TEACHER EDUCATION DEPARTMENT

A Paper Presented to the Faculty

of the TEACHER EDUCATION DEPARTMENT
Davao de Oro State College – Maragusan Campus

In Partial Fulfilment of the Requirements for the Degree

Of Bachelor of Secondary Education
Major in Mathematics

MANABUAG, JENNEY T.
OCTAT, CHRIS JOY J.
OPENA, JANMARK V.
PARADERO, SHIENAMAE S.
TALIDONG, ANGEL H.
TANOY, JOSELITO JR. L.

DECEMBER 2022
 GRAFT AND CORRUPTION:
A PHILIPPINE POLITICAL AND ECONOMIC
PHENOMENA
 ABSTRACT

The Graft and corruption are political and economic phenomena, the

Philippines experiencing from a very long time ago and still experiencing it up

to the present and possibly up until the future. This study had a purpose on

explaining what is graft and corruption, its type, its effect to the Philippines,

and to the Filipinos, and how to combat graft and corruption. Graft and

corruption is a very serious problem that caused the Philippines to be just

developing country no matter how rich with it with natural resources and

talented and hardworking citizens. With this study, learn how graft and

Corruption exists. The research design is qualitative in nature, as it discusses

graft and Corruption in the Philippines and everything behind it. With graft and

corruption being rampant in the Philippines, there is a need to address these

kind of issue and find ways to deal with it. It is late now because it already

caused a destruction, but it is never too late to change what is used to be. The

Filipinos should change their mind set in electing people with higher positions.

And most importantly Filipino should learn from their mistake and use it have

a better decision in the future. This study emphasizes only the brief but

important details upon the study.

Keyword: graft, corruption, combat, political, economic

TABLE OF CONTENTS

Title Page………………………………………………………………………………

Absract……………………………………………..………………………………… i

Table of Contents……………………………….………………………………….. ii

Introduction…………………………………………………………...…….. 1

Review of Related Literature……………………………………..………. 3

Null Hypothesis……………………………………………………….……

11

Literature / Data analysis……………………………………………….…

12

Summary…………………………………………………………………... 14

Conclusions………………………………………………………………...16

REFERENCES……………………………………………………………..18

CURRICULUM VITAE
 INTRODUCTION

GRAFT AND CORRUPTION: A PHILIPPINE POLITICAL AND ECONOMIC

PHENOMENA

Graft and Corruption are one of those major challenges that the

Philippines is facing not just in the political aspect but as well as in the

economic aspect. Graft and corruption include bribery, extortion, and

nepotism and are characterized by the subordination of public interests to

private aims and violations of the norms of duty and welfare accompanied by

secrecy, betrayal, deception and a callous disregard for any consequences

suffered by the public (Abueva 1970). It is not very new to know that graft and

corruption is a time very alarming issue and yet there is no end with it, it exists

a very long time ago and still it is existing in the present.

With how graft and corruption continue to exist in our country, this also

means that it keeps affecting the lives of every single Filipino. Graft and

corruption occurs everywhere but sad thing to say it is more evident in the

political aspect of country which is the government. Many politicians have

been convicted for committing an act related to Graft and Corruption and

surely there is still more politicians who are doing the same thing and still

hiding their true motives in their acquired positions. Also, graft and corruption

greatly affect the Philippines economy as it limits economic growth and

discourages investment.
 1

Graft and corruption takes funding away from important infrastructure

investments such as roads, schools and hospitals and deters international

investors. Thus, graft and corruption are indeed political and economic

phenomena the Philippines is experiencing.

Graft and corruption comes in many ways and occurs everywhere. With

this study, learn the different types of graft and corruption in the government

as well as in the economy and how did it affect the lives of Filipino. Although

graft and corruption seems so endless and unstoppable, there are still certain

ways and anti-graft and corruption laws that ensures that all corrupt people

will be held liable for corruption and be effectively sanctioned. Graft and

corruption really is a problem in the country and if it remains in the future, it is

possible that the Philippines would not rise and still be in the Third -World

Countries.
 2

REVIEW OF RELATED UTERATURE

This section presents various studies that have directly relevance with

the present investigation. Valuable insights were reviewed which furnished a

background on the said topic.

GRAFT AND CORRUPTION IN THE PHILIPPINES

Graft, as understood in American English, is a form of political

corruption defined as the unscrupulous use of politician’s authority for

personal gain. Political graft occurs when funds intended for public projects

are intentionally misdirected in order to maximize the benefits of private

interests. While corruption refers to misusing public power for personal gain,

happens when one abuses power entrusted to them for personal gain. This

misuse of power erodes the trust between two or more parties and makes a

democracy weak. With the definition of graft and corruption it is really evident

how bad the situation of a country is when there are corrupt people in the

position.

Specific Types of Corruption in the Philippines according to Somorostro

(2013)
 Tax Evasion. This is very rampant, particularly in the private sector

due to the refusal of those engaged in private business to honestly declare

their annual income and pay the corresponding taxes to the government.

Ghost Project and Payrolls. This is done by high officials of the

government whereby non- existing projects are financed by the government

while non-existing personnel or pensioners are being paid salaries and

allowances.

Nepotism and Favouritism. Government officials particularly those

occupying high positions tend to cause the appointment or employment of

relatives and close friends to government position even if they are not

qualified or eligible to discharge the functions of that office. This is one of the

root causes of inefficiency and the overflowing of government employees in

the bureaucracy.

Extortion. This is done by government officials against their clients by

demanding money, valuable items, or services from ordinary citizens who

transact business with them or their office.

Bribery “Lagay” Systems. The “lagay” system or the act of citizens to

bribe government officials occupying sensitive positions in government is

perpetuated due to bureaucratic red tape.

“Tong “or Protection Money. This is a form of bribery which is done

by citizens performing illegal activities and operations. They deliver huge

amount of money to government officials particularly those in-change of

enforcing the law in exchange for unhampered illegal operation.

Those are just some of the types of corruption that exists in the

government. Based on it, politicians who are involved in graft and corruption

really can find their ways in stealing the government’s money. There is not

only one way to do it but there are multiple ways. So, it is really not confusing

why the Philippines is still struggling despite having a very rich resources and

hardworking people, and it is because, the people who are entrusted to make

the Philippine a better and developed country are the people which mostly

steals, corrupts and do things that are not helpful in the improvement of the

country.

Graft and Corruption occurs because lot of people are not satisfied with

what they have. And naturally, that’s how humans are. Humans have no

satisfaction, the more they gain, the more they want. According to Mathews

and Wideman (1977) grand Corruption Scandals are a regular occurrence in

the Philippines tainting many presidential administrations. Graft and corruption

as of today are just normal phenomena since the Philippines and Filipinos are

dealing with this for a very long time but until today there is still graft and

corruption and it became worst. In 1988, graft and corruption in the

Philippines was considered as the biggest problem of all, and that is

according to Jaime Cardinal Sin, the Archbishop of Manila. How much more

today? that even the low position politicians are doing the same thing.
 According to Somorostro (2013), in 1989, public perception was that

“corrupt government officials are greater threat to the country than the

communist guerrillas. And it is because the image of being a government

official

should be good, admirable, and a role model, and that is what every Filipino is

thinking and expecting them to be but knowing what they really are, and all

the bad things they’ve done and continue doing, they are worse than any

communist. Also, in 1992, President Ramos considered graft and corruption

as the third major hindrance towards attaining his development strategy for

the country. Obviously, how can a country develop, if all the funds that is

intended for the development of it is being stolen and worst it’s for own benefit

or personal interest of the people who are in the positions, be it high or low.

EFFECTS OF GRAFT AND CORRUPTION

The Philippines faced and is facing the issue of graft and corruption, it

is expected that it had greatly affect every lives of the Filipino rather they

professionals, businessperson, normal people, and especially the poor. And it

continues to affect the lives of them. It is very sad to know that, the Philippines

should be the of the rich countries all around the world, because of its natural

resources and hardworking citizens, but until today Philippines is still

considered as a developing country.

 According to Mauro (1995), an economist who have long identified a

number of channels through which graft and corruption affects the economic

growth of the Philippines.

 It distorts incentives and market forces, leading to misallocation of

resources.

 It diverts talents and resources, towards “lucrative” rent-seeking

activities, such as defence, rather than productive activities.

 Corruption acts inefficient tax in business, ultimately raising production

costs and reducing the quality of resources.

 Rent-seeking behaviour is also likely to create inefficiencies, fuelling

waste of resources and undermining the efficiency of public

expenditure.

With graft and corruption occurring in the country, the Filipinos have lost

faith in the government to work in their best interest is damaged by corruption.

Additionally, it wastes taxes or rates that were set aside for significant

community projects, which means the Filipino are forced to accept subpar

infrastructure or services or lose out entirely. And while the citizens of the

Philippines are suffering, all the corrupt people are living their life to the fullest

and enjoying the best of what they’ve stole.

 According to Victoria (2003), there are a lot of impacts of graft and

corruption in an organization, individual, and in the community.

Organizational impacts

 financial loss

 damage to employee morale

 damage to organization’s reputation

 organizational focus and resource diverted away from delivering core

business and services to the community

 increased scrutiny, oversight and regulations

Individual impacts

 disciplinary action

 termination of employment

 criminal charges

 may affect relationship with family, friends, and colleagues.

Community Impacts

 wasted taxpayer funds

 loss of goods and services

 lower community confidence in public authorities

  disadvantage to honest business that miss out on government

contracts.

Graft and Corruption really are threatening phenomena in the country.

The Philippines is so unlucky to have people and citizens that are not

responsible with their duties and responsibilities as Filipinos.

COMBATING GRAFT AND CORRUPTION

According to Hunja (2015), there are 10 ways to fight graft and

corruption.

1. Corruption is not only about bribes. People especially the poor get

hurt when resources are wasted. That’s why it is so important to

understand the different kinds of corruption to develop smart

responses.

2. Power of the People. Create pathways that give citizens relevant tools

to engage and participate in their governments -identify priorities

problems and find solutions.

3. Cut the red tape. Bring together formal and informal processes (this

means working with the government as well as non-governmental

groups) to change behaviour and monitor as well as progress.

4. Its not 1999. Use the power of technology to build dynamic and

continuous exchanges between key stakeholders: government,

citizens, business, civil society groups, media, academia, etc.

 5. Deliver the goods. Invest in institutions and policy sustainable

improvement in how government delivers services is only possible if

the people in these institutions, endorse sensible rules and practices

that allow for change while making the best use of tested tradition and

legacies – imported models often do not work.

6. Get incentives right. Align anti-corruption measures with market,

behavioral and social forces.

7. Sanctions Matter. Punishing corruption is a vital component of anti-

corruption effort.

8. Act globally and locally. Keep citizens engaged on corruption at

local, national, international and global levels in line with the scale and

scope of corruption.

9. Build capacity for those who need it most. Countries that suffer

from chronic fragility, conflict and violence resources to combat

corruption – are often the ones that have the fewest internal resources

to combat corruption.

10. Learn by doing. Any good strategy must be continually monitored and

evaluated to make sure it can be easily adopted as situations on the

ground change.

Fighting graft and corruption will not be easy especially here in the

Philippines that it’s very rampant from local government to national

government. But the government is doing their very best to stop graft and

corruption. There are different laws that are intended to those who commit
these crimes. As long as there are people who are thirsty of power and money

graft and corruption will continue to exist.

10

NULL HYPOTHESIS

In this study, the independent variable is graft and corruption, while the

dependent variables are Philippines economic growth, lives of the Filipinos

and the status of the government.

Ho: There is no significant relationship between the graft and corruption and

the Philippines economic growth, lives of the Filipinos and the status of the

Philippine government.
 11

LITERATURE / DATA ANALYSIS

Philippines is the 117 least corrupt nation out of 180 countries

according to 2021 Corruption Perceptions Index reported by Transparency

International. Although it is good to know that the Philippines was not ranked

as one of the highest corrupt nation, it is still not good that graft and corruption

is still rampant in the country. No matter who the President is, still graft and

corruption remains and it is very confusing, how Filipinos still vote those

people who are known to be corrupt, maybe its ignorance and idiocy.

In the Philippines, an estimated P1.4 trillion has been lost to corruption

in the 2017 (670 billion) and 2018 (952 billion). Deputy Ombudsman Cyril

Ramos, said that around 20% of the annual government appropriation goes to

corruption. Also, according to a study by Carandang and Balboa Cahig

(2020), some of the more notable typologies and their accompanying

corruption cases in the Philippine context are as follows: noncompliance with

the Government Procurement Reform, technical malversation, political

dynasty ghost project, income and asset misdeclaration, red tape, influencing
a subordinate to defy order and protocol, bribery, and connivance of

government officials with drug lords.

With how big the Philippine has lost because of graft and corruption, it

is not confusing why there is not much project in our country and even in the

local city, it is because there is no fund that is intended for it. Many projects

have

12

been pending because of lack of funding and many projects have not yet

starting construction also because of lack of funding. And what drive this lack

of funding, it is because graft and corruption. Graft and Corruption is the

source of missed opportunities. This is more sinister because it is committed

by those in authority, where elected or appointed and most probably

supported by those around them.

 13

SUMMARY

Graft and corruption is a very alarming and threatening issue in

Philippines. Graft is all about getting money through a dishonest way using

the political power and influences. White corruption is a form of criminal

offense undertaken by a person or an organization which is not trusted on the

position of authority, usually it is an abuse of power for one’s personal gain.

People who are not contented with what they have are the main reason why

there is corruption and graft. An example for this is a public employee who

claims to be sick but goes on a vacation.

Graft and corruption have negative impacts m every aspect of society

and profoundly intertwined with conflict and instability jeopardizing social and

economic and undermining democratic institutions and rule of law not only

follows conflict but is also frequently one of its root causes. There are different

types of corruption that happening in our country namely; Tax evasion, ghost

projects, and payrolls, nepotism, and favouritism, extortion, bribery “lagay

system”, and tong or protection money. With all the different types of lot of
corruption, it is not confusing why there are people chose to engage in this

kind of crime and it is because of money.

When there is a cause, surely it also has an effect. Graft and Corruption

greatly affects the country. This are indeed political and economic phenomena

because corruption happens mostly inside the government and people who

14

have high positions are prone to doing this kind of thing, and also it greatly

affects our economic growth because the funding that are intended for the

projects, programs, and construction of different infrastructure has been stole

by different people, and unlucky of those people who are in need of that

projects and programs because they won’t be cater.

As Graft and corruption being rampant in the Philippines, there relates

to graft and corruption. In Republic Act No. 2019 (Anti- Graft and Corrupt

Practices Act) states that the policy of Philippine Government that a public

office is a public trust to repress certain acts of public officers and private

person’s alike which constitutes graft corruption. The best way to get rid of

graft and corruption in the country is to choose a leader wisely that qualify to

lead the country, who is responsible and trustworthy.

 15

CONCLUSIONS

In conclusion, graft and corruption should be a number one concern of

the government as of now, as it become rampant and alarming. And if graft

and corruption continue to exist, the effect of it will also continue and might

become worst. The Filipinos should not be used to the effects of graft and

corruption, but they must find ways to stop it. It would not be easy, but as long

as every Filipino would take action, nothing is impossible.

Graft and corruption will continue to exist even in the future, and where

would suffer? It is the Filipinos. As long there is graft and corruption in the

government, there is also poverty, and it is given that poverty is also a main

problem in the Philippines. With all the effects of graft and corruption that is

mention, it is questionable how Philippines was still alright despite of these.

Graft and corruption has been in the Philippines for a very long time, that is

why every Filipinos must take action to lessen graft and corruption. And the

best way to do it, is to vote a rightful person into the positions, especially in

the higher positions.

 It is recommendable to every Filipino to be wise in their decisions,

especially concerns the welfare and future of the Philippines. Filipinos should

not be tamed by the flowery and sugar- coated words coming from all those

politicians who is just thirsty of the people’s attention when it is election period

but when they are put in the position, it seems like nothing happens. Every

16

wrong decision could affect a thousand lives. And to all the politicians out

there

who are corrupting money from the government, may their soul find peace,

because what they are doing is worse than simply stealing money. They are

stealing the bright future of the Philippines.

 17

References

http://www.corruption.org.za/learn-about-corruption/what-is-corruption/we-are-

all-affected/

http://www.worldbank.org/en/topic/governance/brief/anti-corruption

http://www.ibac.vic.gov.au/preventing-corruption/you-can-help-prevent-

corruption

http://ylai.state.gov/simple-ways-to-fight-corruption/

http://www.slideshare.net/JUANPAOLOARANAS/graft-corruption-in-the-

government.
 18

CURRICULUM VITAE
MANABUAG, JENNEY T.

Permanent Address: Purok Mabini,

Coronobe, Maragusan, Davao de Oro

Date of Birth: July 11, 2000

Place of Birth: Maragusan, Davao de Oro

Parents: Avelino Manabuag

Roberta Manabuag

Civil Status: Single

Institutional Affiliation: Student of Davao de Oro State College

School Address: Purok Rizal, Poblacion, Maragusan

Contact Number: 09702972132

Email Address: jenney.manabuag@ddosc.edu.ph

EDUCATIONAL BACKGROUND

2017-2020 Maragusan National High School

2013-2017 Maragusan National High School

2006-2013 Maragusan Central Elementary School

OCTAT, CHRIS JOY J.

Permanent Address: Purok 5, Paloc,

Maragusan, Davao de Oro

Date of Birth: October 17, 2002

Place of Birth: Paloc, Maragusan, Davao de Oro

Parents: Jonnifer Octat

Fe Octat
Civil Status: Single

Institutional Affiliation: Student of Davao de Oro State College

School Address: Purok Rizal, Poblacion, Maragusan

Contact Number: 09106535532

Email Address: chrisjoy.octat@ddosc.edu.ph

EDUCATIONAL BACKGROUND

2019-2021 Paloc National High School

2015-2019 Paloc National High School

2009-2015 Paloc Elementary School

OPENA, JANMARK V.

Permanent Address: Prk. Lanzones,

Cambagang, Maragusan, Davao de Oro

Date of Birth: November 10, 2003

Place of Birth: Maragusan, Davao de Oro

Parents: Conchita Opena

Civil Status: Single

Institutional Affiliation: Student of Davao de Oro State College

School Address: Purok Tambis, Poblacion, Maragusan

Contact Number: 09706982246

Email Address: janmarkopena@gmail.com

EDUCATIONAL BACKGROUND

2019-2021 Maragusan National High School

2015-2019 Tupaz National High School

2009-2015 Cambagang Elementary School

PARADERO, SHIENAMAE S.

Permanent Address: Prk. Guijo, New

Katipunan, Maragusan, Davao de Oro

Date of Birth: October 07, 2001

Place of Birth: Maragusan, Davao de oro

Parents: Roger Paradero

Geraldine Paradero

Civil Status: Single

Institutional Affiliation: Student of Davao de Oro State College

School Address: Purok Tambis, Poblacion, Maragusan

Contact Number: 09518132576

Email Address: shienamaeparadero485@gmail.com

EDUCATIONAL BACKGROUND

2019-2021 Maragusan National High School

2015-2019 Maragusan National High School

2010-2015 New Katipunan Elementary School

TALIDONG, ANGEL H.

Permanent Address: Prk. Mabini, New Albay,

Maragusan, Davao de Oro

Date of Birth: September 07, 2002

Place of Birth: General Santos City

Parents: Marcelo Talidong

Ma. Lorina Talidong

Civil Status: Single

Institutional Affiliation: Student of Davao de Oro State Colleg

School Address: Prk. Tambis, Poblacion, Maragusan

Contact Number: 09533675091

Email Address: talidongangel6@gmail.com

EDUCATIONAL BACKGROUND

2019-2021 New Albay National High School

2015-2019 New Albay National High School

2010-2015 New Albay Elementary School

TANOY, JOSELITO JR. L.

Permanent Address: Prk. Lawaan, Tupaz,

Maragusan, Davao de Oro

Date of Birth: March 18, 2003

Place of Birth: Talian, Maragusan, Davao de Oro

Parents: Joselito Tanoy Sr.

Civil Status: Single

Institutional Affiliation: Student of Davao de Oro State College

School Address: Prk. Tambis, Poblacion, Davao de Oro

Contact Number: 09107739358

Email Address: tanoyjoselito@gmail.com

EDUCATIONAL BACKGROUND

2019-2021 Tupaz National High School

2015-2019 Tupaz National High School

2010-2015 Tupaz Elementary School