EDITORIAL - Medium risk for corruption

Tracking the results of the Corruption Perceptions Index drawn up in January this year by Transparency International, the Philippines has also slipped in the Global Corruption Index 2022. In the GCI released last week, Geneva-based business risk management consultancy Global Risk Profile ranked the Philippines 105th out of 196 countries and territories, down from last year’s 102nd place. GRP classified the country at “medium risk” for corruption.

Based on perceptions and actual experience, the GCI measures public and private corruption as well as risks for white-collar crimes such as money laundering and terrorism financing. The Philippines, once described as a “black hole” in international finance, is still working to get out of the gray list of countries under close monitoring by Paris-based global dirty money watchdog Financial Action Task Force.

GRP noted that financial aid programs during the COVID-19 pandemic “triggered new opportunities for corruption, bribery, falsification of submissions and embezzlement of public funds, therefore draining new resources.”

Apart from the multibillion-peso scandal involving the sweetheart supply deal for personal protective equipment awarded to favored company Pharmally Pharmaceuticals, which remains unresolved, dozens of barangay captains were also indicted for various anomalies related to the distribution of ayuda during the COVID lockdowns. Instead of punishment, incumbent barangay officials have been rewarded with yet another extension of their terms by Congress and Malacañang.

In Southeast Asia, the Philippines ranked behind Singapore, which placed 13th overall in the GCI, as well as Malaysia (49th), Brunei (70th), Indonesia (98th) and Thailand (101st). The Philippines was ahead of Timor-Leste (114th), Vietnam (131st), Laos (174th), Cambodia (175th) and Myanmar (177th).

In the Corruption Perceptions Index released by Transparency International in January this year, the Philippines also slipped by a notch, placing 117th. Denmark, New Zealand and Finland were tied at first place, while Singapore as usual ranked high at fourth place alongside Sweden and Norway. In Southeast Asia, the Philippines ranked below Brunei (35th),  Malaysia (62nd), Timor-Leste (82nd), Vietnam (87th), Indonesia (96th) and Thailand (110th).

The Philippines has also seen its scores fall in the latest indeces on economic freedom and global bribery, attributed to weakening transparency in government and institutional weaknesses in preventing political corruption.

It is no coincidence that countries ranked high in comparative studies on transparency and corruption are also among the most prosperous and advanced in quality of life. The World Bank and other organizations have stressed that corruption draws away much needed funds from programs that could otherwise be used for poverty alleviation and development efforts. The latest corruption index should encourage more decisiveness in addressing this problem in the Philippines.