Palace to invoke executive privilege if Senate probes Northrail

MANILA, Philippines - Malacañang on Friday said that it will invoke executive privilege when the Senate starts its investigation of the $503-million Northrail project. Deputy Presidential spokesperson Lorelei Fajardo said the Senate has the right hold an investigation just as the Executive has a right to invoke certain rights including executive privilege when necessary. "The executive shall exercise its rights during the conduct of the hearings. Public records are for public consumption while matters of executive privilege shall remain as such," she said. Fajardo added that as far as President Gloria Macapagal-Arroyo is concerned, Malacañang is committed to ensure the proper implementation of the project and any concerns about alleged overpricing will be dealt with. "The President shall not tolerate such things. We trust that said issues will be properly ventilated in the proposed hearings and the President shall act in accordance with their findings," she added. Senator Richard Gordon proposed the reopening of the Northrail probe after China National Machinery and Equipment Group (CNMEG) reportedly backed out from the project. CNMEG also reportedly wants its $299 million returned. The $299-million fund, the firm said, was the worth of "cost overrun." - GMANews.TV