Phl reputation depends on Corona outcome

Beyond the sensational headlines generated by the impeachment hearings, there is an international reputation side to the ability of the Senate, acting as the impeachment court, to hold the Chief Justice accountable. Just being able to prove those dollar accounts exist and verify that the CJ personally directed movements in those accounts should be enough to show he isn’t worthy of his high office.

It would be tragic for the country if, after all that had been ferreted out during the course of the hearings, the Chief Justice gets away because of legal technicalities. The way the CJ’s defense team is leaning on legal technicalities seems to indicate that they have lost the greater battle for truth and credibility which the CJ needs to stay and be effective in his exalted position.

There are those who keep on saying that the focus being given to the impeachment proceedings is detracting the country from dealing with more important economic issues. That is a misguided view. The successful impeachment of the CJ leading to his being thrown out of office is of vital business and economic consequence. So is the single-minded focus of P-Noy on fighting corruption.

On the revelations this week courtesy of AMLC, the Huffington Post, a widely read web-based daily, thinks “it is also a big step forward in reforming the Philippines’ antiquated bank secrecy laws.” It must be noted that there are pending bills in Congress today to toughen our bank secrecy laws not only because it is being demanded by an international task force on money laundering, but more because a tough anti-money laundering law will prevent scoundrels in and out of government from enjoying the fruits of ill-gotten wealth.

The hesitation of legislators in passing a tough anti-money laundering law can be explained simply as a matter of self preservation on their part at the expense of the public interest. How logical is it for the AMLC to first inform the owner of a suspected account and get a court order before the account can be frozen? Sheer idiocy if the objective is to catch the crooks.

As it is, the AMLC was severely curtailed during the regime of Ate Glue. I have been in conversation with AMLC’s executive director Vicente Aquino during those days and I sensed his frustration over the ridiculousness of the rules by which he is expected to carry out his mandate. But I wonder if they did enough work at AMLC to know how the country was plundered and pillaged except that they cannot legally talk publicly about it.

It would be wrong to now subject the dedicated public servants in AMLC to a public inquisition just because their work was used by the Ombudsman to nail down Mr Corona. But it would be fair to ask them to describe how they do their work and to ask them for recommendations on legislation that will let them do their work more effectively.

The Huffington Post, in that same article, cited the importance of clearing the air on the Philippines being a haven for sleazy and criminal people hiding under our tough bank secrecy laws. “A useful gauge of the Philippines’ comparative rankings and competitiveness comes from the Financial Secrecy Index (FSI), designed to help economists better understand global financial secrecy, corruption and illicit financial flows.

“The FSI compares 73 secrecy jurisdictions that have established laws and systems which provide legal and financial secrecy to others. In the 2011 FSI rankings, the Philippines ranked 33rd, sandwiched between Mauritius and Liechtenstein in terms of overall weight in importance and perceived secrecy. A primary difference, however, is that the Philippines is not generally considered to be a preferred legal tax haven.

“It is reasonable to conclude then, given that the Philippines is known neither for its rule of law nor transparency, that many of the individuals and businesses who may select the Philippines do so simply to hide money from prying eyes. This cannot be to the country’s advantage if it wishes to change some of the widely held perceptions about its level of corruption, lack of transparency, and integrity.

“If the Philippines were on a par with, say, Singapore or Switzerland in that regard, such an argument could not be legitimately made. But given the company that the Philippines keeps in all of the measures referenced herein, its current reputation as a destination for bank secrecy is more likely to be connoted with drug cartels and money launderers, than multinational corporations looking for a legitimate tax haven.

“On this basis, it would clearly be in the Philippines’ interest to relax its bank secrecy laws in an effort to increase its perceived transparency and willingness to overtly join the global fight against money laundering and criminal syndicated financing.”

As for the business and economic implications of the anti-corruption drive, I would say that the positive outlook of the international business community on the Philippines is largely riding on the back of the trust they have on the honesty and integrity of P-Noy. While all the trust that generated a lot of high hopes can vaporize in due time without other solid accomplishments (attention: Mar Roxas), the positive environment is more than we have ever enjoyed in a long time.

The Huffington Post observed: “we argued that President Aquino and his allies in Congress might be getting things right, but we remained skeptical, given the circus-like (if not surreal) atmosphere of Philippine politics. But the fact that former President Arroyo and her husband are under arrest and being tried on corruption charges – accused of diverting state funds and electoral sabotage in 2004 and 2007 -- and given today’s court proceedings against Mr. Corona, Aquino’s anti-corruption drive is clearly yielding consistent and tangible positive outcomes.”

To give credit where it is due, the Huffington Post also asserted that “President Aquino and his administration are certainly to be applauded for this substantial achievement, in a country which is not accustomed to toppling the high and mighty from their centuries-old privileged perches. That includes the President and his family, given the recent court ruling requiring them to distribute their 25,000 acre Hacienda Luisita estate to more than 6,000 people in Luzon.

“These actions say a great deal about the direction the Philippines is heading – and it is all good. No wonder its sovereign ratings are being upgraded and investors are warming up to the idea of investing in the country after a long hiatus. The proof will be in the pudding however; for the justice system to truly be able to say that it has turned a corner, Mr. Corona and Ms. Arroyo need to be sent to prison, and stay there, rather than being able to buy their way out,” the Huffington Post concluded.

Mabuhay

One of the lasting legacies of our late publisher, Max Soliven, is his passion to showcase the best of the Philippines. Not even martial law prevented Max from publishing Sunburst magazine with Dr. Ricky Soler. Good writing plus good color photographs presented the best side of the country even when the darkness of the Marcos dictatorship reigned.

One other such magazine Max founded that is still being published to this day is Mabuhay, Philippine Airline’s in-flight magazine. Not only has Mabuhay been selling the best of the country, it is also winning awards, some 18 to this day, while doing so since it begun publishing for PAL in 1988.

Mabuhay used to be exclusively enjoyed by passengers of Philippine Airlines but it is to the credit of PAL that it has now started to share this award-winning magazine with a wider audience by making it now available in key bookstores for P150. 

Here is even better news to assure a worldwide exposure of the best of the Philippines and its flag carrier – for those with iPads, Mabuhay can be downloaded from the app store for free.  In less than a month, the magazine has made it #1 in the travel category of the newsstand.

iPad users can download the May issue and click the 360° button to see an awesome 360° panorama of Bohol’s Virgin Island. Inside, readers will find more interactive pages with scrollable text, videos, and audio clips.

I sure hope the airline’s new management will give Mabuhay even greater support so that it can generate more interest in Philippine tourism. Mabuhay, its print and iPad editions, is one of the most cost-effective ways to show the world It is more fun in the Philippines.

All about power

From Ichu Villanueva.

Omb. Morales to PNoy: What are we in Power’s Point?

Boo Chanco’s e-mail address is [email protected]. Follow him on Twitter @boochanco