Massive Corruption and Bad Governance under Duterte


MASSIVE CORRUPTION AND BAD GOVERNANCE UNDER DUTERTE

LACSON FUMES OVER ‘UNLAWFUL’ BUDGET CHANGE
By: Marlon Ramos - Reporter / @MRamosINQ
Philippine Daily Inquirer / 07:30 AM March 02, 2019

Leaders of the House of Representatives unlawfully altered the P3.8-trillion spending bill that Congress had already ratified by cutting the pork allocations of some 60 congressmen, Sen. Panfilo Lacson alleged on Friday.

Lacson, in a text message to the Inquirer, said the alteration was “not only unconstitutional” but also “violative of the legislative process.”

“This is what I consider anomalous and tantamount to abuse of discretion and violative of the Constitution,” he said. “For how can the Senate President and Speaker certify that they are enrolling [a bill] approved in plenary when it is not?”

“Whatever it is, these are things that they do for greed. It’s a shame and revolting, to say the least,” he said in a separate statement.

…Asked who could have ordered the changes in the ratified spending bill, he said: “The congressmen-sources indicated no one else but the House leaders.”

…Different from ‘insertions’

Lacson said the projects that the House members wanted funded were different from the “insertions” that they already introduced during the budget deliberations.

These, he said, violated the 2013 decision of the Supreme Court outlawing the pork barrel system, which is officially known as the Priority Development Assistance Fund.

“While, technically speaking, it may not constitute post-legislation enactment since the President has not yet signed the budget measure, we can see clear abuse of discretion, especially if done without the concurrence of the Senate,” Lacson said.

“This latest caper that the House leadership is trying to pull off may also constitute violation of the 1987 Constitution,” he added.

Lacson said he intended to closely check if the final version of the national budget that would be transmitted to Malacañang was the same as the one that Congress approved.

By: Julie M. Aurelio, Nestor P. Burgos Jr. - @inquirerdotnet
Philippine Daily Inquirer / 07:27 AM April 09, 2019

ILOILO CITY, Philippines — President Rodrigo Duterte has the duty to explain the significant increases in his family’s earnings instead of saying it was nobody’s business, former Chief Justice Maria Lourdes Sereno said here on Monday.

On the sidelines of a voter education forum on the University of the Philippines Visayas campus, Sereno said the explanation was more necessary amid allegations that members of the President’s family were involved in illegal drugs.

“I believe that we (government officials) should display a simple lifestyle. If an official is suspiciously wealthy, there should be an explanation. And the explanation should be made public,” Sereno said.

A three-part report by the Philippine Center for Investigative Journalism (PCIJ) found significant increases in the incomes of the President and his children, Davao City Mayor Sara Duterte and former Vice Mayor Paolo Duterte, while they were in office.

Using data curated from his statements of assets, liabilities and net worth (SALNs), PCIJ said the net worth of the President, a former mayor, rose 195 percent from P9.69 million in 2007 to P28.54 million in 2017.

The net worth of Sara jumped 518 percent, from P7.25 million in 2007 to P44.83 million in 2017, while that of Paolo jumped 233 percent, from P8.34 million to P27.74 million.

PCIJ also found that the Dutertes had interests and engagements in at least 23 corporate entities but did not consistently declare them in their SALNs.

It claimed that they had an unregistered law firm and shares that they did not declare.

Nobody’s business

During a profanity-laden speech here on Saturday, the President said that whatever his family earned outside of politics was nobody’s business.

He came to his children’s defense, claiming that their wealth came from their businesses and law firms. He went on to say that he had also received inheritance from his mother Soledad Duterte, a schoolteacher.

“You yellows, all the time I was with my mother. Even when I was already mayor, my mother still fed me,” the President said, using a broad reference to Liberal Party members and critics of his administration. “She left us with money. But do I have to tell you how much?”

In a statement, PCIJ executive director Malou Mangahas on Sunday said that under the SALN law, all public officials should file “truthful and complete” disclosures of their assets, liabilities and net worth.

…Certified true copies

The corporate documents and asset records used in the reports were also authenticated as certified true copies.

“It would have been far better had Mr. Duterte . . . Sara . . . and Paolo granted PCIJ’s request for comment, and possibly sit-down interviews, before the story ran,” Mangahas said.

…The National Union of Journalists of the Philippines said the President and his family were not exempt from the transparency mandated by the Constitution and the Code of Conduct and Ethical Standards for Public Officials and Employees.

“As for his accusation against investigative journalists, if he has proof, by all means present it,” said Nonoy Espina, NUJP chair. “As far as we know, many of the investigative journalists we know are among the creme de la creme of the profession.”

Sereno said journalists “are just seeking answers to questions.” 

“It is clear that the people need an explanation. He is not being accused (of any crime or violation) as of now,” she said.

Sereno was removed from office last year due to her alleged failure to submit some of her SALNs when she worked as a professor in UP Diliman before she was appointed to the high court.

She had explained that she then was not able to secure a copy from UP because these were missing. —With a report from Jhesset O. Enano


EXPLANATION WANTED
Philippine Daily Inquirer / 09:08 AM April 10, 2019

…Among the PCIJ’s findings were that:

The net worth from 2007 to 2017 of the President rose 195 percent from P9.69 million to P28.54 million; of Sara Duterte, 518 percent from P7.25 million to P44.83 million; and of Paolo Duterte, 233 percent from P8.34 million to P27.74 million.

The law firm Carpio and Duterte Lawyers, in which Sara Duterte and her husband Mans Carpio are partners, has not been registered with the Securities and Exchange Commission since it was put up a decade ago.

The law firm “is a hugely opaque matter in the Dutertes’ wealth records particularly because it has recently shown an appetite for big corporations with big controversial cases before government regulatory agencies,” the PCIJ said.

It also said that the President’s “disclosures in his asset records across 20 years are woefully inconsistent,” and that his daughter and son “are similarly ambiguous in the declarations they have made under oath” in their SALNs across 11 years.

It is clear why the faithful accomplishment and filing of SALNs are required of everyone in the government starting from the President down. It is a requirement based on the Constitution and on Republic Act No. 6713, or an act establishing “a code of conduct and ethical standards for public officials and employees to uphold the time-honored principle of public office being a public trust…”

Based on this document, to which any Filipino can gain access for the purpose of information, the behavior of any government official or employee can be assessed if he or she is adhering to the law or the lofty ideals of public service.

…It wasn’t too long ago when details of then President Joseph Estrada’s hidden wealth surfaced, startling those still reeling from the Marcos plunder.

Per the private prosecutors involved in Estrada’s abbreviated impeachment trial, his wealth covered cash deposits in practically every bank in the country as well as prime real estate, including the notorious “Boracay mansion” in Quezon City that was purchased for P142 million for his favorite mistress—all unsurprisingly not reflected on his SALNs.

…The luxury mansion of a senator who could otherwise have been mistaken for a toadstool, so silent was he during his incumbency, can be freely seen online; his wife was once stopped at a US airport for attempting to smuggle in tens of thousands of dollars.

A former military comptroller and his family were found to have amassed more than P300 million in unexplained wealth; the big unraveling occurred when the wife and son were stopped at another US airport with scads of dollars on their persons. (“Gratitude money” for the comptroller, the wife claimed.)

The spouses of the Ampatuan dynasts of Maguindanao are said to be top clients of luxury shops in Makati. Etc.

All these stories of excess and thievery, all the massive drains on taxpayer money… It’s time things changed. If not now, when?

By: Cielito F. Habito - @inquirerdotnet
Philippine Daily Inquirer / 09:10 AM April 26, 2019

…excessive greed all adds up to keep us from achieving a more dynamic and broad-based economy that uplifts all lives.

…Thanks to insiders in the trade services industries that include freight forwarders, warehouse operators and truckers, I learned of how excessive greed there preys on small businesses relying on small shipments of imported inputs (it’s not as bad for large firms able to import by the container-load). For many years, I’ve been looking at how government inadequacies stifle small business development in our country, but didn’t expect that formidable obstacles lie within the private sector itself.

…From what I’ve learned, it’s the freight forwarders and the off-dock container freight station (CFS) or warehouse operators who have been overcharging importers somewhat arbitrarily, and with impunity. The whole scheme, as described to me, came about as follows: Many years ago, these firms started “bribing” their respective customers to use their services, with “rebates” that, along with profit margins, swelled over time. Freight forwarders pay rebates to exporters abroad to get them to use their services; it amounts to “buying” their cargo.

…Meanwhile, the CFS operators pay the freight forwarders similar “rebates” to patronize their warehouses. All those added costs, along with arbitrary profits, are hidden in the total amount charged to the hapless importer, who pays for it all, on a per cubic meter or per ton (whichever leads to a higher amount) basis.

To get a sense of the numbers, the rebates used to be at $100 per 40-foot container ($50 for 20-footers) back around 1998. By 2006, these started skyrocketing and peaked at P12,000 ($200-$300 depending on the exchange rate) per cubic meter or ton, translating to a whopping $8,000 per 40-foot container (around $3,000 per 20-footer). This amount is shared between the foreign forwarder and their local agent or branch. Meanwhile, Mayor Joseph Estrada’s Manila truck ban gave truckers the excuse to jack up rates from P3,500-P4,500 to P10,000-P12,000 per container—which have stayed there since, even as the ban is gone.

All these unwarranted trade costs lead to much higher costs of commodities than they need to be. So don’t think it’s only dishonest public officials making life hard for all of us.



Bad governance, especially massive corruption, has deleterious economic effects, inevitably. If the Philippine people believe we can carry on in this manner without being impacted by disastrous consequences, they delude themselves.

Comments

  1. Public domain photo

    Photo link:

    https://commons.wikimedia.org/wiki/File:Rodrigo_Duterte_warns_government_officials_engaged_in_corrupt_practices_in_a_news_conference_30_September_2016.jpg

    Gonzalinho

    ReplyDelete
  2. It is a fact. The drug war is a failure. The seas have been lost. Thousands have been killed by police without investigation. Thieves hold top government positions. A senator is in jail for spite, not crime. Investors shun the Philippines. Chinese mainlanders have privileges.

    JoeAm, @societyofhonor
    Philippine Daily Inquirer (June 5, 2019)

    Gonzalinho

    ReplyDelete
  3. ALL THE PRESIDENT’S RECYCLED MEN
    Philippine Daily Inquirer / 05:16 AM May 30, 2019

    Reusing materials that are still useful to protect the environment is one thing, but recycling compromised government officials, let alone promoting them, is quite dangerously another.

    And yet that is what the Duterte administration has done yet again when it announced last week the appointment of Vener Baquiran as deputy commissioner of the notoriously graft-ridden Bureau of Customs.

    This is the same Baquiran who was sacked in August last year as district collector of Manila International Container Port, where two massive drug shipments concealed in magnetic lifters inexplicably slipped through in June 2018.

    …Baquiran has been promoted — the latest official under this administration to go through the by-now familiar recycling process of Malacañang, where officials are dismissed from office or relieved from duty for reported anomalies, only for the Palace to reassign them to other government positions without so much as a slap on the wrist.

    Isidro Lapeña, the Customs commissioner who sacked Baquiran after the discovery of the empty magnetic lifters in January this year, himself resigned his office following the smuggling incident.

    He was charged with graft by the Department of Justice, but that was apparently of no import to the President, who simply moved him around, making him the head of the Technical Education and Skills Development Authority.

    Nicanor Faeldon, the first Customs commissioner appointed by President Duterte, similarly left his office under a cloud of suspicion, after P6.4 billion worth of shabu was smuggled in during his short stint. But no worries for Faeldon—he was swiftly transferred first to the Office of Civil Defense, then appointed to head the Bureau of Corrections after former Philippine National Police chief Ronald dela Rosa left to campaign for the Senate.

    Then there’s Roberto Fajardo, the chief of the Northern Police District who was suspended from office following the killing of teenager Kian delos Santos, which sparked massive protests over the bloody conduct of the drug war. Fajardo is now the chief of the PNP’s Highway Patrol Group.

    …If the cases of Baquiran, Lapeña, Faeldon, et al., are any gauge, government action toward reports of wrongdoing by administration officials is dictated by one yardstick: how close the tainted officials are to the powers that be. When it comes to the President’s men — reuse, recycle, repeat.

    Link: https://opinion.inquirer.net/121665/all-the-presidents-recycled-men

    Recycling suspect officials is bad governance, obviously, because it sends out the message that accountability is not being pursued in this administration and that impunity will favor those with some sort of connection to the president.

    Gonzalinho

    ReplyDelete
  4. Marcos did not eradicate corruption, contrary to what Duterte implied. Marcos centralized it: he decided who can steal with impunity among his officials and cronies, but he made sure he got the lion’s share. He stole enough to make it to the Guinness Book of World Records.

    Luis V. Teodoro, @luisteodoro
    Philippine Daily Inquirer (June 19, 2019)

    Gonzalinho

    ReplyDelete
  5. COA FLAGS OSG’s P7.12M IN FOREIGN TRAVEL EXPENSES
    Philippine Daily Inquirer
    05:34 AM May 22, 2019

    MANILA, Philippines — The Commission on Audit (COA) has flagged P7.128 million in foreign travels spent by the Office of the Solicitor General (OSG) in 2018 that lacked the required supporting documents.

    Citing audit rules, the COA said foreign travels of government officials should be subjected to bidding, in which no less than three travel agencies should submit quotations.

    The audit body said the OSG procured P5.51 million in office supplies and equipment without proper public bidding.

    The OSG was also told to refrain from conducting trainings and seminars at “expensive venues.”

    According to the report, the OSG spent P1.27 million for activities held at luxury hotels in Makati.

    Since the OSG’s head office is also in Makati City, the audit body said the agency could have conducted the training within office premises to save costs.

    The COA has yet to decide if the documents and explanations provided by the OSG were sufficient.—Patricia Denies M. Chiu

    Link: https://newsinfo.inquirer.net/1121822/coa-flags-osgs-p7-12m-in-foreign-travel-expenses

    Gonzalinho

    ReplyDelete
  6. You know why Metro Manila public transpo is shit? Because the people deciding what to do with it have NO TRUE EXPERIENCE of the STRUGGLE everyday Filipinos have to go through to get to their jobs or other destinations.

    Ana R., @anamgroa
    Philippine Daily Inquirer (August 2, 2019)

    Basic requirement of good governance in the Philippines today is the development of a convenient, efficient mass public transportation system.

    Investing in public transportation infrastructure has directly positive effects on the economy.

    For at least two, possibly more generations now, the government has neglected the development of a convenient, efficient mass public transportation system.

    Gonzalinho

    ReplyDelete
  7. Filipinos’ resilience is an acquired skill. It grew on government’s incompetence, corruption, and carelessness. It’s high time to stop using it as an excuse and to hold governments truly accountable for their faults.

    Ronan, @RonanInManila
    Philippine Daily Inquirer (August 2, 2019)

    An indicator of good governance is the accountability of the government, at the local and national levels.

    Are Filipino citizens given the power to hold their government accountable?

    Freedom of the press and freedom of speech are among the essential mechanisms in a democracy whereby governments are held accountable.

    Gonzalinho

    ReplyDelete
  8. One cannot talk about ease of doing business in the Philippines, on one hand, to attract investors, and have a leader who can put you out of business on his order, just because. That’s a risk legit investors won’t be willing to ‘gamble’ (pun intended) on.

    Citizen Jane, @citizenjaneph
    Philippine Daily Inquirer (July 30, 2019)

    The underlying reason for the political persecution of private business is often cronyism and corruption. Bad governance results because the rule of law is in the process degraded.

    Good governance strengthens the rule of law and promotes fair play, which levels the playing field, attracting investors.

    Gonzalinho

    ReplyDelete
  9. DUTERTE’S JOBS RECORD
    By: Cielito F. Habito - @inquirerdotnet
    Philippine Daily Inquirer / 09:06 AM May 03, 2019

    In July 2016, when President Duterte assumed the presidency, the Philippine Statistics Authority’s quarterly Labor Force Survey (LFS) counted 40,974,000 employed persons in the country. The latest figure, for January 2019, is 41,368,000. Simple arithmetic shows that 394,000 net new jobs came about in the first two and a half years of this administration.

    Taking account of seasonality in jobs, the July 2016 figures may be more comparable to those in July 2018, and the January 2017 data to the latest job numbers. What would these numbers show? The number of employed persons in July 2018 was 40,659,000, reflecting a net loss of 405,000 jobs in the first two years of the Duterte administration. If we compare January 2017 (39,347,000 jobs) to January 2019, we see a gain of 2,021,000 jobs in that two-year period—but following a sizable loss of 1,627,000 million jobs in the first six months of Mr. Duterte’s term. The net increase over two and a half years, then, amounted to the 394,000 figure cited earlier.

    How does that number compare with those under previous presidents? Still based on LFS data, the first two and a half years under President Benigno Aquino III (July 2010-January 2013) saw 1,655,000 net new jobs created; under President Gloria Macapagal Arroyo, 1,923,000 net new jobs arose from July 2004 to January 2007. President Joseph Estrada had a worse job creation record between July 1998 and January 2001 (covering his entire aborted term), with only 231,000 net new jobs created.

    The great irony is that both Mr. Estrada and Mr. Duterte came into office projecting themselves to be champions for the poor—and yet their job creation records indicate inability to help the poor in what they need most, which is gainful employment.

    …if we want leaders at the national and local levels who can truly help meet that challenge, we must shun candidates who gather votes by buying them, giving only temporary gratification—rather than demonstrating that they have a long-term vision and strategy to help get more and more Filipinos gainfully employed.

    cielito.habito@gmail.com

    Read more: https://opinion.inquirer.net/121111/dutertes-jobs-record#ixzz6E6bGcgFy

    Indicators of bad governance...

    Gonzalinho

    ReplyDelete
  10. SMALL BUSINESS TRAVAILS
    By: Cielito F. Habito - @inquirerdotnet
    Philippine Daily Inquirer / 09:05 AM May 07, 2019

    Are our small businesses declining? Official data from the quarterly Labor Force Survey (LFS) of the Philippine Statistics Authority (PSA) suggest so. In July 2016, the LFS counted 1,434,000 workers classified as “employers in own family-operated farm or business.” This could be taken as the number of small enterprises (firms or farms) in the country then. Last January, the corresponding number was 1,361,000. This implies that we lost some 73,000 small enterprises in that span of two and a half years.

    …I find this decline worrying. It has been well-recognized that the key to a more broad-based, inclusive economy—hence economic growth with wide benefits—is to have small businesses contribute much more to our overall economic output and employment. I’ve written before of how we lag behind most of our Asia-Pacific neighbors on both counts, which likely also explains why income distribution in the Philippines is worse than in most of our neighbors. …recent indications suggest that the DTI’s goal is getting even more elusive.

    …Bangko Sentral ng Pilipinas data have shown a consistent and continuing decline in the proportion of banks’ loan portfolios going to MSMEs, from 17.2 percent in 2009 to less than half of that (7.8 percent) in 2018. The proportion going to micro and small enterprises alone is down to one-third (3.1 percent) of what it was in 2009 (9.3 percent).

    …Bureau of Internal Revenue, whose zeal for squeezing as much revenue as it can, including from small business taxpayers, often chokes the latter to the point of stifling them. I constantly hear an earful from too many small entrepreneurs complaining that the BIR’s excessive documentary requirements take away too much of their time and effort from running their business.

    Many local governments don’t help either. Rather than promote and nurture small businesses, they throw obstacles in their way, starting from just getting their businesses registered.

    …Need we wonder, then, if data show small businesses to be on the decline?

    cielito.habito@gmail.com

    Read more: https://opinion.inquirer.net/121194/small-business-travails#ixzz6E6cZhX9t

    More indicators of bad governance...

    Gonzalinho

    ReplyDelete
  11. HOUSE INCREASES PGH BUDGET, AS WELL AS PALACE ‘PORK’
    By: Melvin Gascon - Correspondent / @melvingasconINQ
    Philippine Daily Inquirer / 05:30 AM October 04, 2019

    There’s good and bad news about the P4.1-trillion general appropriations bill (GAB) that the House of Representatives transmitted to the Senate on Tuesday, according to opposition lawmakers.

    …The bad news is that the House has “significantly increased” President Duterte’s Special Purpose Fund (SPF) and the budgets of the Department of National Defense (DND), Department of the Interior and Local Government (DILG) and Dangerous Drugs Board (DDB), according to the Makabayan party list coalition.

    At a press briefing on Thursday, members of the Makabayan coalition said the House increased the President’s SPF by P4 billion to P765.8 billion.

    The Makabayan lawmakers said the increase in the SPF, which they called “presidential pork,” proved that the patronage system was thriving under the Duterte administration.

    …The SPF, which was allotted P761.8 billion in the National Expenditure Program submitted by the executive department to the House, was hiked to P765.8 billion, or an increase of P4 billion, documents showed.

    “Administration allies have openly admitted the resurgence of [the] patronage system of politics in the country. It may have changed appearance but it is still pork,” Zarate said.

    DPWH allocation cut

    The bulk of the P4 billion purportedly came from the proposed budget of the Department of Public Works and Highways (DPWH), which lost P3.75 billion from its road-right-of-way funds, according to notes shared by Makabayan lawmakers.

    Read more: https://newsinfo.inquirer.net/1173324/house-increases-pgh-budget-as-well-as-palace-pork#ixzz6VRpz3F4l

    “Presidential pork”

    Gonzalinho

    ReplyDelete
  12. 41-PERCENT DECLINE
    Philippine Daily Inquirer / 04:07 AM October 21, 2019

    …Latest government data show that foreign direct investments (FDIs) as of July reached a mere $543 million, representing a 41-percent decline from the same-period figure last year.

    More alarmingly, this marks the fifth consecutive month of decline in the amount of capital plunked in by foreign businessmen into the country. February was the only bright spot this year, with investments showing a slight uptick.

    And from all indications, FDIs — a crucial barometer of the foreign business community’s confidence in the country’s prospects — will continue to remain weak for the rest of the year.

    …What investors want most is predictability. They want policy continuity. They want clarity from the government. They want to be able to make plans for the next five to 10 years, at least, or maybe more. And that kind of predictability is not the Philippines’ strong suit at present. Indeed, it could be argued that it never was.

    Read more: https://opinion.inquirer.net/124722/41-percent-decline#ixzz6VRrq75cL

    It’s called bad governance.

    Gonzalinho

    ReplyDelete
  13. BIG JUMP FORWARD
    Philippine Daily Inquirer / 04:07 AM October 28, 2019

    …Last week, the multilateral lender released the latest edition of its Doing Business report, and it offered a rosier picture of the Philippines. The country jumped up the global rankings by 29 slots to 95th place, out of 190 surveyed countries.

    In particular, the report found that the Philippines showed marked improvements in the ease of starting a business; dealing with construction permits; and protecting minority investors. This placed the country with a smaller group of only 42 economies that made it easier to do business in terms of at least three out of the 10 areas or criteria used in the report.

    To a large degree, this improvement was made possible by the diligent work performed by the Department of Trade and Industry and the Department of Finance which, apart from working on the required reforms, also made sure that the World Bank was “updated” on at least 53 reforms and “data corrections” related to the annual report.

    The World Bank report was a heartening piece of good news after a slew of reports showing Manila, the Philippines’ capital, ranking the lowest among its Asian peers in a so-called smart cities index, and a decline in the overall global competitiveness ranking earlier this month.

    Credit is due the Duterte administration for passing the Ease of Doing Business Act last year, which improved on the decade-old Anti-Red Tape Act that had failed to make significant progress in simplifying citizens’ transactions with government.

    The new law requires government agencies to act on applications within three days for simple transactions, one week for complex ones and 20 days for the “highly technical” ones.

    It also mandates unified application processes for local tax and building clearances, and sanitary and zoning clearances, while one-stop shops need to be established in every city or town. Local government units are encouraged to automate their permit and license processing systems.

    For the country to build on its improved ranking, however, it must also see this as a reminder for all stakeholders in the public and private sectors that much more needs to be done. Specifically, policymakers need to address a key issue that was cited as the main reason for the country’s demotion in the rankings two years ago: access to credit.

    Read more: https://opinion.inquirer.net/124872/big-jump-forward#ixzz6VRtFwCtB

    It’s called good governance.

    Gonzalinho

    ReplyDelete

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