Clean governance unlocks economic power

Revelations of corruption in flood control projects have struck deep into the hearts and minds of Filipinos. Anger among citizens has compelled them to take to the streets last September 21 to demand greater accountability from their public officials.

Every day, there is a congressional hearing, new revelations surface, painting the picture of a system so overwhelmed by corruption, at all levels, and in many places.

The ultimate loser in this systemic corruption is the Filipino people, who are cheated out of the services that rightfully must be delivered to them.

Only a small percentage of the funds allotted for infrastructure actually goes to the projects, while the rest goes to line the pockets of those conniving to enrich themselves at the expense of taxpayers.

We lose yet again when the rest of the world perceives us a people who cannot be trusted. This deals a serious blow to our efforts to attract investments into our country. This is a disservice to Filipinos – citizens and public servants alike – who are honest, and who wish for a just society for themselves and their loved ones. This compromises our economic potential, which is the only way to achieve a better quality of life for millions of Filipinos.

We can only address this through a conscious and sustained drive for transparency and accountability.

We must take giant steps to let businesses know that our infrastructure projects are clean, our processes predictable and our policies are future-proof. In turn, Filipinos get jobs, industries thrive, and the economy grows stronger.

All is not lost. Earlier this month, the Palace created the Independent Commission on Infrastructure, which has been tasked to probe infrastructure projects in the past 10 years. The commission is supposed to be apolitical, and is led by personalities with established reputations for impartiality and integrity.

The main objective is to get to the truth about infrastructure projects, file cases and hold the guilty accountable but also show the world that we are getting our act together and are serious about governance.

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Slowly, the details are emerging. Away from the public’s prying eyes, the colluding parties are able to exploit the process in a system that has become conducive to corruption.

We now must make sure that public outrage is not the only consequence of these investigations. They should also give rise to concrete laws and safeguards – rules that will assure taxpayers and, yes, investors alike that in every step, from bidding to implementation, projects follow a strict procedure that leaves out the possibility of corruption.

To be sure, reforms had been under way before these explosive revelations made their way to the public consciousness. The 19th Congress, under the leadership of then-Speaker Martin Romualdez, passed reforms that made the Philippines a more attractive place to do business. These measures mattered because they told investors: the Philippines is open, and we are willing to do the hard work of reform.

Now, as we move forward, we cannot lose this momentum. The 20th Congress has the chance to build on these gains and pass laws that further simplify processes, cut red tape, and attract investments where they matter most: investments that create jobs for ordinary Filipinos.

But these are just starting points. Even as Congress finds itself overworked and facing daunting battles, there are at least four key bills now pending in the 20th Congress that are critical to long-term growth and investment:

Foremost is House Bill 4, the Private Basic Education Vouchers Assistance Act. This measure expands financial assistance to more learners in private schools, easing the burden on our already overcrowded public education system and giving families more choices.

By streamlining subsidies through an electronic system, it also promotes transparency in government spending. Repealing outdated laws under the old E-GASTPE framework ensures a more modern, efficient approach. Education reform is investment reform because a strong workforce attracts strong investors.

And then, there is House Bill 12 or the National Land Use Act. The absence of a clear land use policy has long held us back. This bill introduces a unified framework that balances agriculture, housing, industry and environmental protection.

By mandating climate-resilient planning, it also helps prevent disasters caused by misuse of land. As investors want certainty, this measure would provide the blueprint for sustainable development.

Meanwhile, House Bill 15 or the Green Lanes for Strategic Investments Act also merits attention and action. For years, red tape has delayed opportunities and blocked investors.

This proposal aims to cut through that bureaucracy by creating expedited “green lanes” for strategic investments in infrastructure, renewable energy, and manufacturing. Less delay means faster projects, more jobs, and stronger economic growth.

Finally, House Bill 19 or the National Quality Infrastructure Development Act has to do with making the Philippines globally competitive by having products and services that meet world-class standards. 

This measure establishes a national quality policy that helps micro, small, and medium enterprises (MSMEs) comply with safety and quality requirements, giving them the tools to enter international markets. Strengthening MSMEs is crucial for exports and, more importantly, local jobs and community resilience.

It is not easy to show local and foreign investors that while corruption persists in our country, we are also taking steps to address it. Filipinos deserve a better government, a better set of leaders, better institutions, and a better system that discourages, rather than encourages and incentivizes, corrupt practices.

For us Filipinos, expressing outrage will go a long way. It will tell the politicians who are supposed to represent us that we deserve better and we want better. It will also warn them that their political future is in our hands.

Lawmakers, in turn, should do what they were elected to do – craft responsive laws that would make the Philippines realize its potential. We must show that we are passing the right laws to make doing business here easier and smarter.

The people are right to feel that they have had enough of corruption. It is time to move on to the next logical question – what to do about our outrage. This is our chance to send a powerful signal to the whole nation and to the international community that corruption and inefficiency will no longer be tolerated, and bold reforms are on the way. If we seize this moment, we can bring in the investments that will power new industries, generate meaningful jobs and give Filipinos the kind of future they deserve.

Rupert Paul Manhit is the COO and managing director of think tank Stratbase Group. He is the executive director of Philippine Trade Foundation (Phils Inc.)