Corruption Issues

8/9/2019 Corruption Issues

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Seminar on DeepeningSeminar on Deepening

Involvement AgainstInvolvement Against

CorruptionCorruption


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22moduleAnalysis

Reflection

Action

Experience


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Causes andCauses and

ConsequencesConsequencesof Corruptionof Corruption

in the Philippinesin the Philippines

Seminar on Deepening Involvement Against CorruptionSeminar on Deepening Involvement Against Corruption


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Pork BarrelPork Barrel

Countrywide Development FundCountrywide Development Fund(CDF)(CDF)

Priority Development AssistancePriority Development AssistanceFund (PDAF)Fund (PDAF)

to provide access to resources to provide access to resources

to the remotest areas of theto the remotest areas of thecountrycountry hard pork vs. soft pork hard pork vs. soft pork


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What happens to some pork?What happens to some pork?

DBM asks legislator for list of projectsDBM asks legislator for list of projects

Contractors approach legislatorContractors approach legislator

magkano ba? magkano ba?

50% paid at once by contractor 50% paid at once by contractor in cash in cash

Sulo Hotel, office through a third party Sulo Hotel, office through a third party

Legislator submits listLegislator submits list

Corresponding government agency is informed ofCorresponding government agency is informed ofprojectproject

Bidding procedure is simulatedBidding procedure is simulated

Contract is won, signed, and project is implementedContract is won, signed, and project is implemented


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Legi a or 45%

I p e en ing

agency10%

Congre iona

aide

5%

Supp ier

40%Legi a or

I p e en ing agency

Congre iona aide

Supp ier

S ice of he pie for procure enS ice of he pie for procure en

of edicine , book , agazineof edicine , book , agazine


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Legisl r

6

M r

7

r gay Capt3%

Implementing

agency

10%

Contractor

6 %

Legislator

Mayor

arangay Capt

Implementing agency

Contractor

lices ofthe pieSlices ofthe pie

forpublic works projectsforpublic works projects


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ausesauses

Historical rootsHistorical roots

InequalitiesInequalities

Patronage relations as palliativePatronage relations as palliative Competitive politics in a weak stateCompetitive politics in a weak state

Inadequate punitive measuresInadequate punitive measures

Red tapeRed tape

Lack of clear policies discretionLack of clear policies discretion


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ausesauses

Complacency of the faithComplacency of the faith

OtherOther--worldlyworldly

CompartmentalizationCompartmentalization Circumstantial factorsCircumstantial factors

Cultural elementsCultural elements


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Interests that have remainednarrow and parochial

personalistic sense of well-being

Weak sense of public good;

lack of social consciousnesseven among the poor

CULTURE: problemsCULTURE: problems


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AyawnatinnggulAyawnatinnggul

Concern for image and whatConcern for image and whatpeople saypeople say

Distrustof rulesDistrustof rules

Exaggerated and distortedExaggerated and distortedsense ofloyaltyto familyandsense ofloyaltyto familyandfriendsfriends


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We are a people whoWe are a people who

have gotten used to thehave gotten used to theidea that leaders andidea that leaders and

governments are theregovernments are there

to get things done forto get things done for

us.us.



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UtakUtak--alipin vs.alipin vs.

UtakUtak--maymay--ariari

we are not stakeholders in our ownwe are not stakeholders in our own

futurefuture the poor are effectively alipin inthe poor are effectively alipin in

the given sociothe given socio--economic structureeconomic structure

the betterthe better--off: many did not haveoff: many did not haveto work hard for their wealthto work hard for their wealth

mentality: grab what we canmentality: grab what we can


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Why should those who haveWhy should those who havemanaged to grab a piece of themanaged to grab a piece of the

meat in this system want tomeat in this system want toshare the prize with those whoshare the prize with those who

have beenhave been

neither as luckyneither as lucky

nor as enterprising?nor as enterprising?


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Fr. John Carroll, SJ, of the Institute on Church and

Social Issues:

Why should the poor defend a

democracy which has not done

much for them?


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The peopleThe people

suffersuffer

MedicinesMedicines

ghost deliveries or partial deliveries ghost deliveries or partial deliveries full delivery of expiring medicines full delivery of expiring medicines

Roads, bridgesRoads, bridges

inferior quality (pot holes, sinking roads) inferior quality (pot holes, sinking roads) hollow cores, less cement hollow cores, less cement

cut some inches from the road size cut some inches from the road size

unfinished works unfinished works


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onsequen es of orruptiononsequen es of orruption

Poorer sectors suffer more lessPoorer sectors suffer more lessservices, less opportunities services, less opportunities contributing to worsened sociocontributing to worsened socio--economiceconomic

situation and further entrenchingsituation and further entrenchinginequalityinequality


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Economic growth is impeded, especiallyEconomic growth is impeded, especiallyas corruption is costly to business and toas corruption is costly to business and to

economic investors:economic investors: actual money [extra payments made to actual money [extra payments made toavoid rules or to speed up theiravoid rules or to speed up theirimplementation]implementation]

potential money [uncertainty/predictability; potential money [uncertainty/predictability;ambiguous and constantly changing rules]ambiguous and constantly changing rules]

money is brought out of the country money is brought out of the country


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Government inefficiency: unable toGovernment inefficiency: unable todeliver goods and services [inefficientdeliver goods and services [inefficient

use of already scarce resources]use of already scarce resources] dissatisfaction, frustration of people dissatisfaction, frustration of people

distrust of government, damaging distrust of government, damaginglegitimacylegitimacy

undermining and weakening democracy undermining and weakening democracy


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People begin to believe that the best wayPeople begin to believe that the best wayto generate wealth is to take it fromto generate wealth is to take it from

someone else or from government,someone else or from government,instead of producing it themselvesinstead of producing it themselves


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The saddest thing is The saddest thing is

Filipinos have just resignedFilipinos have just resignedthemselves to thethemselves to thecorruption, and have learnedcorruption, and have learned

to accept it as a part of ourto accept it as a part of ourway of life.way of life.

There is no more righteousThere is no more righteousrage.rage.

Corruption persistsCorruption persistsbecause of acquiescence,because of acquiescence,because citizens believe thatbecause citizens believe thatnothing can be done.nothing can be done.


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HALLENGETOALLOF US:HALLENGETOALLOF US:

To do awa with the following dehumanizingTo do awa with the following dehumanizingstru tures:stru tures:

wealth without workwealth without work

commerce without moralitycommerce without morality

pleasure without consciencepleasure without conscience

politics without principlepolitics without principle

knowledge without character and integrityknowledge without character and integrity

science without humanityscience without humanityworship without sacrifice andworship without sacrifice and

culture without spirit.culture without spirit.


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What is orruption?What is orruption?

a veering away from some originala veering away from some originalpure formpure form

a perversion from an original state ofa perversion from an original state ofpurity or integritypurity or integrity

the abuse of power, entrusted by athe abuse of power, entrusted by a

community to their representatives orcommunity to their representatives orleaders, who exploit opportunities forleaders, who exploit opportunities forprivate gain, with the objective ofprivate gain, with the objective ofincreasing wealth or powerincreasing wealth or power


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At least 40 officials of the Public Works andAt least 40 officials of the Public Works andHighways are involved in the P140Highways are involved in the P140--millionmillionvehicle repair scam in 2002. (Philippine Dailyvehicle repair scam in 2002. (Philippine DailyInquirer, 2002)Inquirer, 2002)

Many public officials have fallen from theMany public officials have fallen from thevarious forms of lifestyle checks.various forms of lifestyle checks.

Each administration has been saddled byEach administration has been saddled byvarious forms of scams and scandals, from Josevarious forms of scams and scandals, from Jose

Velarde to Jose PidalVelarde to Jose Pidal

In 2001, of the 104 billion pesos allotted forIn 2001, of the 104 billion pesos allotted forprocurement,procurement, 21 billion pesos21 billion pesos (around 20%)(around 20%)went to kickbacks (House of Representatives,went to kickbacks (House of Representatives,

Appropriations Committee, 2002)Appropriations Committee, 2002)

page 12


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Growing gap betweenGrowing gap between

Basic social servicesBasic social services public education,public education,public health, infrastructure, andpublic health, infrastructure, and

Government revenuesGovernment revenues collectionscollectionsfrom BIR, Customs, Bureau of Treasury,from BIR, Customs, Bureau of Treasury,income ofGOCCs, proceeds fromincome ofGOCCs, proceeds fromprivatizationprivatization


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Distribution (30

Distribution (30--2020--3030--20)20)

30%30% -- Foreign Debt ServicingForeign Debt Servicing

20%20% -- Internal Revenue AllotmentInternal Revenue Allotment

30%30% -- Government SalariesGovernment Salaries

20%20% -- Basic ServicesBasic Services

Government needs to

raise revenues for

so ial servi es!


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Bureau of Revenue (BIR)Bureau of Revenue (BIR)

Bureau of Customs (BOC)Bureau of Customs (BOC)

Department of Public Works and HighwaysDepartment of Public Works and Highways(DPWH)(DPWH)

Department ofEnvironment and NaturalDepartment ofEnvironment and NaturalResources (DENR)Resources (DENR)

Department ofEducation, Culture and SportsDepartment ofEducation, Culture and Sports(DECS now DepEd)(DECS now DepEd)

National Irrigation Association (NIA)National Irrigation Association (NIA)

Department ofHealth (DOH)Department ofHealth (DOH) Department ofInterior and Local GovernmentDepartment ofInterior and Local Government

(DILG)(DILG)

National Power Corporation (NPC)National Power Corporation (NPC)

B

ureau ofI

mmigration (B

OI

)B

ureau ofI

mmigration (B

OI

)

In a World Bank (2000) report, the top agencies that

immediately need anticorruption interventions include:

page 13


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Validation of orruption inValidation of orruption in

governmentgovernmentSWS Report of SeptemberSWS Report of September

20012001

44% of Filipino44% of Filipinobusinessmen believebusinessmen believe

there is no governmentthere is no governmentagency free of corruptionagency free of corruption

2 out of 3 Filipino2 out of 3 Filipinocompanies admitted thatcompanies admitted thatmost, if not all,most, if not all,

companies in their sectorcompanies in their sectorengaged in bribery to winengaged in bribery to wingovernment contractsgovernment contracts


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Corruption Issues

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