MILLENNIUM CHALLENGE CORP. GRANT IS FREE

The Millennium Challenge Corporation (MCC) grant to the Philippines is free and not a loan package from the United States.

Finance Secretary Margarito Teves stressed this as he clarified reports circulated after the announcement of the MCC Board on March 11 on the selection of the Philippines as "Compact Eligible," that the grant is another US loan to the country.

"The MCC grant is free, libre, and not a loan. The grant is not in a form of cash but in form of projects or programs," Teves said at the taping today of "The Cabinet Speaks" at the New Executive Building (NEB) Briefing Room hosted by Press Undersecretary Martin Crisostomo and co-hosted by Radyo ng Bayan (RNB) senior reporter Marie Pena Ruiz.

Teves, who is also the chairman of the MCC grant proposal team earlier created by President Gloria Macapagal-Arroyo, said a group from the MCC based in Washington, D.C. is scheduled to visit the country next month or early May to check the project proposal of the Philippine government for funding under the MCC assistance program.

The MCC announced on March 11, 2008 that the MCC Board has selected the Philippines as "Compact Eligible."

Teves said the MCC grant proposal team is now consulting with different government agencies, citizens, non-government organizations (NGOs) and private sector representatives to pinpoint priority projects that would be submitted to the MCC for a grant proposal for a five-year program to reduce poverty through sustainable growth.

Teves said that once the proposed project is finalized by the different sectors of society, they will submit it to the President for approval and later on it will be forwarded to the MCC.

He also assured the public that even though the grant has been approved by the MCC, the Philippine government would continue to implement and improve its measures on anti-corruption campaign.

"Our role is to comply with our commitment to improve our fight against corruption," Teves added.

When asked on how the Filipinos can benefit from that particular MCC assistance, Teves said the money collected from the ongoing programs such as Run After Tax Evaders (RATES), Run After The Smugglers (RATS), and Revenue Integration Protection Service (RIPS) will be diverted into social, infrastructures and health services projects.

Teves said the Department of Finance (DOF) has achieved a lot of success in its work to combat corruption and improve revenue collection through the RATE, RATS, and RIPS programs.

Aside from these, the Office of the Ombudsman has also contributed a
lot in its campaign against erring and corrupt officials while the Department of Budget and Management (DBM) raised as a world-class model its project on the government's procurement reform program.  - END -