Almanza: Floodgate probes rebuilding investor confidence

Ongoing investigations into the floodgate scandal are a positive signal for rebuilding investor confidence, according to National Treasurer Sharon P. Almanza.

In an ambush interview on Thursday, Almanza said the probes being conducted by the Independent Commission for Infrastructure (ICI) and the Senate Blue Ribbon Committee are key steps toward restoring investor confidence, a crucial element in revitalizing the economy.

“I think the [investigations have] been progressing, so we’re really hoping that [they] will address some of the concerns of our investors,” said Almanza, adding that she hopes the hearings will show investors that “the system is working.”

Almanza also urged that those implicated in the anomalous flood control projects be held accountable. “Hopefully those that are really part of the scandal will be in jail soon,” she added.

Despite the economic downturn brought about by alleged widespread government corruption, Almanza said demand for government securities (GS) remains strong.

“The GS market is rallying,” she said. “We haven’t seen any widening of our spread.”

Her remarks came after the Bureau of the Treasury released its latest cash operations report, showing the national government posted a fiscal deficit of P1.11 trillion, a figure the BTr says remains aligned with the administration’s full-year fiscal consolidation plan.

The ICI and the Senate Blue Ribbon Committee are currently investigating alleged widespread corruption within government ranks. Several high-profile officials, including President Ferdinand R. Marcos Jr., have been implicated in the scandal, which contributed to the steep drop in third-quarter GDP growth to 4 percent.