Anti-‐Corruption in the Philippines
Situation Update -‐ July 2012
This publication by the Partnership for Research in International Affairs and Development (PRIAD) provides an overview of the latest policy developments in the area of anti-‐corruption. The views reflected in this paper are entirely those of its authors.
Policy Developments
charity to ‘intelligence funds’, for which auditing is not a legal requirement. The case was filed before the special anti-‐graft court (‘Sandiganbayan’) in mid July. 2
• The Chief Justice of the Philippines Supreme Court, Renato C. Corona, was removed from office in May 2012 over allegations he did not truthfully disclose personal currency deposits worth USD 2.4 million. He was impeached by the House of Representatives and then tried in the Senate, which handed out the conviction without right of appeal. Mr. Corona is linked to the former president, Mrs. Gloria Macapagal Arroyo, now a member of the House of Representatives. Initially Arroyo’s chief of staff, he was appointed by the outgoing President after she lost the elections, flouting Constitutional provisions banning such a move. Some analysts argued that the case against Mr Corona was weak, with prosecutors providing limited evidence of his properties and undeclared assets. Conversely, the conviction was also hailed as a victory for the country’s justice system, particularly in showing that top officials are not shielded from punishment. His impeachment was also seen as a political move by supporters of President Benigno Aquino to remove a potential obstacle in the government’s far-‐reaching anti-‐ corruption campaign. So far, Mr. Corona has not been formally prosecuted, with some fearing that he will be allowed to continue pursuing his professional career in the private sector. • The Office of the Ombudsman recently filed plunder charges against former President Arroyo as well as officers and directors 1 of the Philippine Charity Sweepstakes Office (PCSO). Charges leveled against Mrs. Arroyo include diverting approximately P366 million from the state-‐run Other co-‐accused include a number of former officials of the PCSO, including the general manager, the board chairman, board members, the budget and accounts manager, former chairman of the Commission on Audit (COA), and former head of the COA’s intelligence fund.
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• On July 25, former President Arroyo was granted bail and walked out of the military Veterans Memorial Hospital where she had been held under house arrest since December 2011 after attempting to leave the country. A Passay City Court ruled that there was insufficient evidence against her for sabotaging senatorial elections in 2007 by conspiring with a warlord, a crime punishable with life imprisonment. Mrs. Arroyo has been banned from leaving the country 3. Despite numerous charges against her, she has yet to be formally convicted.
Issues to watch
• Recent tensions involving China, Vietnam and the Philippines over the contested Spratly Islands and Scarborough Shoal have spurred the Government’s plan to acquire new military equipment. This could pose important corruption risks for an institution in which corruption is known to be rampant. While defence purchases are published, this is not done systematically. There also is ample evidence of corruption in procurement involving both the Department of National Defence (DND) and the Armed Forces of the Philippines (AFP), as well as collusion in military procurement between the Commission on Audit and the Department of Budget Management, charged with managing The Manila Times, 17 July 2012, GMA, 9 others face plunder complaint over PCSO intel scam, http://www.manilatimes.net/index.php/news/top-‐ stories/27068-‐gma-‐9-‐others-‐face-‐plunder-‐complaint-‐over-‐pcso-‐intel-‐scam (July 2012) 3 Manila Times, 25 July 2012, Ex-‐PH leader Arroyo wins bail, http://www.manilatimes.net/index.php/news/breaking-‐news/27643-‐ex-‐ph-‐ leader-‐arroyo-‐wins-‐bail (July 2012) 2
Anti-‐Corruption in the Philippines. Situation Update, July 2012