Philippine Institutions of Graft

The Priority Development Assistance Fund (PDAF), known throughout the nation as the "porkbarrel," encourages graft by providing money for unsupervised discretionary spending. The PDAFpork barrel is only the tip of the iceberg, however, because these special development funds

represent only about 1% of the national budget, and the budget process allows even greatermisappropriation.

The "Pork Barrel"

This year each of the 214 congressmen is allocated 60 million pesos (roughly USD1.5 million) forspending at his discretion, and each of the 24 senators receives twice that amount.[1] With no realoversight or accountability, this institution is rife with corruption. Some of the funds intended forpriority development projects in the congressmen's districts, such as health care, clean water, andpoverty alleviation, are typically spent on trivial projects which contribute nothing to the social andeconomic development of the country. Common examples are cement outdoor basketball courts and"waiting sheds," small awnings or covered benches beside roads, where those waiting for a bus canget out of the rain.[2] Large signs laud the congressman for spending government funds on theproject (instead of just pocketing them?).[3] Such projects are often accomplished just beforeelections, so signs touting the congressmen provide free campaign advertising for those seeking re-election.

If congressmen do initiate substantial development projects with their PDAF monies, awarding ofcontracts is widely abused. Pork barrel projects are often grossly overpriced, in some cases reaching

"...more than 200 percent of the market prices and government-set costs," according to ThePhilippine Center for Investigative Journalism[4], and contractors pay a lot of kickbacks. Manycitizen watchdogs, journalists, and even some legislators decry the pork barrel system decorativerain barrels and call for its abolishment. "I have to be very candid with you, that most of the P70million a year of pork barrel or priority development assistance fund (PDAF) is not properly used,"Congressman Herminio Teves said at a press conference last April.[5]

The Budget Process

During the budget process, instead of Congress approving, or judiciously trimming, the budgetsubmitted by the executive branch, congressmen insert more "pork" into departmental budgets withstipulations that they will identify the projects, choose the contractor and suppliers, etc. Kickbacksmay be as much as half the price of contracts awarded, and contractors, in order to squeeze anyprofit from their half of the project funds, are forced to use substandard materials and labor,cheating the government and hindering national development.

As one example of this budget process, former Senate decorative barrels President Franklin Drilonrevealed last month that the House more than doubled its pork barrel allocation by inserting another13.5 billion pesos in the budget of the Department of Public Works and Highways. He called forlawmakers to remove this pork, but Congressman Edcel Lagman, chairman of the House Committeeon Appropriations, rejected Drilon's appeal, bragging that "The primacy of the appropriation ofpublic funds is a legislative prerogative, repeatedly sustained by the Supreme Court."[6]

A recent editorial laments, "Every year, when they [congressmen] deliberate on the national budget,the first thing they do is increase their pork barrel, the fund from which they 'steal' the tax moneyintended for projects and services for the people."[7]

Conclusion

Corruption is institutionalized by the Priority Development Assistance Fund allocations tolawmakers, and on an even larger scale, by the normal budget process which allows legislators topad the departmental budgets and then manipulate contracts to funnel funds into their pockets.Critics claim legislators grow rich under this system, and personal profit, not service to country,motivates many individuals to run for Congress. Such institutionalized corruption is bleeding thePhilippines of funds desperately needed for national development.

References

1. "Junk the pork," Philippine Daily Inquirer, January 14, 2008

2. "Whistleblower's own sins," Belinda Olivares-Cunanan, Philippine Daily Inquirer, February 12,2008

3. "Signs of patronage politics," Philippine Daily Inquirer, February 12, 2008

4. "Junk the pork," op. cit., citing The Philippine Center for Investigative Journalism book, "Pork andOther Perks"

5. "Solons urged to report how they spend pork barrel funds," Romy G. Amarado, Philippine DailyInquirer, April 25, 2007

6. "P13.5-B pork barrel to stay--Lagman," T.J. Burgonio, Philippine Daily Inquirer, January 13, 2008

7. "Abolish the pork barrel and save tax money," Neal Cruz, Philippine Daily Inquirer, January 14,2008

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