France blacklists Phl over foreign aid fraud

MANILA, Philippines - France has blacklisted the Philippines and 16 other countries that do not help investigate foreign aid fraud, banning the use of their banks to help distribute development funds.

Malacañang yesterday said it would seek a clarification on the French government’s decision to include the Philippines in the blacklist.

“We’re trying to get more details on this particular report because, from the media reports that we picked up, it seems that we’re in the company of Switzerland and Brunei, among others,” deputy presidential spokesperson Abigail Valte said.

Aides to development minister Pascal Canfin were unable to say how much French foreign aid currently transits through banks in countries on the new blacklist.

The blacklist expands on an already-established register of eight “non-cooperative states and territories” including Botswana, Brunei, Nauru, Guatemala and the Philippines.

Other blacklisted countries are Switzerland, Lebanon, Panama, Costa Rica, the United Arab Emirates, Dominica, Liberia, Trinidad and Tobago, and Vanuatu.

The officials on Monday justified the move by saying there was a lack of transparency in the nations on the list, adding that poor and developing countries were often the main victims of fraud.

“The aim is primarily preventative, to put pressure on these countries by publicizing this list to progress toward more transparency,” they said.

The blacklist came on the heels of a damaging scandal involving Jerome Cahuzac, a former budget minister who was once in charge of fighting tax evasion but admitted to having a secret, foreign bank account after months of denial.

However, Valte said the blacklist was quite surprising since there were no warnings or early indication that France would make such a move against the Philippines.

“We’re trying to get a better handle on what it really is. I understand that we’re working with them (French government) on the finance side, on several initiatives, and it seems nothing of that sort was discussed,” she added.

Valte said Finance Secretary Cesar Purisima was getting more information on the blacklisting so the government could properly address it.

The Palace official said the Philippine government will try to get the factors considered for blacklisting.

“Some donations, particularly foreign aid, were not being given to the government,” Valte said.

She added that non-government organizations (NGOs) are also recipients of foreign aid.

“So we’d like to get first the factors considered before we respond to it,” she said.

Valte said she was not aware of the conditions or quid pro quo that comes with aid from France.

She said they would have to check the forms of assistance given, and if there were any demands or parameters that go with them.