Busa: Bribe solicitations could dissuade investors

CEBU, Philippines - Solicitation of bribes from businesses in relation to transactions with government institutions may potentially put off investors, a business leader warned yesterday.

"The best way is to meet it head on," this was the reaction of Mandaue Chamber of Commerce and Industry President Donato Busa when sought for comment on how to address the prevalence of bribe solicitation among government institutions.

Busa particularly reacted on specific details of the new Social Weather Stations (SWS) Annual Enterprise Survey on Corruption presented yesterday in Cebu City during a road show by the National Competitiveness Council.

SWS Vice President Linda Luz B. Guerrero revealed in her talk that the number of enterprises solicited for bribe fell from 50% in 2012 to 44% in 2013 and in 2014-2015, nationally.

Guerrero said bribes are solicited when getting local and national government permits and licenses; assessment and payment of income taxes; complying with import regulations including payment of import duties; supplying government with goods and services; collecting receivables from government; and availing of government incentives.

Among the key urban areas in the Philippines, Cebu was identified to have a high incidence of bribery in almost all of the aspects mentioned.

For instance, the number of enterprises in Cebu solicited for a bribe in getting government licenses and permits stood at 39% during the November 2014-May 2015 period, the highest among the other six areas surveyed by SWS. 

But despite this, the SWS survey further indicated that only 13% of those solicited for a bribe on a national scale reported it while 87% did not.

In Cebu's case, only 2% reported about bribe solicitation.

MCCI's Busa explained that Cebu's situation could be traced back to culture that influenced the "business is business" Chinese mindset to Cebuanos.

But Busa pointed out there is a need to address this problem as it affects the entry of potential investments.

The chamber official said business groups should be more interactive in dealing with bribe solicitation and push for performance governance system in government.

He urged businessmen especially MCCI members to report bribe solicitation cases, saying the chamber is willing to act on it.

Busa added that it was three years ago when MCCI signed a memorandum of agreement with the Office of the Ombudsman to address cases like these.

"We're willing to work on that for good governance," he said.

He added that business organizations should also consistently call for improved system in government because if the system is improved, lesser corruption is expected. (FREEMAN)