Senate Minority Leader Aquilino Pimentel Jr. questioned the timing of the appointment of former presidential chief of staff Michael Defensor as chairman of the Philippine National Railways (PNR), saying it came at a time the government was considering an additional $299-million funding for the NorthRail Project. “Mike Defensor is very influential with President (Gloria Macapagal-Arroyo) and any government post is his for the asking,” Pimentel said in a statement on Monday.
“He knows too much about the wrongdoing of this administration. They could not afford to displease him,” he said.
Pimentel said it was not a “coincidence” that Defensor’s appointment came while the government was considering the demand of the China National Machinery and Equipment Corporation for additional funding.
It was Edgardo Pamintuan, acting president of the North Rail Corporation, who recommended to Malacañang that the CNMEC be allowed to charge the additional amount although the original $503 million project cost has already been considered overpriced.
Pimentel criticized this move, saying that agreeing to this additional funding would make the project the “costliest” railway in the world—a “very unflattering description for our cash-trapped government and poverty-stricken country.”
“What the Chinese contractor is demanding in terms of additional funding is too onerous. They have not yet even installed any part of the railway but they are already asking for extra funding,” he said.
Pimentel said Malacañang should explain why it rejected the recommendation by resigned NRC president Arsenio Bartolome to terminate the contract with the CNMEC after it unilaterally suspended the construction work on the railway project.
The suspension was allegedly against the agreement and could be a basis for the termination of the contract.