ACC 112 | SAS 11

Advocacy Against Corruption

Corruption

the abuse of public power or private political for material gain – it is the root cause of many of the fundamental challenges that developing and other societies face.

Bribery

giving/receiving something of value to influence a decision

Embezzlement

illegally taking/misusing funds entrusted to you

Nepotism

giving jobs/advantages to relatives because of family connections rather than merit

Kickbacks

secretly receiving money/benefits in exchange for awarding a contract of favor

State Capture

powerful individuals/groups influencing government institutions & policies for their own interests

Opportunity is high + Risk of being caught is low + Benefits are high

corruption becomes more likely when:

• Career advancement

• Earnings of more income

• Financial problems cause by illness, loss of property, etc.

Reasons people resort to corruption:

Recipient

person who accepts bribes/gifts for personal benefit

Payer

person who gives the bribe/gift expecting preferential treatment

Extortion

• Public officials/politicians demand or pressure someone to pay a bribe.

• Idea: “Pay, or you will be disadvantaged.”

Lubricant of Society

• Belief that bribes make transactions smoother/faster.

• Businesses may even include bribery costs in their budgets.

Ethical Dilemma

• Transactions are secret, creating an ethical problem.

• Requires personal ethical reform to overcome.

Poverty Alleviation

• Sometimes used as justification by lower-level/operational workers who have opportunities to obtain extra income or privileges.

Culture

• Corruption may become normalized within a society or organization when people repeatedly tolerate or practice it.

Kindness Among Friends

• Giving a gift is not automatically corruption.

• It becomes corruption when the gift has a hidden intention or is an investment for preferential treatment.

113th

2019 Corruption Perception Index (CPI)

• Philippines ranked _____ out of 180 countries in the 2019 CPI.

• CPI was issued by Transparency International.

Judicial System

• High corruption risk due to underfunding.

• Judiciary may depend on local sponsors for resources/salaries.

• Can result in non-transparent and biased decisions.

• Rich and powerful individuals may influence cases.

Police

• Considered among the country's most corrupt institutions.

• Businesses rated anti-corruption efforts poorly.

• More than half of firms reportedly pay for private security.

Public Services

• 3 out of 5 businesses expected to give gifts to get things done.

• 1 out of 10 expected to give gifts to obtain an operating license.

Land Administration

• 2 out of 5 companies expected to give gifts for construction permits.

• Land disputes are slow to resolve.

• Problems include poor land records, lack of trained personnel, and insufficient funds.

Tax Administration

• 1 out of 7 companies expected to give gifts during meetings with tax officials.

• BIR officials perceived as prone to corruption.

• Only around 20% were perceived to pay taxes honestly.

Customs Administration

• Irregular bribes/payments common in import and export procedures.

• About 1/4 of companies expected to give gifts for import licenses.

• BOC received a “very bad” rating regarding commitment to fighting corruption.

Public Procurement

• Rampant corruption and irregularities.

• Inconsistent implementation of procurement laws.

• More than 1/5 of businesses expected to give gifts in exchange for government contracts.

Natural Resources

• Transparency improved through compliance with EITI (Extractive Industries Transparency Initiative).

• Overall resource governance remains weak.

• Problems:

  • Poor regulation

  • Overlapping responsibilities between local and central government

Clear Business Process

• Establish clear procedures and responsibilities.

• Reduces opportunities for manipulation.

Policy on Gifts & Entertainment

• Set clear rules regarding acceptable/prohibited gifts and entertainment.

Declaration of Conflict of Interest

• Employees must disclose situations where personal interests may influence professional decisions.

Convenient Corruption Reporting System

• Provide an easy and safe way to report corruption.

Anti-Graft and Corrupt Practices

Criminalizes practices such as:

• Active/passive bribery

• Extortion

• Embezzlement

• Abuse of office

• Conflict of interest in the public sector

Anti-Red Tape Act

Prohibits government officials from accepting gifts/material benefits in exchange for government permits or licenses.

Revised Penal Code

• Public officials are required to file SALN (Statement of Assets, Liabilities and Net Worth).

• Deficiencies may result in penalties, including dismissal under applicable rules.

Anti-Money Laundering Act

• Criminalizes money laundering.

• Helps combat organized crime and concealment of illegally obtained funds.

Code of Conduct and Ethical Standards for Public Officials

Act that formulates standards for personal integrity and accountability of civil servants.

Government Procurement Reform Act

Requires competitive and transparent bidding in government procurement.

United Nations Convention Against Corruption (UNCAC)

• International framework for preventing and combating corruption.

• Promotes cooperation among countries.