Lifestyle check

President Bongbong Marcos has declared that the next step in the fight against graft and corruption is to institute a lifestyle check on all government officials, beginning with the Department of Public Works and Highways. The Philippines has long been infested with corruption in both the public and private sectors. Transparency International has consistently ranked our country in the lower tiers of its Corruption Perception Index.

Lifestyle checks aim to identify individuals, especially public officials and those dealing with the government, whose wealth, properties and living standards are grossly disproportionate to their regular income.

A lifestyle check is an investigative tool used to determine whether an individual’s standard of living is consistent with their declared income and assets. It is primarily applied to government officials, public servants or individuals in position of power. It involves analyzing financial records, properties, vehicles, travel history and other indicators of wealth.

By evaluating whether an individual’s assets, expenditures and standard of living matches their legitimate source of income, watchdog organizations can identify potential illicit enrichment.

If done properly, it can promote integrity and transparency and serve as checks against corruption and encourage officials to remain honest and accountable. By comparing an individual’s declared income with their actual lifestyle, authorities can identify discrepancies that may indicate illicit activities or undeclared earnings. When it is properly implemented, it can demonstrate the government’s commitment to ethical leadership by helping to rebuild trust among citizens. This can also reinforce legal and ethical standards in public service, discouraging the misuse of public resources.

Lifestyle checks can begin by reviewing the Statements of Assets, Liabilities and Net Worths (SALNs). These are used as primary basis for lifestyle checks. It should be noted that under RA No. 6713 (Code of Conduct and Ethical Standards for Public Officials and Employees) and RA No. 3019 (Anti-Graft and Corrupt Practices Act), public officials are required to file SALNs.

According to Sen. Risa Hontiveros, the President’s directive to conduct a lifestyle check on government officials would carry more weight if the President showed the way by disclosing his personal SALN.

It would also be very helpful if the Anti-Money Laundering Council (AMLC) can investigate large or suspicious transactions.

The Bureau of Internal Revenue (BIR) should also be allowed to conduct audits to verify income resources.

In the Philippines, lifestyle checks have been conducted in the past. If I remember correctly, these were conducted in 2016. However, I do not remember any major official being condemned as a result of those checks.

Even if these were implemented with the proper motivation and political will, there are still hurdles for its successful conclusion.

Government agencies lack the resources, manpower and forensic accounting expertise to properly conduct successful lifestyle checks. Secondly, there are also data privacy concerns which require balancing individual rights with investigative needs. This is a legal and ethical challenge. Thirdly, even when anomalies are detected, prosecution and conviction rates are low. Even now, when the guilty contractors have been identified, I have heard of only one serious case against a contractor that has been filed in court.

Fourthly, there is always the suspicion that lifestyle checks may be used selectively or as a tool for political vendetta.

Fifth is that the public may have grown disillusioned, believing that corruption is endemic and irreversible.

Despite these challenges, successful and sustained implementation of lifestyle checks is possible. There are some countries that can serve as an example and motivation.

Singapore is renowned for its strict anti-corruption practices. The Corrupt Practices Investigation Bureau conducts lifestyle checks when necessary. Public officials are held to high standards and any sign of disproportionate wealth can prompt investigation. These checks therefore are preemptive rather than reactive.

Indonesia, our neighbor, is reported to have achieved some success in fighting corruption. The Corruption Eradication Commission (KPK) has used lifestyle audits as part of its strategy. High profile arrests have resulted from these checks, especially in cases where officials live lavishly despite modest official incomes. The Indonesian lifestyle checks have led to several high profile convictions, which include regional governors and ministers. These successful anti-corruption practices have been recognized by international observers.

South Africa has also been plagued by wide-scale corruption. Since introducing lifestyle checks in 2021, hundreds of public servants were found to be living beyond their means. Investigations reveal undeclared properties, luxury vehicles and bank accounts. Some officials were suspended or dismissed.

In Indonesia, the chief justice of its constitutional court was arrested after a lifestyle audit revealed unexplained wealth including luxury cars and real estate. He was sentenced to life imprisonment.

Despite these hurdles, there are several reasons why lifestyle checks are necessary. They can act as a deterrent to misuse public funds. They can help uncover assets or income not declared by officials that are linked to bribery or embezzlement. Public servants can be reminded of their responsibility to serve with integrity. Evidence gathered from lifestyle checks can be used in court for corruption cases.

The most important element for successful lifestyle checks is the body that will conduct these. I have advocated in previous columns that there must be an independent commission with sufficient legal authority and members with unblemished integrity to constitute this commission. On a long term basis, we should start teaching through schools and religious institutions that integrity, transparency and the fight against corruption have to be part of the Filipino culture and as one of our fundamental values.

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