Of state witnesses and big, bold reforms

Only in the Philippines can someone who has been implicated in a massive corruption scandal feel like he’s been robbed when asked to return the money.

This was what contractor Curlee Discaya, whose wife Sarah is detained for graft and malversation charges over an alleged ghost project, told the Senate Blue Ribbon committee. This was how he felt, he said, when asked to restitute the money to the government in order to qualify for the Department of Justice’s Witness Protection Program.

“I can’t say how much it is. Because for me, it feels like we were the ones who were being robbed,” he told the hearing.

There is a sort of moral inversion here where those who took public funds feel aggrieved when asked to return them.

Why, in the first place, should the couple be considered state witnesses, along with those on the list – former public works officials Roberto Bernardo, Henry Alcantara, Gerard Opulencia and contractor Sally Santos?

Are they really qualified to be state witnesses?

I am well aware that a state witness is necessary for the perpetrators, especially the masterminds, to be brought to justice, but are these four individuals really among the least guilty? Some of these state witnesses have amassed so much wealth that the amount they vowed to turn over to the government could be just a drop in the bucket.

Bernardo has promised P1 billion in restitution to the state while Alcantara has already returned some P180 million.

The amounts should be significantly higher. Remember, Alcantara spent P150 million in a casino in one night alone while Bernardo, say my sources, has amassed quite a number of properties, including luxury items. The government must come after these, too.

State witnesses have been critical in convicting criminals. American mobster Salvatore “Sammy the Bull” Gravano, for instance, became the US government’s key witness against his mob boss John Gotti, leading to Gotti’s eventual conviction.

But there are several qualifications to be a state witness in the Philippines – participation in a crime, absolute necessity of testimony, substantial corroboration, clean record, sworn statement and not the most guilty.

Thus, the government must be careful in selecting its state witnesses. They must meet the qualifications and not because they’re powerful and influential. Because if this is the case, then it’s just corruption all over again.

Big, bold reforms

We welcome the “big, bold reforms” announced by the Marcos administration last week after presenting it to businessmen in a closed-door meeting.

President Marcos, it seems, has realized that it can no longer be business as usual. Investors have been on a wait-and-see stance for far too long, especially because of the flood control scandal.

Thus, the big, bold reforms announcement is the good news we need these days and Finance Secretary Frederick Go is on the right track in spearheading these reforms.

The objective, I hope, is not merely incremental improvement but a structural break from the past. The government is targeting a GDP expansion of five-to-six percent by 2026 – a figure that would place it among the fastest-growing economies in Southeast Asia and the world.

If this happens, it would certainly be a big accomplishment for President Marcos.

Taming inflation

One area of focus is inflation and addressing supply-side measures.

The administration has slashed rice tariffs to 15 percent from 35 percent, a move designed to provide immediate relief to 110 million consumers.

Another important intervention is the Department of Agriculture’s move to oversee the construction of 2,200 kilometers of farm-to-market roads and new deep-water ports specifically for agri-products, meant to improve our food supply.

The government must really bridge the gap between farm and table.

Quality jobs

The administration’s “Philippines 2026” vision demands a shift from subsistence employment to high-value labor.

Tourism, for instance, is the economy’s “low-hanging fruit,” especially with its multiplier effect. Estimates show that with every peso invested in the tourism sector, the economy reaps a return of P5.50.

To unlock this, the government is liberalizing access, granting visa-free entry to key markets like China and India to fill hotels and employ service workers.

Hospitality players note that the reduction in Chinese tourist arrivals really affected the industry. Thus, they welcome this visa-free entry measure.

In the area of manufacturing, we also laud the move of the Board of Investments to establish new ecozones specifically for high-tech manufacturing.

This is a play for future-proof jobs, ensuring that the six percent growth target translates into wages that can support a family.

Of course, the funding fix for the automotive incentives program CARS is likewise a welcome development. How can we encourage investors if we renege on past commitments?

War on bureaucracy

An aggressive war on bureaucracy is also very much needed and welcome. The Marcos administration is attempting to improve the business environment through a policy of radical digitalization and “zero lag time.”

I am keeping my fingers crossed this will really happen because I’ve been hearing too many local and foreign businessmen complain about the permitting process – and the corruption that goes with it.

With these reforms, the Philippines is sending the signal that it is open for business, this time with a restructured operating system.

The ultimate test of course is in the implementation, which I hope, for the sake of this country’s future, will indeed be big and bold.

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Email: [email protected]. Follow her on X @eyesgonzales. Column archives at EyesWideOpen on FB.