Philippines Country Profile

Judicial System

Individual Corruption

Global Integrity 2008 and Transparency International's Global Corruption Barometer 2009 both report that citizens perceive the judiciary to be corrupt. According to Global Integrity 2008, corruption often starts with lawyers, rather than judges and magistrates, and several lawyers (at least 94 lawyers between 1947 and 2007) have been disbarred by the Supreme Court due to corruption.

Judges have been known to take bribes in order to grant bail to litigants, even in cases where the law prohibits granting bail. Citizens may also encounter other procedural irregularities in the courts which can give rise to corrupt behaviour, such as lack of legal and procedural knowledge, resulting in false charges.

Business Corruption

According to the Transparency International Bribe Payers Index 2008, companies' confidence in the judicial system is low in the Philippines because of allegations of graft and corruption, as well as incompetence within the judiciary. Companies should note that numerous irregularities occur in judicial procedures. For example, there are cases in which the public prosecutors were absent in criminal cases. There is also an insufficient supply of judicially competent personnel, which causes postponements and prolonged delays. Some trials can drag on for years. Some companies prefer to avoid the courts altogether due to low confidence levels in the judicial system.

Political Corruption

The judicial system is constitutionally independent from both the legislative and the executive branches. However, there are many instances where judges interfere in policy-making instead of simply interpreting the law. Furthermore, the judiciary is perceived as burdened by very cumbersome procedures, and it is also perceived to be corrupt. Many judges are believed to accept bribes by influential elites. According to the Bertelsmann Foundation 2006, this is confirmed by lawyers in a SWS survey. About half the lawyers had personal knowledge of judges taking bribes. One prominent example is of Justice Secretary Hernando Perez, who was prosecuting former President Estrada for economic plunder. Perez was forced to resign for accepting a USD 2 million bribe from one of Estrada's associates in order to secure a lucrative contract.

According to the law, members of the judiciary have to submit a Statement of Assets and Liability and Networth (SALN). However, contrary to the SALN of senators, Members of Congress etc. which can be accessed by the public, the SALNs of judges are kept secret and beyond public scrutiny. The lack of transparency adds to public perception of the judiciary as tainted. The official argument for the secrecy is that granting public access to the SALNs would, allegedly, endanger the judges, diminish their independence and expose them to kidnapping, extortion, etc.

Frequency

The World Bank & IFC: Doing Business 2010:
- It takes 37 procedures and 842 days at a cost of 26% of the claim to enforce a commercial contract through the courts.

World Economic Forum: The Global Competitiveness Report 2009-2010:
- Business executives give the judiciary's level of independence from influences of government, citizens and companies a score of 3.1 on a 7-point scale (1 being 'heavily influenced' and 7 'entirely independent').

- Business executives give the efficiency of the legal framework for private companies to settle disputes and to challenge the legality of government actions and/or regulations a score of 2.7 and 2.8 respectively on a 7-point scale (1 being 'extremely inefficient' and 7 'highly efficient').

Transparency International: Global Corruption Barometer 2009:
- 27% of households surveyed consider the judiciary to be 'extremely corrupt'.

- 8% of households who had contact with the judiciary in 2008 report to have paid a bribe.

- Citizens give the judiciary a score of 3.4 on a 5-point scale (1 being 'not at all corrupt' and 5 'extremely corrupt').

Freedom House: Freedom in the World - Philippines 2009:
- Cases in the Sandiganbayan anti-corruption court takes 6-7 years to resolve.

- The court system has a backlog of more than 800,000 cases.

Transparency International: Bribe Payers Index 2008:
- Business executives give the judiciary a score of 3.5 on a 5-point scale (1 being 'not at all corrupt' and 5 'extremely corrupt').