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Business

Is it corruption or a way of life?

BIZLINKS - Rey Gamboa -
When a contracted Meralco staff, whose daily take home pay is based on an P8-per-delinquent customer he disconnects, accepts a P50 "token" from a threatened household owner, he justifies this by saying he is just being compassionate.

"Sir, bagong panganak lang yung nakatira doon sa puputulan naming bahay. At nangako naman na magbabayad siya bukas. Sinulat na lang namin na ‘hostile homeowner.’ Kawawa naman," rationalizes the lineman.

("Sir, the delinquent homeowner has a newborn baby and it would be heartless to cut off their electricity supply. Besides, they promised to pay the electricity bill tomorrow. We simply put in our log sheet that the homeowner is ‘hostile.’")

This line of thinking reflects the fast blurring difference between values of right and wrong now permeating Philippine society. We don’t have to cite goings-on in the Bureau of Internal Revenue or the Bureau of Customs to state that our values of honesty and integrity as a country are quickly being eroded.
Familiar faces of corruption
Other faces of corruption manifest itself in varied ways in our daily life.

A traffic policeman flags a jeepney driver and a P50 bill quickly passes hands. The driver has learned and accepted through years of experience that it is more convenient to bribe the law enforcer than retrieve his license and pay the P150 penalty or contest the call.

A fresh graduate "applies" for work in a company and immediately gets hired despite the fact that there are better and more qualified applicants. Of course it helps a lot that the hiring personnel’s friend happens to be Daddy.

A businessman needing a local government permit simply calls a friend in City Hall to "fix" things up for a fee. A big company uses contacts to be short listed in a bidding, and eventually taps even bigger connections to bag the contract. Of course, for a fee that forms part of the cost of the project.

These are simple cases of corruption, and yet Filipinos now grow up thinking and accepting that these are normal rather than aberrations. We have lost our sensibility in discerning when the lines of integrity are being crossed.
Worsening corruption rating
It is not therefore surprising that Transparency International (TI), a global coalition of non-government groups against corruption, ranked the Philippines 11th most corrupt worldwide out of 102 nations polled last year, and third in Asia.

TI defines corruption as the abuse of public office for private gain. In its latest report, sharing the notorious spot with the Philippines are Pakistan, Romania, and Zambia. Perceived to be most corrupted is Bangladesh with a score of 1.2 percent followed by Nigeria with a rating of 1.6 percent.

TI uses a so-called corruption perception index, with scores ranging from zero (for highly corrupt) to 10 (for highly clean). The index measures the degree of corruption among public officials as perceived by foreign and local businessmen, as well as risk analysts.

This year, the Philippines dropped to 77th with a score of 2.6 from 65th last year with a rating of 2.9. We tied up for the third most-corrupt nation, chalking 1.7 points to rank equal with Angola, Madagascar, and Paraguay.

(Finland has the enviable score of 9.7, followed by Denmark and New Zealand with 9.5. Iceland is third with a rating of 9.4. In Asia, Singapore has the least corrupt rating of 9.3, and is fourth in the world ratings together with Sweden. The United States ranks 16th with a score of 7.7.)
Those who do nothing share the guilt
Civil service commissioner Karina David believes that in the last 20 years, the government lost some $48 billion or P2.6 trillion to corruption. Annually, this translates to about P100 billion, or enough to substantially reduce the budget deficit and even wipe out the gap in earlier years to allow the government to post a surplus.

David practically tagged all of the state’s 1.5 million workers in corrupt practices when she said that some 30 percent of government employees are directly involved in corruption, while the remaining 70 percent know what is going on but choose not to say or do anything.

In the BIR and Customs, for example, the practice reportedly called "sharing the bounty" is generally known and accepted. The government official who earns from an illicit transaction distributes cash or kind to his subordinates to reinforce the "we are in this together" psychology.
Laws are inutile with corrupt enforcers
A report released by Procurement Watch, a local civil society group working against corruption in the local bureaucracy estimates that the country loses about P21 billion a year from corruption just in the government procurement system.

A new procurement law was passed and the government is citing this as a concrete achievement in combating corruption. But we have so many other laws that are supposed to check corruption. Why are they not effective? Mainly, because corruption permeates the ranks of those who are supposed to implement the law.
Are we ready to change?
Indeed, we are all in this together. With the unabated corruption of basic moral values – not just in government but also the Filipino’s personal life – it will take more than a decade of lifestyle, morality, nightlife or whatever checks to reverse the growing tide of dishonesty in Philippine society.

If any change is to happen, it must start with each one of us. But are we prepared to do so, or will we just wave off the corruption report as "an old hat story".

Think about it.
‘Boo-boos in Clean Air Act’ on TV
"Isyung kalakalan at Iba Pa" on IBC-13 News (5 p.m. and 10:30 p.m., Monday to Friday) presents again starting today problems being encountered in the implementation of the Clean Air Act. There are provisions that apparently were not thought out carefully, and implementation is being deferred. There are also provisions that are adding costs to consumers without the commensurate benefits. And would you believe that there is a provision that will hasten the closure of refineries in the Philippines. Caltex has started the move that will make the local oil industry more and more dependent on imported refined products. Watch it.
‘Breaking Barriers’ with NLRC chairman
"Breaking Barriers" on IBC-13 (every Wednesday, 10:00 p.m.) will feature Ambassador Roy Seneres, chairman of the National Labor Relations Commission (NLRC). Both management and labor are concerned about the thousands of labor cases remaining unresolved for several years. What radical changes should be done to enable NLRC to operate efficiently? Is NLRC another one of those government agencies mired in corruption? What is the program of action of the present leadership? What precisely is the role of NLRC? Is it just another bureaucratic layer in government’s interaction with labor? Join us break barriers and have a better glimpse of the real condition of the labor-management relationship in the Philippines.

Should you wish to share any insights, write me at Link Edge, 4th Floor, 156 Valero Street, Salcedo Village, 1227 Makati City. Or e-mail me at [email protected]. If you wish to view the previous columns or telecasts of "Isyung Kalakalan at iba pa," you may visit my website at http://bizlinks.linkedge.biz.

AMBASSADOR ROY SENERES

BORDER

BREAKING BARRIERS

BUREAU OF CUSTOMS

BUREAU OF INTERNAL REVENUE

CENTER

CLEAN AIR ACT

CORRUPTION

GOVERNMENT

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