Corruption in Infrastructure

1. Corruption in Infrastructure

2. Infra fat The Department of Budget and Management (DBM) estimates that as much as 50% of infrastructure allocations go to corruption. Infra infamous The Department of Public Works and Highways (DPWH) – mandated  to undertake the planning, implementation and maintenance of major infrastructure projects – consistently ranks among the most corrupt government agencies.

3. DPWH Infra Dev’t Process: 1st Phase Project Identification: gathering and identifying potential projects with expected return of investments

4. DPWH Infra Dev’t Process: 2nd Phase Project Preparation: Feasibility Study (determine whether the project can and should be carried out and if, so, how and when) Inclusion in the Phil. Medium Term Plan (project is considered for inclusion in the medium-term infrastructure program for the period of six years) Detailed Engineering (based on the medium term program, this is undertaken in preparation for actual implementation under the annual infrastructure programs) Fund Appropriation (appropriations for the projects are authorized through legislation) • Inclusion in Annual Infra Programming • are those that rank high in priority within the medium-term program; and • b) those that are technically ready for actual implementation during the year (i.e. with substantially completed detailed engineering)

5. Right-Of-Way Acquisition (the right of way of any infra project, such as road, should be acquired ahead of construction in order not to impede the work) Fund Releases (after NEDA’s approval of the annual infra program in Nov. of every year, DBM issues Advices of Allotment [AAs] for the projects) DPWH Infra Dev’t Process: 3rd Phase Construction (carried out through the Project Management Office [PMO] and the Regional/District Office) Bidding and Contracting (in line with the government’s policy, infra projects are generally undertaken by contract after public bidding with the private sector) Project Implementation: Payment (due and demandable claims are processed by the DPWH either at the Central, Regional or District level, in accordance with existing government budgeting, accounting and auditing rules) Completion and Acceptance (completion reports and as-built plans are prepared for the submission to the implementing office heads, management, and funding institutions)

6. DPWH Infra Dev’t Process: Last Phase Project Operation and Evaluation: Operational and Maintenance (major infra projects/facilities remain under the responsibility of DPWH during operational phase; maintenance and administration will be undertaken by the Regional and District offices) Impact Evaluation (post-project appraisal is an attempt to assess the results of a project and, as a function of the results, of the means employed to achieve them.

7. Bid and Award Procedures (Per RA 9184)The following outlines the steps for locally-funded projects. Foreign funded project procedures are based upon the rules of the specific institution.

8. Infra red! Infra-related corruption takes concrete forms in: • Collusion among contractors • ghost deliveries • ghost projects • use of substandard materials • Effected thru: • intervention of politicians • bribery (‘SOP’) • price padding

9. Effects of infra-related corruption • Costly maintenance and repairs of infirm structures that deteriorate easily • Loss of life or costly medication and hospitalization of individuals who have suffered directly from unsafe structures • Infrastructure deficit that aggravates poverty by killing livelihoods and driving away investors and tourists • Poor delivery of social services • People’s disenchantment with government

10. Key Challenges • Laxity in the implementation of laws • Slow justice aggravated by low conviction rate and relaxed disciplinary action imposed upon erring parties • Inadequate protection accorded to whistleblowers • Willingness of the business sector to connive • Deficiency in technical expertise • of watchdogs • Concentration of data in urban areas • depriving people in the rural areas of vital • information pertaining to infrastructure- • related corruption • Prevailing perception that corruption is a • high-reward low-risk activity

11. Calls • Laws are not wanting, they only need to be implemented with political will • There is no lack in agencies and alliances combating corruption. What is needed is broader people’s participation • There is no shortage in information and data, what needs to be done is to widen their reach • There is no dearth in success stories, what is lacking is public awareness • There is no scarcity of enthusiasm for people are enraged enough by corruption, people only need to be guided on how to channel their energies effectively.

12. Actions • Work for effective civil society representation in Bids and Awards Committees • Demand participatory auditing of government agencies • Demand full implementation of government’s Internet-based Electronic Procurement System • Build a consolidated group focusing on infra-related corruption • Enhanced watchdogs’ technical skills

13. Thank you To eliminate corruption calls for the committed support of all citizens, the resolute determination of the authorities and a firm moral conscience. -Pope John Paul II (Address to Filipino Bishops) www.nassa.org.ph