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SITUATIONERS
Initiatives of the Philippine Government against Corruption
Public policyof the Government of the Philippines (GOP) has long made poverty reduction
with sustainedeconomic growthas a major development strategy. This strategy is
contained in theMedium TermPhilippineDevelopment Plan(MTPDP), which underscores
control of corruption as imperative for its realization.
The GOP acknowledges that corruption is seriously hurting its economy and damaging the
social fabric. Consequently, the GOP calls for a collective front in the fight against
corruption and has, in fact, adopted both administrative and legislative initiatives to
address it. These initiatives have been designed against the backdrop ofgood governance
and its principles, namely: accountability, transparency, participation and rule of law
(predictability).
The GOP has adopted a multi-sectoral and holistic approach in the control of corruption
along the areas of prosecution, prevention, participation and promotion (education).
Under the auspices of the Office of the Ombudsman, the National Anti-Corruption Program
of Action (NACPA) was crafted to serve as the umbrella program for all anti-corruption
initiatives undertaken by government and non-government organizations to ensure
convergence of efforts. NACPA used the frameworks of the United Nations Convention
against Corruption, Millennium Development Goals and the MTPDP.
This initiative also paved the way for the formation of the Multi-Sectoral Anti-Corruption
Council (MSACC), a consultative and coordinating body organized to reinforce the anticorruption commitments of government,civil society, and thebusiness sector.
The GOP continues to undertake significant initiatives to address corruption, although it
notes that the perception of corruption in the government persists. Such perception is
evidence of a vibrant democracy where people are free to express their concerns and
grievances against the government in whatever fora.
The Philippines, however, pays serious attention to the unfavorable perception and
remains resolute in its efforts against corruption. The efforts and initiatives of the GOP
cover seven broad areas, which are a clustering of all the 26 factors identified by the MCC
in evaluating countries on the Control of Corruption (COC) indicator. These seven areas
are:
Public policy of the Government of the Philippines (GOP) has long made poverty reduction with sustained economic
growth as a major development strategy. This strategy is contained in the Medium Term Philippine Development Plan
(MTPDP), which underscores control of corruption as imperative for its realization.
The GOP acknowledges that corruption is seriously hurting its economy and damaging the social fabric.
Consequently, the GOP calls for a collective front in the fight against corruption and has, in fact, adopted both
administrative and legislative initiatives to address it. These initiatives have been designed against the backdrop of
good governance and its principles, namely: accountability, transparency, participation and rule of law (predictability).

Reforming the Procurement process Reducing Red Tape Ensuring a Performing Bureaucracy Controlling Corruption in Revenue-Collecting Agencies Improving Systems to Control Corruption Enforcing Anti-Graft Policies: Efforts of Anti-graft Bodies Enhancing Judicial Capability 1.The GOP has adopted a multi-sectoral and holistic approach in the control of corruption along the areas of prosecution. civil society.A. prevention. REFORMING THE PROCUREMENT PROCESS Government procurement has long been perceived as plagued by corruption which has resulted in irregularities. Millennium Development Goals and the MTPDP. 9. These seven areas are: 1. 9184 mandates the following: (1) wide dissemination of bid opportunities through the Philippine Government Electronic Procurement System. 6. 7. the National Anti-Corruption Program of Action (NACPA) was crafted to serve as the umbrella program for all anti-corruption initiatives undertaken by government and nongovernment organizations to ensure convergence of efforts. efficiency. The GOP continues to undertake significant initiatives to address corruption. although it notes that the perception of corruption in the government persists. Under the auspices of the Office of the Ombudsman. the GOP enacted the Government Procurement Reform Act of 2003 (R. 2. equity. and economy in the procurement process. pays serious attention to the unfavorable perception and remains resolute in its efforts against corruption. and the Philippine Bidding Documents.government organizations as observers in the procurement process. (3) streamlined procurement process uniformly applied to all government procurement. and the business sector. 9184). and (5) public monitoring of the procurement process. As of 2009. are investigated and held liable for their actions. budget losses. This initiative also paved the way for the formation of the Multi-Sectoral Anti-Corruption Council (MSACC).197 public procurement personnel from 205 government agencies were trained on the law.290 government agencies and 41. accountability. a total of 3. NACPA used the frameworks of the United Nations Convention against Corruption. participation and promotion (education). (2) participation of non. and consequently. R. 3. which are a clustering of all the 26 factors identified by the MCC in evaluating countries on the Control of Corruption (COC) indicator. a consultative and coordinating body organized to reinforce the anti-corruption commitments of government. Such perception is evidence of a vibrant democracy where people are free to express their concerns and grievances against the government in whatever fora. As of March 2009. however. its Implementing Rules and Regulations (IRR).528 suppliers have been registered in the Philippine . distortion in the quality and quantity of public services. The Philippines. 5. information and communication technology is now being harnessed. To increase transparency in the procurement process. when warranted by circumstances. (4) system of accountability where concerned public officials.A. 4. The law also aims to professionalize procurement in the public sector. The efforts and initiatives of the GOP cover seven broad areas. To uphold transparency.

competitiveness. Data from monitoring of the country’s important infrastructure projects are uploaded to the PTG website. Of the 43 projects initially identified for monitoring. As of January 2010. In 2008. and public accountability in government procurement. This led to the creation of the Procurement Transparency Group (PTG) composed of government andcivil society organizations. The PhilGEPS is the central portal for the Philippine Government's Procurement activities. and cumbersome transaction procedures generally give rise to corruption. .Government Electronic Procurement System. a total of 33 bidders from 19 organizations and 466 government procurement personnel have been trained on the revised IRR. competitiveness. 9485) was enacted to reduce red tape and expedite transactions in government.Executive OrderNo. Data from monitoring of the country’s important infrastructure projects are uploaded to the PTG website. 662 was issued in 2007. 2009. less documentary requirements (from 16 to 6) to establish bidder eligibility thereby bringing transaction costs down. Executive Order No. and clearer rules on the scope and application of alternative mode of procurement. a total of 33 bidders from 19 organizations and 466 government procurement personnel have been trained on the revised IRR. To enhance transparency. Of the 43 projects initially identified for monitoring. the PTG monitors 26 priority projects in different stages of the project cycle. The Anti-Red Tape Act (ARTA) of 2007 (R. the PTG monitors 26 priority projects in different stages of the project cycle. After extensive stakeholder consultations and considering Philippine experience during the early years of implementation of the procurement law. 662 was issued in 2007. Notable features of the revised rules are:    cover both locally and foreign-funded procurement.A. REDUCING RED TAPE The government recognizes that red tape discourages business. trained observers representing civil society members of the PTG were deployed to the Bids and Awards Committee (BAC) of different government agencies. To enhance transparency. This led to the creation of the Procurement Transparency Group (PTG) composed of government and civil society organizations. and public accountability in government procurement. In 2008. This legislation directs all government entities with frontline services to develop their Citizen’s Charter by September 2009. As of January 2010. trained observers representing civil society members of the PTG were deployed to the Bids and Awards Committee (BAC) of different government agencies. a revised set of IRR was approved and took effect on September 2. Back to top 2.

The Organizational Performance Indicator Framework (OPIF) requires agencies to identify their major final outputs which serve as the basis for budget allocation. 4. Congress approved agency budgets on the basis of its identified major final outputs. and ten days for complex ones. Beginning in 2007.260 government entities nationwide being monitored by the CSC. CONTROLLING CORRUPTION IN REVENUE-COLLECTING AGENCIES The Run After Tax Evaders (RATE) Program of the Bureau of Internal Revenue (BIR). 605. 3. ENSURING A PERFORMING BUREAUCRACY  To promote public sector organizations that deliver results. efficient. The PMSOPES is a direct translation of the agency’s strategic direction into specific and measurable objectives. and personnel. all agencies with frontline services are required to act on applications and requests within five days for simple transactions. To ensure fast. although arguably tax evasion is not an act of corruption (if . The Citizen’s Charter is published and is posted in agency’s websites and in its billboards in conspicuous places within the agency. Among the 5. 3. It highlights the upgraded capacity of government to investigate and prosecute tax fraud cases. documentary requirements. runs after tax cheats and delinquents. its units.The Citizen’s Charter is an official document. in partnership with the Department of Finance (DOF). reliable and convenient services to the public. Specifically. there are 60 ISOcertified government entities while 31 are moving towards ISO certification.701 government entities are in the various stages of ARTA compliance. responsible person/office. The remaining 1. which concretizes individual and collective accountability. the following have been introduced: Government agencies have adopted the Performance Management System -Office Performance Evaluation System (PMS-OPES) which measures objectively the performance of the agency. Information such as procedures to avail of the service.559 agencies and local government units (LGUs) are fully compliant with the ARTA’s requirements on the institutionalization of a Citizen’s Charter. Agencies are also mandated to limit their signatures to a maximum of five. processing time. A parallel effort towards improvement of public sector productivity is the directive to install Quality Management System (QMS) in all government agencies as required by Executive Order No. a service charter or pledge that describes the step-by-step procedure for availing of a particular service. applicable fees or charges. and the guaranteed performance level that the public may expect for that service. These objectives are operationalized and measured against the agency’s Work andFinancial Plan based on its Organizational Performance Indicators  Framework. Concerned external stakeholders are consulted in the crafting of the Citizen’s Charter. As of 2009. the law and its IRR directs agencies to undertake reengineering of frontline services. and procedures for filing complaints are reflected in the Citizen’s Charter. It serves as a mechanism for better alignment of individual to agency objectives.

low reward activity. reliable. A total of 128 national agencies complied with the directive to submit their Moral Renewal Action Programs. b. A parallel effort at the Bureau of Customs (BOC) is its Run after the Smugglers (RATS) Program. It aims to provide the Philippine bureaucracy with a modern and sound governance-enhancing accounting system. a total of 166 government agencies nationwide have started to implement and cascade the IDAP to the regional and provincial levels. d. A software was specifically designed to generate correct. has been implemented since 2004. and the Philippine National Police. To improve the country’s government systems. and timely recording of government financial transactions in accordance with NGAS.3 billion with estimated tariff liabilities of over Php189 million. Due to the inadequacy in internal controls of government systems as manifested by the numerous anomalies uncovered or reported in the disbursement of public funds in several riskprone areas. which involves a systematic and comprehensive review of systems and procedures to determine corruption vulnerabilities and integrity safeguards. the COA has created aFraud Audit and Investigation Office to intensify the conduct of fraud investigations of different government transactions and projects. RIPS was created to address persistent reports of corruption in revenue generating agencies of the government that lead to collection shortfalls. RIPS works closely with anti-corruption agencies of the government. the IDAP is the National Anticorruption Framework for the Executive Branch to make corruption a high risk. such as the Office of the Ombudsman and the Philippine National Police. a total of 18 government agencies have undertaken the IDR. Agencies are required to craft action plans to address their agency vulnerabilities. to prosecute custom-related cases. As a result. The eNGAS was adopted to improve monitoring and detection of fraud. IMPROVING SYSTEMS TO CONTROL CORRUPTION a. Bureaus of Internal Revenue and Customs.no bribery is involved). e. Reports have been forwarded to the Office of the Ombudsman based on the completed audits of the Commission. To date. while 17 are pending before the courts. Moral Renewal Action Program (MRAP). the following programs were instituted by various agencies: Integrity Development Review (IDR). It serves as the legal infrastructure to ensure the adoption and implementation of the Integrity Development Action Plan which is the Anticorruption Framework for the Executive Branch. A third initiative worth noting is the Department of Finance’s Revenue Integrity Protection Service (RIPS). Department of Education. Implemented since 2005 under the auspices of Presidential AntiGraft Commission. . To increase the capacity of the Bureau to run after smugglers. the COA has re-instituted the conduct of pre-audit of selected transactions. Department of Health. Administrative Order 255 was issued on January 30. the government has filed 105 criminal cases against 523 respondents covering shipments valued at Php2. The IDR. BOC also filed administrative cases against erring customs personnel and relieved eight personnel for smuggling-related cases. Electronic New Government Accounting Systems (eNGAS). Integrity Development Action Plan (IDAP). Pre-audit by the Commission on Audit. 5. This includes the Department of Public Works and Highways. additional lawyers were deployed at DOF and the Office of the Solicitor General. c.109 of which are with the Department of Justice (DOJ) for action. Moreover. which the Presidential Anti-Graft Commission is continuously monitoring. As of December 2009. It also brings into the fore the importance of expansion and strengthening of the membership of the Integrity Committee and adoption/updating of agency-specific Code of Conduct. 126 cases were filed. As of August 2009. 2009 directing government agencies to set up Moral Renewal Program to achieve zero tolerance for corruption. among others.

the Lateral Attrition Law. Underpaid government workers are said to be susceptible to bribes. A total of 14 Departments and 47 GOCCs have their respective Internal Audit Service/Unit.76 million on the form of tax credits. Thus. Executive Secretary and Disbursing Officers of the Autonomous Region of Muslim Mindanao for malversation Municipal Mayor Prosecutors of the Department of Justice for direct bribery Chancellor and Acting Personnel Officer of a state university for falsification of public documents. Lateral Attrition Law. The capacity of the OMB has been reinforced through a larger budgetary support which allows it to increase the number of prosecutors and field investigators. The passage of the Anti-Money Laundering Act provides additional tools for the OMB since it criminalizes those who enjoy proceeds of corruption. NGICS is designed to guide government agency in revitalizing and strengthening its detailed and comprehensive system of internal controls (ICs) taking into account agency characteristics (i. the Department of Budget and Management issued National Budget Circular 2008-05. the OMB filed 416 information before the anti-graft court called Sandiganbayan.buster. which provides incentives and rewards for good performance (exceeding the target collections) and sanctions bad performance (collections shortfall and other unlawful behavior). For 2008. Another initiative of the OMB is the Lifestyle Check which is an investigation strategy to . nature of activities. plunder and other criminal charges against 23 officials of the Department of Finance and private individuals for defrauding the government of more than Php73. it filed 155 more information. the conviction rate shot up to 76% in 2008. National Guidelines on Internal Control System (NGICS). Launched in 2009.f. size and organizational structure). mandating agencies and Government-Owned and/or Controlled Corporations (GOCCs) to create their Internal Audit Offices. is the country’s primary graft and corruption. h. the Sandiganbayan convicted of perjury a retired general. In February 2009. functions. was enacted. manpower profile. The Philippine Government Internal Audit Manual consistent with the NGICS is now being finalized for issuance. operating environment.e. and graft charges against two mayors. Among those filed include: criminal cases against a former congressman and municipal mayor. In April 2008. g. Altering the behavior of corrupt agents is also a function of good incentives and effective sanctions. the major victories in the Sandiganbayan include the conviction of the following:     Governor. a constitutionally independent body. mandate. 6. a dramatic improvement in its conviction rate has been observed. From January to July 2009. Increase in Salary of Public Officials and Employees. Phase Three of the Salary Standardization Law which makes salaries of government officials and employees comparable to the private sector was implemented. ENFORCING ANTI-GRAFT POLICIES: EFFORTS OF ANTI-GRAFT BODIES The Office of the Ombudsman (OMB). From 19% in 2006 to 55% in 2007. In 2008. For the past three years. The system is currently being pilot-tested in the Department of Public Works and Highways and the Department of Education. In July 2009.

while 558 lifestyle check complaints are being investigated.44.determine the existence of ill-gotten and unexplained wealth of public servants. Over the years. is designed “to help the Judiciary unclog congested dockets and helps solve delays in case management and resolution” through the use of information technology. b. The same upward trend is evident at the lower courts--from 37. human resource development. Case disposition rate has been increasing. However there was a slight decline to 39.2%. As of 2008. 64 lifestyle check investigations have been completed. The Action Program for Judicial Reform (APJR) was crafted for the Judiciary to be an effective and independent arbiter of disputes and a bulwark of justice. f. On the other hand. suspended or reprimanded for graft-related cases. and access to justice by the poor. court fees and other incidental expenses have been made more affordable. Also worth citing are the Justice on Wheels Program. ENHANCING JUDICIAL CAPABILITY Continuing reforms in the judiciary are undertaken to address delays in case resolution. perception of corruption in government prevails.127 officials have been dismissed. reform support systems e. The Case Management Information System. This is a multi. From January 2008 to March 2009. 7. institutional integrity development. c. It is for this reason that the GOP commits to undertake several Policy Improvement Processes (PIPs) leveraging on publicprivate sector partnership. the GOP can claim that it is passionate in its resolve to control corruption. Budget has been allocated to provide free legal representation for indigent litigants. the improvement in the disposition rate case of the appellate courts is apparent for the period 2006 to 2007. has recommended to the Office of the President the disposition of 153 punitive and 902 non-punitive penalties from 20012008.pronged reform package that seeks to address issues involving: a. the Presidential Anti-Graft Commission. With the reforms and initiatives so far undertaken and the resulting successes. These reforms in the judiciary have resulted in improvements in the performance of the courts. Publication of MCC’s Selection Criteria & Methodology .9% in 2006 to 39. particularly for the Supreme Court -.9 percent in 2006 to 51.5% to 40. In 2008. The World Bank. from 39. In addition. and politicization of the judicial appointment process.5% in 2008.27 billion. Pilot operations of the system and testing in selected courts are in full swing.9 percent in 2008. resulted in the release of 731 inmates after merely six (6) months of operations in 2008. Despite this. it reached Php10. Another body. perception of graft and corruption in the courts. which was launched in July of 2008. which has jurisdiction over presidential appointees. judicial systems and procedures.funded Enhanced Case Flow Management System was also launched in 2008 “to provide timely and reliable information to manage the lower courts more efficiently”. and the commissioning of the independent Judicial Bar Council for the screening of judicial post applicants. a decongestion strategy. institutions development.3 percent in 2007 and 58. the budget of the Judiciary has been consistently increasing.4% in 2008. d.

the Board considers whether countries perform above the median score of their income peer group (either the Scorecard LIC group or the Scorecard LMIC group)1 on at least half of the indicators overall.) For the Political Rights.MCC submits a report to Congress describing the criteria and the methodology—including the indicators— which MCC’s Board of Directors will use to select countries as eligible for MCA assistance. countries performance is gauged against an absolute threshold as opposed to the median score. and Immunization indicators2. objective and quantifiable policy indicators in three broad policy categories: Ruling Justly. MCC holds a formal public comment period following publication of the report. Inflation. The indicators that will be used in Fiscal Year 2013 are: * Ruling Justly • Civil Liberties (Freedom House) • Political Rights (Freedom House) • Control of Corruption (World Bank/Brookings Institution WGI) • Government Effectiveness (World Bank/Brookings Institution WGI) • Rule of Law (World Bank/Brookings Institution WGI) • Freedom of Information (Freedom House/FRINGE Special/Open Net Initiative) * Investing in People • Immunization Rates (World Health Organization and UNICEF) • Public Expenditure on Health (World Health Organization) • Girls’ Education (UNESCO) -. MCC seeks indicators that have broad country coverage.) Indicators To evaluate policy performance. to the maximum extent possible. MCC favors policy indicators developed by independent third party institutions that rely on objective. Civil Liberties. The Board also takes into consideration whether a country passes at least one indicator in each category (Ruling Justly. Investing in People. MCC also seeks indicators that are linked to economic growth. and broad consistency in results from year to year. or Economic Freedoms.Secondary Education Enrolment (Scorecards LMICs) • Public Expenditure on Primary Education (UNESCO and national sources) • Child Health (CIESIN and YCELP) • Natural Resource Protection (CIESIN and YCELP) *Encouraging Economic Freedom • Business Start-Up (IFC) • Land Rights and Access (IFAD and IFC) • Trade Policy (Heritage Foundation) • Regulatory Quality (World Bank/Brookings Institution WGI) •Inflation (IMF WEO) • Fiscal Policy (IMF WEO) • Access to Credit (IFC) • Gender in the Economy (IFC) . poverty reduction. and Encouraging Economic Freedom. MCC uses. as well as above the median on the Control of Corruption indicator and above the threshold on either Political Rights or Civil Liberties (the Democratic Rights indicators. Methodology When evaluating countries for eligibility. cross-country comparability.Primary Education Completion (Scorecard LICs) -. publicly available data and have an analytically rigorous methodology. and government policies. Investing in People.

html#ixzz2xbN Fswxl MCC evaluates performance in three areas—Ruling Justly.usembassy. and Encouraging Economic Freedom.gov/st/english/texttrans/2012/10/20121009137208.usembassy.html#ixzz2xbM r5Vee .gov/st/english/texttrans/2012/10/20121009137208. Read more: http://iipdigital.Read more: http://iipdigital. Investing in People.