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The Problem of Corruption and Its Examples in Philippines

• Categories: Corruption Political Corruption

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Published: Mar 19, 2020

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A look at how corruption works in the Philippines

The Philippines is perceived to be one of the most corrupt countries in the world. Of 180 countries, the Philippines ranked 116 in terms of being least corrupt. This means that the country is almost on the top one-third of the most corrupt countries, based on the Corruption Perceptions Index (CPI) published by Transparency International.

According to CPI, the Philippines scored a total of 33 points out of 100. Even as far back as 2012, it has fluctuated around the same CPI score, with the highest score being 38 points in 2014 and the lowest being 33 points in 2021 and 2022. To further contextualize how low it scored, the regional average CPI score for the Asia-Pacific region is 45, with zero as highly corrupt. And of the 31 countries and territories in the region, the Philippines placed 22nd (tied with Mongolia).

It must be noted, however, that CPI measures perceptions of corruption and is not necessarily the reality of the state of corruption. CPI reflects the views of experts or surveys of business people on a number of corrupt behavior in the public sector (such as bribery, diversion of public funds, nepotism in the civil service, use of public office for private gain, etc.). CPI also measures the available mechanisms to prevent corruption, such as enforcement mechanisms, effective prosecution of corrupt officials, red tape, laws on adequate financial disclosure and legal protection for whistleblowers.

These data are taken from other international organizations, such as the World Bank, World Economic Forum, private consulting companies and think tanks.

Of course, measuring actual corruption is quite difficult, especially as it involves under-the-table activities that are only discovered when they are prosecuted, like in the case of the ill-gotten wealth of the Marcoses, which was estimated to be up to $10 billion based on now-deleted Guinness World Records and cited as the “biggest robbery of a government.” Nevertheless, there still exists a correlation between corruption and corruption perceptions.

4 Syndromes

Corruption does not come in a single form as well. In a 2007 study, Michael Johnston, a political scientist and professor emeritus at Colgate University in the United States, studied four syndromes (categories) of corruption that were predominant in Asia, citing Japan, Korea, China and the Philippines as prime examples of each category.

The first category is Influence Market Corruption, wherein politicians peddle their influence to provide connections to other people, essentially serving as middlemen. The second category is Elite Cartel Corruption, wherein there exist networks of elites that may collude to protect their economic and political advantages. The third form of corruption is the Official Mogul Corruption, wherein economic moguls (or their clients) are usually the top political figures and face few constraints from the state or their competitors.

Finally, there is the form of corruption that the Philippines is familiar with. Oligarch-and-Clan Corruption is present in countries with major political and economic liberalization and weak institutions. Corruption of this kind has been characterized by Johnston as having “disorderly, sometimes violent scramble among contending oligarchs seeking to parlay personal resources into wealth and power.” Other than the Philippines, corruption in Bangladesh, India, Malaysia, Nepal, Pakistan and Sri Lanka falls under the same syndrome.

In the Philippines, Oligarch-and-Clan Corruption manifests itself in the political system. As Johnston noted, in this kind of corruption, there is difficulty in determining what is public and what is private (i.e., who is a politician and who is an entrepreneur). Oligarchs attempt to use their power for their private benefit or the benefit of their families. From the Aquinos, Binays, Dutertes, Roxases and, most notoriously, the Marcoses, the Philippines is no stranger to political families. In a 2017 chart by Todd Cabrera Lucero, he traced the lineage of Philippine presidents and noted them to be either related by affinity or consanguinity.

Corruption in the Philippines by oligarch families is not unheard of. In fact, the most notable case of corruption in the Philippines was committed by an oligarchic family—the Marcos family. The extent of the wealth stolen by former dictator Ferdinand Marcos Sr. and his wife has been well-documented. In fact, several Supreme Court cases clearly show the extent of the wealth that the Marcoses had stolen.

In an Oligarch-and-Clan system of corruption, oligarchs will also leverage whatever governmental authority they have to their advantage. Going back to the Marcos example, despite their convictions, the Marcoses have managed to weasel their way back into power, with Ferdinand Marcos Jr. becoming the 17th President despite his conviction for tax violation. Several politicians have also been convicted of graft and corruption (or have at least been hounded by allegations of corruption) and still remain in politics. As observed by Johnston in his article, though Ferdinand and Imelda Marcos are the popular images of corruption in the Philippines, he also noted other entrenched oligarchs throughout the country.

Finally, factions also tend to be “unstable and poorly disciplined.” The term “balimbing” is often thrown around in local politics but, more than that, the Philippines is also familiar with politically-motivated violence and disorder.

All these features are characteristics of Oligarch-and-Clan corruption, where these oligarchic families continue to hold power and politicians exploit their positions to enrich themselves or their families.

Corruption, no matter what kind, needs to be curbed. It results in loss of government money, which could have been used to boost the economy and help ordinary citizens, especially those from the lower income sectors.

According to the 2007 study, the Office of the Ombudsman had, in 1999, pegged losses arising from corruption at P100 million daily, whereas the World Bank estimates the losses at one-fifth of the national government budget. For relatively more updated figures, former Deputy Ombudsman Cyril Ramos claimed that the Philippines had lost a total of P1.4 trillion in 2017 and 2018. These estimates are in line with the World Bank estimates of one-fifth (or 20 percent) of the national budget.

So grave is the adverse effect of corruption that the international community recognized it as an international crime under the United Nations Convention Against Corruption where perpetual disqualification of convicted officials is recommended.

But the question stands: can corruption be eradicated in developing countries like the Philippines? Many Philippine presidents promised to end corruption in their political campaigning, but none has achieved it so far. If the government truly wants to end corruption, it must implement policies directed against corruption, such as lifting the bank secrecy law, prosecuting and punishing corrupt officials, increasing government transparency and more. INQ

This is part of the author’s presentation at DPI 543 Corruption: Finding It and Fixing It course at Harvard Kennedy School, where he is MPA/Mason fellow.

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This article reflects the personal opinion of the author and not the official stand of the Management Association of the Philippines or MAP. He is a member of MAP Tax Committee and MAP Ease of Doing Business Committee, co-chair of Paying Taxes on Ease of Doing Business Task Force and chief tax advisor of Asian Consulting Group. Feedback at [email protected] and [email protected] .

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The Philippines: a social structure of corruption

• Published: 06 February 2024

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• Andrew Guth   ORCID: orcid.org/0000-0001-6247-4955 1  

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The anticorruption community largely views corruption as a government or development issue. But in the Philippines, corruption is a social structure. The very social bonds and social structures that are good at building civic unity and solidarity are also good at spreading and maintaining corruption, and this is why corruption is so difficult to remove. Patrons use these societal features to implement a ubiquitous social structure of corruption by means of maneuvered friendships that makes it difficult for the masses to know when a patron is acting as a friend or foe. The social structure encompasses the whole of society and corrupts the encircled government, political, and development systems as easily as it infiltrates all other segments of society. It is why oversight and sector-based anticorruption initiatives underperform, and why initiatives must pivot towards addressing this social structure.

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Anti-corruption Institutions: Some History and Theory

Corruption as a political phenomenon.

International Anti-Corruption Initiatives: a Classification of Policy Interventions

Data availability.

The author’s interview notes generated during and/or analyzed during the current study are not publicly available to help ensure confidentiality of the interviewees, but are available from the corresponding author on reasonable request.

Pronounced ‘leader’ in English, lider is a term used in the Philippines specifically referring to individuals (or leaders) in the community that are sought by candidates to convince the electorate to vote for that particular candidate. Liders are the individuals that perform the physical exchange of money for votes with the electorate.

A barangay is the lowest level of elected government. Each city or municipality is comprised of multiple barangays (villages).

See Appendix for a full list of respondents.

Interviews 2–3, 6, 14–16, 18–20, 22, 25, 39, 41–42, 44–50.

Utang na loob is usually translated as “debt of gratitude.” The literal translation is “debt of inside” or “internal debt.” It can also be translated as “reciprocity” or “lifelong reciprocation.”

Interviews 1,14,21,24,42–44.

The paper uses the term ‘client’ to represent the economically lower-class voters who are in clientelistic relationships with political families/candidates (patrons).

Interviews 1,14,24,42–44.

Clans are a connection of least ten extended families – usually more – where each extended family could have more than a hundred members. Clans then have a minimum of a thousand members and usually much more.

Interviews 2,5–6,9–10,14–51.

Interviews 3–6,9–10,12,14–23,25–26,27–51.

Interviews 3–6, 9–10,12,14–23,25–26,27–51.

Interviews 14–22,25–26,39,47–50.

Interviews 16,22,27–38.

Interviews 14,16,21,24,39,42–44.

Interviews 16,22.

Interview 22.

Interview 23.

Interviews 1,20.

Interviews 2,5,14–23,26,32–39,41,45,47–51.

Interviews 15–16,20,22.

Interviews 27–31.

Interview 24.

Interviews 2,6,10.

Interview 22–23.

Interviews 14,18,32–38.

Interviews 32–38.

Interviews 1,10,18–22,32–38,47–49,50–51.

Interviews 2–4,6,14–15,20,22,40,45–49.

Interview 16.

Interviews 2–3.

Interview 3.

Interviews 1,3–6,10,12,15,50.

Interview 15.

Interviews 2–3,6,15.

BARMM consists of the region formally known as the Autonomous Region in Muslim Mindanao (ARMM) plus the addition of Cotabato City and villages in northern Cotabato.

Interviews 3–4.

Interview 1.

Interview 3–4,6,10,12.

Interview 7.

Interviews 2–3,6,14–16,18–20,22,25,39,41–42,44–50.

Interviews 1,3–7,10,12,14–15.

Interviews 1,3–4,6,9–10,14,16–18,24.

Interviews 1, 3–4,6,9–10,14,16–18,24.

COMELEC is the Commission on Elections in charge of ensuring fair and free elections.

Interviews 3–4,6–7.

Interview 6.

Interviews 14–15,25–26.

Interviews 14–16,25–26,32–38.

Interviews 14–15,25–26,32–38.

Interviews 14–16,20,22–23,25–38.

Interview 21.

Interview 2.

Interview 14,21,49.

Interviews 2,16,20,22–23,27–31.

Interviews 1,2.

Interviews 52,54–59,61–64,66–67.

Interviews 6,14,16,18–19,21–23,25,50.

Interviews 3–4,18,52,54–59,61–64,66–67.

Interviews 3–4,6–8,52,54–55,56–58,61,64.

Interviews 2–3,6,14–16,18–22,25,39,41–42,44–50.

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A broken vow: an examination of the cases of Corruption in the Philippines

• Christian Gonzales Isabela State University - Cauayan https://orcid.org/0000-0002-7712-359X

The problem of corruption in the Philippines seems to be humongous as if no solution is available for its cure. This study used a descriptive and qualitative research design. It exposed the anti-corruption laws and the cases decided by the various Philippine courts. It found out that even with the existence of laws as well as the removal or the conviction of several government officials and employees, corrupt practices seem to be undeterred. The continuance of corruption in the country resulted to the promise of President Duterte to be a broken vow.

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The impact of pandemic corruption

The money numbers emerging from the COVID-19 pandemic are mind-boggling. Philippine total debt, largely for pandemic response, was projected to hit P13.42 trillion in 2022, the year President Rodrigo Duterte steps down from office.

To have a picture of how enormous that amount is, let’s pick 1 trillion and think about counting from one to that sum.

Estimates place the amount of time one can finish counting to a trillion at 31,700 years. If one counts 1, 2, 3 … per second up to one trillion, the process will take 31,688 years.

Graphic by Ed Lustan

While it’s no longer necessary to manually count numbers in an era of supercomputers, just imagining the task could show just how mind-numbing those infinitesimal numbers are.

As trillions of pesos pour into government operations, mainly to defeat a pandemic that is bleeding nations everywhere, a few billions lost in leakages or outright theft of funds could appear to be just a microscopic germ.

But one billion is a figure far from being minute.

To count from one to one billion, it’s estimated you would need 30 to 100 years to finish, depending on how quick you do the counting. While not impossible, to count to one billion would require an amount of time longer than that which government thieves would spend in jail for misspending or pocketing outright public funds—if they are found, tried, and convicted at all.

In the current scandal involving the use of funds by the Duterte administration for pandemic response, several sets of numbers have emerged that would be both impossible and easy to count.

Let’s start with money spent already. At least P67 billion in health funds were found by state auditors to have deficiencies in use, or simply that some amounts had not been used properly. Between P3 and P8 billion was spent on PPE, testing kits, and other items with a markup of 100 percent more than market prices.

If it would take 30 to 100 years to count from one to one billion, imagine how much longer it would take to count from one to P3 billion, P8 billion, or P67 billion.

Another set of numbers that has emerged involved the speed with which billions of pesos changed hands—30, the days it took the health department to transfer P42 billion to a division in the budget department to purchase PPE sets at prices up to 100 percent higher than normal.

It would be difficult not to conclude that the suffering of people barely breathing or crawling on all fours to feed selves and families has become the cover for a group of thieves in government to ransack the treasury vault.

That corruption, or the whiff of it, has continued into the pandemic says so much about many things.

One is about tough talk against corruption. Unmatched with action, it is but empty bravado that sounds exactly the same as the braggadocio about asserting Philippine sovereignty aboard a jet ski, which would later be clarified as a joke that only fools would take seriously.

Another is about callousness. While it is already outrageous for government thieves to milk public funds for their luxurious lifestyles during so-called normal times, to see them do so as the nation gasps for air is enraging, to say the least. It conjures images of thieves inside your house with their fingers in a tight grip of your throat as you lay in bed attached to a ventilator.

But briefly, let’s take our mind off the fact that anomalous spending is taking place at a time when it would deserve the capital punishment that current officials are trying to revive.

What could be equally important to ask is, who pays for this leakage or outright theft of public funds?

Is it the so-called oligarchs at whom Mr. Duterte has fired some of his loudest and most colorful expletives? Is it the new cronies that are rising to new heights through their connection to the seat of power? Is it officials whose asset and liability records cannot be examined for unusual or outright ill-gotten wealth because, under this administration, transparency is not a right but a privilege? Is it the political families who had been driven into flight after plundering and bludgeoning the nation, and yet dancing again years later in the halls of power to take advantage of the democratic space they had buried with their kleptocratic ways at the height of their reign?

The answer would come from what could be the most liberal leader emerging from centuries of tradition in the Catholic Church.

“Corruption is paid by the poor,” said Pope Francis.

The capacity of the poor to bear the burden of corruption, however, is not as infinite as the amounts of public money being misused or stolen outright by officials.

In time, people bled dry of their wherewithal to make ends meet will be drawn to do either of two things—just die in place, or rise to their feet clinging to a knife.

Poverty, according to the Greek philosopher Aristotle, is the parent of revolution and crime.

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Home / Essay Samples / Social Issues / Corruption / The Cause And Impact Of Corruption On The Philippines

The Cause And Impact Of Corruption On The Philippines

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