RP economic heads downplay country's corruption ranking

By Ronron
March 9, 2005

Cebu - Economic managers of President Gloria Macapagal-Arroyo's administration refused to comment Wednesday on the reported ranking of the Philippines as the second most corrupt country in Asia, and maintained instead that the present government is currently implementing reforms to curb graft and corruption.

In separate interviews at the sidelines of the Philippine Investement Conference (PIC) which started yesterday here at Shangri-la Mactan Island Resort, Economic Planning Secretary Romulo Neri and Finance Secretary Cesar Purisima enumerated instead anti-corruption efforts being undertaken by the Philippine government when sought for comment by reporters regarding the Political and Economic Risk Consultancy Ltd. (PERC) survey.

The Philippines reportedly ranked second to Indonesia in the recent PERC survey on most corrupt countries in Asia. Singapore, Japan and Hongkong topped as the most corrupt-free countries in Asia.

"What is important is what we're trying to do with the challenges that we face as a country...the focus, the energy (that) the government is putting to make it easy for businessmen to do business in the country," Purisima said.

Purisima and Neri mentioned the following anti-corruption measures that the government had carried out to curb graft and corruption: the conduct of lifestyle checks, prosecution of corrupt officials, the appointment of an anti-corrpution czar, and the passage of different legislations into law such as the Procurement Act and Lateral Attrition Act.

In her keynote address during the opening yesterday of the two-day conference, Arroyo also assured the estimated 500 delegates, both foreign and local, that along with the fiscal reforms her administration is implementing is the major drive against corruption.

But despite these, Neri, in reference to the PERC survery, still sees much needed reforms to finally eradicate corruption in the country.

"I would like to have the specifics (of this survey) because it's hard to address perception. If they conduct a survey next time, they should specify if it's (Bureau of Internal Revenue) corruption, bribery corruption, smuggling corruption, etcetera, so we will know what agency to deal with," Neri said.

Neri admitted the survey "definitely" will affect the investment climate in the Philippines.

The survey also confirmed the recent survey conducted by the Wallace Business Forum which cited corruption as the number one concern among businessmen and investors in the Philippines.

"But for me, it does not matter whether we're number one or two or three or four. What does matter clearly is that there is a high degree of corruption in the Philippines and its a major disadvantage to doing business," Peter Wallace told reporters in a separate interview.

While he acknowledged the efforts of the government, Wallace could not say if these efforts are enough to cleanse the country, especially that corruption in the Philippines is not just about the people but the system or institution.

The famous business consultant praised Arroyo for the appointment of Bert Lina to the Bureau of Customs portfolio, saying that since he comes from the logistics/cargo business, Lina would know how to fight the problem of corruption.

"The government and private sector should get its act together and identify the corrupt sectors that need to be addressed," Neri appealed.

While Neri expressed fears that the PERC survey may affect the investment climate in the country, Purisima appeared more hopeful.

"This conference is an affirmation that the international community has recognized the changes going in the our country. The fact that Euromoney, the premier conference entity in the world, has focused and devoted this conference entirely to the Philippines is a big signal that we are again at the discussion table and are being considered for investments by investors," Purisima said.

Euromoney Conferences Editor Mark Johnson expressed yesterday a favorable impression on the Philippines' efforts to improve its investment climate by fighting corruption, saying: "I see a real committment to reform the structure although it's still a long road. The implementation of these reforms has just started."/DMS