Credibility/utility of politicians’ SALN

After the new ombudsman overturned the strict confidentiality of the Statement of Assets, Liabilities and Net worth, (SALN) of government officials, most of the senators and some congressmen have voluntarily released/published them. These are partly in response to the anger, indignation, and demands of the public on the DPWH infrastructure corruption scandal, that included a number of senators, congressmen, and other government officials.

This is actually a small gesture that is little appreciated by the Filipino people, considering the billions of pesos paid as kickbacks or overpriced for substandard or ghost infra projects, and the lavish/ostentatious lifestyles of those involved. Against the backdrop of these luxurious assets and unconscionable expenditures of those accused, which are all on display in the main and social media, it takes a stretch on the credulity/imagination to believe the published SALNs of the senators and congressmen.

To analyze and get a good understanding of the financials of an entity, be it personal, corporation, or any organization, the SALN is an inadequate document. The SALN is a balance sheet as of certain date, and doesn’t show how those amounts are arrived. It has to be the whole/total financial statements, which includes the income statement, the cash flow statement, with the notes explaining the major changes. It should also conform to accounting standards in the proper valuation and accruals of revenues and expenses.

The existing SALN requirement for government officials is a minimal compromise requirement, to show some semblance of transparency in a democratic government. It is lacking in many details, and the liberty/flexibility in the valuations and accruals, that the politicians published SALNs have less than 50% credibility. We may/just have to accept them as the first step in transparency and accountability, and progress through further investigations and demand for more information. From what is appearing in the main and social media so far, we can see that these SALNs are mostly understated by as much as 100%, even if stated at market values.

The usefulness of the current published SALNs of politicians can be rated/valued depending on the circumstances and the parties involved. The SALN of those accused of corruption and anomalies are good starting points for investigations, and can be correlated with the tax records, SEC filings, property registers, and other government/public records to test the veracity and valuations. It can also be related to the lifestyles and social media posts and travel history of those accused, for affordability and liability reasonableness. These are/will be the jobs of investigators/prosecutors, the job of journalists, investigative reporters, and social media bloggers, who want to expose the corruption and hypocrisy of elected officials, government officials and politicians. It is also the job of all Filipino citizens to support/disseminate /pass on these revelations, for truth and justice in a democratic society and country.

A major portion of the motivation of those who run for public office or work for the government is the fast accumulation of wealth. The minor motivation is to have a good job, earn a living income, and to serve the people. The desire for immediate wealth is also the impetus for the establishment of political family dynasties to corner economic benefits and perpetuate themselves in power. Stricter eligibility requirements for candidates for public office and government officials, including a ban on family political dynasties are in order. Also a stricter scrutiny of the financial statements/financial transactions of elected/appointed government officials would be a step in the right direction to lessen/minimize graft and corruption in the government and even in the private sector.