Transparency and Accountability in Public Service

Legal Framework
The 1987 Constitution of the Philippines provides the basis of ethical and accountable
behavior in the public sector.
Section 1 of Article XI states that: 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. This provision requires every public official and employee to exhibit and live
certain values while in government service. In addition, the State has been mandated by the
Constitution to “maintain honesty and integrity in the public service and take positive and
effective measures against graft and corruption”.
We always hear the phrase “public office is a public trust”. Ang ibig sabihin nito, may
pananagutan tayo sa taumbayan. Lahat ng ginagawa natin, ginagastos natin, isinasa-
katuparan natin ay pananagutan natin sa taumbayan. Sabi nga sa Panunumpa ng Lingkod
Bayan: “Ang bawat sandali ay ituturing kong gintong butil na gagawin kong kapaki-
pakinabang. Lagi kong isasaalang-alang ang interes ng nakararami bago ang sarili kong
kapakanan.”
Working in government is different because we are not only looking out for ourselves or
for our organization. Our focus is delivering services for the benefit of our main clientele—
the Filipino people. We are primarily here to serve, and not to be served.
The activities of civil servants and public agencies must follow the will of the people – The
obligation of an individual or organization to account for its activities, accept responsibility
for them and to disclose the result in a transparent manner
ACCOUNTABILITY VS. RESPONSIBILITY
ACCOUNTABILITY RESPONSIBILITY
•Is answerability, blameworthiness, •you hold as a person to only after a task is
liability and the expectation of account done or not
giving •may refer to being in charge, being the
•owed explanation owner of task or event
•explanation not necessary
•can be before and/or after a task

Accountability is a pillar of democracy and good governance that compels the state, the
private sector and civil society to focus on results, seek clear objectives, develop effective
strategies and monitor and report on performance measured as objectively as possible.
Kapag pinag-uusapan ang accountability in the context of public service, laging tutumbukin
ang public funds. This is especially a touchy topic in a country like ours kung saan mas
nakararami ang namumuhay below poverty line, at mataas pa ang buwis at presyo ng mga
bilihin.
Ang isyu ng korupsyon ay damang-dama ng ordinaryong Pilipino sa kanyang bulsa. Kaya
napakahalagang maging accountable sa pamamahala ng pondong ipinagka-katiwala sa atin.
Ito ay galing sa taumbayan, at nararapat lamang na maibalik sa kanila in the form of public
service excellence. DBP is an expert in this discourse, especially since it is a development
bank and addresses issues in poverty and social inequality. That is why I trust that it is a
financial institution that practices a great amount of accountability.
Needless to say, we will always be answerable to our own actions. When that time comes, I
hope we will be able to account for what we have done truthfully and straightforwardly.
A fundamental principle of democracy is that citizens have the right to demand
accountability and public actors have an obligation to account.
Government officials and bureaucrats are accountable for their (i) conduct and (ii)
performance..9 In other words, they can and should be held accountable to (i) obey the law
and not abuse their powers, and (ii)serve the public interest in an efficient, effective and
fair manner.
Transparency promotes openness of the democratic process through reporting and
feedback, clear process and procedures and the conduct of actions by those holding
decision-making authority. It makes information understandable and keeps clear standard
accessible to citizens.
The Philippine government provides adequate and timely information on the national
budget, the 2017 Open Budget Survey shows
The Philippines ranks first in Asia in terms of budget transparency, the 2017 Open Budget
Survey revealed.
The Philippine government scored 67 out of 100 for transparency, 3 points higher than its
2015 index, according to the survey's Open Budget Index. Globally, the Philippines ranks
19th out of 115 countries.
Every two years, the International Budget Partnership (IBP) assesses budget transparency
based on the amount and timeliness of information made available to the public.
(READ: What's the share of gov't offices in the 2018 P3.8-T national budget?)
Budget Secretary Benjamin Diokno said this recognition is an encouragement for
government officials to work harder for transparency.
"We're very proud of what we've accomplished to date. In surpassing our Asian neighbors,
we have further cemented our position as a global leader in Open Government. It
encourages us to persevere, to do even better, in the years ahead," said Diokno.
In Asia, the Philippines is followed by Indonesia (64 points out of 100), Jordan (63), Japan
(60), and South Korea (60).
In terms of public participation, the Open Budget Survey gave the Philippines a score of 41
out of 100, saying that the government provides limited opportunities for the public to
engage in the budget process.
No country scored high in terms of opportunities for public participation and only 4
countries received moderate scores: Australia, New Zealand, the Philippines, and the
United Kingdom. The global average is just 12 points out of 100, meaning that around the
world, participation opportunities in budgeting are low.
In terms of oversight, the Philippines holds a score of 65. The IBP said that the legislature
and audit institutions in the country provide "adequate" oversight of the budget.
While the legislature provides adequate oversight during the planning stage of the budget,
the IBP said such oversight is limited during the implementation process.
"The Department of Budget and Management will continue to work with the legislature,
our constitutional bodies, and our citizens to further enhance budget openness in the
public sector," Diokno said.
Presidential Spokesperson Harry Roque said that the results of the survey show that the
government is committed to transparency.
"This underscores the Duterte administration's seriousness in upholding transparency and
accountability in the government," Roque said. (READ: How serious is the Duterte
administration about FOI?)
"With the signing of Executive Order No. 2 or the Freedom of Information, we guarantee
that the public will continue to have easy access to substantial budget information," he
added.
The Open Budget Survey is produced by independent budget experts around the world,
using internationally-accepted criteria developed by multilateral organizations such as the
International Monetary Fund, the Organisation for Economic Co-operation and
Development, the International Organisation of Supreme Audit Institutions (INTOSAI), and
the Global Initiative for Fiscal Transparency (GIFT)
Seal of Good Governance program under the Department of the Interior and Local
Government (DILG), to encourage local government units (LGUs) to "operate more
efficiently, more effectively and with more transparency and accountability."
Successful LGUs who earned the seal were given cash grants from the DILG's Performance
Challenge Fund. The seal also served as a requirement for LGUs before they can avail of
loans from Landbank, or benefit from certain government projects.
"The program not only ensured that LGUs will observe proper financial management
processes but also funded many, vital local projects," Angara said.
Under the bill, the criteria for the award of the new "Seal of Good Local Governance" will be
expanded from "good financial administration" to also cover 1) health, 2) Disaster
Preparedness, 3) Social Protection, 4) Peace and Order, 5) Business-Friendliness and
Competitiveness, 6) Environmental Protection, 7) Tourism, Culture and the Arts, and 8)
Education.
Angara said LGUs must now pass the minimum requirements for all the stated criteria for
them to qualify for the "Seal of Good Local Governance."
Angara said a new SGLG Incentives Fund worth P1 billion would also be created to fund the
cash grants to be given to SGLG awardees. The amount of cash grants would be determined
by the Council on Good Governance, a new inter-agency body.
The program, he said, would also be extended to qualifying barangays, which could earn
the seal under a set of criteria different from that followed by other LGUs.
"More and more LGUs are given the SGLG award, which means that more LGUs are
improving their services to the public. Thus it is only timely that we pass this bill and
strengthen the SGLG program," Angara said. (JDC).
The SGLG is an upgraded SGH incentive which aimed to promote transparency and
accountability in the use of public funds by delivering basic services responsive to the
people’s needs under good governance.
From its pilot run in 2010, the Seal of Good Housekeeping (SGH) has promoted
transparency and accountability in local government operations, which assesses financial
housekeeping through compliance with COA'S accounting and auditing standards and the
Departrnent's Full Disclosure Policy. In2012,84o/o of provinces, cities and municipalities
were conferred with the SGH. This indicates readiness of local governments to take on
greater challenges. This year, the Department scales up the Seal of Good Housekeeping into
the Seal of Good Local Governance (SGLG). Good governance promotes transparency and
accountability in the use of public funds by delivering basic services that are responsive to
people's needs. In this context, the SGLG is a recognition of good perfonnance of provincial,
city and municipal governments, not only on financial housekeeping, but also on other
areas that directly benefit the people. It is a continuing challenge for local governments to
perform better, and ultimately, achieve a desirable condition where local governments: (a)
Sustain the practice of transparency and accountability in the use of public funds; (b)
Prepare for challenges posed by disasters; (c) Demonstrate sensitivity to the needs of
vulnerable and marginalized sectors of society; (d) Encourage investment and
employment; (e) Protect constituents from threats to life and security; and (0 Safeguard
the integrity of the environment.
According to DILG, the SGH only measured the levels of compliance to the Department’s
Full Disclosure Policy, particularly in the areas of budget, revenues and procurement,
among others, having no adverse COA findings, as well as meeting the requirements of
Anti-Red Tape Act.

The SGLG covers more areas of governance to provide greater challenge to our local
governments to continue good governance practices while providing better services.
Good governance that is characterized by transparency, accountability, participation and
effectiveness in service delivery must be the hallmark of all LGUs to ably and confidently
overcome any challenges posed along the economic, environmental and social fronts.
Simply put, LGUs must always be accountable, transparent, participative and effective in
everything or in any endeavor they do – whether it is in the economic, environment or
social fronts -- if they are to succeed in transforming their communities and improving the
lives of their people. Good governance radiates and ensures that LGUs meet the three sub-
sectoral outcomes for their community and people.
ACCOUNTABLE, TRANSPARENT, PARTICIPATIVE AND EFFECTIVE LOCAL GOVERNANCE
LGU Award & Incentive:
In 2014, the DILG elevated the Seal of Good Housekeeping into the Seal of Good Local
Governance (SGLG). The SGLG is awarded to local government units that adhere to
performance criteria in the following areas: good financial housekeeping, disaster
preparedness, social protection, environmental management, peace and order, and local
economic development. Good governance promotes transparency and accountability in the
use of public funds by delivering basic services that are responsive to people's needs. As
laid down in DILG Memorandum Circular No. 2014-39, the SGLG sets a standard for good
performance by provincial, city and municipal governments, not only on financial
housekeeping, but also in other areas that directly benefit the people. It is a continuing
challenge for local governments to perform better, and ultimately, achieve a desirable
condition where local governments can achieve the following: (a) Sustain the practice of
transparency and accountability in the use of public funds; (b) Prepare for challenges
posed by disasters; (c) Demonstrate sensitivity to the needs of vulnerable and marginalized
sectors of society; (d) Encourage investment and employment; (e) Protect constituents
from threats to life and security; and (f) Safeguard the integrity of the environment (DILG
2014).
Compliance to Full Disclosure Policy (FDP)
The FDP aims to ensure transparency and accountability among LGUs of their Local Budget
and Finances with the posting of financial documents in three conspicuous places in the
LGU. DILG-NCR field offices have been responsible in the monitoring of compliance of LGUs
in the FDP, or the quarterly posting of financial documents in three conspicuous places in
the LGUs, as well as in the FDP portal.
Local governments that satisfy the SGLG criteria are given loan access to government
financial institutions. There are open data platforms that have been developed to support
public participation in monitoring local government performance with the use of the SGLG
criteria, especially the component on good financial housekeeping. These include fiscal
transparency mechanisms such as the Full Disclosure Policy Portal and the Performance
Challenge Fund (PCF) Portal. There were 1,845 development projects implemented
amounting to P2.5 Billion nationwide from 2010-2014 under the PCF Program. The PCF
Portal provides information on project site, cost, and status that are now available to the
citizens
The Full Disclosure Policy of the DILG has resulted in the mandatory disclosure of key
financial documents of local government units, including budget, procurement, and special
purpose fund resorts such as the utilization of the Gender and Development (GAD) Fund,
Internal Revenue Allotment (IRA), and Disaster Risk Reduction and Management (DRRM).

To make assessment possible, local government must first open up their information. As a
result of the program today more than 90% of 1715 provincial, city and municipal
governments regularly upload their financial documents to a "Full Disclosure Policy
Portal," which can be viewed and downloaded by citizens at anytime. 
National Budget Circular 542, issued by the Department of Budget and Management on
August 29, 2012, reiterates compliance with Section 93 of the General Appropriations Act
of FY2012. Section 93 is the Transparency Seal provision, to wit:
Sec. 93. Transparency Seal. To enhance transparency and enforce accountability, all
national government agencies shall maintain a transparency seal on their official websites.
The transparency seal shall contain the following information: (i) the agency’s mandates
and functions, names of its officials with their position and designation, and contact
information; (ii) annual reports, as required under National Budget Circular Nos. 507 and
507-A dated January 31, 2007 and June 12, 2007, respectively, for the last three (3) years;
(iii) their respective approved budgets and corresponding targets immediately upon
approval of this Act; (iv) major programs and projects categorized in accordance with the
five key results areas under E.O. No. 43, s. 2011; (v) the program/projects beneficiaries as
identified in the applicable special provisions; (vi) status of implementation and
program/project evaluation and/or assessment reports; and (vii) annual procurement
plan, contracts awarded and the name of contractors/suppliers/consultants.
The respective heads of the agencies shall be responsible for ensuring compliance with this
section.
A Transparency Seal, prominently displayed on the main page of the website of a particular
government agency, is a certificate that it has complied with the requirements of Section
93. This Seal links to a page within the agency’s website which contains an index of
downloadable items of each of the above-mentioned documents.
Seal of Good Local Governance (SGLG)
The most prestigious award of the Department that seeks to promote good local
governance through recognition of innovative and notable practices on local governance on
the following areas:
Financial Administration
Disaster Preparedness
Social Protection
Peace and Order
Business Friendliness and Competitiveness
Environmental Management
Tourism, Culture and Arts
DILG MC NO. 2018-194
NOV. 6, 2018
SGLGB
SGLGB
To encourage and challenge Barangay to SCALE UP its performance
Practice of Good Governance that Accord primacy to the principles of:
Accountability
Transparency
Performance
Effectiveness
Financial Administration- practice of accountability and transparency by adhering with
accounting and auditing standards and compliance with the Barangay Full Disclosure
Policy (BFDP). Indicators are as follows:
Compliance with the Barangay Full Disclosure Policy (BFDP)
Percentage increase in local resources
Intensified and committed internal reforms, as well as active citizen engagement are two of
the most important aspects of building transparency and ensuring accountability”-Maria
Gracia Pulido-Tan, former Philippines Commission on Audit (COA) Chairperson
Section 8. Statements and Disclosure. - Public officials and employees have an obligation to
accomplish and submit declarations under oath of, and the public has the right to know,
their assets, liabilities, net worth and financial and business interests including those of
their spouses and of unmarried children under eighteen (18) years of age living in their
households.
(A) Statements of Assets and Liabilities and Financial Disclosure. - All public officials and
employees, except those who serve in an honorary capacity, laborers and casual or
temporary workers, shall file under oath their Statement of Assets, Liabilities and Net
Worth and a Disclosure of Business Interests and Financial Connections and those of their
spouses and unmarried children under eighteen (18) years of age living in their
households.
The two documents shall contain information on the following:
(a) real property, its improvements, acquisition costs, assessed value and current fair
market value;
(b) personal property and acquisition cost;
(c) all other assets such as investments, cash on hand or in banks, stocks, bonds, and the
like;
(d) liabilities, and;
(e) all business interests and financial connections.
The documents must be filed:
(a) within thirty (30) days after assumption of office;
(b) on or before April 30, of every year thereafter; and
(c) within thirty (30) days after separation from the service.
All public officials and employees required under this section to file the aforestated
documents shall also execute, within thirty (30) days from the date of their assumption of
office, the necessary authority in favor of the Ombudsman to obtain from all appropriate
government agencies, including the Bureau of Internal Revenue, such documents as may
show their assets, liabilities, net worth, and also their business interests and financial
connections in previous years, including, if possible, the year when they first assumed any
office in the Government.
Husband and wife who are both public officials or employees may file the required
statements jointly or separately.
The Statements of Assets, Liabilities and Net Worth and the Disclosure of Business
Interests and Financial Connections shall be filed by:
(1) Constitutional and national elective officials, with the national office of the
Ombudsman;
(2) Senators and Congressmen, with the Secretaries of the Senate and the House of
Representatives, respectively; Justices, with the Clerk of Court of the Supreme Court;
Judges, with the Court Administrator; and all national executive officials with the Office of
the President.
(3) Regional and local officials and employees, with the Deputy Ombudsman in their
respective regions;
(4) Officers of the armed forces from the rank of colonel or naval captain, with the Office of
the President, and those below said ranks, with the Deputy Ombudsman in their respective
regions; and
(5) All other public officials and employees, defined in Republic Act No. 3019, as amended,
with the Civil Service Commission.
(B) Identification and disclosure of relatives. - It shall be the duty of every public official or
employee to identify and disclose, to the best of his knowledge and information, his
relatives in the Government in the form, manner and frequency prescribed by the Civil
Service Commission.
(C) Accessibility of documents. - (1) Any and all statements filed under this Act, shall be
made available for inspection at reasonable hours.
(2) Such statements shall be made available for copying or reproduction after ten (10)
working days from the time they are filed as required by law.
(3) Any person requesting a copy of a statement shall be required to pay a reasonable fee to
cover the cost of reproduction and mailing of such statement, as well as the cost of
certification.
(4) Any statement filed under this Act shall be available to the public for a period of ten
(10) years after receipt of the statement. After such period, the statement may be
destroyed unless needed in an ongoing investigation.
(D) Prohibited acts. - It shall be unlawful for any person to obtain or use any statement filed
under this Act for:
(a) any purpose contrary to morals or public policy; or
(b) any commercial purpose other than by news and communications media for
dissemination to the general public.
Role of Civil Society: Civil Society has been widely recognised as an essential “third sector”.
Civil society is therefore seen as an increasingly important agent for promoting good
governance like transparency, effectiveness, openness, responsiveness and accountability.
The Philippines offers an interesting case of improving transparency and accountability
through the enhancement of civil society participation in budget and policy mechanisms at
both the national and sub-subnational levels. Participation in fiscal policy necessitates
correct information in order to formulate fiscal priorities and to assess services that are of
value. In addition, people need to understand budget information and be made more
knowledgeable on how the budget process works since in areas such as CSOs and citizen
engagement in monitoring and auditing government projects (Fö lscher 2007).
STRENGTHENED INTERNAL ORGANIZATIONAL CAPACITY Programs and Projects: 1.
Internal Administrative Systems Improvement • Development of Web-Based Internal
Systems • Harmonization of Planning, Budgeting and Accounting Systems • Development of
DILG Internal and External Communication System • Human Resource Management and
Development Plan • Strengthening Internal Control System • Systems / Procedures
Governing the Disposition of Cases filed against Department Personnel • Strengthening of
Local Governance Resource Center
Transparency Seal National Budget Circular 542 was issued by the DBM in 2012 to foster
transparency and accountability in government. National agencies are mandated to set up a
Transparency Seal on their official websites with the following information: (1) the
agency’s mandates and functions, names of its officials with their position and designation,
and contact information; (2) annual reports for the last three years; (3) approved budgets
and corresponding targets; (4) major programs and projects; (5) program and project
beneficiaries; (6) status of implementation and evaluation of programs and projects; and
(8) annual procurement plan, contracts awarded and names of contractors. In 2012, during
the first cycle of the Performance Based Incentive System (PBIS), 87 percent of
participating agencies met the Transparency Seal requirement. The compls
iance rate climbed up to 89 percent in the succeeding year. The PBIS was introduced
to provide employees with a top-up bonus based on performance that helps in the
achievement of their agency’s goals and commitments. Previously, bonuses were allocated
uniformly to all civil servants, regardless of their performance.
The Civil Service Commission (CSC) reminded government agencies to strictly abide by the
rules on publication and posting of vacancies to ensure transparency and equal
opportunities in the recruitment and hiring of government workers.
The CSC said that vacant positions authorized to be filled should be published and posted in
at least three (3) conspicuous places for a period of at least 10 calendar days for national
government agencies, government owned or controlled corporations, and state universities
and colleges (per Republic Act No. 7041 or An Act Requiring Regular Publication of Existing
Vacant Positions in Government Offices, Appropriating Funds Therefore, And For Other
Purposes), and at least 15 calendar days for local government units (per Republic Act No.
7160 or the Local Government Code of 1991).
It added that, under the new 2017 Omnibus Rules on Appointments and Other Human
Resource Actions (ORAOHRA), which took effect on August 17, the screening, evaluation,
and deliberation of applicants by the agency’s Human Resource Merit Promotion and
Selection Board (HRMPSB) should begin only after the mandatory publication period.
The certification on the publication and posting of the vacant position, including the date
the deliberation was conducted by the HRMPSB, should be duly signed by the authorized
Human Resource Management Officer at the back of the appointment form.
“We included this new provision in the ORAOHRA in light of reports that some agencies
post their vacancy in compliance with the publication requirement, but they tell interested
applicants that the position has already been filled up,” the CSC said.
The CSC added that “this practice runs opposite to the intent of the law, that is, to give both
internal and external applicants equal opportunity to vie for vacancies and to ensure
fairness and transparency in the recruitment and selection process in government.”