Deputy Minority Leader and Marikina Rep. Bayani Fernando urged the government to pay its obligation to suppliers and contractors to keep the production going and stave off closure.
Fernando said in 2019, 10 government agencies including the Department of Public Works and Highways, Department of Transportation and the Department of Education have standing obligations worth P127.9 billion for goods and services rendered to them based on Commission on Audit reports.
“They also withheld P53.2-B in guaranty/security deposits. I am sure these amounts will balloon once their liabilities for year 2020 are posted,” said Fernando.
The guaranty/security deposits payable of the government agencies represent the 10 percent retention fee withheld from progress billing payments to suppliers and contractors.
Fernando said the government failure to pay adds to the sufferings of the business sector that was affected by the lockdowns and minimal economic activity.
“The business sector has a big role to play to revive the economy. But if their resources are held by the government, they have no choice but to resort to lay-offs or to close their businesses. In fact, according to our labor department, 420,000 Filipinos lost their jobs in 2020. More lay-offs are bound to happen if the government will continue with its non-payment,” Fernando explained.
Fernando said the government has money to spend under the 2020 and 2021 national budgets amounting to P4.1 trillion and 4.506 trillion respectively.
Source: Latest Politics News Today (Politics.com.ph)
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