Noy on fight vs corruption: It takes two to tango

MANILA, Philippines - President Aquino sees the government and private sector’s fight against corruption gaining ground following the administration’s economic achievements because of reforms and promoting integrity among all sectors of society.

Speaking at the Integrity Summit 2015 in Makati, Aquino yesterday said the only way that the Philippines could truly end corruption is through a holistic approach involving both government and the private sector.

“Whenever I speak of corruption, I always emphasize the idea that it takes two to tango: yes, there are always those in a position of power abusing their positions, but there are also those willing to partake in their schemes – or even just stand idly by, while others steal from the nation’s coffers,” he said.

Performing during the event, Noel Cabangon sang “Ako’y Isang Mabuting Pilipino” as a surprise for Aquino, who along with businessman Jaime Augusto Zobel de Ayala and other participants were made to raise their right hand and sway to the music.

Aquino said his administration could attest to the effectiveness of their partnership by proving time and again that good governance was indeed good economics. 

“This was the belief that spurred the creation of this summit; it is the belief that continues to drive it today,” he said.

“Over the past few years, this initiative – along with the forces for reform – has grown by leaps and bounds.

“One example is your Integrity Pledge, which gathers signatories from both the public and private sectors, all of whom commit to exercise zero-tolerance for corruption. I am told that you have reached more than 3,000 signatories as of this year, with an eye towards reaching 10,000 by 2017. This is indeed very good news to me.” 

Aquino said that a summit participant himself, businessman Peter Perfecto, spoke about the transformation of the Philippine economy along the straight path during his last State of the Nation Address.

“You don’t even have to take my word for it,” he said.

“I remember him mentioning how our net foreign direct investments reached $6.2 billion last year, which was our all-time high. He talked about our country’s rise in the World Economic Forum’s Global Competitiveness Index where, at the time, we went from 85th in 2010 to 52nd in 2014, with that particular organization crediting our anti-corruption agenda.”

Aquino said an even better news was that once again, the Philippines has moved up those rankings to 47th place in the 2015 report, marking a 38-place jump since the administration took office. 

“In the past five years, our economy’s growth rate has clocked in 6.2 percent – our  fastest in nearly four decades, and one of the fastest in Asia,” he said.

“The necessary macroeconomic elements are definitely in place for us to continue along this trajectory.” 

For instance, during their time in office, they managed to receive 22 positive credit ratings, moving the government well within investment grade status and granting greater financial flexibility, he added. 

Aquino said the government invested heavily in social services and increased infrastructure spending from 1.83 percent of gross domestic product in 2010 to 4.10 percent this year. 

“Of course, as I pointed out earlier, this is a GDP that has been experiencing stellar growth. The goal for next year is to reach at least five percent of GDP,” he said.

Aquino said the performance of government-owned and controlled corporations (GOCCs) had become efficient even as in many countries, state enterprises were equal to gross inefficiencies. 

“To be honest, at one point, we were no different,” he said.

“We had a system that allowed companies to award disproportionately large bonuses to GOCCs – even those who were perpetually operating at a loss.

“This is why one of our first moves was to fix this system.” 

Aquino said he had tasked Finance Secretary Cesar Purisima to study everything that could be done to turn the situation around, and with the help of the legislature, particularly Senate President Franklin Drilon and then Cavite Rep. Joseph Emilio Abaya, now transportation secretary, passed a law that truly professionalized how the GOCCs were run. 

“The improvement has been stark. Please look at the numbers: from January 2001 to June 2010, the national government received P84.18 billion in dividends,” he said. “From July 2010 to June 2015, this increased to P131.86 billion. This means that, counting the dividends for 2016, we have a very realistic chance of doubling – in six years – what our predecessor collected in more than nine years,” Aquino said. He also cited the massive investments of the administration in the people that benefited businesses as well.

“All this progress naturally flows back to your businesses,” he said. “Think about it: when our people are employed and are able to bring home greater incomes, that also means they’re empowered consumers, who subsequently have greater capacities to avail of the goods and services you offer.  

“What we see here is a virtuous cycle, where good governance begets economic expansion as this fuels our pursuit of inclusivity.