IN A WAY, the exposé by President Marcos of the multibillion flood control projects fund scandal is leading to reforms in government’s regulations.
The scandal has enraged the people to a point where politicians, the President included, have been forced to make serious efforts to introduce reforms in the system– from budget approval, to regulating contractors, instituting measures against shell companies being used by money launderers and more.
The revival by Ombudsman Jesus Crispin Remulla of access to SALNs of government officials now brings a promise to the people of transparency and hopefully even accountability within government – national and local. But vigilance by the people is of utmost concern as local officials, whose mindset is that their distance to the capital, would make it hard for them to be monitored and sanctioned to toe the official line.
Slowly, the lawmakers are now formulating guidelines to comply with statement of assets, liabilities and networth or SALN, which was quashed to oblivion by the predecessor of Remulla, Ombudsman Martires, whose loyalty to the former president made him rule against public access to SALNs. Martires claimed are being weaponized against the incumbents.
Sen. Risa Hontiveros and Rep. Chel Diokno madeavailable their SALNs as a show of support to the public’s clamor on transparency and accountability. Hopefully, more lawmakers would open their SALNs as a sign of sensitivity to people’s aspirations.
S.A.L.N. DISCLOSURES
Speaker Faustino “Bojie” Dy III formed a committee to review the chamber’s guidelines on releasing net worth statements, amid calls for greater government transparency.
The memorandum, effective immediately, directs the committee, chaired by Deputy Speaker Rep. Ferdinand Hernandez (Cotabato) with Iloilo Rep. Lorenz Defensor and Marikina Rep. Romero Federico Quimbo as deputies, to begin reviewing the House’s rules on publicizing lawmakers’ SALNs.
Dy, who released his SALN last week, said the lawmakers are open to releasing theirs, following Ombudsman Jesus Crispin C. Remulla’s reversal of Martires’ restrictions to such documents. Republic Act 6713, the Code of Conduct and Ethical Standards for Public Officials and Employees, assigns multiple custodians for SALNs across government branches and regions.
Dy declared a net worth of P74 million, including 11 agricultural lots, two residential lots, and three houses plus assets like P25.18 million cash, P29.6 million investments and P12 million worth of jewelry and personal items.
“Slowly, the lawmakers are now formulating guidelines to comply with statement of assets, liabilities and net worth or SALN, which was quashed to oblivion by the predecessor of Remulla, Ombudsman Martires, whose loyalty to the former president made him rule against public access to SALNs. Martires claimed are being weaponized against the incumbents.”
A REPOSITORY
The Ombudsman is the repository of net worth statements of the President, Vice-President and heads of Constitutional offices. The Office of the President holds those of the Cabinet, presidential appointees and high-ranking military officials. Legislators file theirs with their respective chambers, while judges and justices submit theirs to the Office of the Court Administrator and the Supreme Court’s Clerk of Court, respectively.
Political Science lecturer, Hansley Juliano, told Business World that the House SALN release policy should not be too complicated and be bogged down with bureaucratic processes.
“As long as it is consistent with lobbied standards for Freedom of Information (FOI) requests, and as long as it provides the relevant information, we should not complicate the process and we should not involve too many politicians,” Juliano said.
Juliano said it would be easier for the House to just pass an FOI law to ease government requests, like SALN releases. “They’d garner more with that legislation.”
Remulla also opened his SALN last Tuesday and President Marcos also indicated his intention to release his SALN.
TIGHTER GRIP ON FIRMS
The Securities and Exchange Commission (SEC) is drafting new rules requiring companies to reveal the true owners of the firm to boost accountability in the financial system. Under the proposal, corporations must report any change in beneficial ownership within seven days. The SEC is pushing a crackdown on dubious ownership structures associated with money laundering and tax evasion.
The SEC would not hesitate to give timely data access to authorized personnel, including law enforcement agencies, competent authorities, and other government bodies.
Penalties for untruthful disclosures are: Stock corporations with retained earnings of less than ₱500,000 will pay ₱50,000 for first violation until ₱500,000 for the fourth. Non-stock corporations face ₱25,000 to ₱250,000 for similar violations.
False ownership data could cost companies up to ₱2 million and even lead to dissolution. Corporate officers, trustees, and directors who neglect their duty to ensure compliance will also be fined, starting at ₱50,000 and rising to ₱1 million for repeated offenses.
CONFLICT OF INTEREST
The Department of Trade and Industry, which recently took over the graft-ridden Philippine Contractors Accreditation Board, which grants license to contractors, prohibits PCAB members from owning construction companies themselves due to a “conflict of interest,”
DTI Secretary Cristina Roque said PCAB has been linked to the massive corruption in the flood control projects of the DPWH as all companies require a PCAB license to participate in bidding.
Comebacking Blue Ribbon Committee chair, Sen. Panfilo Lacson has called for PCAB’s overhaul as he described it as a “low-key yet corrupt-ridden regulatory body” following allegations of licenses being sold.
CASH WITHDRAWAL LIMIT
Shocked by the hundreds of millions of pesos that a contractor withdrew from a flood control project fund deposited with the Land Bank branch in Bulacan, the Bangko Sentral is now limiting cash withdrawals over the counter to only P500,000.
It has reminded banks of their mandate to be vigilant about possible infractions to the money laundering and dubious accounts that criminals might use for arms and drugs financing.
BSP Gov. Eli Remolona, who chairs the AMLC, said the agency has already issued over 700 freeze orders covering bank accounts, insurance policies and other assets of individuals linked to the flood control scandal. More are expected in the coming days.