Graft and Corruption

Definition of Graft and Corruption

•The term “graft” means the “acquisition of gain or advantage by dishonest, unfair or sordid means,
especially through the abuse of his position or influence in politics, business, etc.,” while the term.
“corruption” generally means “the misuse of entrusted power for private benefit.”

• The term “graft” means the “acquisition of gain or advantage by dishonest, unfair or sordid means, especially through the abuse of his position or influence in politics, business, etc.,”while the term. “corruption” generally means “the misuse of entrusted power for private benefit.”
GRAFT AND CORRUPTION IN THE
GOVERNMENT
• In 1988, graft and corruption in the Philippines was considered as the “biggest problem of all” by
Jaime Cardinal Sin, the Archbishop of Manila.
• In 1989, public perception was that “corrupt government officials are greater threat to the
country” than the communist guerrillas
•  In 1992, President V. Ramos considered graft and corruption as the third major hindrance
towards attaining his development strategy for the country.
•  In 1998, the country got good marks from Transparency International and the Political and
Economic Risk Consultancy (PERC), LTD
• In general, national and international opinion depict the Philippines as still corrupt and being
unable to effectively fight this problem.
• In general, national and international opinion depict the Philippines as still corrupt and being
unable to effectively fight this problem.
Causes of Graft and Corruption
1. Tax Evasion - Esp. in the private sector, dishonesty in the declaration
of annual income with corresponding tax to the government.
2. Ghost Projects and Payrolls - In government wherein non-existing
projects like infrastructures are financed by the government with
granting of salaries , allowances and benefits to non existing personnel.
3. Evasion of Public Bidding in awarding of contracts - In government,
for go bidding or awarding of contracts to favored contractors for
personal benefits.
4. Passing of Contracts - To one contractor to another to get percent of
project value resulting to substandard materials or unfinished projects.
5. Nepotism and favoritism - Employment of unqualified relatives and friends
resulting to inefficiency and overflowing of government employees in the
bureaucracy.
6. Extortion - Demanding money, items or services from ordinary citizens who
transact business with them eg. Issuance of clearance, documents, hiring. etc.
7. Protection Money or Tong - There for citizens doing illegal activities and
operations without permits delivering huge money to government in charge
of enforcing the law-gambling and drug lords.
8. Bribery or Lagay System - To facilitate issuance of desired documents eg.
permits, license, clearance or quick decisions.
Effects of Graft and Corruption
• Organisational impacts of corruption
-financial loss
-damage to employee morale
-damage to organisation's reputation
-organisational focus and resources diverted away from delivering core
• business and services to the community
-increased scrutiny, oversight and regulation. Individual impacts of
corruption
-disciplinary action
-termination of employment
-criminal charges
-may affect relationships with family, friends and colleagues.
Community impacts of corruption
-wasted taxpayer funds
-loss of goods and services
-lower community confidence in public authorities
-disadvantage to honest business that miss out on government contracts.