Sweeping the dust off government: the issue of corruption

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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

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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

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• REALITY 1 No government is spared from the
  sting of corruption

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• 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

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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
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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 US40B 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)

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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.

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President Diosdado Macapagal

• 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.

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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.

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

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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

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President Gloria Macapagal-Arroyo

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

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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

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• 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.
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Inclusion of a FULL CHAPTER on Anti Corruption in
the countrys 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.

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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

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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
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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

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US300,000 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)

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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

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Tougher Enforcement

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

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Tougher Enforcement

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

500
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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

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360-degree Multi-raters Performance Evaluation
System
On the institutionalization of multi-stakeholder
performance evaluation system
CROSS RATING
Percentage Weight
50
20
10
10
10
Each rater is assigned specific percentage weight.
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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

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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 Presidents arm in eradicating
  corruption through effective deterrence
  (investigation and enforcement), prevention and
  education in partnership with all stakeholders

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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 Presidents
  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

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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.
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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 donts 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.
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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. PAGCs conduct of independent survey
to check on anti graft and corruption
effectiveness.
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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.

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• Our countrys 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

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Prescription to Success
A clear direction on what to do G OD-centered
motives Active participation anchored on ones
commitment and dedication to succeed Partnership
with the other stakeholders in every phase of the
fight
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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

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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.
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Make the right choice NOW!!!!
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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

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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
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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.
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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 countrys development
  but only serve to push the political agendas of
  those seizing upon the topic in particular way
  ...
• - PERC Managing Director

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PAGCs Anti-Corruption Policy guarantees

• NO cover ups
• NO whitewash
• NO sacred cows

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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.

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Catholic Bishops 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...  
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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
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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
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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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PAGC Motto
Be strong and courageous and get to work, dont
be frightened by the size of the task for the
Lord God is with you He will not forsake
you.. (I Chronicles 2820)
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Salamat po !
PRESIDENTIAL ANTI-GRAFT COMMISSION ADDRESS
SAAC Building Commonwealth Avenue Diliman, Quezon
City TEL. NO. 924 1311/ 924 1312 FAX NO. 925
8928 SMS NO. 0917 TXT PAGC
898 7242 E-MAIL
mail_at_pagc.gov.ph WEBSITE www.pagc.gov.ph