The optics of a key partner pulling back over corruption fears despite Manila’s denial could prompt greater scrutiny of project financial management in the Philippines from other foreign donors and investors, according to analysts.
Lee said in a social media post on Tuesday that he had immediately “ordered to halt all procedures” related to the investment as the project was “deemed flawed and prone to corruption”.
His post cited a report by South Korean newspaper The Hankyoreh explaining the investment was supposed to be allocated to a “modular bridge project” under the Philippines’ Department of Agrarian Reform, which would have financed the building of 350 modular bridges across the country.
“This decision holds significant meaning, as it prevented the unnecessary waste of a staggering 700 billion won in taxpayer money and pre-emptively blocked risks that could have led to mismanagement and corruption,” Lee added.
