RP flunks US think tank's corruption indicator, loses new funds

MANILA, Philippines – The government has lost its chance for fresh funding this year from the US Millennium Challenge Corp. (MCC) because of its poor record in fighting corruption.

The Washington DC-based Center for Global Development said in a report released on Sept. 28 that the Philippines flunked the so-called “control of corruption” indicator set by the MCC.

The Philippine anti-corruption ratings have steadily dropped since the US aid corporation gave the Philippines a $21-million grant in July 2006 to help fight corruption.

“(The Philippines’) score dropped sharply in the last two years – falling from the 76th percentile two years ago, to the 57th percentile last year (2007), to the 47th percentile this year,” the CGD report stated.

The CGD noted that the drop in the Philippines’ corruption ratings coincided with the implementation of the $21-million program, which requires the strengthening of the Office of the Ombudsman as well as the Revenue Integrity Protection Service (RIPS) of the Finance department, the Bureau of Internal Revenue, and the Bureau of Customs.

“The $21-million Threshold Program in the Philippines, aimed primarily at fighting corruption, was approved on July 26, 2006 and will end on Nov. 21, coinciding with the weakening of the corruption score,” the report read.

The think-tank noted that the Philippines’ dismal record in curbing corruption has put the US government in an awkward position, especially since the MCC declared the Philippines eligible for US government development grants six months ago.

It added the Philippines was declared eligible by the MCC Board six months ago in a “highly unusual out-of-cycle” decision despite concerns over the Philippines’ erratic anti-corruption score during fiscal year 2008, “which now appears to have been justified.”

The MCC was put up by the US government in 2004 in response to international calls for heightened US involvement in global development initiatives, particularly in poor countries.

Sen. Manuel Roxas II, whose office released the report, said this was “a big slap” on the integrity of the government and would “definitely adversely affect international confidence in the Arroyo administration.”

He said MCC’s decision proved the Arroyo administration’s mishandling of good governance and national policy issues.

“We need this like a nail on the head at this time when investments and political support are indispensable to our capacity to weather the looming global economic crisis,” Roxas said.

Roxas said the report “only confirms what people know, hear and feel about the shady transactions of this government and the deeply entrenched corruption in several government agencies.”

“Instead of shaping up because of its bad governance record as the end of President Arroyo’s term in 2010 nears, the administration appears to be concentrating on ways to prolong its stay in power through an unacceptable Charter Change project. We cannot accept this,” he said.