MONTHS AFTER BEING dropped from the greylist of countries notoriously famous for money laundering and terrorism financing, the Philippines seemed on its way back into the roster amid suspicions that trillions of pesos lost to systemic government corruption are finding its way into financial institutions elsewhere.
Speaking before the Financial Executives Institute of the Philippines (Finex), business tycoon Manuel V. Pangilinan expressed apprehensions over the issues of systemic corruption in the Philippines.
Pangilinan particularly hinted at the Philippine political landscape amid allegations of systemic corruption hounding government flood control projects.
According to Pangilinan, failure to address anomalies in the government could adversely affect the country’s credit rating, possibly resulting in slower economic growth — especially if “institutional responses are regarded as inadequate.”
Efforts to lure foreign investors may also be sidelined despite measures primarily designed to ease stiff requirements in doing business in the country.
CREDIT RATINGS
For one, credit ratings are deemed essential for investors seeking funds from financial institutions. Poor credit ratings prevent businesses from borrowing funds.
Interestingly, Standard & Poor’s credit rating for the Philippines currently stands at BBB+ with a positive outlook, inching it closer to its dream “A” rating.
Notwithstanding the BBB+ rating, the Management Association of the Philippines (MAP) claimed investor sentiment remains bearish because of corruption surrounding anomalous flood control projects.
According to Alfredo Panlilio in his capacity as MAP president, the public expects the government to take concrete action and show that it “means change and means to clean up itself,” to help improve local and foreign investors’ perception.
But the Department of Economy, Planning and Development doesn’t seem to agree even as it claimed that credit ratings won’t be affected by the scandal with the creation of the Independent Commission for Infrastructure (ICI) with a marching order to dig into the “systemic corruption” that President Ferdinand Marcos Jr. exposed.
LACKING COMPETENCY
Despite assurances from the government, Pangilinan expressed belief that the “massive corruption” in the government can be solved, but over the long term and in parts.”
According to the tycoon who forms part of the country’s lists of 50 wealthiest individuals, the problem facing the government is not limited to corruption even as he hinted at the need for the government to come up with “competent financial executives.”
“If we want better governance in our country, we must have competent financial executives all round. It isn’t just about catching crooks—it’s filling the gaps with financial executives with competence and integrity. Corruption survives not because bad people are smart, but because good people are absent.”
LOOSE CHANGE
In the process of the ICI investigation, the Anti-Money Laundering Council (AMLC) secured freeze orders on “illegally amassed wealth” by personalities forming part of what former Senate Blue Ribbon Committee chairman Panfilo Lacson referred to as a well-entrenched syndicate.
“Several of these properties are linked to a former high-ranking government official suspected of playing a central role in the procurement process of the questioned flood control project contracts,” it said.
A total of 1,671 bank accounts, 58 insurance policies, 163 motor vehicles, 99 real properties, and 12 e-wallet accounts have been ordered frozen since the first freeze order was issued by the CA last Sept. 16.
“The total estimated value of frozen assets has reached P4.67 billion, with the figure expected to rise as additional orders are secured and new leads are uncovered,” AMLC said in the statement.
However, the amount of the assets “secured” by the AMLC remains far from the trillions of pesos that the government lost in ghost flood control projects alone.
BIZMEN AS PARTNERS
He however clarified that the problems besetting the country would not have happened with businessmen in cahoots with crooks.
“Businesses are inescapably part of public life, meaning they are not free from accountability and scrutiny.”
Pangilinan also urged fellow businessmen and business leaders to join critical institutions, including media, the academe, courts and the Church, to apply “pressures against coercion and corruption.”
“It will lessen the cost of doing business, the inequities in wealth created by corruption.”