Combating corruption in Asia-Pacific

ADB/OECD Anti-Corruption Initiative

for Asia and the Pacific

Capacity Development and

Governance Division

Asian Development Bank

Anti-Corruption Division

Organisation for Economic

Co-operation and Development

www.oecd.org/corruption/asiapacific

.

Combating corruption in Asia-Pacific:

Philippines’ measures

to implement the Anti-Corruption Action Plan for Asia-Pacific

Review of progress in anti-corruption reform is an essential mechanism of the ADB/OECD Anti-

Corruption Initiative for Asia-Pacific. The Initiative’s member countries and jurisdictions report about

progress in their efforts to implement the Anti-Corruption Action Plan for Asia-Pacific at the

Initiative’s regular Steering Group meetings.

Since the 8th Steering Group meeting, held in May 2006, the Initiative uses a standard format for this

reporting mechanism. It displays the progress that the member countries and jurisdictions have

reported under each element of the Action Plan and shows the reform progress in all areas over

time.

This document covers the measures that the Philippines has reported since the 8th Steering Group

meeting in May 2006. For information on reform progress of the other members of the Initiative,

consult the Initiative’s website.

http://www.oecd.org/corruption/asiapacific


http://www.oecd.org/dataoecd/38/24/35021642.pdf


ADB/OECD Anti-Corruption Initiative for Asia and the Pacific

Steps taken to implement the Anti-Corruption Action Plan for Asia-Pacific: Philippines – 2 –

Philippines

Action Plan Standard Measures reported at the 8th

Steering Group meeting (May2006) Measures reported at the 9th

Steering Group meeting (Nov. 2006) Measures reported at the 10th

Steering Group meeting (Sept. 2007) Measures reported at the 11th

Steering Group meeting (May 2008)

PILLAR 1 – DEVELOPING EFFECTIVE AND TRANSPARENT SYSTEMS FOR PUBLIC SERVICE

A. Integrity in Public Service

1. Systems of hiring public officials:

Systems for compensation The Civil Service Commission (CSC), in coordination with the Department of Budget Management, is leading the implementation of the Compensation and Total Rewards Management Project to review the government’s compensation system. The new system will feature more performance-based incentives by drawing a clear line between longevity and merit increases.

Transparent hiring and promotion, independence of the civil service

With the support of the Australian Government, the Ombudsman (OMB) completed a 5-day intensive training on Recruitment and Selection for human resource management personnel. The training was provided through the Philippine Human Resource Development Facility and was attended by chairpersons and members of the Selection and Promotion Board for 1st and 2nd level employees and the Committee on Appointments for 3rd level employees. The program consisted of 4-6 week on-the-job coaching/mentoring.

The training was followed by the preparation of the OMB’s recruitment and selection manual describing the process and procedures developed in the training. The manual was then disseminated to middle managers.

The Ombudsman has an approved recruitment and selection manual and middle managers have been trained on targeted and competency-based hiring and selection process.

Oversight of discretionary








decisions and personnel discretionary powers

Personnel systems such as rotation of assignments

Encouraged by the Ombudsman’s Integrity Development Review (IDR) Program, the Philippine National Police has implemented a rotation/limitation of postings of key personnel in revenue-generating units, comptrollership, and finance service.

2. Ethical and administrative codes of conduct:

Prohibitions or restrictions on conflicts of interest

Disclosure and/or monitoring of, for example, personal assets and liabilities

Philippine public servants file annual Statements of Assets, Liabilities, and Net Worth (SALN). In January 2007, through the World Bank-Asia Europe Meeting Trust Fund, the OMB completed the software development for the data banking of the SALN. The software allows financial trend analysis of high profile public servants and data entry for the Lifestyle Check Program. Because of limited resources, the OMB has decided to target the three agencies that are or perceived to be the most corrupt: the Bureau of Internal Revenue (BIR), the Bureau of Customs (BOC), and the Department of Public Works and Highways (DPWH). The private sector, including private citizens, churches, people’s organizations and community-based NGOs will assist in the gathering of data and information.

The Civil Service Commission tightened the rules on asset disclosure to achieve more effective asset investigation and forfeiture. A new “Statements of Assets, Liabilities, and Net Worth” (SALN) form was issued which required very specific information so as to avoid vague or incomplete definition of assets. The new form requires declarations by public officials, his/her spouse and minor children. SALN software will require adjustments to make it compatible with the new SALN form.








Systems regulating contacts between government officials and business services users, particularly in corruption-prone areas

The Ombudsman (OMB), the European Commission and the Development Academy of the Philippines (DAP) are partners in the Institutionalization of the Integrity Development Review (IDR) which covers the Bureau of Customs, Bureau of Internal Revenue, Department of Public Works and Highways, Land Transportation Office and Philippine National Police. The IDR identifies areas vulnerable to corruption and determines whether safeguards are present.

The Integrity Development Review (IDR) Project was completed in August 2006. The IDR recommended conducting corruption resistance reviews and corruption vulnerability assessments. Integrity Development Committees are being established in the Bureau of Customs, Bureau of Internal Revenue, Department of Public Works and Highways, Land Transportation Office and Philippine National Police to monitor the implementation of the IDR’s recommendations.

The OMB intends to carry out integrity development reviews of 11 additional executive agencies by next year.

In 2006, the Integrity Development Review Project was completed in 5 agencies, namely, the BOC, BIR, DPWH, Land Transportation Office, and the Philippine National Police. The findings are to be presented on 23 and 27 July 2007 to the Advisory Group, which is chaired by the OMB and consists of the heads of the different agencies.

With funding from the European Commission, the IDR Project was expanded to 11 additional agencies: Department of Environment and Natural Resources, Department of National Defense, Light Rail Transit Authority, Bureau of Corrections, Land Registration Authority, Department of Agrarian Reform, Armed Forces of the Philippines, National Irrigation Administration, Department of Health, Bureau of Fire Protection, and the Department of Budget and Management-Procurement Service. As well, tripartite (internal auditor, resident ombudsman and NGO) agency-based monitoring groups were established in 16 IDR agencies to monitor the implementation of the IDR action plans.

The Philippines is planning a project on Enhancing Integrity Infrastructure in Air Cargo Handling System at the Ninoy Aquino International Airport. The project includes an in-depth study of corruption in the air cargo system, a development assessment framework, reform recommendations, and an action plan.

The Final Report on Enhancing Integrity Infrastructure in Air Cargo Handling System at the Ninoy Aquino International Airport has been submitted. An agency-based tripartite monitoring group is in the process of being established. The group will monitor, among other things, the implementation of short term recommendations, namely: e-formatting of Customs Administrative Orders (CAOs) / Revenue Memorandum Orders (RMOs); publication of frequently asked questions (FAQs); trade symposiums on broker management to reduce the interface of brokers and employees; establishing a record of imports at NAIA; random audits of brokers and reporting of findings.

Promotion, training and supervision of officials viz. codes of conduct

The OMB and local government units have conducted Integrity Development and Public Accountability Seminars to promote the “Code of Conduct and Ethical Standards for Public Officials and Employees” (Republic Act No.

In partnership with the Society of Jesus, seminars on Ehem! were given to 645 personnel involved in procurement in 18 agencies, including the Bids and Awards Committee, BAC Secretariat, Technical Working Group and








6713). Inspection Committee.

The OMB conducted seminars on public accountability for local government unit officials in Quezon City, Iloilo, Cebu, Davao and Cagayan de Oro. Similar seminars were conducted among personnel of the Philippine National Police and the Armed Forces of the Philippines.

The Career Executive Service Board (CESB) conducted 22 executive leadership training programs, 17 learning and nurturing programs for CES officials, and 30 accredited trainings.

With financial assistance from the European Commission, more than 600 middle managers in agencies participating in IDR were trained on the Institutionalization of Mentoring Activities for Middle Managers in Government (Risk Management).

The Development Academy of the Philippines (DAP) has developed citizen’s charters for 6 local government units (LGU) (Laoag, Sorsogon, Digos, Bacolod, Dumaguete, and Iligan Cities). A manual on making a citizen’s charter was also developed and printed for distribution. The DAP also trained 152 LGU officials on how to use the citizen’s charter toolkit.

Promoting reporting by officials of corruption and whistleblower protection

The OMB has prescribed rules on internal whistleblowing and reporting.

Through the IDR Project of the Ombudsman, internal reporting and whistleblowing have been promoted in 16 IDR agencies, 7 of which have established their internal reporting and whistleblowing mechanisms. With the assistance of the Asia Foundation, a capacity building seminar on “Initiating Institutionalisation of Whistleblowing Culture in the Organisation” will be rolled out in may 2008.








B. Accountability and Transparency

Accountability of public service through effective legal frameworks, management practices and auditing procedures:

Measures and systems to promote fiscal transparency

115 government entities (36% of the relevant entities) have installed the Electronic-New Government Accounting System. 63 others (19%) are installing the System. The System is expected to be implemented nationwide by 2008.

As of 15 September 2007, Electronic-New Government Accounting Systems have been implemented in 476 agencies, including 230 national government agencies, 202 local government units, and 44 Government-Owned and Controlled Corporations. 34,450 personnel were trained and 1,742 were deployed for the rollout of the new systems.

International standards and practices to regulate and supervise financial institutions

Auditing of the public administration and the public sector

The Commission on Audit is implementing a risk-based audit to determine weaknesses in risk management processes and internal controls. The audit will focus on weaknesses that have high impact, are likely to occur, and will likely result in misstatements in financial statements and reports.

The Office of the President through the Presidential Anti-Graft Commission initiated a project to strengthen internal audits of procurement. An assessment report on the operational quality of 15 pilot agencies and a generic internal audit manual that includes a Quality Assurance Program were completed in October 2007.

The Civil Service Commission (CSC) implemented the Public Service Delivery Audit (PASADA), which is a mechanism to (1) systematically check and evaluate the performance of government’s frontline services, (2) provide commendation for agencies with excellent and efficient services, and (3) assist those which may need improvement on specific areas in order to address inefficiency.

Public procurement procedures and adequate

The Government Procurement Reform Act 2003 has resulted in a simplification

With the support of The Asia Foundation and USAID, there are now

In coordination with The Asia Foundation and G-Watch, the OMB

The OMB and Procurement Watch, Inc. (PWI) developed the Operational








simplified administration procedures

of the procurement process; establishment of an electronic procurement system and non-discretionary selection criteria; observance of bidding processes by civil society organizations; presence of clearly defined protest mechanisms; and the availability of sanctions for law enforcement. The Government Procurement Policy Board instituted a national training program which covered 16% of national government agencies and 83% of Local Government Units (LGU). There are also customized manuals in nine agencies that account for 60-70% of government procurement.

operational guidelines for the Bids and Awards Committee (BAC) to provide feedback to the OMB and the Resident Ombudsmen. The mechanism will enable the OMB to fix procurement practices of agencies in accordance with the law and/or file appropriate charges against officials for procurement fraud.

There is also a mechanism for third parties to observe the government’s priority procurements.

Capacity building/training and information dissemination are underway.

conducts training seminars on the Procurement Law and monitors the implementation and award of contracts.

The Procurement Training for Trainers, Observers and Monitors conducted its first set of training activities on 14-15 December 2006. Five further trainings were completed in March-July 2007. The final trainings will take place on 16-20 July 2007. As well, training was provided to observers in April-June 2007, with the final training during the first week of August 2007. Upon completion, the program will have trained 200 trainers and 75 observers.

The manuals for training trainers and observers were critiqued and finalized.

Guidelines for Bids and Awards Committee (BAC) Observers’ Feedback and Complaint Handling Mechanism. These guidelines were issued in response to the implementing rules and regulations (IRRs) of the Government Procurement Reform Act of 2003 (R.A. 9184). The IRRs permit BAC observers to submit observation reports to the Bureau of the Resident Ombudsman in the procuring agency. 1,000 manuals were printed and 5 regional trainings were conducted. In partnership with PWI, the OMB conducted 15 trainings (358 participants) for CSO procurement monitors, observers & trainers.

The Department of Budget and Management released the Philippine Bidding Documents (PBDs) Edition II for mandatory use by all government agencies to standardize the bidding documents in all agencies. The Government Procurement Policy Board approved the Generic Procurement Manual. Training on the use of the PBDs and the Manual have been rolled out. Meanwhile, a Tripartite Code of Conduct for procurement officials, BAC observers, and suppliers/contractors has been drafted.

The Government Electronic Procurement System (GEPS) version 1.1 was launched on 25 November 2006. The new version offers enhanced functionalities to support a more efficient, convenient, and transparent procurement process. The system was adopted by 84% of the national government agencies, 92% of the state colleges and universities, 51% of the government-owned and controlled corporations, and 5.5% of the local government units. By the end of 2006,








5,091 agencies and 18,734 suppliers had registered in the system. The savings generated from the use of the system from 2001-2006 was estimated at PhP 414 million.

Institutions for public scrutiny and oversight

Availability of information on the processing of applications, funding of political parties and electoral campaigns and expenditure

Simplification of the business regulatory environment

The National Competitiveness Council is composed of representatives from the private sector, the National Economic and Development Authority, and the Departments of Trade and Industry (DTI), Finance (DOF), Transportation and Communication (DOTC), and Education. The Council has created an Anti-Red Tape Task Force to monitor improvements in business transactions and cost. One of the Task Force’s initiatives is an on-going e-governance project for applying and issuing clearances. A pilot project is underway in 50 barangays nationwide.

The Department of Trade and Industry is spearheading the Philippine Business Registry Project. This is an inter-agency project involving the Securities Exchange Commission (SEC), Department of Trade and Industry (DTI), Board of Investments (BOI), Intellectual Property Office (IPO), Philippine Export Processing Zone Authority (PEZA), Bases Conversion Development Authority (BCDA), Social Security System (SSS), Bureau of Internal Revenue (BIR), Pag-ibig, Philhealth, and LGUs.

The purpose of the project is to








eliminate red tape by harmonizing business registration processes among agencies involved in business registration. The project also aims to reduce documentary requirements. The project will be implemented in two phases: (1) a data registry will be developed, and (2) a portal will be developed at which all transactions will be done via a single window. Target dates of completion are December 2007 and 2008, respectively.

PILLAR 2 – STRENGTHENING ANTI-BRIBERY ACTIONS AND PROMOTING INTEGRITY IN BUSINESS OPERATIONS

A. Effective Prevention, Investigation and Prosecution

Effective measures to actively combat bribery:

Sanctions for bribery of public officials

The Philippines has filed 50 “big fish” cases before the Sandiganbayan, including cases against military officers. The conviction rate at the Sandiganbayan for cases that went to trial rose from 13% in 2003 to 34% in 2005. Convicted officials in 2005 include a former health secretary, a governor, 11 mayors and directors of national offices. Administrative penalties for high-ranking officials in 2005 include 19 dismissals and 31 suspensions from office. Despite repeated challenges, the Supreme Court has upheld the OMB’s power to impose administrative sanctions.

From 10 May to 8 September 2006, the Philippines filed 98 cases against high ranking government officials in the Sandiganbayan. The majority of these cases involve bribery and malversation of public funds.

Officials who have been convicted in 2006 include: 3 mayors, a provincial prosecutor, an assistant city prosecutor, a commander of the National Police Commission, and directors of national offices.

Administrative penalties for high-ranking officials in 2006 include:

Dismissal of 74 officials, including a customs deputy commissioner, a revenue officer, mayors, employees and special prosecutors of the Ombudsman’s Office, and the heads of the following bodies: book development authority, lung center, Office of Muslim Affairs, Philpost

Project Case Assist and Operation Big Fish aim to prosecute the “big fish” of corruption who have eluded the OMB over the past 15 years. Prosecutors will focus on 50 of the most prominent and high-impact cases identified at the Sandiganbayan.

Ombudsman’s Office of the Special Prosecutor is waiting for decisions by the Sandiganbayan in the following high profile prosecutions:

The construction of the Diosdado Macapagal Boulevard.

The PIATCO case involving the construction of the Ninoy Aquino International Airport (NAIA) Terminal 3.

The plunder case against Major General Carlos Garcia and forfeiture of unlawfully acquired properties.

Loss of USD 1.17 million by the Philippine Government resulting from faulty design of the Mega dike in Pampanga.

Case against former Makati Mayor Elenita Binay for overpricing in the purchase of office furniture and equipment amounting to more than








and Zamboanga state university

24 suspensions, including the Cebu port general manager, a mayor and the Director of the Department of Agrarian Regional Reform

USD 7.32 million.

Tax credit scam cases in which the accused approved tax credit certificates on the basis of spurious documents.

Case involving an anomalous acquisition of properties using the funds of the Armed Forces of the Philippines (Retirement and Separation Benefits 9AFP-RSBS).

PEA-AMARI Case involving an overpriced reclaimed property of the manila-Cavite Coastal Road.

The conviction rate rose from 19% in 2006 to 56% in 2007. The OMB also exceeded its cumulative conviction rate target of 33% and currently registers a 35% conviction rate. Significant cases include the former President Estrada, who was convicted of plunder. 2007 also saw the highest volume of plea bargains, including Estrada’s co-accused Atong.

In addition, the Ombudsman penalized 1,200 public officials for administrative and disciplinary offenses in 2004-2006. The Civil Service Commission penalized officials in 264 cases in 2004-2007.

The Department of Finance has created the Revenue Integrity Protection Service and filed nine Run After Tax Evaders cases with the OMB. The Run After The Smugglers program of the Bureau of Customs has resulted in the indictment of a major general in the Armed Forces for tax evasion.

In 2006, the Department of Finance Revenue Integrity Protection Service has filed 14 cases with the OMB.

The Ombudsman Task Force Green Lane is reviewing 47 cases charged by the Revenue Integrity Protection Service.

The Ombudsman dismissed two assistant revenue officers, a customs collector and a regional district officer from the public service finance departments. The Ombudsman also suspended the executive director of the

http://www.rips.gov.ph/










anti-smuggling task force and senior officials in the Bureau of Internal Revenue.

More than 50 government officials were charged with criminal and administrative offenses resulting from lifestyle checks.

47 cases charged by RIPS under review by Ombudsman Task Force Green Lane

The Philippines has pending legislation to improve anti-corruption law enforcement, including the forfeiture of assets to the OMB and the criminalization of ill-gotten wealth.

The legislation remains pending.

Existence and enforcement of anti-money laundering legislation

The OMB participated in and submitted a written contribution to the Informal Seminar on the Return of Illicit Assets of Politically Exposed Persons (PEP) in Lausanne, Switzerland on 1-3 October 2006. Experts from justice, finance, and foreign ministries of different countries conducted brainstorming sessions on issues including prevention, search, seizure and restitution of illicit assets of PEPs.

The Anti-Money Laundering Council (AMLC) has frozen USD 13.46 million and forfeited USD 439,024 in proceeds of corruption.

The Anti-Money Laundering Council filed 17 cases of money laundering related to corruption. These cases were filed with the Office of the Ombudsman, Department of Justice, and the Regional Trial Court. The cases involved a total of more than PHP 500 million.

Rules concerning investigation and prosecution of bribery

The Philippines has pending legislation to improve anti-corruption law enforcement, including requiring private lawyers to assist in corruption prosecution.

The legislation remains pending. The legislation remains pending.

Availability of bank, financial or commercial records and secret bank information

The Philippines has pending legislation to improve anti-corruption law enforcement, including the provision of access to bank documents for financial investigations.


Inter-agency co-operation The OMB and the Department of Education (DepEd) have signed a Memorandum of Agreement to cooperate in investigating corruption

The OMB forged strategic partnerships with other anti-corruption bodies, particularly the AMLC, Office of the Solicitor General (OSG), the DOF-








involving DepEd officers. The OMB has created the Sama-samang Paglaban sa Katiwalian (SAPAK) para sa Kabataan, a task force that will investigate such complaints and file charges if there is sufficient evidence.

RIPS, Federation of Filipino Chinese Chambers of Commerce, Mactan Chamber of Commerce, and the Mindanao Business Council. These are in addition to the multi-agency / sectoral partnerships under the national anti-corruption program of action (NACPA).

The Presidential Anti-Graft Commission formed partnerships with the AMLC, OSG, National Bureau of Investigation, Philippine National Police, Dilaab (Barug), and 10 other agencies.

With USAID’s support, the OMB, Anti-Money Laundering Council, Bureau of Internal Revenue, Department of Justice and Office of the Solicitor General discussed options for joint investigations to recover proceeds of corruption using anti-money laundering and tax evasion laws.

The Courts have forfeited over PHP 18 million of laundered proceeds of corruption.

Protection of persons who assist the authorities

The Philippines has pending legislation to improve anti-corruption law enforcement, including protecting and rewarding whistleblowers.


Training and resources The Philippines made an unprecedented increase in the budget of the OMB. The 2006 budget includes PHP 936 million (approximately USD 17.5million) and 2,341 staff, an increase from PHP 480 million (USD 9million) and 1,088 staff in 2003. Various training programs have been designed to train the new staff.

The House of Representatives increased the OMB’s proposed budget for 2007 from PHP 974 million to PHP 1.524 billion. The Senate’s Finance Committee will hear the proposal by early November.

Efforts are being made to establish a mediation system in the OMB to unclog the investigation and prosecution process. The target is to resolve 300 cases by mediation by 2007.

The Ombudsman established its Rules of Procedure on Mediation. With financial assistance from the Millennium Challenge Corporation, the Ombudsman trained 105 Ombudsman personnel, most of whom are public assistance providers.

To accomplish legislative reform, the Philippines received donor assistance from ADB, UNDP, USAID/ROLE, World Bank, the European Commission, the Philippines-Australia Human Resource Development Facility (PAHRDF), USAID through the Asia Foundation (USAID/TAF), Japan International Cooperation Agency (JICA) and the British Embassy.








There is pending legislation to strengthen the fiscal autonomy of the OMB by exempting the Office from the Salary Standardization Law.

The legislation remains pending.

The OMB launched the following anti-corruption resources with USAID’s support:

The Ombudsman Legal Resource for Public Accountability, a digital database of anti-corruption laws, jurisprudence and legal analyses with research functions.

The CD Lecture Series on Prosecuting Corruption - training materials for new investigators and prosecutors on bribery, malversation, contracts disadvantageous to government, and causing undue injury to government.

The Ombudsman Legal Resource for Public Accountability and the CD lecture series were disseminated to OMB personnel.

A number of training activities for OMB investigators and prosecutors were conducted in 2007 through the Millennium Challenge Account-Philippine Threshold Program (MCA-PTP):

OMB Case Build-Up Workshop and Prosecution Rally (February 2007): the event was attended by the deputy and assistant ombudsmen and directors of all area and sectoral offices.

Ombudsman-Revenue Integrity Protection Service case build-up workshop

Roundtable workshop with Sandiganbayan Justices en banc and OMB prosecutors to discuss delay in resolving cases

A series of workshops on 25-29 June 2007 with U.S. Prosecutor Cliff Stricklin on the Enron and Nacchio

The Ombudsman Training and Resource Center was inaugurated with the support of the Millennium Challenge Account - Philippines Threshold Program (MCA-PTP).

Human resource training and development intervention was made through the assistance of the Philippine-Australia Human Resource and Development facility. There was also training on monitoring and evaluation of projects.

Investigation and surveillance equipment was provided through the MCA-PTP.

Anti-fixing and anti-red-tape training was provided to public assistance and corruption prevention personnel.








cases

Legal writing and research training series for 300 investigators and prosecutors beginning on 19 June 2007

Development of training profiles for investigators and prosecutors

The World Bank is supporting the development of case flow management software for the Office of the Special Prosecutor and the development of a database of the statements of assets and liabilities. The Bank has also supported an Advanced Field Investigator’s Course.

In January 2007, a grant from the World Bank-Asia Europe Meeting Trust Fund supported the completion of the software for the Case Monitoring System for the Office of the Special Prosecutor and for the basic and advanced training of the field investigators.

The 3-pronged anticorruption strategy of enforcement, prevention and promotion was adopted in the medium term Philippine development plan. Capacity building training was provided.

The OMB was granted Millennium Challenge Account Funding for the following activities:

Expanding the OMB training program for new hires and providing advanced courses for present employees;

Improving information management by connecting the six existing OMB offices to local area and wide area networks;

Providing training and acquiring equipment for investigation and surveillance;

Training teachers to provide an anti-corruption module in public school curriculums;

Establishing a mediation system to unclog the investigation-prosecution process.

The OMB is laying the groundwork for the full rollout of the electronic case management and information management system. Upon completion, the system will connect the six existing OMB offices via local area and wide area networks.

The Japan International Cooperation Agency granted scholarships (such as masters degrees) in public administration to select employees of the OMB.

With USAID-ROLE funding, select OMB








employees took a post-graduate certificate course in corruption studies in the Hong Kong Academy. The course included a discussion of the anti-corruption strategies of Independent Commission Against Corruption in Hong Kong, China.

The US State Department sponsored a Specialized Course on Integrity Assurance and Corruption Investigation and a Supervisory Criminal Investigator’s Course. These were conducted by the International Law Enforcement Academy.

Integrity Development and Public Accountability Seminars were conducted for captains of two Barangays (the smallest unit of local government).

International cooperation including exchange of information and evidence, extradition, and search, seizure, forfeiture and repatriation of assets

The OMB attended the 2nd Multilateral Cooperation for Preventing and Combating Corruption Meeting in Brunei Darussalam. The group is expected to be a forum for anti-corruption agencies within ASEAN. The OMB intends to join the Group by the Group’s next meeting in 2007.

There is pending legislation to improve and expedite the extradition process.

The Ombudsman participated as an expert/presenter in the Experts Workshop on Asset Recovery, organized in cooperation with the UN Office on Drugs and Crime. The event was held in Basel, Switzerland on 15-16 May 2007. The OMB presented on topics such as the mandate of the Philippine Presidential Commission on Good Government to recover stolen assets, government efforts to recover assets from the U.S. and Switzerland, obstacles encountered, and lessons learned.








The Overall Deputy Ombudsman participated in the 3rd APEC Senior Officials Meeting (SOM III) and Related Meetings – Anti-Corruption and Transparency Task Force Meeting on 22 and 24-25 June 2007. The meeting included an anti-corruption workshop and discussions on customs procedures, procurement, and promoting dialog between the public and private sectors.

The Ombudsman participated in a public-private sector anti-corruption partnership seminar organized by the Malaysian Anti-corruption Agency.

The Presidential Commission on Good Government (PCGG) is tasked with recovering ill-gotten wealth acquired prior to February 25, 1986. It has successfully recovered USD 854 million deposited by Marcos in Switzerland. It has also remitted over USD 1.46 billion to the treasury.

B. Corporate Responsibility and Accountability

Promotion of corporate responsibility and accountability based on international standards:

Corporate governance, internal company controls such as codes of conduct, establishing channels of communication, whistleblower protection and staff training

Non tax-deductibility of bribes

Transparent company accounting and auditing, and penalties for false accounting

Administrative sanctions for bribery of public officials, e.g. denial of licenses or procurement contracts

The Government Procurement and Policy Board has issued Uniform Guidelines for Blacklisting of Manufacturers, Suppliers, Distributors, Contractors and Consultants for certain offenses, including “Any documented








unsolicited attempt by a bidder to unduly influence the outcome of the bidding in his favor.” The guidelines define blacklisting as: “An administrative penalty disqualifying a person or an entity from participating in any government procurement for a given period.”

PILLAR 3 – SUPPORTING ACTIVE PUBLIC INVOLVEMENT

A. Public Discussion of Corruption

Encouraging public discussion of corruption through:

Channels and forums to discuss corruption

At the invitation of government agencies, the OMB conducted twelve series of Public Accountability Seminars in May-September 2006 to enhance public awareness and appreciation of the government’s anti-corruption reforms and initiatives.

A 24-hour hotline has been installed to receive requests to the OMB for assistance.

On 22 August 2006, the OMB, through the Public Assistance Bureau, launched the “Meet with the Ombudsman” project to allow the public to air their problems with the OMB herself. The meetings will be held once monthly.

Public awareness campaigns With EU support, the OMB has prepared a communications plan to:

Inform the public about the OMB’s role in fighting corruption;

Enable the public to be involved in the fight against corruption;

Enlighten the private sector and the international business community about the stability of the Philippines’ investment climate given its stance

The OMB is continuing to organize public accountability and anti-corruption lectures (e.g. Ehem! Aha! service excellence on frontline service).








on corruption.

In May-September 2006, three issues of the Integrity Newsletter were published and distributed to other government agencies, Local Government Units, Civil Society Organization and others.

The OMB continued to distribute a newsletter to raise anti-corruption awareness and to encourage the public involvement in corruption prevention.

This activity is continuing.

Three integrity television shows were aired to raise awareness of anti-corruption and to encourage public involvement in corruption prevention.

Two 30-second infomercials were produced and shown in cinemas to publicize the anti-corruption efforts of the OMB and the Revenue Integrity Protection Service.

Weekly 30-minute radio segments with the Ombudsman as the guest (Magsumbong sa Ombudsman) were aired nationwide in May-June 2007. During the program, the OMB discussed its mandate, activities and projects. The OMB also took questions and complaints from listeners by phone.

This activity is continuing in the Radyo ng Bayan.

The OMB is developing an interactive website to allow convenient public access to its services.

In the process of migrating up-loadable website information

The Presidential Commission on Value Formation and the PAGC have conducted values / ethics-related activities.

Supporting of non-governmental organizations

In July 2007, the OMB and Mactan Chamber Of Commerce and Industry Phil’s Inc. (a domestic non-stock, non-profit entity) entered into a Memorandum of Agreement whereby the OMB accredited the Chamber as its official “graftwatch” unit for Mactan Island. The Chamber will therefore assist in checking the lifestyle of officials, ensuring clean public procurement, monitoring local

This activity is continuing.








government spending, reporting instances of corruption, and making recommendations for improvement. In return, the OMB will assist the Chamber’s members to build capacity to fight corruption.

Education programs 37 “Ehem! Aha!” seminars were conducted in May-September 2006. This is a program of the Philippine Province Society of Jesus and the OMB that integrates cultural sensitivity and understanding as part of the educational, investigative and prosecutorial functions of the OMB.

The OMB provided the “Ehem! Aha!” Values Formation Training to 564 participants from 15 of the 17 participating government agencies. Training for the remaining two agencies will be completed by August 2007.

The program “Enhancement of Integrity Education in School Curriculum (Graft and Corruption Education Teaching Exemplars)” is designed to raise awareness of corruption issues among students, teachers, parents and guardians.

On 2 March 2007, the Graft and Corruption Education Teaching Exemplars, a set of 52 teaching modules as well as orientation and workshops for trainers and teachers. The Exemplars were launched at a press conference attended by the OMB, Deputy Education Secretary, European Commission Ambassador Alistair MacDonald, and U.S. Agency for International Development Mission Director Jon Lindborg.

A total of 203,113 copies of the Graft and Corruption Prevention Teaching Exemplars has been printed for distribution in over 44 000 public elementary and secondary schools nationwide.

Teaching exemplars promotion is a continuing activity. The project supports the distribution of teaching exemplars to more than 44,000 schools nationwide. It also includes activities to train teachers on how to use the exemplars and how to integrate them into classroom lessons. The program also establishes a monitoring and evaluation mechanism.

Briefing political science students of Palawan State University and Lyceum University, Manila on the OMB.

The OMB has established a research/thesis assistance program to help graduate and undergraduate students and researchers on corruption prevention and control issues.

Debate, essay, slogan and poster-making competitions were held to raise








anti-corruption awareness.

B. Access to Information

Ensuring the general public and the media can receive and impart public information, particularly information on corruption matters:

Requirements for justice and other governmental agencies to disclose efforts to promote integrity and accountability and to combat corruption

A bill on the right to information is pending.

Measures to provide the public with meaningful access to information

The annual OMB Journal was released in May and describes the accomplishments and activities of the various OMB offices.

Copies of the OMB Annual Report were distributed to the Office of the President, Vice President, Senate President and House Speaker. The report compiles the accomplishment reports of the different OMB offices.

The OMB is planning to establish an Investors Help Desk to attract investment by reducing red-tape.

C. Public Participation

Encouraging public participation in anti-corruption activities:

Co-operative relationships with civil society groups

NGOs and civil society are regular members of the agency-based Integrity Development Committees of agencies that participate in the IDR.

Protection of whistleblowers The OMB published “Aha! A Citizen’s Primer on Whistleblowing” in June 2006.

Involvement of NGOs in monitoring of public sector

The Philippines has created the National Anti-Corruption Program of

The OMB secretariat for NACPA is now fully operational. Capacity building /

Activities that took place under the National Anti-Corruption Program of








programs and activities Action (NACPA). This is a multi-sector, high-level coordinating mechanism that involves the executive, legislative and judicial branches of government, Constitutional Commissions, local government units and civil society. A Covenant of Commitment was signed on 17 March 2006 and the Plan will provide consultation and coordination in fighting corruption. The OMB is attempting to establish the NACPA to convince public officials and employees, private citizens and civil society organizations to not just complain or criticize the government, but to also take part in anti-corruption initiatives and programs. The Philippines seeks the cooperation and support of the international donor community to make the goals of the NACPA become reality.

training for the NACPA Secretariat on procurement and project management has been conducted.

Action (NACPA) include:

Inception Workshop for the Establishment of the Multi-Sectoral Anti-Corruption Council (MSACC) (27 November 2006)

Seminar on Internal Control (13 December 2006)

Pre-Conference for MSACC (20 February 2007)

Launching of the MSACC (1 March 2007)

Strategic Planning and Drafting of a Medium-Term Plan (6-8 June 2007)

Internal Control Training is slated to be conducted within the year.

The Multi-Sectoral Anti-Corruption Council of the NACPA will be launched in February 2007 along with the Medium Term NACPA.

OTHER

The Philippines has pending legislation to improve anti-corruption law enforcement, including the ratification of the UNCAC.

In August 2006, the OMB, in coordination with the United Nations Development Program (UNDP) and the Transparency and Accountability Network, conducted the Forum and Trainer’s Training on the UNCAC to promote ratification of UNCAC by the Senate.

The Senate ratified the UNCAC on 8 November 2006.

A monitoring tool is being finalized under the NACPA initiative.