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CONTENTS:

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NATIONAL INTEGRITY STUDY
By Dr. Gabrielle Quimson for Transparency International

Today, the Philippines is in a flurry of anticorruption activity. The Government has been working hard hand-in-hand with international donor organizations to fast-track and implement a myriad of reform initiatives to rid the country of endemic and rampant corruption. Focusing on both preventive and punitive efforts and supported by substantial foreign and domestic financial resources, projects on policy development, E-governance, holistic involvement of sectoral organizations, corruption diagnostic tools amongst many others, are being implemented.

A Steering Committee on Convergence of Anticorruption Initiatives has helped jump-start a National Anti-Corruption Plan of Action and forward-thinking leaders of three autonomous constitutional bodies, the CSC, Ombudsman and the COA, have forged an anticorruption strategy called the Solana Covenant linking together with other anticorruption agencies in the Inter-Agency Anti Graft Coordinating Council to form internal audit units and assess corruption vulnerabilities in high-risk agencies. Regional anticorruption organizations, such as, Barug and Abra have sprouted producing local heroines like Perla Sumangil. Even the business sector now claims to be part of Civil Society, pitching in with a network called Coalition on Corruption.

Yet recent surveys and reports show that the Philippines is still in the doldrums when it comes to reducing corruption levels. International surveys like the 2005-2006 PERC report that the Philippines is second only to the most corrupt country in Asia, Bangladesh; the country’s ranking in Transparency International’s (TI) Corruption Perception Index has steadily worsened reaching an all-time high of 117 in 2005 from 102 in 2004; and, the latest report mid-March this year by Pacific Strategies and Assessments (PSA) a leading Asia-based business risk consultancy firm claims that a weak rule of law and rampant corruption continue to make the Philippines Asia's top kidnapping spot.

These reports are in conjunction with local ones like the Social Weather Station (SWS) surveys which claim that in 2005 most Filipino entrepreneurs still perceived corruption as a major problem and in 2006 “Year of Great Trials” Annual Survey Review asserted that consistent areas of public dissatisfaction remain about the President and corruption. In addition to all these, are a plethora of newspaper reports littered with allegations concerning, fertilizer scams, electoral fraud, jueteng payolas, political financing scandals, pre-need companies’ corporate governance problems and military thievery in procurement. So the question remains - what is going wrong with the Philippines today?

TI’s National Integrity Study (NIS) presents a first step towards answering this question and helps towards purging this corruption quagmire. Developed and promoted by TI as part of a holistic approach to combating corruption, the Philippine NIS in particular assesses the quality of Philippine institutions relevant to the overall anti-corruption system and specifically focuses on the regulatory system. It also assesses the independence of institutions in terms of financial resources, analyses whether officials are being made accountable for their actions; identifies whether disclosure mechanisms work throughout hierarchies in systems structure and evaluates whether relationships and interactions exist amongst integrity pillars to help integrate the fight against corruption. While no blueprint exists for an effective system for corruption prevention, there is growing international consensus that these are salient institutional features that work best to prevent corruption and promote integrity.

In response to the Study’s main purpose which assesses law and regulatory provisions and how well these work, the Philippine Study has come up with three findings. These are: firstly, quantity in terms of legislation, unfortunately, has not produced quality in terms of indictments, prosecution and conviction. Although a tight, comprehensive and in-depth regulatory framework in the form of RAs, AOs, EOs PDS etc, exists compounded with zero-tolerance attitudes the necessary compliance, implementation and enforcement which should have followed and led to a sharp decline in corruption levels has not been forthcoming.

The multitude of task forces, racy-named programmes like RATE (Run After Tax Evaders in the BIR) RATS (Run after the Smugglers in BOC) and SWAT (Swift Action Team) have so far failed to catch big “namedroppables”. Secondly, overdeveloped regulations have caused bureaucratic gridlocks and underdeveloped ones have allowed corruptors to get off scot-free. Sometimes in the overzealousness to fight corruption, rigid anticorruption procedure has brought in its wake problems with “bureaucratic clogging” leading to red tape overload particularly in procurement areas. Gridlock has occurred in areas of the bureaucracy where unsigned contracts remain indefinitely on officials’ desks because of fear of losing pay and retirement benefits if caught up in corruption proceedings and legal wrangling.

On the other hand, underdeveloped regulation in other areas such as political financing and whistle blowing has allowed corruptors to operate with impunity and escape unhampered. Finally, this legion of rules and regulations has so far not only failed to capture the “hearts and minds” of the people but has also served to increase corruption in certain areas within the Criminal Justice System. Apparently, laws have not penetrated into the deep psyche of the Filipino people and have on the whole remained meaningless and remote for the majority. Moral bankruptcy remains a grave issue.

Perhaps more visual examples are needed to inculcate anticorruption values, such as, leadership by example, integrity circles, a culture of integrity and conviction and prosecution of “big fish” to show government means business. There is no doubt that reducing corruption in the Philippines will not happen overnight requiring a “step by step” process. Strengthening the NIS’ apertures will eventually bridge gaps between form and substance, promise and performance, theory and practice, rhetoric and reality. The NIS is the “baby step” the Philippines must take to help promote better governance and anticorruption across all aspects of society.