SOUTH Korean President Lee Jae-Myung has ordered the suspension of a ₩700-billion (P28.7-billion) project loan to the Philippines, citing risks of corruption and fraud.
In a Facebook post, Lee confirmed he directed the halt of the proceedings for a project “identified as fraudulent,” stressing the move was meant to safeguard taxpayers’ money.
“The most fortunate thing is that the [project] has not yet been completed, so expenses such as supporting the Foreign Economic Cooperation Fund have not been spent,” Lee wrote in Korean.
The South Korean daily The Hankyoreh reported that the loan, coursed through Seoul’s Economic Development Cooperation Fund (EDCF), was intended to finance around 350 modular bridges in rural areas.
Despite being previously flagged as a “poorly performing project,” its implementation had resumed before Lee’s suspension order.
The decision comes as the Philippine government conducts probes into alleged anomalies in its flood control projects.
However, the Philippine Department of Finance (DOF) denied the existence of such a loan agreement.
“With regard to the supposed PHP 28 billion official development assistance (ODA) loan between South Korea and the Philippines, the Department of Finance categorically clarifies that no such loan exists,” the DOF said in a statement.