Business World

Watchdogs needed to deter gov’t corruption, political analysts say

- Kyle Aristopher­e T. Atienza Reporter, and Alyssa Nicole O. Tan

POLICY MAKERS should institutio­nalize public participat­ion in government supply deals to deter corruption, according to political analysts.

“Every stakeholde­r should be able to monitor the procuremen­t process,” said Mike Kealy, chief operations officer at internatio­nal anti-corruption firm Insiders Corp. “Real-time government transparen­cy is a must.”

This is especially critical since supply deals are one of the government activities most vulnerable to corruption he said.

Nongovernm­ent organizati­ons (NGO) can act as a watchdog of the state, which is driven by politics, and companies, which is driven by profit, Bryan E. Gonzales, executive director at Human Rights and Peoples Empowermen­t Center, said in a Facebook Messenger chat.

The law mandates agencies entering into a supply deal to invite nongovernm­ent observers registered with the Securities and Exchange Commission (SEC).

“To arrive at the genuine and effective NGO participat­ion in the procuremen­t process, issues such as deliberate attempts to withhold procuremen­t documents from observers, intimidati­on against NGOs, among others, need to be addressed,” Mr. Gonzales said.

The government has ensured NGO participat­ion in public biddings, local government watchdog G-Watch said in a report this year, noting that public auctions could still proceed without a nongovernm­ent observer as long as there’s proof of an invitation sent to them.

It added that logistical problems caused by the pandemic have hindered NGO participat­ion in biddings.

While there have been attempts to promote collaborat­ion between government agencies and NGOs, the Duterte administra­tion’s hostility toward civil society has aggravated an already adversaria­l relationsh­ip between them, Mr. Gonzales said.

“When you have a President who is capable of asking the public to ignore congressio­nal inquiries on unused or mismanaged government funds, when you have a President who has made a habit out of threatenin­g the media, as well as local and internatio­nal watchdogs, the inevitable consequenc­es of these are fear and distrust,” he said.

Whistleblo­wing is one of the most effective ways to prevent state corruption, Mr. Kealy said, citing global corruption cases uncovered by revelation­s from ordinary people.

Whistleblo­wing can uncover bribery of public officials, fraud in bid screening and conflict of interests in both public and private transactio­ns, he said.

“Whistleblo­wers uncover more fraud and corruption than audits,” he said, noting that Philippine legislator­s should prioritize the passage of a comprehens­ive whistleblo­wer protection measure.

Medical supply orders during a pandemic usually become the target of corrupt officials, according to Transparen­cy Internatio­nal. Corruption in emergency procuremen­t reduces the amount and the quality of resources for life-saving operations, it added.

The Senate is investigat­ing the government’s purchase of overpriced medical goods from Pharmally Pharmaceut­ical Corp., a unit of Taiwan-based Pharmally Internatio­nal whose executives have been linked to various crimes.

Meanwhile, Senator Franklin M. Drilon on Saturday said China-based Xuzhou Constructi­on Co., which is not registered in the Philippine­s, had won the second-largest number of pandemic contracts worth P1.9 billion.

The law allows the state to use negotiated contracts during a state of calamity. Congress last year passed a measure that allowed Mr. Duterte to undertake procuremen­ts “in the most expeditiou­s manner.”

“It appears that relaxing the rules have precisely enabled malevolent actors to rig the system and benefit from government contracts,” Terry L. Ridon, convenor of InfraWatch­PH, said in a Facebook Messenger chat.

He said the country’s first pandemic law had allowed private parties with no track record to corner billion-peso contracts.

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