PHL improves in bribery risk ranking

By Kyle Aristophere T. Atienza, Reporter

THE PHILIPPINES improved its ranking in a global index assessing business bribery in over 190 economies.

This, as the National Government cited major strides in its fight against corrupt practices including the digitalization of state transactions and vowed to draw lessons from other countries’ anti-corruption mechanisms.

Manila rose eight spots to 111^th place out of 194 countries in the 2024 edition of the Bribery Risk Matrix by nonprofit businesses group TRACE.

The Philippines received a score of 52 out of 100, indicating a “moderate risk” level.

While the country’s ranking in the latest index improved, its overall score fell by two points from 54 in the 2023 edition, where the country ranked 119^th.

The index assessed countries in four domains such as opportunity risk, which refers to business transactions with the government, and deterrence risk, which measures a country’s ability to deter and prosecute bribery offenses.

The two other domains are transparency risk, which measures the government’s openness in terms of public budget and potential financial conflicts, and oversight risk, which refers to the role played by nonstate actors in monitoring and controlling corruption.

Among select East and Southeast Asian countries, the Philippines was behind Mongolia (99^th) Thailand (89^th), Malaysia (81^st), Timor-Leste (75^th), Indonesia (66^th), Hong Kong (37^th), Singapore (25^th), Taiwan (22^nd), South Korea (21^st), and Japan (10^th).

The Philippines was just ahead of Brunei Darussalam (115^th), Vietnam (123^rd), China (142^nd), Myanmar (163^rd), Laos (165^th), Cambodia (170^th), and North Korea (194^th).

Among the four domains, the Philippines got the highest score in deterrence risk at 75. It received a score of 50 in opportunity risk, 49 in transparency risk and 44 in oversight risk.

The latest bribery risk index was released just as the Philippines held the 5^th Conference on the Review and Implementation of its participation in the United Nations Convention against Corruption (UNCAC), and as the country’s second-highest official is hounded by an impeachment complaint in which bribery was cited as one of the grounds.

The treaty, which was signed by Manila in 2003 and was ratified by the Senate in 2006, aims to develop and implement effective and coordinated anti-corruption policies that “promote participation of society” and reflect the principles of the rule of law, proper management of public affairs and public property, transparency, and accountability.

In his speech, President Ferdinand R. Marcos, Jr. said “by learning from and working with other nations, we strengthen our anti-corruption mechanisms while reaffirming our place as a proactive member of the global community.”

“These interconnected efforts form a united approach to fostering a government that is efficient and accountable,” he added. “We continue to collaborate on the international front, emphasizing the importance of global partnerships in combating corruption.”

Mr. Marcos cited major accomplishments in his government’s fight against bribery and other corrupt practices, including the passage of the Government Procurement Act earlier this year.

The law establishes standardized electronic bidding and payment systems through an electronic procurement system.

The law minimizes the risk of corruption and creates “a more detailed audit trail,” he said. “This will in turn provide transparency and proactive government monitoring, thereby ensuring judicious government spending.”

Mr. Marcos said the Philippine government also has an electronic freedom of information platform, where citizens can “exercise their right to vital government information.”

He noted the 2024 procurement law also has provisions that encourage participation from “observers and civil society organizations in procurement” and “make all procurement-related conferences available for public viewing.”

The Philippines continues to struggle with corrupt practices in the public sector even after the end of dictatorship in the 1980s, with the Asian Development Bank estimating that corruption costs the country 1-2% of its gross domestic product annually.

“The current Congressional and Senate hearings on the Office of the Vice-President’s (OVP) budget is a clear manifestation that bribery, as well as other forms of corruption, is indeed notches higher in the administration,” said Leonardo A. Lanzona, who teaches economics at the Ateneo de Manila University.

“Certain people in the government think that they are entitled enough to do anything without accountability.”

He was referring to Vice-President Sara Duterte-Carpio, who is now facing a legal storm after the 316-member House of Representatives launched a probe into her questionable confidential funds at the OVP and the Department of Education.

Ms. Duterte-Carpio, who ran in tandem with Mr. Marcos in the 2022 elections, is now facing an impeachment complaint, which cited 24 grounds including betrayal of public trust, bribery, and high crimes.

“Crony capitalism is back as institutions developed after the EDSA Revolution have grown weaker,” Mr. Lanzona said. “People who were being litigated before are now scot-free because of the patronage and power gained in this administration.”

In his speech at the UNCAC read by Manila Rep. Joel R. Chua, who has been at the forefront of inquiries into Ms. Duterte-Carpio’s questionable use of funds, House Speaker Ferdinand Martin G. Romualdez said the “ongoing hearings in the House demonstrate our unwavering resolve to uphold accountability and transparency.”

“The fight against corruption is not the responsibility of any one branch of government; it is a collective effort,” he added.

He said the House will work with the Judiciary, Executive agencies, the civil society, and international partners to boost its capacity to “investigate and prosecute, and enforce anti-corruption measures.”

In his speech, Senate President Francis G. Escudero said that in the fight against corrupt practices, “equally important is the proper use of our oversight power not to harass or attack for political gain but to expose and rectify corruption for national progress.”

“One famous formula summarized the cause of corruption as follows. Corruption equals monopoly plus discretion, minus transparency,” Mr. Escudero said. “But for me, I simply define it as corruption equals discretion and vice versa.”

“Minimize discretion, you minimize corruption,” he added. “Eliminate discretion, you eliminate corruption.”

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort urged the government to push for policies that will encourage the private sector to comply with the environmental, social, and governance standards, which he said are key to minimizing bribery risks in both sectors.