GRAFT & CORRUPTION

What is Graft and Corruption?

Graft is the acquisition of gain or advantage through abuse or misuse of ones position or influence, whether in politics, business
or any other undertaking.
It is an act performed by a civil servant or a group of civil servants, acting alone by himself or by themselves, without
involving any person outside the bureaucracy or jeopardizing the performance of duties by another bureaucrat.
Corruption is the perversion or destruction of integrity or fidelity in discharging public duties and responsibilities by bribery or
favor.
It entails the use of public power for private advantage in ways which transgresses some formal rule of law.
It involves participants from within and outside of bureaucracy.
Culture of Graft and Corruption
The culture of graft and corruption has historical root and antecedents particularly during the Spanish colonialism.
Public Office then was regarded as a grant or favor from the King.
Two ways to dispose of public offices were by appointment or by purchase.
Positions with judicial functions were filled by appointment while most offices were for sale.
The temptation to yield to corruption was present no matter how an office was acquired.
Most offices paid very little to their occupants; and office holders, who sometimes borrowed money to buy the offices
they have to resort to extra-legal means to recover their investments.
The philosophy on public office as well as the practice of implementing such philosophy made corruption not only a
natural consequence but also raised the level of tolerance for it (Endriga, 1985).
THE EIGHT (8) TYPES OF CORRUPTION IN THE PHILIPPINES
1) Tax Evasion
This is very rampant, particularly in the private sector due to the refusal of those engaged in private businesses
to honestly declare their annual income and to pay the corresponding taxes to the government.
2) Ghost Projects and Payrolls
This is done by high officials of the government whereby non-existing projects are financed by the government
while non-existing personnel or pensioners are being paid salaries and allowances.
This practice is rampant in government agencies involved in formulation and implementation of programs and
projects particularly in infrastructure and in the granting of salaries, allowances and pension benefits.
3) Evasion of Public Bidding in the Awarding of Contracts
Government offices, particularly bids and awards committees forego the awarding of contracts through public
bidding, or award these contracts to favored business enterprises or contractors.
Sometimes, members of bids and awards committees are very subjective of awarding the contract to those who
can provide them with personal benefits.
To legally evade public bidding, purchasing government agencies would embark on a piece-meal purchasing
strategy whereby small amount of supplies and materials will be bought in a continuous process.
In which case, internal agreements between the buyer and the supplier is done whereby a certain percentage of
the price value will be given to the buyer which sometimes result to overpricing and the purchase of substandard supplies and materials.
4) The practice of passing contracts from one contractor to another
In the construction of infrastructure projects, contractors have that practice of passing the work from one
contractor to another and in the process certain percentage of the project value is retained by each contractor
and sub-contractors resulting to the use of substandard materials or even unfinished projects.
5) Nepotism and Favoritism
Government officials particularly those occupying high positions tend to cause the appointment or employment
of relatives and close friends to government positions even if they are not qualified or eligible to discharge the
functions of that office.
This is one of the root causes of inefficiency and the overflowing of government employees in the bureaucracy.
6) Extortion
This is done by government officials against their clients by demanding money, valuable items, or services from
ordinary citizens who transact business with them or with their office.
This is rampant in agencies issuing clearances and other documents, those involved in the recruitment of
personnel, or those performing services that directly favor ordinary citizens.
7) Tong or Protection Money
This is a form of bribery which is done by citizens performing illegal activities and operations. They deliver huge
amount of money to government officials particularly to those in-charge of enforcing the law in exchange for
unhampered illegal operation.
The law enforcement officer who receives the money will be duty-bound to protect the citizen concerned
together with his illegal activities from other law enforcement authorities.
This is practiced mostly by gambling lords and those engaged in business without the necessary permits.
8) The Lagay system or Bribery
The lagay system or the act of citizens to bribe government officials occupying sensitive positions in
government is perpetuated due to bureaucratic red tape.
Too much paper requirements, long and arduous processing of documents, ineffective and inefficient personnel
management and the absence of professionalism in the public service force ordinary citizens to employ
extraordinary and illegal methods for the immediate processing and issuance of required personal documents.
The most frequently employed method is offering a considerable amount of money to a government official who
can facilitate the issuance of the desired documents in agencies issuing licenses, permits, clearances, and those
agencies deputized to make decisions on particular issues.
Another method in this category is the employment of fixers whereby people will pay certain individuals who
may or may not be government employees to process or obtain personal requirements for them.
MEASURES EMPLOYED TO CONTROL GRAFT & CORRUPTION
1. LEGAL MEASURES
a. The 1987 Philippine Constitution

2.

Article XI of the 1987 Philippine Constitution, titled Accountability of Public Officers, states in Section 1
that, Public office is a public trust. Public officers and employees must at all times be accountable to the
people, serve them with utmost responsibility, integrity, loyalty and efficiency, act with patriotism and
justice, and lead modest lives.
Section II of the same article states that the President, Vice-President, members of the Constitutional
Commissions and the Ombudsman may be removed from office on impeachment for bribery and graft and
corruption.

b.

Republic Act No. 3019 also known as the Anti-Graft and Corrupt Practices Act of 1960
This law enumerates all corrupt practices of any public officer, declares them unlawful and provides the
corresponding penalties of imprisonment (between 6-15 years) perpetual disqualification from public office,
and confiscation or forfeiture of unexplained wealth in favor of the government.

c.

Executive Order No. 292 or the Administrative Code of 1987

This order reiterates the provisions embodies in Section 1, Article XI of the 1987 Constitution. It also gives
the President the power to institute proceedings to recover properties unlawfully acquired by public officials
and employees.

d.

Republic Act No. 6713 also known as the Code of Conduct and Ethical Standards for Public Officials
and Employees of 1989
This act promotes a high standard of ethics and requires all government personnel to make an accurate
statement of assets and liabilities, disclose net worth and financial connections.
It also requires new public officials to divest ownership in any private enterprise within 30 days from
assumption of office to avoid conflict of interest.

e.

Republic Act No. 6770 also known as the Ombudsman Act of 1989
This provides the functional and structural organization of the Office of the Ombudsman which will be
discussed later on.

f.

Republic Act No. 7055 also known as An Act Strengthening Civilian Supremacy over the Military
This law creates two avenues for trying erring members of the Armed Forces of the Philippines and other
members subject to military laws. Crimes penalized by the Revised Penal Code and other special penal laws
and local government ordinances shall be tried in civil courts. Military courts shall take cognizance of
service-oriented crimes only.

g.

Republic Act No. 7080 also known as the Act Defining and Penalizing the Crime of Plunder
This act penalizes any public officer who by himself or in connivance with members of his family, relatives
by affinity or consanguinity, business associates, accumulates or acquires ill-gotten wealth, through a
combination of series of event criminal acts, an aggregate amount to total value of at least fifty million
pesos (P50,000,000).

h.

Republic Act No. 8249 also known as the Act Further Defining the Jurisdiction of the Sandiganbayan
This classifies the Sandiganbayan as a special court and places it at par with the Court of Appeals.

i.

Presidential Decree No. 46

declares it unlawful for government personnel to receive gifts and for private persons to give gifts on any
occasion including Christmas, regardless of whether the gift is for past or future favors.
It also prohibits entertaining public officials and their relatives.

j.

Presidential Decree No. 677

requires the Statement of Assets and Liabilities to be submitted every year.

k.

Presidential Decree No. 749

grants immunity from prosecution to givers of bribes and other gifts and to their accomplices in bribery
charges if they testify against the public officials or private persons guilty of those offenses.

CONSTITUTIONAL ANTI-CORRUPTION BODIES

The 1987 Philippine Constitution has created constitutional bodies to deal on graft and corruption and to
effectively implement the provisions of public accountability.

These bodies are granted fiscal authority to ensure their independence and their actions are appealable only to
the Supreme Court.

These constitutional bodies are:

a.

The Office of the Ombudsman (OMB)

The Office of the Ombudsman investigates and acts on complaints filed against public officials and
employees, and serves as the peoples watchdog of the government.
The Ombudsman and his deputies (Overall Deputy Ombudsman, Deputy Ombudsman for the Military, and
One Deputy Ombudsman each for Luzon, Visayas and Mindanao) are the protectors of the people.
The OMB:
1. oversees the general and specific performance of official functions so that laws are properly
administered;
2. ensures the steady and efficient delivery of public services;
3. Initiates the refinement of public procedures and practices; and
4. Imposes administrative sanctions on erring government officials and employees, and prosecute
them for penal violations.

b.

The Civil Service Commission (CSC)

The CSC is the central personnel agency of the government which is mandated to establish a career service
and promote moral, efficiency, integrity, responsiveness, progressiveness, and courtesy in the civil service.
It shall also strengthen the merit and rewards system, human resource development, and public
accountability. It has jurisdiction over administrative cases including graft and corruption brought before it
on appeal.

c.

The Commission on Audit (COA)

The COA is the watchdog of the financial operations of the government.

d.

3.

It is empowered to examine, audit, and settle all accounts pertaining to the revenue and receipts of, and
expenditures or uses of funds and property under the custody of government agencies and
instrumentalities.
It shall promulgate accounting and auditing rules and regulations for the prevention and disallowance of
irregular, unnecessary, excessive, extravagant, or unconscionable expenditures, or use of government funds
and properties.

The Sandiganbayan
The Sandiganbayan is the anti-graft court of the Philippines.
It has jurisdiction over civil and criminal cases involving graft and corrupt practices and such other offenses
committed by public officers and employees.
It is in charge of maintaining morality, integrity and efficiency in the public service.

OTHER GOVERNMENT ANTI-CORRUPTION BODIES

Other government agencies in the fight against corruption are the following:
a. The Department of Justice (DOJ)
b. The National Bureau of Investigation (NBI) and the Philippine National Police (PNP)
c. Presidential Commission on Good Government (PCGG)
d. The Presidential Commission against Graft and Corruption
e. The Inter-Agency Anti-Graft Coordinating Council
a.

The Department of Justice (DOJ)

The DOJ conducts preliminary investigations on complaints of a criminal nature against public officials that
are filed with the Department, subject to the approval of the OMB if the offense investigated was committed
by the public official in relation to his office.
The DOJ also prosecutes in these cases if the public officials involved belong to ranks lower than salary
grade 27.

b.

The National Bureau of Investigation (NBI) and the Philippine National Police (PNP)
These law enforcement agencies conduct fact-finding investigations on graft cases.
They conduct entrapment operations which, if successful, results in the arrest and filing of criminal
complaint against the perpetrators in the courts.
It may issue subpoena and serve warrants of arrest issued by the courts.
The NBI agent or policeman who conducted the investigation also acts as witness for the prosecution during
journal preliminary investigation and the prosecution of the case by the Ombudsman.

c.

The Presidential Commission on Good Government (PCGG)

This was created primarily to go after ill-gotten wealth. It is also tasked to adopt safeguards to ensure that
corruption shall not be repeated and institute measures to prevent the occurrence of corruption.

d.

The Presidential Commission against Graft and Corruption

This was created under Executive Order No. 151 by then President Ramos to investigate graft and corruption
cases in the executive department.
It has jurisdiction over corruption cases if the crime involves:
1. Appointees with rank of or higher than Assistant Regional Director;
2. At least one million pesos;
3. An offense that may threaten grievous harm to national interest; and
4. Cases specifically assigned by the President.
5. The Inter-Agency Anti-Graft Coordinating Council
6. The council coordinates the government anti-corruption efforts.
7. It is composed of the Commission on Audit, the Civil Service Commission, the Ombudsman, the
Department of Justice, the National Bureau of Investigation and the Presidential Commission against
Graft and Corruption.

IMPEDIMENTS TO THE ANTI-CORRUPTION EFFORTS

Despite the existence of these graft and corruption counter measures; this menace remains a major problem of the
Philippine government.
This can be attributed to the following factors:
1.

Specific culture of Filipinos is enhancing the proliferation of graft and corruption.

The strong family ties justify giving benefits to unqualified recipients which are very evident in employment and
awarding of contracts.
This societal phenomenon is adversely affecting professionalism, efficiency and effectiveness in the government
service as well as in the construction of public infrastructure and procurement of government supplies and materials
that are sometimes substandard and overpriced.

2.

The Filipino culture of gift giving justifies bribery and extortion thereby making it hard for law enforcement and
anti-corruption agencies to arrest the problem.
This social practice renders inutile the law prohibiting gift giving thereby further enhancing this corrupt practice.

3.

Agencies deputized to fight graft and corruption is not well funded by the government.
There is also lack of recognition, merits, awards and rewards given by the government for the efforts of anticorruption bodies.
Personnel of these agencies mandated to go against corrupt public officials are vulnerable to bribery because of lack
of financial support, integrity and professionalism.
Measures have to be introduced in the recruitment of anti-corruption personnel to ensure that they possess morality,
honesty, integrity and dedication to duty.

4.

Transparency is not religiously observed particularly in government transactions.

The public is denied access to activities of government officials.
The people are not informed, in detail, of the share of each executive department, the legislature and the judiciary,
in the national budget and how these departments spend their financial requirements.

5.

Effective monitoring of government programs and projects as well as expenditures are not being seriously
undertaken by those tasked to monitor them.

They are also vulnerable to bribery and do not actually conduct thorough inspection but merely rely on information
gathered.
The statement of assets and liabilities, which is an effective mechanism to curb graft and corruption, is
religiously submitted yearly by all public officials.
However, no agency of government is deputized to examine the veracity of the data entered in those statements.
Most public officials with unexplained wealth can successfully hide the same by paying accountants to make
accurate and official statements for them.

6.

7.

Other anti- corruption provisions may work against getting good people in government.
One example is the requirement of divestment, currently, the only approach to the possible conflict of interest that
will be encountered by the entry of well- qualified people in the government.
The current divestment procedure may be too harsh since it could effectively mean that no top industrialist should
be a Secretary of Trade and industry, and no top banker may be Central Bank Governor. That would be closing to the
government a valuable human resource. Besides, the appointing power must put a person where his expertise is.
Others would circumvent the law by divesting themselves with their direct link to a business enterprise by
transferring their interests to trusted relatives or friends but in reality, they still remain in control of the enterprise.