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Graft and Corruption

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Denice Romero

on 14 November 2014

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Transcript of Graft and Corruption

Graft and Corruption
Graft and Corruption in the GOVERNMENT
In 1989, public perception was that “corrupt government officials are greater threat to the country” than the communist guerrillas.
In 1992, President V. Ramos considered graft and corruption as the third major hindrance towards attaining his development strategy for the country.

Thank You!!

it is a form of corruption but the difference is that graft is an individual act. It refers to the embezzlement or illegal appropriation of public funds and property by single official. It does not involve transactions among the officials or between officials with clients. Nevertheless, we lump them together as graft and corruption.
Effect of Graft and Corruption
employed to Control Graft and Corruption
There are 8 Types of Corruptions in the PHILIPPINES:
It is behavior such as bribery, nepotism and misappropriation of public resources for
which is
in accord to with established
The act of an
or fiduciary person who
uses his station or character to procure some benefit for himself or for another person, contrary to duty and the rights of others.
In 1988, graft and corruption in the Philippines was considered as the “biggest problem of all” by Jaime Cardinal Sin, the Archbishop of Manila.

What is GRAFT??
taking money wrongfully in connection with government or dishonest use of public resources (funds and property)

Indeed, today, graft & corruption in the Philippines……
1. Tax evasion
2. Ghost projects & payrolls
3. Evasion of public bidding in awarding of contracts
4. Passing of contracts
5. Nepotism & favouritism
6. Extortion
7. Protection Money
8. Bribery
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.
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 & allowances. This practice is rampant in government agencies involved in formulation and implementation of programs & projects particularly in infrastructure and in the granting of salaries, allowances and pension benefits.
Government offices, particularly Bids & Awards Committees ( BAC) 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.
In the construction of infrastructure projects, contractors have the 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.
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.
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 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.
This is form of bribery which is done by citizens performing illegal activities and operations. They deliver huge amount of money to government officials particularly 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.
The “lagay” system or the act of citizens to bribe government officials occupying sensitive positions in government is perpetuated due to bureaucratic red tape.

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.
On politics, administration, & institutions
Economic effects
Environmental & Social effects
Effects on Humanitarian Aid
Other areas, health, public safety, education, trade
Costs of Corruption
Article 10. Sec.1. “Accountability of Public Officers”, states 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.
This law enumerates all corrupt practice 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 of forfeiture of unexplained wealth in favor of the government
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.

This act promotes a high standard of ethics and requires all government personnel to make an accurate statement of assets and liabilities, disclosure of net worth and financial connections. It also requires new public officials to divest ownership in any private enterprise within 30 days from assumptions of office to avoid conflict of interest.
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.

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 & 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.
Other Laws on Anti-Corruption:
Republic Act No. 7080 also known as the Act Defining and Penalizing the Crime of Plunder
Republic Act No. 8249 also known as the Act Further Defining the Jurisdiction of the Sandiganbayan
Presidential Decree No. 46 (GIFTS)
Presidential Decree No. 677 (SALN)
Presidential Decree No. 749 (Witness)
The 1987 Constitution has created
constitutional bodies to deal on graft & corruption and to effectively implement 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:

The Office of the Ombudsman investigates and act on complaints filed against public officials and employees, and serve as the “people’s watchdog” of the government.
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 systems, human resource development, and public accountability. It has jurisdiction over administrative cases including graft & corruption brought before it on appeal.
The COA is the watchdog of the financial operations of the government. 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 the 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 is the Anti-graft court of the Philippines. It has jurisdiction over civil and criminal cases involving graft & corruption and such other offenses committed by public officers and employees. It is in charge of maintaining morality, integrity, and efficiency in the public service.
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 the ranks lower than salary grade 27.
These law enforcement agencies conduct fact-finding investigations on graft cases. They conduct entrapment operations which, if successful, result 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 agents 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.
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.

IMPEDIMENTS to the Anti-Corruption Efforts
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.
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.

3. Agencies deputized to fight graft & corruption are not well funded by the government. There is also lack of recognition, merits, awards, and rewards given by the government for the efforts of anti-corruption 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.
4. Transparency is not religiously observed particularly in government transactions.
The public is denied access to activities of government officials.

5. Effective monitoring of government programs and projects as well as expenditures are not being seriously undertaken by those tasked to monitor them.
What is
is the term applied to the behavior of individuals and group acting in favor of personal and private interests contrary to the larger national interests.
1. Graft and Corruption decreases respect for allegiance to the government. It counteracts growth and nationalism. It distracts unity in government and endangers political stability.

3. Corruption accentuates already existing inequalities by providing more power and opportunities to those who are already powerful.
4. Corruption causes wasteful dissipation of limited resources by increasing the cost of development because funds are channeled outside the government to private pockets.
2. Corruption dislocates national economic planning. It introduces an element or irrationality in plan fulfillment by influencing negatively the actual course of a national development.
5. The cost of corruption is eventually passed on to the public and becomes a form of taxation. Whatever amount is illegally channeled to private use,the people shoulder the cost because public funds are the people's money.
General Causes of Corruption
1. Discrepancy between legal norms and cultural (folk) norms;
2. The Filipino's perception of government as a source of abuse and oppression;
3. That government is alien and remote from him;
4. The strength and power of the family and kinship as opposed to the government interests;
5. The demoralization of attitudes and values during the Japanese occupation, and
6. The existing value orientation against western ideas of ethical standards.
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