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Sweeping the dust off government: the issue of corruption

Presented by Secretary Constancia P. De Guzman Chairman, Presidential Anti-Graft Commission Convention – Seminar of the Association of Government Accountants of the Philippines, Inc . 16 October 2008, Grand Men Seng Hotel, Davao City. Sweeping the dust off government: the issue of corruption.

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Sweeping the dust off government: the issue of corruption

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  1. Presented by Secretary Constancia P. De Guzman Chairman, Presidential Anti-Graft Commission Convention – Seminar of the Association of Government Accountants of the Philippines, Inc . 16 October 2008, Grand Men Seng Hotel, Davao City Sweeping the dust off government: the issue of corruption

  2. Presentation Outline • Realities on the issue of Corruption II. The Philippines Anti-Corruption Initiatives and Achievements III. Challenges to Sustain the Gains IV. “AGAP-Specific” Prescription Towards Success

  3. REALITY 1 : No government is spared from the sting of corruption

  4. Corruption, just like graft, is not a product of the modern age or something that happen only during our time … • even Dante, as early as the 13th century, had revealed in his Inferno, that the fifth circle of hell is reserved for those who have betrayed the public trust …

  5. Trigger Points on Graft and Corruption in the Philippines: + 508 years of historical experiences from the hands of our colonizers from 1522 to 1945 – 457 years under the Spanish Empire; 47 years under the Americans; and, 4 years of Japanese rule + 20 years from a dictatorial ruler

  6. Cost of Corruption • World Bank • US$ 1T in bribes/ year worldwide • US$ 48B loss for the last 20 years from time the study was conducted (greater than the national debt of US$40B at that time) • US$ 30B/year or 20-30% contracts signed • Asian Development Bank • 17% of GDP • Economic Intelligence Unit • 20-30% of GAA (160-240B/year per Economic Intelligence Unit)

  7. 1935 Philippine Constitution • General Auditing Office, headed by an Auditor General • tasked to examine, audit and settle not only accounts pertaining to the revenues and receipts from whatever source but including all expenditures of funds or property pertaining to or held in trust by the Government • bring to the attention of the proper administrative officer - expenditures of funds or property which are irregular, unnecessary, excessive or extravagant.

  8. President DiosdadoMacapagal • Presidential Anti-Graft Committee • R.A. 3456, “Internal Auditing Act of 1962” • R.A. 4177 approved on 26 March 1965 to further strengthen and broaden the coverage of the internal auditing requirements.

  9. President Ferdinand Marcos • the Anti Graft and Corrupt Practices Act or RA 3019 in 1960 • PD 46 which made it punishable for public officials and employees to receive gifts on any occasion, including Christmas • PD 1445 or Auditing Code of 1978 • 1973 Philippine Constitution which provided for a specific Article on the Accountability of Public Officers that says: “Public Office is a public trust. Public officers and employees shall serve with the highest degree of responsibility, integrity, loyalty, and efficiency, and shall remain accountable to the people.”

  10. OFFICE OF THE PRESIDENT OF THE PHILIPPINES PRESIDENTIAL ANTI-GRAFT COMMISSION

  11. President Corazon Aquino • Public Ethics and Accountability Task Force • Presidential Commission on Good Government • 1987 Philippine Constitution - the provision on the accountability of public officers now include emphasis on the need for accountability of public officers and employees to the people at all times, the need to act with patriotism and justice – and the need to lead modest lives • E.O. 292 or the Administrative Code of 1987 • R.A. 6713 otherwise known as “The Code of Conduct and Ethical Standards for Public Officials and Employees”

  12. President Fidel Ramos • Presidential Commission Against Graft and Corruption President Joseph Estrada • Inter-Agency Anti-Graft Coordinating Council • Presidential Committee on Effective Governance • National Anti-Corruption Commission

  13. President Gloria Macapagal-Arroyo • Presidential Anti-Graft Commission (PAGC) • Governance Advisory Council • fight against corruption as a flagship project.

  14. The Arroyo Administration Strategies and Initiatives Against Corruption • Tougher Enforcement • Administrative ControlsProcedural Reforms • Increased funds for anti-graft • Widespread lifestyle checks • Internal audit controls • Streamlining of procedures • Procurement reforms • Harnessing civil society • Reforms in the other pillars of justice

  15. REALITY 2 : Fighting corruption is not an easy task and will never be an easy one CORRUPTION has become the most serious governance challenge of the Macapagal-Arroyo administration.

  16. Inclusion of a FULL CHAPTER on Anti Corruption in the country’s Medium Term Philippine Development Plan (MTPDP) for 2004 to 2010 – serving as a blueprint that guides every single stakeholder on how the fight against corruption is to be waged.

  17. MTPDP 2004-2010 Chapter 21: Anti-Corruption “Anti-corruption efforts will focus on three areas of reform: + Punitive measures (effective enforcement of anti-corruption laws) + Preventive measures (strengthening of anti-corruption laws, improvement of integrity systems, conduct of integrity development review) + Promotion of zero-tolerance for corruption

  18. Chapter 22: MTPDP 2004-2010 Bureaucratic Reforms “To improve the quality and efficiency of public service, the government shall adopt institutional improvements in the bureaucracy”

  19. Improvements & Radical Reforms • strengthening of anti-corruption bodies • highest funded anti-corruption program with over P2.0 billion in anti-corruption funds • + 1 Billion from the Millennium Challenge Account • + 1 Billion from President Macapagal-Arroyo • PDEA • BIR • BOC • PCVF • PNP • PAGC

  20. US$300,000 WB-IDF Grant for the Strengthening of Internal Audit Units for Effective Procurement Monitoring and Enforcement • Component 1 • Survey Mapping of Internal Audit Activities (nationwide) • IA Quality Assessment Report (pilot agencies) • Component 2 • Generic IA Manual with Quality Assurance Improvement Program • Draft Customized IA Manual for the pilot agencies • Component 3 • National IA Training Program • Study on the Certification and Accreditation of Internal Auditors • Component 4 • Procurement Compliance & Monitoring System (c/o GPPB)

  21. Improvements & Radical Reforms (2) • re-engineering of the bureaucracy through E.O. 366 • adoption of financial reforms like the electronic new-government accounting system (e-NGAS) • budget reforms through computerization • procurement reforms through R.A. 9184 • preparation of agency-specific anti-corruption programs • comprehensive judicial reform program

  22. Tougher Enforcement • PAGC(no. of officials ordered to be penalized)

  23. Tougher Enforcement • PAGC(no. of officials ordered to be penalized) 500+%

  24. Improvements & Radical Reforms (3) • Administrative Controls/Procedural Reforms • Bureaucratic reform strategies • rationalization of government salaries • Promotion of a culture of meritocracy • Capacity building for the government work force • Improved performance evaluation tools • Strengthening of Legal Framework – United Nations Convention Against Corruption

  25. 360-degree Multi-raters’ Performance Evaluation System On the institutionalization of multi-stakeholder performance evaluation system CROSSRATING Percentage Weight 50 % 20% 10% 10% 10% Each rater is assigned specific percentageweight.

  26. Development of tools to do an independent survey to check anti-graft and corruption programs and effectiveness. • IDAP indicators (1-5 levels of achievement) • to measure efficiency (process-based) • Anti-Corruption Scorecard (ACS) • to measure effectiveness/ impact

  27. Presidential Anti-Graft Commission VISION: A graft and corruption-free Philippines characterized by transparency and accountability in governance, honesty and integrity in the bureaucracy in a corruption-intolerant society MISSION: To be the President’s arm in eradicating corruption through effective deterrence (investigation and enforcement), prevention and education in partnership with all stakeholders

  28. INTEGRITY DEVELOPMENT ACTION PLAN (IDAP) • Main output of the 3-day unprecedented Presidential Anti-Corruption Workshop (PAW) held last December 15 – 17, 2004 • adopted as the national anti-corruption framework of the Executive Branch and the President’s program of countering corruption through integrity development and good governance • composed of 22 specific anti-corruption measures clustered into the strategies of Prevention, Education, Deterrence (Investigation and Enforcement), and Strategic Partnership

  29. INTEGRITY DEVELOPMENT ACTION PLAN (IDAP) • PREVENTION – systems reforms to minimize opportunities for graft and corruption 1. Strengthening of internal control through the institutionalization of internal audit service 2. Conduct of Integrity Development Review or IDR in 5 agencies. 3. Fast tracking of the electronic New Government Accounting System and electronic bidding for the procurement of goods, services and infrastructure projects 4. Incorporating integrity check in recruitment and promotion of government personnel. 5. Institutionalization of a multi-stakeholder personnel and organizational performance evaluation system 6. Protection of meager income of government employees by ensuring a level for take home pay. 7. Adoption of a single ID system for government officials and employees.

  30. INTEGRITY DEVELOPMENT ACTION PLAN (IDAP) • EDUCATION – advocacy to counter the negative perception of the public in the corruption fight, values formation and educating the public servants on the dos and don’ts of public service 1. Dissemination of compendium of anticorruption laws, rules and regulations. 2. Preparation of agency-specific code of ethical standards. 3. Conduct of ethics training, spiritual formation, and moral recovery program for agencies and stakeholders. 4. Integration of anti-corruption modules for elementary and secondary levels.

  31. INTEGRITY DEVELOPMENT ACTION PLAN (IDAP) • INVESTIGATION AND ENFORCEMENT – making corruption a high-risk, low-reward activity 1. Development of agency Internal Complaint Unit. 2. Setting up/strengthening of agency Internal Affairs Unit. 3. Publication of blacklisted offenders and on-line database for public access. 4. Talks of holding superiors accountable for corrupt activities of subordinates. 5. Advocacy for the submission of Income Tax Returns as attachment to the SALN. 6. Effective use of existing agency administrative disciplinary machinery and publication of results of administrative cases handled. 7. PAGC’s conduct of independent survey to check on anti graft and corruption effectiveness.

  32. INTEGRITY DEVELOPMENT ACTION PLAN (IDAP) • STRATEGIC PARTNERSHIP – To build united front against corruption involving various stake - holders from the various sectors of the society • Linking of databases of complementary agencies and sharing of information. • 2. Enhancement of the private sector and civil society participation in various areas of governance. • 3. Tapping of international development agencies and private sector for support. • 4. Institutionalization of the participation of stakeholders in agency activities.

  33. Our country’s best practices talk of very specific tasks that we are now delivering and working on towards sustainability – • we plan • we implement • we monitor and evaluate • to ensure that the plans produce tangible results

  34. Prescription to Success Aclear direction on what to do G OD-centered motives Active participation anchored on one’s commitment and dedication to succeed Partnership with the other stakeholders in every phase of the fight

  35. Guidelines on the “Sweeping” Process • Look inside to find out what can and cannot be done to prevent graft and corruption • Start looking outside to find out how to address the limitations earlier identified and likewise start building on strengths • Look within the premises of ones place of work

  36. God-Centered Motive “always uphold our sworn duties as public servants, aspire for service excellence and place ourselves to the service of GOD, country and people.”

  37. Make the right choice NOW!!!!

  38. The Clear Direction • The GOD centred motive for our individual and collective plans we must review and refine. • Fine tuning of political will • process things beyond the surface – to consider an array of possibilities – of even trying to look into the motives of whatever issues are presented before them...as it is indeed another reality – to see and hear people talk and talk – but not really walking the talk. . . • start looking for results; start dissecting the probable hidden agenda on a per group or issue basis

  39. Call to Action Now, is the time for REAL action -- an honest to goodness sweeping of the dust of corruption, not only in the public service but in the private sector as well REAL action from the government and from every single soul – every stakeholder to the corruption issue REAL action must be exhibited at all times

  40. Call to Persevere The flame on the desire to curb graft and corruption has been lit. But now, it must be fanned, not only so that it may stay alive, but that it may grow and spread, that what started out as one tiny flame may become a conflagration that engulfs the entire government bureaucracy and the rest of the society as well.

  41. The Challenges in the Fight Against Graft and Corruption • little public appreciation • politicization of corruption issues - • “Corruption is also something that can and is being politicized in ways that are not particularly helpful to the country’s development but only serve to push the political agendas of those seizing upon the topic in particular way ...” • - PERC Managing Director

  42. PAGC’s Anti-Corruption Policy guarantees… • NO cover ups • NO whitewash • NO sacred cows

  43. Political Will • resides in many locations – all branches of government, the political opposition, civil society, international organizations and both the public and private sector institutions. • the demonstrated credible intent of political actors (elected or appointed leaders, civil society watchdogs, stakeholder groups, etc.) to attack perceived causes or effects of corruption at a systemic level.

  44. Catholic Bishop’s Conference What every Filipino should do? “To realize that we have contributed not a little to the common malaise, because of decisions we have made, decisions that flowed from what we have become, and because of our unconcern, inaction, apathy, often thinking only of our interests, and so little sense of the future of our country...”

  45. The needed POLITICAL WILL should never ever be considered a monopoly of the highest official of the land, but of every single stakeholder of the particular crisis that needs to be addressed

  46. Let us put to the fore the use of our political will – in planting the seeds of a corruption-free society and in leading the next generations in nurturing what we planted to ensure optimum fulfilment as we watch them reap the fruits of our joint efforts

  47. For our fight against corruption - the hardest battle of our lives... May we get inspiration from the story of “David and Goliath”

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