transparency and public accountability_mlm_oct2010

8/2/2019 Transparency and Public Accountability_MLM_Oct2010

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Transparency andTransparency andPublic AccountabilityPublic Accountability

Magdalena L MendozaMagdalena L Mendoza

Development Academy of the PhilippinesDevelopment Academy of the Philippines

14 October 201014 October 2010

AGIA Annual ConventionAGIA Annual Convention

AGIA Para SaAGIA Para SaPagsulongPagsulongNgNgBagongBagongPilipinasPilipinas


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P728-million "fertilizer scam"Source: philstar.com

Unexplained wealth of AFP ComptrollerSource: gmanews.tv

Allegations of anomalous NBN-ZTE dealSource: imbe.wordpress.com

C-5 Extension controversySource: net-planet.org

Alleged irregularity in P1.3Billion Mega Pacific Poll

Automation contractSource: philstar.com

Allegations of excessive perks andprivileges of GOCCsSource: forum.philboxing.com


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HarryHarry StonehillStonehill Scandal, 1962Scandal, 1962 Former American Army lieutenant turnedFormer American Army lieutenant turned

businessmanbusinessman Suspected of tax evasion, bribery, andSuspected of tax evasion, bribery, and

corruption of public officialscorruption of public officials

Protests came from the halls of Congress andProtests came from the halls of Congress andSenate when a search warrant of his office wasSenate when a search warrant of his office wasorderedordered

StonehillStonehill hurriedly left the country allegedly tohurriedly left the country allegedly tosave the political fortunes of many highsave the political fortunes of many high--rankingrankingofficialsofficials

Source: wikipedia.org


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For many years after WWII, theFor many years after WWII, the

seeds of corruption had begin toseeds of corruption had begin togrow permeating the middle andgrow permeating the middle and

upper echelons of Philippine societyupper echelons of Philippine society..

- The Filipino Mindby Jose W. Diokno


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1.04

1.96

2.77 2.69

3.053.30

3.60

2.80 2.90

2.60 2.50 2.60 2.50 2.50 2.50

2.302.40

1980-

85

1988-

92

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Yea

Figure 2: Corruption Perception Index, various ye

Corruption Perception Index:Corruption Perception Index:

PhilippinesPhilippines

Source: Transparency International


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153Closing a business

118Enforcing contracts

68Trading across borders

135Paying taxes

132Protecting investors

127Getting credit102Registering property

115Employing workers

111Dealing with construction permits162Starting a business

144 (out of 183)Ease of doing business (overall rank)

2010 RankIndicatorDoing Business in the PhilippinesDoing Business in the Philippines

Source: WB Doing Business Report 2010


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WGI 2008 PhilippineWGI 2008 Philippine

Governance RankingGovernance Ranking

0 10 20 30 40 50 60

Voice and accountability

Political stability

Government effectiveness

Regulatory quality

Rule of law

Control of corruption

Note: Exemplary - percentile ranking of above 90th/between75th to 90th

Vulnerable - percentile ranking of between 50th and 75th/between 25th to 50th

Governance crisis- percentile ranking of between 10th to 25th/bottom 10th

vulnerablecrisis


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Source: UNDP, 1997

What is GovernanceWhat is Governance Exercise ofExercise ofeconomic, political andeconomic, political and

administrativeadministrative authorityauthority to manage a countryto manage a countryssaffairs at all levelsaffairs at all levels

MechanismsMechanisms,, processesprocesses andand institutionsinstitutions

through which citizens and groupsthrough which citizens and groups articulate their interestsarticulate their interests

exercise their legal rightsexercise their legal rights

meet their obligations, andmeet their obligations, and

mediate their differencesmediate their differences


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Characteristics of GoodCharacteristics of Good

GovernanceGovernance PredictablePredictable

Open and enlightened policyOpen and enlightened policy--makingmaking

Bureaucracy imbued with a professional ethosBureaucracy imbued with a professional ethos

acting in furtherance of the public goodacting in furtherance of the public good

Respect for the rule of lawRespect for the rule of law

Transparent processesTransparent processes

Strong civil society participating in public affairsStrong civil society participating in public affairs

Source: World Bank


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Principles of Good GovernancePrinciples of Good Governance

ParticipationParticipation

Rule of lawRule of law

TransparencyTransparency

ResponsivenessResponsiveness ConsensusConsensus

orientationorientation

EquityEquity

Efficiency andEfficiency andeffectivenesseffectiveness

AccountabilityAccountability

Strategic visionStrategic vision

Source: UNDP, 1997


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Worldwide Governance IndicatorsWorldwide Governance Indicators

Voice and accountabilityVoice and accountability Political stability/absence of violencePolitical stability/absence of violence

Government effectivenessGovernment effectiveness Regulatory qualityRegulatory quality

Rule of lawRule of law

Control of corruptionControl of corruption

Source: World Bank Institute


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0th-10th percentile

10th-25th percentile




90th

-100th

percentile

Legend:

Note: Percentile ranks indicate thepercentage of countries worldwide

that rate below the selected country.Higher values indicate better

governance ratings.

Figure 3. Governance Rating 1996-2008


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TransparencyTransparency

Transparency is built on the free flow ofTransparency is built on the free flow of

information. It requires that processes,information. It requires that processes,institutions and information are directlyinstitutions and information are directly

accessible to those concerned with them,accessible to those concerned with them,

and enough information is provided toand enough information is provided to

understand and monitor them.understand and monitor them.

Source: UNDP, 1997


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Public AccountabilityPublic Accountability

DecisionDecision--makers in government, themakers in government, the

private sector and civil societyprivate sector and civil societyorganizations are accountable to theorganizations are accountable to the

ppublic, as well as to institutionalublic, as well as to institutional

stakeholders.stakeholders.

Answerability of decisions, actions andAnswerability of decisions, actions and

even failures.even failures.

Source: Adapted from UNDP


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Principle of Public OfficePrinciple of Public Office

Public office is a public trust. PublicPublic office is a public trust. Publicofficers and employees must at all timesofficers and employees must at all times

be accountable to the people, serve thembe accountable to the people, serve them

with utmost responsibility, integrity,with utmost responsibility, integrity,loyalty, and efficiency, act with patriotismloyalty, and efficiency, act with patriotism

and justice and lead modest lives.and justice and lead modest lives.

Source: 1987 Philippine Constitution Sec 1, Art. XI


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Duties of Public Officials andDuties of Public Officials and

EmployeesEmployees

Act promptly on letters and requestsAct promptly on letters and requests

Submit annual performance reportsSubmit annual performance reports Process documents and papersProcess documents and papers

expeditiouslyexpeditiously

Act immediately on the publicAct immediately on the publics personals personaltransactionstransactions

Make documents accessible to the publicMake documents accessible to the public

Source: Republic Act No. 6713


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Prohibited Acts and TransactionsProhibited Acts and Transactions

Financial and material interest in anyFinancial and material interest in any

transactiontransaction Outside employment and other relatedOutside employment and other related

activitiesactivities

Private practice of professionPrivate practice of profession

Disclosure and or misuse of confidentialDisclosure and or misuse of confidentialinformationinformation

Solicitation or acceptance of gifts in theSolicitation or acceptance of gifts in thecourse of their official dutiescourse of their official duties



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Other Important ProvisionsOther Important Provisions

Filing of Statements of Assets andFiling of Statements of Assets and

Liabilities and Net Worth (SALN)Liabilities and Net Worth (SALN) Financial disclosureFinancial disclosure

Identification and disclosure of relativesIdentification and disclosure of relativesAccessibility of statementsAccessibility of statements

DivestmentDivestment



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What is CorruptionWhat is Corruption

Use of office for private interest orUse of office for private interest or

partisan advantagepartisan advantage Breakdown of principalBreakdown of principal--agent relationshipagent relationship

Impairment of integrityImpairment of integrity


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Heuristic Formula for CorruptionHeuristic Formula for Corruption

C = M + DC = M + D --AA

Corruption = Monopoly Power + Wide Discretion Accountability

Source: Robert Klitgaard


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Corrupt Practices of Public OfficersCorrupt Practices of Public Officers Persuading, inducing or influencing another public officerPersuading, inducing or influencing another public officer

to violate rulesto violate rules

Requesting or receiving gift or any benefit in connectionRequesting or receiving gift or any benefit in connectionwith any government contract or transactionwith any government contract or transaction

Requesting or receiving gift or any benefit from anyRequesting or receiving gift or any benefit from any

person who has secured or will secure governmentperson who has secured or will secure governmentpermit or licensepermit or license

Accepting employment in a private enterprise which hasAccepting employment in a private enterprise which haspending business with the public officerpending business with the public officer

Giving any private party unwarranted benefits,Giving any private party unwarranted benefits,advantage or preferenceadvantage or preference



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Corrupt Practices of Public OfficersCorrupt Practices of Public Officers Neglecting or refusing to act within reasonable timeNeglecting or refusing to act within reasonable time

without sufficient justificationwithout sufficient justification Entering, on behalf of government, into any contractEntering, on behalf of government, into any contract

manifestly or grossly disadvantageous to governmentmanifestly or grossly disadvantageous to government

Having financial or pecuniary interest in any business,Having financial or pecuniary interest in any business,

contract or transaction in connection with which thecontract or transaction in connection with which thepublic official intervenespublic official intervenes

Approving or granting license, permit, privilege or benefitApproving or granting license, permit, privilege or benefit

in favor of any person not qualified or legally entitled toin favor of any person not qualified or legally entitled to Divulging valuable information of a confidential characterDivulging valuable information of a confidential character



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Government FunctionsGovernment Functions

Vulnerable to CorruptionVulnerable to Corruption

Revenue collectionRevenue collection Government procurement contractsGovernment procurement contracts

Sale of stateSale of state--owned enterprises/state assetsowned enterprises/state assets

Allocation of governmentAllocation of government--controlled or regulatedcontrolled or regulatedsupplies of goods, credit, foreign exchange,supplies of goods, credit, foreign exchange,licenses or permitslicenses or permits

Access to government services or subsidiesAccess to government services or subsidies

Enforcement of laws and regulationsEnforcement of laws and regulations AdjudicationAdjudication


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Reducing Opportunities forReducing Opportunities for

Corruption in ProcurementCorruption in Procurement

Government Procurement Reform Act ofGovernment Procurement Reform Act of

2003 (R.A. 9184)2003 (R.A. 9184) Significant progress in:Significant progress in:

ProfessionalizationProfessionalizationof procurement officersof procurement officers

TransparencyTransparency PHILGEPS, CSO monitoringPHILGEPS, CSO monitoring

Revised IRR covering locallyRevised IRR covering locally--funded andfunded and

foreignforeign--assisted projects issued in 2009assisted projects issued in 2009

Lauded asLauded asisland of good governanceisland of good governance


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Controlling Corruption in RevenueControlling Corruption in Revenue

CollectionCollection

Revenue Integrity Protection Service (RIPS)Revenue Integrity Protection Service (RIPS) Run After Tax Evaders (RATE) Program ofRun After Tax Evaders (RATE) Program of

the BIRthe BIR

Run After the Smugglers (RATS) Program ofRun After the Smugglers (RATS) Program of

BOCBOC


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116

78

73

0 20 40 60 80 100 120 140

Run After Tax Evaders

(RATE)

Run After The

Smugglers (RATS)

Revenue Integrity

Protection Service

(RIPS)

Number of Cases

Number of Cases filed under RIPS,

RATS, and RATE as of 2009

Source: BIR and SONA, 2009


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Improving Structures and Systems toImproving Structures and Systems to

Prevent Corruption and Reduce Red TapePrevent Corruption and Reduce Red Tape

Rationalization ProgramRationalization Program IDAP (22IDAP (22 DoablesDoables))

Integrity Development ReviewIntegrity Development ReviewAntiAnti--Red Tape ActRed Tape Act

EE--governmentgovernment


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Integrity Development ReviewIntegrity Development Review

Joint Corruption Prevention program of OMB,Joint Corruption Prevention program of OMB,

DBM, CSC, COA, PAGC, and DAPDBM, CSC, COA, PAGC, and DAP

CVA (2002): DBM, DAPCVA (2002): DBM, DAP

IDR (2004): Ombudsman,IDR (2004): Ombudsman,

DepEdDepEd

, CSC, CSC

IDR (2005): BIR, BOC, DPWH, LTO, PNPIDR (2005): BIR, BOC, DPWH, LTO, PNP

IDR (2007): DAR, DENR, DOH,IDR (2007): DAR, DENR, DOH, BuCorBuCor, BFP,, BFP,

DBMDBM--PS, Phil. Navy, PVAO, LRA, LRTA, NIAPS, Phil. Navy, PVAO, LRA, LRTA, NIA IDR (2008): DSWDIDR (2008): DSWD

IDR (2010): Land BankIDR (2010): Land Bank


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AntiAnti--Red TapeRed Tape Signature Reduction (2001)Signature Reduction (2001)

AntiAnti--Red Tape Act of 2007 (R.A. 9485)Red Tape Act of 2007 (R.A. 9485) Mandates transactions reengineering and CitizenMandates transactions reengineering and Citizenss

Charter for frontline servicesCharter for frontline services

Criminalizes fixingCriminalizes fixing Further streamlining of processing time, formsFurther streamlining of processing time, forms

and requirements e.g. business nameand requirements e.g. business name

registrationregistration


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3,058

Total Number ofGovernment Agencies 4,628

Government Agenciesand Local Governments

Fully Compliant with ARTA

Government Agenciesand Local Governments

in various stagesof compliance with ARTA

1,570

Source: CSC, October 2009

Status of ARTA Implementation


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EE--governmentgovernment Use of ICT, particularly the Internet, as aUse of ICT, particularly the Internet, as a

tool to enhance transparency and efficiencytool to enhance transparency and efficiency

to achieve better governmentto achieve better government Creation of eCreation of e--Government Fund in 2003Government Fund in 2003

Stage 1 Emerging web presenceStage 2 Enhanced web presenceStage 3 Interactive web presenceStage 4 Transactional web

presenceStage 5 Seamless or fully integrated

web presence

Source: CICT, 2007


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Rationalization ProgramRationalization Program E.O. 366E.O. 366 -- directs the strategic review anddirects the strategic review and

rationalization of functions of government torationalization of functions of government tofocus resources to core public servicesfocus resources to core public services

No. of regular positions abolished: 10,984No. of regular positions abolished: 10,984

No. of contractual/casual positions abolished:No. of contractual/casual positions abolished:2,0482,048

Total PS savings generated: P2.281 billionTotal PS savings generated: P2.281 billion

Source: DBM, 2010


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Strengthening Audit andStrengthening Audit and

Internal ControlsInternal Controls

New Government Accounting SystemsNew Government Accounting Systems(NGAS)(NGAS)

PASADAPASADA

Instituting Internal Audit (A.O. 70)Instituting Internal Audit (A.O. 70) National Guidelines on Internal ControlNational Guidelines on Internal Control

(NGICS) issued in 2008(NGICS) issued in 2008


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Altering IncentivesAltering Incentives

Lateral Attrition Law of 2005Lateral Attrition Law of 2005 New Performance MeasurementNew Performance Measurement

System (PMSSystem (PMS--OPES)OPES)

Salary Standardization III (2009)Salary Standardization III (2009)


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Legal Instruments to ControlLegal Instruments to Control

CorruptionCorruption

Revised Penal CodeRevised Penal Code Title VII: CrimesTitle VII: CrimesCommitted by Public OfficersCommitted by Public Officers

R.A. 3019R.A. 3019AntiAnti--Graft and Corrupt Practices ActGraft and Corrupt Practices Act

Executive Order No. 292Executive Order No. 292Administrative CodeAdministrative Code

R.A. 7080R.A. 7080AntiAnti--Plunder ActPlunder Act

R.A. 1379R.A. 1379 Unexplained Wealth ActUnexplained Wealth Act

R.A. 6713R.A. 6713An Act Establishing a Code ofAn Act Establishing a Code ofConduct and Ethical Standards for PublicConduct and Ethical Standards for PublicOfficials and EmployeesOfficials and Employees

R.A. 9485R.A. 9485AntiAnti--Red Tape Act of 2007Red Tape Act of 2007


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Casting a Wide Net OverCasting a Wide Net Over

Corrupt ActsCorrupt Acts

Strengthening of antiStrengthening of anti--corruptioncorruption

agenciesagencies

Lifestyle ChecksLifestyle Checks

AntiAnti--Money Laundering ActMoney Laundering Act Ratification of UN Convention AgainstRatification of UN Convention Against

CorruptionCorruption

Judicial reformJudicial reform


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181124

338

512

0

100

200

300

400

500

600

2003 2004 2005 2006

Cases Involving High-ranking Officials

Charged before the Sandiganbayan

Source: Supreme Court, 2008


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37.9% 38.2%39.4%

39.5%40.2% 39.5%

44.9%

51.3%

58.9%

0

10

20

30

40

50

60

70

2006 2007 2008

case

disp

osition

rate

Supreme Court

Appellate Courts

Lower Courts

Case Disposition Rate in the Judiciary

Source: Supreme Court, 2009


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Increasing Public VigilanceIncreasing Public Vigilance CSO WatchdogsCSO Watchdogs TAN, CAC,TAN, CAC,

Procurement Watch, GProcurement Watch, G--Watch,Watch,Ombudsman Watch, COMELEC Watch,Ombudsman Watch, COMELEC Watch,SCAW, CSO Procurement Observers,SCAW, CSO Procurement Observers,

Road Watch,Road Watch, BantayBantay KatarunganKatarungan, PPCRV,, PPCRV,etcetc

Investigative journalismInvestigative journalism PCIJPCIJ

CSO Monitors on Corruption PerceptionCSO Monitors on Corruption PerceptionSWS, Pulse Asia, TransparencySWS, Pulse Asia, TransparencyInternational, etcInternational, etc


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Creating A Culture ofCreating A Culture of

Intolerance to CorruptionIntolerance to Corruption

EhemEhem! Aha! Seminars! Aha! SeminarsValues Orientation WorkshopsValues Orientation Workshops

Moral Renewal Program (A.O.Moral Renewal Program (A.O.

255)255) Promotion of Codes of ConductPromotion of Codes of Conduct

Whistleblower Protection BillWhistleblower Protection Bill

Si i f G


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Sincerity of GovernmentSincerity of Government

Agencies in Fighting CorruptionAgencies in Fighting Corruption

Figure 5. Net Sincerity Ratings of Selected Government Agencies (2007-2009)

-80

-60

-40

-20

0

20

40

60

OMB

PAGC

PCGG

San

digan

bayan

Supreme

Court

DOJ

COA

DBM

OP

Dep

Ed

DOH

DPWH

PNP

AFP

BIR

BOC

LTO

DENR

2007

2008

2009

Source: Social Weather Stations


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Kung walang corrupt,Kung walang corrupt,

walang mahirapwalang mahirap..

- President Benigno S. Aquino III


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Thank you.Thank you.

transparency and public accountability_mlm_oct2010

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