RP to get $500 million vs corruption

MANILA, Philippines - The Millennium Challenge Corp.(MCC) has agreed to provide $500 million or roughly P2.35 billion in grants to the Philippines for the country’s anti-corruption reforms.

Jesus Estanislao, founding chairman of the Institute for Solidarity in Asia (ISA), said the MCC has agreed to give the grant to the Philippines after seeing the reform programs of six government agencies, namely the Department of Education, the Department of Health, the Department of Transportation and Communications, the Department of Public Works and Highways, the Bureau of Internal Revenue, and the Philippine National Police.

The six have been undertaking ISA’s Performance Governance System (PGS) to track their performance against a set of goals.

ISA is a civil society group engaged in helping raise the standards of public governance in the Philippines.

Estanislao said President Arroyo is scheduled to sign an agreement with the MCC between April 10 and 12 although the actual date for the funds’ release has yet to be worked out.

Estanislao said that four months ago the Philippines was not qualified for an MCC grant because of serious corruption problems.

Moreover, the World Bank no longer considers the Philippines a low-income country but a medium income country.

This prompted the Philippine government to seek the help of ISA in its effort to put reforms in place.

Estanislao said the ISA has used an anti-corruption program recognized globally to help the country reform and make it qualified for an MCC grant.

The Department of Finance will manage the grant.

Inspired by the worldwide success of the balanced scorecard model developed in Harvard and applied to the corporate sector, the ISA introduced the PGS, a strategic management tool that helps communities channel their energies, abilities and knowledge to pursuing long-term development.

The ISA has working relationships with about 30 cities, including Iloilo, which has already achieved Global Hall of Fame status for implementing a balanced scorecard.