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Business

Reform meets resolve

HIDDEN AGENDA - Mary Ann LL. Reyes - The Philippine Star

The administration’s decision to appoint Ralph Recto as executive secretary comes at a time when the Philippines is confronting two overlapping crises: a sweeping infrastructure corruption scandal and the sharpest economic slowdown in four years.

Being the executive secretary, often referred to as the “Little President,” is no small feat. As ES, one must undertake three key roles: first, as economic reform strategist, with the fiscal expertise and political resolve to implement tactical and necessary solutions; second, as public trust rebuilder, with the willpower to trim the fat and preserve the muscle within the ranks of national governance; and third, as political stabilizer, with the breadth of experience across various domains of governance to reconcile friction and disharmony among them.

The first role is essential to both cleaning up the bureaucracy and reviving stalled government spending. As the former secretary of the Department of Finance, Recto has been trained and is well-positioned to understand the economic risks of delayed disbursements, the importance of restoring investor confidence, and the need to balance anti-corruption measures with economic growth.

The second role speaks of character and the willpower to follow through on difficult decisions. Many believe that Recto has the needed resolve. His decision to push for the Expanded VAT law, despite its initial unpopularity, helped shield the country during the 2008 global recession and this remains one of the country’s most significant fiscal reforms. His authorship of landmark social measures, including free public college and universal health care, shows his ability to pair fiscal rigor with inclusive nation-building.

Recto is equally prepared for the third role. As a former congressman and senator, he possesses the rare insight needed to navigate divisions within the bicameral Congress. He understands how national policy decisions impact local governments, the private sector, and communities.

It is widely believed that Recto can revitalize the Executive Secretary’s office, moving it from a passive advisory role to one of proactive accountability.

Small fry

The country’s most prominent business organizations, in a rare show of unity, earlier called on the President to immediately address the “historic, massive, and unprecedented corruption scandal crippling flood control and infrastructure projects,” saying it is a “crisis that has eroded public trust and now threatens our national security.”

Thirty-four groups and associations led by the Philippine Chamber of Commerce and Industry, the Federation of Filipino-Chinese Chambers of Commerce and Industry, the Employers Confederation of the Philippines, the Makati Business Club, and the Management Association of the Philippines said: “We have contributed to national funds through taxes locally and nationally and have paid additional taxes. Yet, trillions of pesos intended to protect our communities and mitigate disasters have been squandered through ghost projects, substandard work, and inflated contracts. This is more than financial loss – it is a fatal breach of public trust that leaves our people vulnerable and outraged,” they said in a resolution.

They have urged the President to immediately and transparently adopt proposed measures to confront the crisis and to empower the ICI with full legal authority and independence, enabling it to fulfill its mandate to conduct a swift and comprehensive investigation of the anomalous flood control and other infrastructure projects, free from political influence.

Many in the business community are finding the case buildups and indictments too slow and are asking when the real masterminds will be held accountable.

Recently, eight officials of the Department of Public Works and Highways (DPWH) in Region IV-B (Mimaropa), who the Office of the Ombudsman charged in connection with an alleged flood control anomaly in Oriental Mindoro, pleaded not guilty before the Sandiganbayan to the graft charges.

During their arraignment on Nov. 27, the eight maintained their innocence regarding alleged violations of the Anti-Graft and Corrupt Practices Act, as a P289.5-million supposedly substandard flood control project in Oriental Mindoro was awarded to a construction company linked to the resigned Ako Bicol party-list representative, Zaldy Co.

According to the ICI and the Ombudsman, they may have played key roles in planning, certifying, and approving a road-dike structure that allegedly deviated from technical standards.

The 9th out of 16 individuals linked to the Oriental Mindoro project has been arrested, while authorities are still searching for the seven others who have outstanding warrants of arrest, including Co.

Meanwhile, the ICI and the DPWH have recommended to the Office of the Ombudsman the filing of plunder and graft charges against eight lawmakers. Ombudsman Jesus Crispin Remulla said that the findings of the ICI and the DPWH will undergo evaluation and fact-finding.

Many, including the Discaya couple, Bulacan district engineer Henry Alcantara, assistant district engineer Brice Hernandez, and even prominent figures in the Senate and the House of Representatives, have either admitted guilt or been exposed for participating in this flood control scandal. Yet, nobody has been charged in court nor arrested.

The real elephant in the room, the multibillion-peso Bulacan ghost projects, remains largely untouched.

People are wondering why there is haste in the case of Mindoro and delay in connection with Bulacan.

For Mindoro, the accused are mostly ordinary professional engineers. It was just unfortunate that their superiors are said to have links with the Discayas and Co.

Filing a case against provincial engineers and workers is a low-hanging fruit. Filing a case against sitting senators or members of the Cabinet, however, is a political thermonuclear war.

If we want to stamp out corruption, we must follow the trail of billions, not just the trail of instructions followed by subordinates.

 

 

For comments, email at [email protected]

RALPH RECTO

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