In the 2019 Corruption Perception Index (CPI), the Philippines obtained a score

of 34 from 36 in 2018. Countries and territories were scored by their perceived levels of
public sector corruption using the scale of 100 as “very clean” and 0 as “very corrupt”.
This indicates that the country is failing in attacking corruption.

There is a restriction in economic growth through unefficient businesses

operating in the Philippines because of the high corruption levels. Extensive public
administration bribery and ambiguous and complicated laws make multinational
businesses vulnerable to public officials being extorted and abused. In the courts,
favoritism and disproportionate interference and prevalent, leading to time-consuming
and unequal settlement of disputes and an unpredictable market climate.

In the judicial system, corruption threats are high. Bribes and illegal payments
are made usually in exchange for favorable judicial decisions (GCR 2015-2016). The
judiciary is underfunded by the state and often depends on local sponsors for resources
and salaries, resulting in non-transparent and biased court decisions. In a recent case,
a businessman filed an administrative complaint with the Supreme Court of the country
against the judge of Makati City for allegedly demanding a bribe of Php 15 million in
return for a favorable judgment on an insurance claim (Inquirer, Aug. 2016).

When dealing with public services, businesses cope with a high risk of
corruption. Around half of company managers reported being asked by someone in the
government for a bribe in 2016 (SWS 2016). Almost three out of five businesses
reported expecting to give gifts to get things done, but only one out of ten reported
expecting to give gifts to get an operating license. In addition, civil servants are not
normally hired in a competitive manner; appointments are based on patronage practice.

Companies should remember that in the Philippines, the legal anti-corruption

system is complex and poorly implemented; there is a lack of cooperation between law
enforcement authorities, and officials are seldom charged and convicted of corruption
crimes. In the public sector, the Anti-Graft and Corruption Practices Act criminalizes
deliberate and passive bribery, embezzlement, extortion, office harassment and conflict
of interest. The Anti-Red Tape Act also criminalizes bribery of public officials and
trafficking in influence. Competitive and opening bidding is mandated by the
Government Procurement Reform Act. There are no provisions in the Philippine law to
shield whistleblowers who expose corruption. The United Nations Convention Against
Corruption has been ratified by the Philippines.

The legislative framework for fighting corruption is scattered and is not effectively
enforced by the weak and non-cooperative law enforcement agencies.