New men at Customs, BIR 

No report on corruption is complete without mention of the two biggest revenue-generating agencies -- the Bureau of Internal Revenue and the Bureau of Customs. Several administrations have vowed to clean up these bureaus with little success. And the persistent public perception is that corruption at Customs and the BIR can only be possible with the blessing of Malacañang or people close to those in power.

This perception was reinforced last year following reports that certain individuals claiming close ties with the President were involved in smuggling several items including sugar. In response, the President issued an order to get these name-droppers. Malacañang released two lists of about 30 people tagged as smugglers, and ordered authorities to arrest those in the list. The Palace also came under fire for its handling of 52 sport utility vehicles and luxury cars confiscated by the Bureau of Customs. Reacting to the criticisms, a handful of Cabinet members returned their SUVs and 10 of the vehicles were put up for auction.

To this day not one of those in the two Malacañang lists has been arrested. Local producers continue to complain of sugar smuggling. Two auctions for the 10 "hot" vehicles have failed. While the Bureau of Customs reported overshooting its revenue target for 1999, the agency is being required, together with the BIR, to improve collections this year to reduce the widening budget deficit. And Nelson Tan and Beethoven Rualo have been replaced as Customs and BIR commissioners, respectively.

Will Dakila Fonacier do better at the BIR? If he can crack down on corrupt BIR personnel and go after big-time tax evaders. Will Ramon Farolan, returning to his old post at Customs, be able to make a difference? Again, if he can crack down on corrupt personnel and go after the "big fish" in the lucrative smuggling industry.

Last Saturday, the President reite-rated to his officials that there should be no special favors extended to his relatives or friends. Farolan said he intended to carry out the President's directive. The success of the government's effort to improve re-venue collection, clean up revenue-generating agencies and go after smugglers and tax evaders will depend in large part on the kind of support the newly appointed commissioners will get from Malacañang.