolling by then,” he said.

The North Rail project was designed to resurrect the abandoned Philippine National Railways tracks from Caloocan to Malolos, Bulacan then to Clark, and eventually to Northern Luzon.

It is being financed by the Chinese government through the Cexim Bank.

Documents showed that China has committed a $400-million loan for the project which was signed on Feb. 26, 2004.

Taking effect on Sept. 13, 2004, the loan, with original closing date on Sept. 13, 2009, matures in 20 years.

Documents also showed that actual physical start of the project was on April 12, 2005, and was supposed to be completed on October 31, 2007. — With Dino Balabo