Aid package to Philippines withheld: US

The United States said yesterday it had withheld a major aid package to the Philippines because of significant concerns about the rule of law under President Rodrigo Duterte, days after he boasted about personally killing people.

The announcement is one of the sharpest responses by the United States to Duterte's drug war, which has claimed more than 5,000 lives in less than six months.

The US embassy said the Philippines had missed out on a second aid grant under the Millennium Challenge Corporation, after an initial five-year package worth more than $430 million expired in May.

"This decision reflects the Board's significant concerns around rule of law and civil liberties in the Philippines," embassy spokeswoman Molly Koscina said in a statement emailed to AFP.

The US government set up the Millennium Challenge Corporation to promote economic growth and reduce poverty around the world.

However countries can only qualify if they "demonstrate a commitment to just and democratic governance, investments in its people, and economic freedom," according to the corporation's website.

The United States has been a vocal critic of the war on drugs, with President Barack Obama in September urging Duterte to prosecute it "the right way".

The criticism has severely strained ties between the longtime allies, which are bound by a mutual defence pact.

Duterte has branded Obama a "son of a whore" and told him to "go to hell", while seeking to establish closer ties with US rivals China and Russia.

The Millennium Challenge Corporation announced on Wednesday that new grants had been given to Burkina Faso, Sri Lanka and Tunisia.