Public works slowdown starting to affect sales of European suppliers

EUROPEAN COMPANIES, particularly those involved in construction, are reporting a slowdown in orders as an offshoot of the corruption scandal in public works, the European Chamber of Commerce of the Philippines (ECCP) said.

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Florian Gottein, ECCP executive director, said some members of the chamber produce materials used for infrastructure projects.

“Because some of those projects are now being put on hold, they have experienced a reduction in sales, and it might go on for the next couple of weeks and months,” he told reporters on the sidelines of the Arangkada Forum on Thursday.

Such concerns are being raised by European firms doing business in the Philippines rather than those that are yet to invest in the country, he said.

“But the matter has also made it to the news in our respective home countries. And definitely it is not the best picture we are sending out there,” he added.

He said that the business community is still gauging how far the allegations will go, whether they affect only involve flood control projects or other categories of infrastructure as well.