AGIA Annual Convention

AGIA Para Sa Pagsulong Ng Bagong Pilipinas

Transparency and Public Accountability

Magdalena L Mendoza Development Academy of the Philippines 14 October 2010

Unexplained wealth of AFP Comptroller Source: gmanews.tv Allegations of anomalous NBN-ZTE deal Source: imbe.wordpress.com

P728-million "fertilizer scam" Source: philstar.com

Allegations of excessive perks and privileges of GOCCs Source: forum.philboxing.com

C-5 Extension controversy Source: net-planet.org

Alleged irregularity in P1.3 Billion Mega Pacific Poll Automation contract Source: philstar.com

Harry Stonehill Scandal, 1962

Former American Army lieutenant turned businessman Suspected of tax evasion, bribery, and corruption of public officials Protests came from the halls of Congress and Senate when a search warrant of his office was ordered Stonehill hurriedly left the country allegedly to save the political fortunes of many high-ranking officials
Source: wikipedia.org

For many years after WWII, the seeds of corruption had begin to grow permeating the middle and upper echelons of Philippine society.

- The Filipino Mind by Jose W. Diokno

Corruption Perception Index: Philippines

Figure 2: Corruption Perception Index, various years

3.60 3.05 2.77 1.96 1.04 2.69 3.30 2.80 2.90 2.60 2.50 2.60 2.50 2.50 2.50 2.30 2.40

1980- 1988- 1995 85 92

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Year

Source: Transparency International

Doing Business in the Philippines

Indicator Ease of doing business (overall rank) Starting a business Dealing with construction permits Employing workers Registering property Getting credit Protecting investors Paying taxes Trading across borders Enforcing contracts Closing a business 2010 Rank 144 (out of 183) 162 111 115 102 127 132 135 68 118 153
Source: WB Doing Business Report 2010

WGI 2008 Philippine Governance Ranking

Control of corruption Rule of law Regulatory quality Government effectiveness Political stability Voice and accountability
0 10 20 30 40 50 60

crisis

vulnerable

Note: Exemplary - percentile ranking of above 90th/between75th to 90th Vulnerable - percentile ranking of between 50th and 75th/between 25th to 50th Governance crisis - percentile ranking of between 10th to 25th/bottom 10th

What is Governance
Exercise of economic, political and administrative authority to manage a countrys affairs at all levels Mechanisms, processes and institutions through which citizens and groups
articulate their interests exercise their legal rights meet their obligations, and mediate their differences

Source: UNDP, 1997

Characteristics of Good Governance

Predictable Open and enlightened policy-making Bureaucracy imbued with a professional ethos acting in furtherance of the public good Respect for the rule of law Transparent processes Strong civil society participating in public affairs

Source: World Bank

Principles of Good Governance

Participation Rule of law Transparency Responsiveness Consensus orientation Equity Efficiency and effectiveness Accountability Strategic vision

Source: UNDP, 1997

Worldwide Governance Indicators

Voice and accountability Political stability/absence of violence Government effectiveness Regulatory quality Rule of law Control of corruption

Source: World Bank Institute

Figure 3. Governance Rating 1996-2008

Legend: 90th-100th percentile 75th-90th percentile 50th-75th percentile 25th-50th percentile 10th-25th percentile 0th-10th percentile

Note: Percentile ranks indicate the percentage of countries worldwide that rate below the selected country. Higher values indicate better governance ratings.

Transparency
Transparency is built on the free flow of information. It requires that processes, institutions and information are directly accessible to those concerned with them, and enough information is provided to understand and monitor them.

Source: UNDP, 1997

Public Accountability
Decision-makers in government, the private sector and civil society organizations are accountable to the public, as well as to institutional stakeholders. Answerability of decisions, actions and even failures.

Source: Adapted from UNDP

Principle of Public Office

Public office is a public trust. Public officers and employees must at all times be accountable to the people, serve them with utmost responsibility, integrity, loyalty, and efficiency, act with patriotism and justice and lead modest lives.

Source: 1987 Philippine Constitution Sec 1, Art. XI

Duties of Public Officials and Employees

Act promptly on letters and requests Submit annual performance reports Process documents and papers expeditiously Act immediately on the publics personal transactions Make documents accessible to the public

Source: Republic Act No. 6713

Prohibited Acts and Transactions

Financial and material interest in any transaction Outside employment and other related activities Private practice of profession Disclosure and or misuse of confidential information Solicitation or acceptance of gifts in the course of their official duties
Source: Republic Act No. 6713

Other Important Provisions

Filing of Statements of Assets and Liabilities and Net Worth (SALN) Financial disclosure Identification and disclosure of relatives Accessibility of statements Divestment

Source: Republic Act No. 6713

What is Corruption
Use of office for private interest or partisan advantage Breakdown of principal-agent relationship Impairment of integrity

Heuristic Formula for Corruption

C=M+D-A
Corruption = Monopoly Power + Wide Discretion Accountability

Source: Robert Klitgaard

Corrupt Practices of Public Officers

Persuading, inducing or influencing another public officer to violate rules Requesting or receiving gift or any benefit in connection with any government contract or transaction Requesting or receiving gift or any benefit from any person who has secured or will secure government permit or license Accepting employment in a private enterprise which has pending business with the public officer Giving any private party unwarranted benefits, advantage or preference

Source: Republic Act No. 3019

Corrupt Practices of Public Officers

Neglecting or refusing to act within reasonable time without sufficient justification Entering, on behalf of government, into any contract manifestly or grossly disadvantageous to government Having financial or pecuniary interest in any business, contract or transaction in connection with which the public official intervenes Approving or granting license, permit, privilege or benefit in favor of any person not qualified or legally entitled to Divulging valuable information of a confidential character

Source: Republic Act No. 3019

Government Functions Vulnerable to Corruption

Revenue collection Government procurement contracts Sale of state-owned enterprises/state assets Allocation of government-controlled or regulated supplies of goods, credit, foreign exchange, licenses or permits Access to government services or subsidies Enforcement of laws and regulations Adjudication

Policies and Initiatives to Raise Transparency and Accountability

Reducing Opportunities for Corruption in Procurement Controlling Corruption in Revenue Collection Improving Structures and Systems to Prevent Corruption and Reduce Red Tape Strengthening Audit and Internal Controls Casting a Wide Net Over Corrupt Acts Vigilance of Civil Society Promoting a Culture of Intolerance

Reducing Opportunities for Corruption in Procurement

Government Procurement Reform Act of 2003 (R.A. 9184) Significant progress in:
Professionalization of procurement officers Transparency PHILGEPS, CSO monitoring Revised IRR covering locally-funded and foreign-assisted projects issued in 2009

Lauded as island of good governance

Controlling Corruption in Revenue Collection

Revenue Integrity Protection Service (RIPS) Run After Tax Evaders (RATE) Program of the BIR Run After the Smugglers (RATS) Program of BOC

Number of Cases filed under RIPS, RATS, and RATE as of 2009

Revenue Integrity Protection Service (RIPS)

73

Run After The Smugglers (RATS)

78

Run After Tax Evaders (RATE)

116

20

40

60

80

100

120

140

Number of Cases

Source: BIR and SONA, 2009

Improving Structures and Systems to Prevent Corruption and Reduce Red Tape Rationalization Program IDAP (22 Doables) Integrity Development Review Anti-Red Tape Act E-government

Integrity Development Review

Joint Corruption Prevention program of OMB, DBM, CSC, COA, PAGC, and DAP CVA (2002): DBM, DAP IDR (2004): Ombudsman, DepEd, CSC IDR (2005): BIR, BOC, DPWH, LTO, PNP IDR (2007): DAR, DENR, DOH, BuCor, BFP, DBM-PS, Phil. Navy, PVAO, LRA, LRTA, NIA IDR (2008): DSWD IDR (2010): Land Bank

Anti-Red Tape
Signature Reduction (2001) Anti-Red Tape Act of 2007 (R.A. 9485)
Mandates transactions reengineering and Citizens Charter for frontline services Criminalizes fixing

Further streamlining of processing time, forms and requirements e.g. business name registration

Status of ARTA Implementation

Government Agencies and Local Governments Fully Compliant with ARTA Government Agencies and Local Governments in various stages of compliance with ARTA Total Number of Government Agencies

3,058 1,570 4,628

Source: CSC, October 2009

E-government
Use of ICT, particularly the Internet, as a tool to enhance transparency and efficiency to achieve better government Creation of e-Government Fund in 2003
Stage 1 Emerging web presence Stage 2 Enhanced web presence Stage 3 Interactive web presence Stage 4 Transactional web presence Stage 5 Seamless or fully integrated web presence

Source: CICT, 2007

Rationalization Program
E.O. 366 - directs the strategic review and rationalization of functions of government to focus resources to core public services
No. of regular positions abolished: 10,984 No. of contractual/casual positions abolished: 2,048 Total PS savings generated: P2.281 billion

Source: DBM, 2010

Strengthening Audit and Internal Controls

New Government Accounting Systems (NGAS) PASADA Instituting Internal Audit (A.O. 70) National Guidelines on Internal Control (NGICS) issued in 2008

Altering Incentives
Lateral Attrition Law of 2005 New Performance Measurement System (PMS-OPES) Salary Standardization III (2009)

Legal Instruments to Control Corruption

Revised Penal Code Title VII: Crimes Committed by Public Officers R.A. 3019 Anti-Graft and Corrupt Practices Act Executive Order No. 292 Administrative Code R.A. 7080 Anti-Plunder Act R.A. 1379 Unexplained Wealth Act R.A. 6713 An Act Establishing a Code of Conduct and Ethical Standards for Public Officials and Employees R.A. 9485 Anti-Red Tape Act of 2007

Casting a Wide Net Over Corrupt Acts

Strengthening of anti-corruption agencies Lifestyle Checks Anti-Money Laundering Act Ratification of UN Convention Against Corruption Judicial reform

Cases Involving High-ranking Officials Charged before the Sandiganbayan

600 500 400 300 200 100 0 2003 2004 2005 2006 181 124 338 512

Source: Supreme Court, 2008

Case Disposition Rate in the Judiciary

70 60
51.3% 58.9%

Supreme Court
44.9% 39.5% 37.9% 40.2% 38.2% 39.5% 39.4%

case disposition rate

50 40 30 20 10 0

Appellate Courts Lower Courts

2006

2007

2008
Source: Supreme Court, 2009

Increasing Public Vigilance

CSO Watchdogs TAN, CAC, Procurement Watch, G-Watch, Ombudsman Watch, COMELEC Watch, SCAW, CSO Procurement Observers, Road Watch, Bantay Katarungan, PPCRV, etc Investigative journalism PCIJ CSO Monitors on Corruption Perception SWS, Pulse Asia, Transparency International, etc

Creating A Culture of Intolerance to Corruption

Ehem! Aha! Seminars Values Orientation Workshops Moral Renewal Program (A.O. 255) Promotion of Codes of Conduct Whistleblower Protection Bill

Sincerity of Government Agencies in Fighting Corruption

Figure 5. Net Sincerity Ratings of Selected Government Agencies (2007-2009)
60

40

20
Sandiganbayan Supreme Court

0
PAGC PCGG OMB

2007
Dep Ed DPWH COA DBM BOC DOH DOJ PNP AFP DENR LTO OP BIR

2008 2009

-20

-40

-60

-80

Source: Social Weather Stations

Kung walang corrupt, walang mahirap.

- President Benigno S. Aquino III

Thank you.