MANILA – CIBAC Party-List Representative Bro. Eddie Villanueva has called for a congressional inquiry into the billions of pesos paid in commitment fees for unused foreign loans, citing the need for stricter oversight and better fiscal discipline.

Villanueva introduced House Resolution No. 2215, calling for an investigation into the delays affecting government projects financed by foreign loans. These delays lead to commitment fees—charges applied to undisbursed loan amounts—forcing the government to pay interest and fees on funds left idle due to project setbacks.

According to reports from the National Economic and Development Authority (NEDA), the country has paid approximately $48.9 million (around ₱2.6 billion) in commitment fees between 2014 and 2023 for over 40 foreign-funded projects across various government agencies.

The Commission on Audit (COA) has verified that these significant fees result from inefficiencies in utilizing borrowed funds.

“Essentially, we are wasting billions of pesos on loans that remain unused. This is a painful irony considering that millions of Filipinos lack access to quality public services. Ang masakit dito, nagbabayad tayo para sa perang inutang na hindi natin nagagamit,” Villanueva said.

With the Philippine national debt now exceeding ₱16 trillion, the lawmaker stressed the urgency of reviewing policies on foreign loan procurement and project implementation. He emphasized the need to identify the causes of delays, introduce safeguards against unnecessary financial liabilities, and ensure the responsible use of public funds.

“It is unjust for the Filipinos to still pay for inefficiencies and mismanagement in foreign loans. Our people deserve nothing less than transparent, accountable, and effective stewardship of public funds. Every peso that can be saved from commitment fees can be redirected to funding pressing needs such as healthcare, education, and social services,” he added.

📷 CIBAC