Global Trends Issue: Grand Conspiracy

The World Bank blacklisted a number of Philippine construction firms due to “alleged” massive corruption and irregularities in the bidding process for World Bank-funded road projects. Key personalities and high government officials were implicated as major actors in the “Grand Conspiracy.”

• Critique how the Philippine Government handles the controversy
• Discuss the impact of foreign loans in national development
• Recommend strategies and/or innovations to further promote transparency and prevent similar situations to happen in the future

On critiquing how the Philippine Government handles the controversy…

The Philippine Government is too safe to handle the controversy. This may be because if this massive corruption is prevailed and vied, the Philippine President shall be the principal protagonist or shall I say the most hated antagonist of Philippine President’s history.

Taking into consideration, REPUBLIC ACT NO. 4860 August 8, 1966 Sec. 5. “It shall be the duty of the President, within thirty days after the opening of every regular session, to report to the Congress the amount of loans, credits and indebtedness contracted, as well as the guarantees extended, and the purposes and projects for which the loans, credits and indebtedness were incurred, and the guarantees extended, as well as such loans which may be reloaned to Filipino-owned or controlled corporations and similar purposes.”

It is clearly cited that the President has supreme knowledge of foreign loans. She has to know and monitor the proceeds of debts, for she possesses the ultimate power of its operations and consumptions.

A notable article mentioned that the, “Philippine President Gloria Arroyo will not sack three senior government officials named in a Senate probe into corruption in a multi-million dollar World Bank road project. “The palace values their services,” presidential spokesman Jesus Dureza said, adding that their failure to attend a Senate hearing did not mean they were not acting on the matter”.

It is a proof that the Philippine Government is blind and deaf to face and arrange the controversy. Believe me, this will be another case unclosed. How can problem be solved, if the root is taming its stems? This instance only reminds how weak Philippine Government is.

Silence does not sustain the economic status of the country. Most of the foreign investors were afraid to invest in the country. Some of them reimbursed their investments. It then leads our fellow countrymen to prefer working abroad than standing still in the Philippines.

This is indeed the poorest yet the most strategic way of handling the controversy.

On discussing the impacts of foreign loans in national development…

The purposes of foreign loans are brilliantly stunning. Everything is set aside. It clearly defines perceived national development. As summarized, “Republic Act No. 4860 August 8, 1966 is an act authorizing the President of the Philippines to obtain such foreign loans and credits, or to incur such foreign indebtedness, as may be necessary to finance approved economic development purposes or projects, and to guarantee, in behalf of the Republic of the Philippines, foreign loans obtained or bonds issued by corporations owned or controlled by the Government of the Philippines for economic development purposes including those incurred for purposes of re-lending to the private sector, appropriating the necessary funds therefore, and for other purposes.”

If only foreign loans are used for the benefit and common good of Filipino people, then there will be enough jobs to feed the growing population of the country. There will be huge increase in employment resulting to substantial development and economic improvement. Sufficient budgets shall be allocated and it shall circulate. Thus, allowing local government together with its departments and agencies to function smoothly and accordingly. In return, Philippine economy boosts. We may not need to borrow money abroad. Other countries may need our assistance. Philippines will then lend money in the future.

On the contrary, if foreign loans were utilized for the benefit of few diplomats especially those in higher positions, a significant disgraced in the country shall be heightened. This is commonly known and applied in the Philippines. The banner it possessed, graft and corruption.

On recommending strategies and/or innovations to further promote transparency and prevent similar situations to happen in the future…

The provisions composed in Republic Act No. 4860 were left opened, unaided and unwrapped. There is no specific section and/or provision to empower the monitoring and audits of foreign loan operations, proceeds, progress and/or upgrades. The principle of check and balance and separation of powers as emphasized in Executive Order No. 464 may be of great help and tool in suppressing the problem.

“Executive Order No. 464 is ensuring observance of the principle of separation of powers, adherence to the rule on executive privilege and respect for the rights of public officials appearing in legislative inquiries in aid of legislation under the constitution, and for other purposes.”

However, this order does not hit foreign loans directly. It may be used as way of checking and verifying, but the President and other public officials possessed unique rights and privileges. Executive privilege, as an example, can be used to cheat, to trick and to correct wrong doings. This is indeed abusing their powers. Fraudulent can be kept acceptable by the law they agreed and created.

As a synopsis, amendment has to be made for Republic Act No. 4860. Sections and/or provisions to be added should give supreme power to monitor, to check and to audit not only the operations and outcomes of foreign loans, but also the impacts to Philippine Growth. This power has to be given to groups of individual and/or institutions with honesty and integrity.