Malacañang downplays PERC survey on red tape

MANILA, Philippines - Malacañang downplayed the reports of the Political and Economic Risk Consultancy (PERC) that said the Philippines has one of the most inefficient bureaucracies in Asia.

Deputy presidential spokesman Rogelio Peyuan said the PERC report is an entirely different story from the influx of investments coming into the country.

Peyuan said the government gained headway in improving efficiency in the bureaucracy by cutting down on red tape through legislation.

Peyuan argued that investments continue to come in from overseas, and if the survey of PERC is accurate, then investors would have gone elsewhere.

“Not to sound like we are defending this but if the standing of our bureaucracy is really that bad then foreign investments would not come into our country,” Peyuan said.

Apart from having an advantage over its neighbors in terms of skill and personality of its workforce, Peyuan said the Philippines has a government ready to provide investors whatever assistance they need.

“The truth is that businesses around the world continue to come our way and the different sectors in industry remain healthy,” he said.

According to the Hong Kong-based PERC, the Philippines placed third behind India and Indonesia in having the most inefficient bureaucracy, where red tape is a problem, both for its citizens as well as foreign investors.

PERC surveyed expatriate business executives, which ranked Asian countries based on bureaucratic efficiency.

PERC said “illegal fixing is well-entrenched in the Philippine bureaucracy.”

The report also cited the need for businessmen and traders to approach fixers to facilitate transactions in government offices.

Peyuan admitted that while the top brass in government have laid down the policy against red tape in very clear terms, there are still some cases that the orders are totally disregarded.

“We are not tolerating this. All of the programs are in place to reduce red tape but in every process you cannot just say that only one side is wrong,” Peyuan said.

“There are those who cause trouble because you would not have fixers if no one avails of their services,” he added.

Peyuan said President Arroyo took the initiative to streamline the bureaucracy through Republic Act No. 9845, or the Anti-Red Tape Act of 2007, to facilitate the processing of transactions with government.

The law prescribes specific periods for processing and approving transactions with penalties for any unjustified delay.