Zubiri to Erap: No behest loans, please, for PAL

The Philippine Star
Tuesday, December 22, 1998
Jess Diaz

No behest loans, please.

This was the appeal opposition Rep. Juan Miguel Zubiri (Lakas, Bukidnon) made to President Estrada yesterday in reaction to report that loans from Japan’s Miyazawa fund will be used to prop up ailing Philippine Airlines.

Zubiri said beer and cigarette tycoon Lucio Tan, who controls PAL, and other businessmen close to the Estrada administration should not benefit from cheap loans from the Japan-ASEAN rehabilitation fund.

“If they are the beneficiaries to these cheap loans, the administration will be no different from the Marcos regime which gave billions of dollars in behest loans to its cronies,” he said.

It will also give credence to the growing perception about the return of crony capitalism under Mr. Estrada, he added.

Zubiri suggested that “what Malacañang should prioritize is the extension of soft loans to millions of farmers who are barely hanging in there.”

“Let us rehabilitate our agricultural sector, which has been hard-hit by the economic crisis, and not grant loans to a favored, lucky few,” he said.

Meanwhile, Zubiri disclosed that upon the prodding of the House, the National Food Authority (NFA) has sought an additional P3 billion from Malacañang for its corn and palay buying operations.

He said he was informed of the funding request by NFA Administrator Eduardo Joson, a former Nueva Ecija congressman.

In a privilege speech, the Bukidnon solon impressed upon his colleagues the need for the NFA to buy the farmer’s corn produce, which he said was rotting in warehouses and in the field because no one was buying.

He lamented that while there was ample corn in Mindanao and other corn-producing areas, the administration has allowed 300,000 metric tons of imported corn to be brought in.

The House has passed separate resolutions urging the NFA to intensify its corn and palay buying operations and to increase its buying price.

Minority Leader Feliciano Belmonte Jr. suggested that in addition to funds the NFA can get from the President, the agency could use profits earned from rice importation.

Since last year, the NFA has imported more than one million metric tons of rice.@