Top exec of US power firm slams PERC corrupt label on RP

The top executive of the largest American power company in the country slammed the Political and Economic Risk Consultancy (PERC) survey, which dubbed the country as the most corrupt economy in Asia.

"I think it is totally wrong. I think, it’s very unfair to Filipinos, you know, I question the basis of the report. I do not deny that there is corruption in the Philippines as there was corruption in the rest of the countries that were surveyed but to say that the Philippines is the most corrupt is grossly unfair," Jose Leviste Jr., chairman, chief executive officer and president of Mirant Philippines told The STAR.

In an interview, Leviste said he refused to believe that the Philippines is the "most crooked nation in the world."

According to Leviste, he has dealt with a number of government offices, including the Department of Energy, and Congress.

In all his transactions leading to the divestment of Mirant in the country, Leviste said he has never experienced red tape. "They are tough. They can be difficult but they are professionals. There is no corruption," Leviste said.

"The investment and the entry of the Japanese to purchase the international assets of Mirant in a transparent public bidding is the biggest investment of the Japanese outside their country and it has not been tainted with any corruption," he noted.

However, Leviste conceded that there is corruption in the country. He said corruption is endemic in all countries. He explained that it is a matter of degree. Although there is corruption in the country, he said it is unfair to lump the Philippines in the bottom of the list.

Earlier, Trade and Industry (DTI) Secretary Peter Favila said he was disheartened that PERC, which polled 1,476 expatriate business executives in 13 countries and territories across the region, labeled the Philippines as the most corrupt economy in Asia.

PERC, which provides advice to private firms and governments, said it had not noted a worsening in the actual situation in the Philippines despite its deteriorating score. "It is bad and has been bad all along. People are just growing tired of the inaction and insincerity of leading officials when they promise to fight corruption," it said.

Favila lamented that the PERC respondents disregarded the various initiatives undertaken by the government to help curb corruption. "Corruption is being dealt with. We are surprised we rated poorly and to have plummeted to the bottom of the PERC survey."

"This is precisely the reason why the President issued EO 558 creating the Anti-Red Tape Task Force to curb corruption brought about by long tedious process and lack of transparency in dealing with frontline agencies," Favila added.

In fact, he said the government has taken measures to reduce face-to-face transactions through more online applications like an e-payment facility, which is now in place in several offices for convenience and to prevent corruption in the workplace.

"Hopefully, our initiatives will change the mood of businessmen from negative to positive. We expect better results next grading period so that Philippines will get out from the bottom of the list," Favila said.

For instance, the trade department likewise shortened the processing time for business name registration through registration via the web and will eventually open the e-payment facility in the next couple of weeks.

The Board of Investments (BOI) eliminated requirement permits from five agencies and has waived the processing fees and adopted one-day processing for cement and copper export clearance.

The Philippine Constructor’s Accreditation Board (PCAB) reduced its renewal of contractor’s licenses from up to 90 days to just 15 days and has cut the cost to contractors by at least P1,000.

For its part, the Department of Finance has implemented the Automated Export Documentation System (AED), which guarantees 30 minutes processing time and reduced cost from P402 to P190.

Meanwhile, the Department of Tourism (DOT) streamlined its procedures for endorsement of tourism projects to BOI, Philippine Economic Zone Authority (PEZA) and the Land Transportation Franchising Regulatory Board (LTFRB). Ä DOT shortened processing of evaluation of application of tourism establishments from five to three working days.

The Bureau of Food and Drugs (BFAD) reduced processing time for licensee to operate from three to one day. Ä Food Export/Commodity Clearance Fee was removed and processing time reduced from three to one day. – Ma. Elisa Osorio