According to the World Economic Forum Global Competitiveness Report 2010-2011, companies identify corruption as the most problematic factor for doing business in the Philippines. Corruption is often encountered when interacting with public officials. According to the World Bank & IFC Enterprise Surveys 2009, nearly 19% of surveyed companies report that they expect to make informal payments to public officials to get things done, and more than half of the surveyed companies are expected to give gifts in order to secure a government contract. According to the 2009 Social Weather Stations’ (SWS) survey of enterprises on corruption, as cited in a 2010 news release by SWS, the surveyed business managers perceive that the level of corruption in the private sector to be lower than in the public sector, while for the latter, the level of corruption is more widespread at the national level than at the local level. Other common types of private sector corruption in the Philippines are illegal donations to political parties and bribery in order to influence policy-making. However, compared to 2004, where a little less than one-fourth claim that these donations are made on a voluntary basis, a majority in 2009 claim that donations are ‘partly voluntary’, while a smaller percentage claim that the donations are solicited. The concentration of wealth within a small group of elite families, coupled with political donations, has led to concerns as to their undue influence on both Philippine politics and business life, as reported by the Bertelsmann Foundation 2010.

According to the 2009 SWS survey of enterprises on corruption, as cited in a 2010 news release by SWS, the majority of the surveyed business managers state that the level of transparency in bidding for a government contract had increased. It is also reported that solicitation of bribes in relation to getting local and national government permits and licences have decreased. Nevertheless, business executives surveyed by the World Economic Forum Global Competitiveness Report 2010-2011 report that government officials often favour well-connected companies and individuals when deciding on policies and contracts, and that public funds are often diverted to companies, individuals or groups due to corruption. Freedom House 2010 also notes that corruption and cronyism remain prevalent in business and government.

Companies that are planning to invest in or are already doing business in the Philippines are highly recommended to implement integrity systems and conduct extensive due diligence when entering into business partnerships or contracting agents to facilitate business transactions in the country. As illustrated by a 2008 press release by the US Securities and Exchange Commission, controlling corruption-risks is essential in order to avoid cases like that of a United States company, Con-Way Inc., that had to pay USD 300,000 in civil penalty, after having paid numerous illegal payments to foreign government officials at the Philippines Customs and the Philippine Economic Zone Area, as well as fourteen state-owned airlines between 2000 and 2003, through a Philippine-based companies in order to obtain favourable conditions. The Philippine private sector acknowledges that corruption is a major problem that companies will need to deal with. This is indicated in the 2009 SWS survey where companies state that they are willing to spend 5% of their net income on anti-corruption programs.

The Philippines is characterised by cumbersome bureaucracy. Business executives surveyed in the World Economic Forum Global Competitiveness Report 2010-2011 perceive the level of government administrative requirements as very burdensome. Although business start-up has been eased by the establishment of a one-stop shop at the municipal level, the average complexity and cost are still higher when setting up a company in the Philippines than it is in East Asia and Pacific region. Starting a company requires 15 procedures and 38 days, at a cost of 30.3% of the GNI per capita, as illustrated in the World Bank & IFC Doing Business 2011. According to the World Bank & IFC Enterprise Surveys 2009, senior management can expect to spend 9% of its time dealing with the requirements of government regulations. Foreign companies should note that foreign investment is restricted or limited in many sectors of the economy. Companies can consult the Department of Trade and Industry to see a full list of restrictions on foreign investment. The government has set up a Board of Investments (BOI) in an effort to promote foreign investment. The BOI offers investors regulatory and incentive system guidance. The Philippines is a member of the World Customs Organization (WCO) aiming to improve its administration of customs. According to the World Bank & IFC Doing Business 2011, the Philippine customs administration has become more efficient since the government improved the electronic customs system by adding functions such as electronic payments and online submission of declarations, reducing the time and cost of doing trade compared to previous years.

According to Transparency International's National Integrity System 2006, post-Marcos structural reforms were implemented in order to benefit economic development locally, such as deregulation, privatisation and decentralisation, and have reportedly resulted in an increase in corruption as well. Moreover, business executives surveyed in the World Economic Forum Global Competitiveness Report 2010-2011 indicate that it is a challenge to obtain information about changes in government policies and regulations affecting their industries. The level of corruption in dealing with inspectors from various government agencies is fairly high in the Philippines. According to Transparency International's National Integrity System 2006, in the process of deregulation, companies have offered bribes to government officials in order to protect their market and ward off competition. The privatisation process has resulted in irregular and corrupt bidding practices in order to acquire government-owned or government-controlled companies. According to United Nations Asia and Far East Institute Corruption Control in Public Procurement July 2008, despite the passage of the Procurement Reform Law, public procurements such as infrastructure projects and hospital supplies have been exposed to corruption, therefore companies should note that a lack of transparency still prevails in public procurement processes. Although Philippine Government Electronic Procurement System (PhilGEPS) has been set up to increase transparency of the procurement regime, companies are, nonetheless, recommended to conduct extensive due diligence during the procurement process in order to mitigate the corruption risks associated with public procurement in the Philippines.

According to the US Department of State 2011, foreign investors generally cite the Philippine judicial system as uncertain and inefficient, largely due to understaffing, corruption and long delays of court cases. Serious concerns have been raised concerning the sanctity of contracts and of property rights based on allegations that judges accept bribes to rule in favour of one or the other party in a trial. Many foreign companies view the judiciary as a disincentive to investing in the Philippines, since settling an investment dispute may take up to several years before reaching a final settlement. Therefore, many companies seek out alternative dispute resolution possibilities. The Philippines is a member of the International Centre for the Settlement of Investment Disputes (ICSID) and a signatory to the New York Convention 1958. Nevertheless, it is reported that Philippine courts are disinclined to abide by the arbitration process and that the enforcement of decisions may take several years. Several disputes have been raised over water rights in relation to agricultural and industrial production. Access the Lexadin World Law Guide for a collection of legislation in the Philippines.

Individual Corruption

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. This fact is further supported by the US Department of State 2010, reporting that some wealthy or influential offenders received impunity due to personal connections and bribery. Yet, only a relatively small percentage of the surveyed households who had contact with the judiciary in 2009 report to have paid a bribe, as illustrated in Transparency International’s Global Corruption Barometer 2010.

Business Corruption

According to Transparency International’s 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. The same view is also shared in the US Department of State 2011, where many foreign investors cite the judicial system in the Philippines as insufficient and uncertain, due to corruption and understaffing, which significantly hinder investment. Nevertheless, nearly half of the responding companies from the World Bank & IFC Enterprise Surveys 2009 believe that the court system in the Philippines is fair, impartial and uncorrupted.

Political Corruption

According to US Department of State 2010, the judicial system in the Philippines is constitutionally independent from both the legislative and the executive branches. However, Global Integrity 2008 states that the process of choosing nominees for national-level judges is reportedly being influenced by the executive. Furthermore, Freedom House 2010 reports that low salaries are leading to rampant corruption amongst judges and lawyers, and local powers have influence over the judiciary because judges and lawyers’ salaries and basic resources often rely on these local powers.

One prominent example of judicial corruption, according to a 2009 news article from The Manila Times, is the 'Alabang Boys' drug scandal in 2008, which involved PHP 50 million in bribes allegedly paid to prosecutors and officials in the Department of Justice, in return for the release of 3 drug suspects.

Frequency

The World Bank & IFC: Doing Business 2011:
- 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 2010-2011:
- Business executives give the judiciary's level of independence from influences of members of government, citizens, or companies a score of 2.8 on a 7-point scale (1 'heavily influenced' and 7 'entirely independent').

- Business executives give both 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 2.8 on a 7-point scale (1 'extremely inefficient' and 7 'highly efficient').

Transparency International: Global Corruption Barometer 2010:
- 13.7% of households surveyed consider the judiciary to be 'extremely corrupt'.

- 8.8% of households who had contact with the judiciary in 2009 report to have paid a bribe.

- Citizens give the judiciary a score of 3.1 on a 5-point scale (1 being 'not at all corrupt' and 5 'extremely corrupt').

The World Bank & IFC: Enterprise Surveys 2009:
- Nearly 48% of the companies surveyed believe that the court system is fair, impartial and uncorrupted.

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

Social Weather Stations: Surveys of Enterprises on Corruption 2008:
- Business executives give the Supreme Court's sincerity in fighting corruption a net score of +37 (above +50 'very good' and below -50 'very bad').

Individual Corruption

According to a March 2011 national survey conducted by Pulse Asia, the Philippine National Police (PNP) is placed by Filipinos as the second most corrupt agency in the country. Furthermore, according to another survey conducted by Transparency International’s Global Corruption Barometer 2010, the police are perceived by the households as the most corrupt institution in the country, and nearly one-third of the surveyed households who had contact with the police in 2009 report to have paid a bribe. This is also mirrored in the US Department of State 2010, describing cases where women from smaller localities are told by the police to pay special fees before they can file a complaint. In general, police corruption remains a problem in the Philippines.

According to the Immigration and Refugee Board of Canada 2006, the traffic police in the Philippines are particularly corrupt and often demand bribes from traffic offenders. According to a 2010 articles from Inquirer, two police officers from the Traffic Management Group were arrested for extortion and bribery, and there is evidence of policemen turning a blind eye to traffic offenders in return for bribes. 

Business Corruption

According to Transparency International's Bribe Payers Index 2008, business executives perceive the police to be the second most corrupt public institution in the Philippines. Global Integrity 2008 further states that the police are under-funded and that corrupt practices of police officers aggravate the situation. According to the World Economic Forum Global Competitiveness Report 2010-2011, companies are critical of the police's reliability to protect them from crime and to respond to crimes committed against them, which constitutes a competitive disadvantage.

Political Corruption

Some reports indicate that the PNP act with impunity. According to Global Integrity 2008, only a few high-ranking police officers have been jailed due to huge public pressure or when they have displeased politicians.

According to a March 2011 news article by The Peninsula, the former chief of the Armed Forces of the Philippine (AFP), Angelo Reyes, was alleged to have amassed approximately PHP 100 million during his 20-month period as military chief. The former AFP budget officer also alleges that two former military chiefs, Villanueva and Cimatu, received PHP 10 million respectively as ‘welcome gifts’ when they assumed their posts. The case is currently being investigated, and the AFP is said to aid the panel formed by the Department of Justice to probe the alleged corruption.

Frequency

World Economic Forum: The Global Competitiveness Report 2010-2011:
- Business executives give the reliability of the Philippines' police services to enforce law and order a score of 3.4 on a 7-point scale (1 'cannot be relied upon at all' and 7 'can always be relied upon').

Transparency International: Global Corruption Barometer 2010:
- 26.6% of households surveyed consider the police to be 'extremely corrupt'.

- 32.3% of households who had contact with the police in 2009 report to have paid a bribe.

- Citizens give the police a score of 3.6 on a 5-point scale (1 being 'not at all corrupt' and 5 'extremely corrupt').

The World Bank & IFC: Enterprise Surveys 2009:
- 11.7% of the companies surveyed identify crime, theft and disorder as major constraints to doing business.

Transparency International: Bribe Payers Index 2008:
- Business executives give police a score of 4.1 on a 5-point scale (1 'not at all corrupt' and 5 'extremely corrupt').

Individual Corruption

Most public agencies and offices delivering basic services to Filipinos are tainted by corruption. This is confirmed by Transparency International's Global Corruption Barometer 2010, which reveals that citizens in the Philippines find that corruption flourishes in permit and registration offices. According to the UNDP Asia-Pacific Human Development Report 2008, corruption has increased the costs of power projects, resulting in implementation delays and unreliable and expensive electricity services for citizens.

Business CorruptioN

There is a high probability that companies will be exposed to corruption in the Philippines when obtaining permits and licences, as well as in connection with gaining access to public utilities. For example, according to Social Weather Stations' Surveys of Enterprises on Corruption 2008, nearly half of the surveyed business executives had been asked for a bribe when obtaining national and local government permits and licences in 2007. Global Integrity 2008 also reports that corruption pushes up the cost for obtaining business licences and permits, and in order to speed up transaction processes, some companies are reported to bribe government officials. This is also illustrated in the World Bank & IFC Enterprise Surveys 2009, in which nearly one out of five surveyed companies reported that they expect to make informal payments to public officials to ‘get things done’.

Political Corruption

In the most recent March 2011 survey conducted by Pulse Asia, the Department of Public Works and Highways (DPWH) is perceived by the general public to be the third most corrupt institution in the country. According to Procurement Watch Incorporated’s A Study of Anti-Corruption Initiatives in the Philippines’ Construction Sector 2009, the general public in the Philippines holds the DPWH in low regard, due to their perceived association with misdeeds such as kickbacks, price fixing, collusion and cost padding. The same source further states that despite that the DPWH receives a large sum of money to build and improve infrastructures, infrastructure projects are often found in poor conditions - a cause often attributed to inefficiency and corruption.

According to the aforementioned study conducted by Procurement Watch Incorporated, an estimated one-fifth to a third of the entire budget for the first phase of the National Roads Improvement and Management Program (NRIMP), funded by the World Bank, was lost to “a cartel” of contractors, bureaucrats and politicians. According to the Department of Institutional Integrity (INT), as cited in a 2009 news article by Philippine Center for Investigative Journalism, bribes and kickbacks were allegedly given by particular contractors to DPWH officials in return for winning contracts. According to the same news article, two witnesses reported that bribes were also given to some local media and nongovernmental organisations in order to avoid bad publicity.

Frequency

The World Bank & IFC: Doing Business 2011:
- In order to obtain a construction permit, a company must go through 26 procedures and spend 169 days at a cost of approximately 778.5% of income per capita.

World Economic Forum: The Global Competitiveness Report 2010-2011:
- Business executives give government administrative requirements (permits, regulations, reporting) a score of 2.5 on a 7-point scale (1 'extremely burdensome' and 7 'not burdensome at all').

Transparency International: Global Corruption Barometer 2010:
- 16.6% of households who had contact with registry and permit services in 2009 report to have paid a bribe.

- 3.2% of households who had contact with the utilities services in 2009 report to having paid a bribe.

- 4.7% of households who had contact with medical services in 2009 report to have paid a bribe.

The World Bank & IFC: Enterprise Surveys 2009:
- 7.5% of companies surveyed identify business licensing and permits as a major business constraint.

- 18.6% of companies surveyed report that they expect to make informal payments to public officials to get things done.

- 10.5% of the companies surveyed expect to give gifts in order to obtain an operating licence.

- 34.7% of the companies surveyed expect to give gifts to get a construction permit.

- 19.7% of companies surveyed expect to give gifts to obtain an electrical connection, 1.9% for a telephone connection and 7.4% for a water connection.

Transparency International: Bribe Payers Index 2008:
- Business executives give the registry and permit services a score of 4 on a 5-point scale (1 'not at all corrupt' and 5 'extremely corrupt').

Social Weather Stations: Surveys of Enterprises on Corruption 2008:
- 49% of the surveyed business executives had been asked for a bribe when getting local government permits and licences in 2007.

- 47% of the surveyed business executives had been asked for a bribe when getting national government permits and licences in 2007.

Individual Corruption

Citizens entering registration bureaus may risk encountering corrupt officials, who frequently demand bribes in order to register their property. This is reflected in Transparency International's Global Corruption Barometer 2010, in which nearly one out of five surveyed households point to the interaction with land authorities as an area where bribes are often demanded.

Business Corruption

According to the US Department of State 2011, foreigners in the Philippines are prohibited from owning land; however, they are permitted to lease land for a maximum of 50 years. Deeds of ownership are difficult to verify, as registration is inconsistent. Companies should note that, as the judicial system has shown irregularities, the upholding of property rights and the sanctity of contracts (including leasing contracts) is questionable. Furthermore, frequent delays exist in contract enforcement, which results in insecurity for property owners. This insecurity poses a serious constraint on investment activities.

Political Corruption

According to a 2008 article from UPI Asia, Philippine farmers were in principle secured the right to land through a 1988 land reform law. However, legal processes and political interference have subverted the land redistribution process. Some powerful landlord families were reportedly obstructing the redistribution of the land. One of these was the family of former President Arroyo's husband. The ownership of the land property had already been paid for, but the title had not been transferred from the Arroyos to the government. Jose Miguel Arroyo was put on as payee despite the fact that he insisted that he was not the owner of the land. This led to a standstill because the title could not be transferred to the farmers until it had first been transferred to the government. The land redistribution law expired in 2008, resulting in the legal position of the farmers being unclear.

Frequency

The World Bank & IFC: Doing Business 2011:
- It takes 8 procedures and 33 days to register property, and the cost amounts to just over 4% of the property value.

World Economic Forum: The Global Competitiveness Report 2010-2011:
- Business executives give the protection of property rights, including financial assets, a score of 3.7 on a 7-point scale (1 'very weak' and 7 'very strong').

Transparency International: Global Corruption Barometer 2010:
- 18.8% of the households surveyed reported to have paid a bribe to land services in 2009.

Individual Corruption

According to the Transparency International's Global Corruption Barometer 2010, one out of ten surveyed households who had contact with tax revenue services throughout 2009 report to have paid a bribe.

Business Corruption

The Philippine tax regime has a high degree of bureaucratic complexity. There are numerous accounts of bribery in connection with meetings with tax officials, indicating that corruption flourishes in the tax system. According to the World Bank & IFC Enterprise Surveys 2009, a considerable number of the surveyed companies state that they expect to give gifts in meetings with tax inspectors. Tax revenue authorities are also ranked as the second most corrupt institution by business executives in Transparency International's Bribe Payers Index 2008.

According to a 2008 article from The Manila Times, the Bureau of Internal Revenue has filed 11 cases against companies that have illegally sold their tax credit certificates to other companies at discount prices. Many companies choose to pay bribes in order to diminish time-consuming red tape involved with paying taxes.

Political Corruption

The amount of taxes collected by the Philippine tax authorities is well below what is expected. According to a 2010 article from Bloomberg, the Philippines is ranked as the fourth worst in terms of tax collection amongst more than 100 countries. Tax fraud and tax evasion are found at all rungs of Philippine society. According to Global Integrity 2004, former President Estrada's election campaign was handsomely supported by a tobacco tycoon who wanted a reprieve from a tax evasion case. After Estrada's election, the case was dropped.

Frequency

The World Bank & IFC: Doing Business 2011:
- During the course of a year, a medium-sized company can expect to make an average of 47 different tax payments and spend 195 hours managing the tax burden at a total tax rate of 45.8% of profit.

Transparency International: Global Corruption Barometer 2010:
- 10% of households who had contact with tax revenue services throughout 2009 report to have paid a bribe.

The World Bank & IFC: Enterprise Surveys 2009:
- Nearly 22% of the companies surveyed expect to give gifts in meetings with tax inspectors.

Transparency International: Bribe Payers Index 2008:
- Business executives give tax revenue authorities 4.1 on a 5-point scale (1 'not at all corrupt' and 5 'extremely corrupt').

Social Weather Stations: Surveys of Enterprises on Corruption 2008:
- Business executives give the Bureau of Internal Revenue's sincerity in fighting corruption a net score of -56 (above +50 'very good' and below -50 'very bad').

- 46% of the surveyed business executives had been asked for a bribe during assessment and/or payment of income taxes.

Individual Corruption

The Bureau of Customs (BOC) in the Philippines is riddled with corruption, as reported in a 2010 news article by Philippine Public Transparency Reporting Project. The same view is also shared by numerous sources, such as Transparency International’s Global Corruption Barometer 2010, in which half of surveyed households who had contact with the customs administration throughout 2009 report to have paid a bribe.

Business Corruption

Nearly one-third of the companies surveyed by the Social Weather Stations' Business Survey on Corruption 2008 stated that they had been asked for bribes when dealing with import requirements. Importers also seek to bribe their way through the process to save time and to reduce costs, according to a 2010 news article by Philippine Public Transparency Reporting Project. The charge that the BOC is one of the most corrupt government bodies is further substantiated by figures from the Transparency International’s Bribe Payers Index 2008. Furthermore, the surveyed business executives in World Economic Forum Global Enabling Trade Report 2010 rate the transparency of the border administration, in relation to irregular payments in export and imports as relatively low, constituting a competitive disadvantage for the country.

An example of a corruption case in relation to customs, according to AmCham Vietnam 2008, is that of a Philippine shipping company, controlled by a US shipping company, which had bribed the BOC in order to allow the company to violate customs regulations, settle customs disputes to its advantage, and other types of customs fraud. The US company was punished in the US under the Foreign Corrupt Practices Act (FCPA) for the actions of its Philippine partner.

Political Corruption

The Philippines' customs authorities are also suspected of colluding with technical smugglers. According to a 2008 article from UPI Asia, technical smuggling is rampant in the Philippines and costs an estimated loss of USD 4 billion in revenues each year. The same source also states that customs authorities, government officials and the former First Gentleman, Jose Miguel Arroyo, allegedly collude with illegal smugglers.

According to a 2010 article from Inquirer, the so-called 'revenue corruption', which refers to smuggling, tax evasion and undervaluation of imported goods, is pervasive in the Philippines.

Frequency

The World Bank & IFC: Doing Business 2011:
- A standard export shipment of goods requires 8 documents and takes 15 days at an average cost of USD 675 per container.

- A standard import shipment of goods requires 8 documents and takes 14 days at an average cost of USD 730 per container.

World Economic Forum: The Global Enabling Trade Report 2010:
- Business executives give the efficiency of customs administration (burden of customs procedures) in the Philippines a score of 3 on a 7-point scale (1 'extremely inefficient' and 7 'extremely efficient').

- Business executives give the transparency of border administration (irregular payments in exports and imports) a score of 2.4 on a 7-point scale (1 'not transparent' and 7 'transparent').

Transparency International: Global Corruption Barometer 2010:
- 50% of households who had contact with the customs administration throughout 2009 report to have paid a bribe.

The World Bank & IFC: Enterprise Surveys 2009:
- Approximately 19.4% of the companies surveyed expect to give gifts in order to obtain an import licence.

Transparency International: Bribe Payers Index 2008:
- Business executives give customs a score of 4.4 on a 5-point scale (1 'not at all corrupt' and 5 'extremely corrupt').

Social Weather Stations: Surveys of Enterprises on Corruption 2008:
- Business executives give the Bureau of Customs' sincerity in fighting corruption a net score of -72 (above +50 'very good' and below -50 'very bad').

- 31% of the surveyed business executives had been asked for a bribe when complying with import regulations including payment of import duties in 2007.

Business Corruption

According to the Bertelsmann Foundation 2010, a large part of government projects are greatly affected by corruption, both in terms of bribery and red tape. Transparency International's Global Corruption Report 2009 reports that corruption and collusion are rampant when foreign contractors and investors enter the Philippine market, and because there is no regulation on caps on bids, there is an increased risk of collusion and bid-rigging. Companies should be aware that gifts are often expected in order to secure a government contract, as stated by a large number of the surveyed companies in the World Bank & IFC Enterprise Surveys 2009.

Furthermore, companies should also take note that government procurement contracts still favour Filipino-controlled companies and, thus, local suppliers, which places the foreign companies at a disadvantage, as reported by the US Department of State 2011. Companies are recommended to make use of a specialised public procurement due diligence tool in order to mitigate the corruption risks associated with public procurement in the Philippines.

For more information on public procurement, see 'Public Anti-Corruption Initiatives' in the Initiatives section.

Political Corruption

According to the World Bank Managing the Politics of Reform 2006 working paper, the process of awarding government contracts for infrastructure and other such projects has been an important source of extra income for politicians and government officials. Selling contracts has also been a source for financial funding for political parties, because companies have either directly bribed politicians or donated cash to parties and campaigns in order to secure good relations and thus be given priority for government contracts. In general, public procurement lacks transparency in the bidding process, leading to overpricing of projects and substandard work.

According to the Transparency International's Global Corruption Report 2009 and a 2008 article from International Herald Tribune, another corruption scandal that broke out in 2007-2008 and implicated the former President Arroyo, concerned the USD 329.5 million national broadband project won by a Chinese state-owned company, ZTE. The scandal involved Benjamin Abalos, the former election commissioner, who had allegedly offered a PHP 200 million bribe to Romulo Neri, the former economic planning secretary, in order to hasten the approval of the deal. A businessman who lost the bid has accused the husband of former President Arroyo of putting pressure on him to withdraw his bid. As a result of the scandal, Arroyo cancelled the project.

For more information on public procurement, see 'Public Anti-Corruption Initiatives' in the Initiatives section.

Frequency

World Economic Forum: The Global Competitiveness Report 2010-2011:
- Business executives give the diversion of public funds to companies, individuals, or groups due to corruption a score of 2 on a 7-point scale (1 'very common' and 7 'never occurs').

- Business executives give the favouritism of government officials towards well-connected companies and individuals when deciding upon policies and contracts a score of 2.2 on a 7-point scale (1 'always show favouritism' and 7 'never show favouritism').

The World Bank & IFC: Enterprise Surveys 2009:
- 58.6% of the companies surveyed expect to give gifts in order to secure a government contract.

- The average value of a gift expected to secure a government contract is approximately 16.4% of the value of the contract.

Social Weather Stations: Business Survey on Corruption 2007:
- 50% of business leaders surveyed said almost all the companies in their line of business give bribes to win government contracts.

- 50% of business leaders surveyed said one-fifth of the companies in their line of business give bribes to win private sector contracts.

Business Corruption

According to a 2008 article from BBC News, prior to beginning mining projects, companies are required to get consent from the local population in areas that have a large percentage of Indigenous people, as mining projects tend to have a huge impact on the local community. In the pursuit of getting mining rights, there are examples of companies bribing the Indigenous community leaders in areas of poverty to obtain their support and help in seeking the consent of the population.

Political Corruption

According to the UNDP Asia-Pacific Human Development Report 2008, corruption in connection with extractive industries is exacerbated by the fact that the Philippine political elite have personal stakes in mining ventures.

According to Transparency International’s Global Corruption Report 2008, the Philippine National Irrigation Administration (NIA) spent approximately USD 827 million on irrigation projects in order to improve agricultural production. However, there was no water in the canals that had been built for this purpose. The project was a public-private partnership with a US multinational company as a contractor. This was yet another irregularity as foreign companies are only permitted to explore, develop and run operations that involve natural resources such as water in a company that have 60% Filipino ownership. Regardless of whether the water was delivered to the irrigation system or not, this company got a guaranteed fee for 20 years. The NIA had to borrow the money from the national treasury to be able to pay the contractor. This project, wrought with irregularities, was approved by former President Ramos in the 1990s because he allegedly had close relations with an executive of the US company.

• Legislation: Corruption-specific legislation in the Philippines dates back to 1960, when the country passed its first anti-corruption law, although provisions for penalties for corrupt officials were originally established by the Act Revising the Penal Code 1930. The Philippines ratified the United Nations Convention against Corruption in 2006. Corrupt practices are addressed by the Anti-Graft and Corrupt Practices Act and the Anti-Money Laundering Act of 2001, which criminalise attempted corruption, active and passive bribery, extortion, bribing a foreign official, using confidential state information for private gain, money laundering, and organised crime. The Anti-Graft and Corrupt Practices Act requires that public officials file Statements of Assets and Liability and Networth (SALN) every second year. The Constitution 1987 also includes articles on accountability of public officials and SALN (Art. IX, sect. 1-18). An Act Establishing a Code of Conduct and Ethical Standards for Public Officials and Employees was passed in 1989 and formulated standards for personal integrity and accountability of civil servants. Rules on gifts are included in the code of conduct and explicitly forbid solicitations of gifts, favours, etc. The Revised Penal Code also defines gifts as bribes (Art. 210), and the Anti-Graft and Corrupt Practices Act forbids officials from receiving gifts (sect. 3). The Constitution 1987 (Art. 6, sect. 20, Art. 2, sect. 28 and Art. 3, sect. 7) stipulates that transparency must be upheld by requiring all records of Congress to be preserved and made open to the public and the Commission on Audit (see below) to annually publish a list of amounts paid and expenses used by each Member of Congress. The Freedom of Information (FOI) Act, which will require a greater transparency from government officials, failed to pass in June 2010 due to lack of quorum, as reported in a 2010 news article by The Philippine Star. According to a 2011 news article by ABS-CBN News, President Aquino wants the FOI bill to be revised, and has stated that he is not comfortable with all ‘raw information’ on government affairs being made publicly available, according to ABS-CBN News. Access the Lexadin World Law Guide for a collection of laws in the Philippines.

• Government Strategies: The government's anti-corruption activities are viewed as an integral part of the overall development strategy, which has been developed in cooperation with international organisations, such as the Asian Development Bank, USAID, the World Bank and others. According to AFTA Sources, in March 2011, President Aquino approved the Philippine Development Plan (PDP) for 2011-2016, in which the overarching theme is good governance and anti-corruption while achieving inclusive growth, which would create substantial employment opportunities as well as reduce poverty. The low level of business confidence in the judicial system led to the implementation of the Action Programme for Judicial Reform, proposed and developed by a former Chief of Justice and supported by several international donors to rectify the deficiencies in the judicial system and turn it into an efficient, independent and transparent body. However, many of the reforms in the programme were not implemented, and the programme did not generate the government's desired effect. The tax system was another area that was chosen to be a target of reforms. In order to improve governance, reduce corruption and increase tax revenues, the World Bank stepped in with a loan to support the Board of Internal Revenues' (BIR) programme to modernise the tax administration system in 2007. As an anti-corruption measure, the government has established a reward scheme where the tax agencies that meet their targets or surpass them are rewarded, while those that do not meet their quotas are punished. Nevertheless, the BIR is still perceived by Filipinos as one of the most corrupt government agencies in the country, as illustrated in a March 2011 national survey conducted by Pulse Asia. In July 2010, President Aquino signed Executive Order No. 1 (EO No.1), which established a Truth Commission to probe allegations of corruption and anomalies under the former President Arroyo. However, a 2010 news article in GMA News reports that the Supreme Court in December 2010 ruled EO No. 1 unconstitutional, for the reason that it violates the equal protection clause of the Constitution. Despite that the ruling poses a major setback to the Aquino administration’s effort to institute reforms, the Palace spokesman, as cited in the news article, states that the Supreme Court’s decision will not stop the Aquino administration’s efforts to reform.

• Anti-Corruption Agencies: According to Global Integrity 2008, there were 17 governmental anti-graft agencies as of 2006, however, the Office of the Ombudsman (see below) serves as the main anti-corruption agency authorised to investigate and prosecute corruption cases involving public officials. It also takes care of corruption prevention measures, such as awareness-raising campaigns and analysing anti-corruption measures. The Presidential Anti-Graft Commission (PAGC) was established in 2001 to investigate and to hear administrative cases and complaints against erring presidential appointees, as well as to assist the President in anti-corruption campaigns. However, in November 2010, President Aquino signed the Executive Order No.13 (EO No.13), which abolishes the Presidential Anti-Graft Commission (PAGC). According to a November 2010 news article by ABS-CBN News, the abolition is part of the policy on streamlining the government bureaucracy, as the PAGC’s functions are already covered by the Ombudsman’s Office. According to a May 2011 news article by The Philippine Star, currently, the EO No.13 on PAGC abolition is being challenged, and the Malacañang (the official office of the President of the Philippines) is required to answer a petition in the Supreme Court questioning the PAGC abolition, before a ruling on its constitutionality is made.

• Office of the Ombudsman: The Office of the Ombudsman has existed for several decades and it was strengthened in 2003 by a doubling of its budget that increased its investigative and prosecutorial capacities. According to a 2009 news archive from the United Nations Development Programme, the government announced the Office of the Ombudsman as the country's leading anti-corruption agency in 2006. Corruption cases are brought before the Sandiganbayan, a special court for handling such cases. Criticism of the Office of the Ombudsman has focused mainly on targeting petty corruption instead of targeting the 'big fish'. This is further supported by the Bertelsmann Foundation 2010, which reports that the Ombudsman has been accused by CSOs for turning a blind eye to a series of corruption complaints against individuals who are closely tied to the former President. In April 2011, the Ombudsman, Merceditas Gutierrez, resigned after politicians voted to impeach her. Ms Gutierrez was accused of failing to probe corruption allegations against former President Arroyo and her administration, as reported in a 2011 article by BBC News. According to a May 2011 news article by The Philippine Star, the resignation takes effect on May 6th 2011 and the President has until August 4th 2011 to name her successor.

• Anti-Money Laundering Council (AMLC): Congress established the AMLC financial intelligence unit in 2001. The AMLC's task is to carry out investigations into money laundering activities and analyse data from banks and financial institutions regulated by the Central Bank of the Republic of the Philippines, the Securities and Exchange Commission (SEC) and the Insurance Commission (IC). According to the House of Representatives, the AMLC can file complaints with the Ombudsman as well as the Department of Justice (DOJ) in order to get money laundering offenders prosecuted or start civil forfeiture proceedings in cooperation with the Office of the Solicitor General (OSG). According to the US Department of State 2010, observers such as the Asia Pacific Group has expressed some concerns over the current Anti-Money Laundering Act, in particular that some businesses such as casinos are currently excluded from the Act, as well as a 2008 court ruling that made it more difficult for the AMLC to get information about suspicious bank accounts. However, the AMLC itself is pushing for increased authority in these areas. According to a March 2011 news article by Inquirer, the executive director of the AMLC states that casinos are in fact, used as a medium in money-laundering operations. The same source also reports that the AMLC proposes that casinos should be covered under the Anti-Money Laundering Act.

• Commission on Audit (COA): The COA was established in accordance with the Constitution 1987. It not only monitors government financial operations, but also has the authority to examine and audit all public financial transactions. Furthermore, it plays an important role in promoting transparency and accountability in public financial transactions. In this capacity, the COA is currently engaged in implementing an electronic New Government Accounting System. In the pursuit of greater transparency, the COA has launched an interactive portal that has a Fraud Alert Form with which whistleblowers can easily report fraud, mismanagement and waste of public funds. However, the portal cannot guarantee anonymity. According to Global Integrity 2008, although the COA has helped expose corruption and illegal practices, it does not have the authority to prosecute and punish corrupt civil servants, a task which is left to other relevant offices. These offices, however, are not obliged by law to follow up COA recommendations. Furthermore, COA officials often face harassment and threats as a result of exposing corrupt practices.

• Lifestyle Check Coalition (LCC): The LCC was established in March 2003. It comprised of 16 government agencies and NGOs, in order to investigate the ethics, nightlife and lifestyles of government officials. According to The Philippine Information Agency Rising to the Challenge of Good Governance 2009, over 200 lifestyle checks were conducted since it came into force. The President Anti-Graft Commission (PAGC) signed a Memorandum of Agreement (MOA) with ten of the most corruption prone public agencies to mandate them to submit at least one ‘big fish’ case and/or lifestyle check to either the PAGC or the Ombudsman Office every three months. However, according to Global Integrity 2008, this measure has not yet proven effective in exposing high-level corruption, as only low-level officials have been investigated. Moreover, there have not been any updates on the progress of the LCC since 2005.

• Commission on Elections (COMELEC): The COMELEC dates back to 1940, when it was established as an independent body to conduct and supervise elections in the Philippines. It represents an attempt to rid elections of irregularities, such as election-rigging, vote-buying and corruption. However, the COMELEC's reputation has been tarnished by several scandals. One of the most famous scandals involves a taped conversation between former President Arroyo and the COMELEC commissioner during the presidential election vote-counting in 2004. It is unclear whether the conversation was a serious attempt to rig the votes or whether the conversation was 'merely' an example of conflict of interest. According to Global Integrity 2008, there are no indications of any reduction in the level of electoral corruption and irregularities.

• Centre for Asian Integrity (CAI): The CAI has been set up by the Office of the Ombudsman, the University of the Philippines, Australian universities and international donors in 2008. It is funded by the Millennium Challenge Corporation (MCC) - Philippine Threshold Program through the Asia Foundation. The CAI is a virtual academy that offers training courses on anti-corruption and governance. The main objective of the project is to enhance integrity of Philippine government agencies, companies as well as NGOs. Click here for more information about the CAI.

• E-Governance: Development of e-governance has been slow in the Philippines, primarily because so few people have Internet access. The Bureau of Internal Revenues (BIR) has become more transparent with the use of electronic information exchange to connect to the One-Stop Shop Inter-Agency Tax Credit and Duty Drawback Center. According to the World Bank & IFC Doing Business 2011, the time spent dealing with the tax authorities amounts to only 195 hours annually, which is slightly below the OECD average, indicating that e-registration and e-payment of taxes has had a positive effect. The Bureau of Customs has also set up web-enabled clearance and payment service. The Philippine Government Electronic Procurement System (PhilGEPS) was launched by the Department of Budget and Management, and is expected to be fully operational by the last quarter of 2011. According to a February 2011 news article by Future Gov, once the PhilGEPS is fully implemented, all government agencies will be required to transact their procurement needs through this central portal.

• Public Procurement: The Government Procurement Reform Act 2003 stipulates that preference in purchasing be given to companies with at least a 60% Filipino ownership, thus favouring local suppliers. A government e-procurement system has been implemented in most government departments as well as government-controlled companies and organisations in order to help reduce graft and corruption in procurement. Procurements are mandated by the Act to be published to the general public. However, according to Global Integrity 2008, there have been cases where some major tenders, especially foreign-funded projects, were published just before the closing date for bids, which gave bidders insufficient time to react and submit their bids. The Philippine Government Electronic Procurement System (PhilGEPS) is the central online portal where all public procurement activities are posted. This is meant to be a vehicle to increase transparency within government procurement procedures. If bidders are found to be providing false information, or otherwise violating bidding regulations, they may be blacklisted. The list of debarred bidders can be found on the Government Procurement Policy Board website. Procurement manuals and documents are also available on the website. As a means of inhibiting opportunities for conflicts of interest within public procurement, decisions regarding procurement are made by a panel consisting of 5-7 officials; these officials are regularly rotated. Another initiative the government took to improve the procurement transparency is the creation of Procurement Transparency Group under the Executive Order 662-A. The group is led by the Government Procurement Policy Board, and its main tasks include evaluating and monitoring government procurements, as reported in Transparency International's Global Corruption Report 2009.

• Whistle-Blowing: In 2007, Congress drafted legislation to protect public and private sector whistleblowers. The hope is that this legislation will help to reduce corruption across all sectors. According to the Whistleblower Bill, it will be the Ombudsman who will be responsible for setting up the whistleblower programme. A 2011 news article by The Philippine Star reports that the House committee on justice has passed the proposed Whistleblowers’ Act in May 2011. Under the bill, a whistleblower will be protected from all forms of retaliatory actions, and anyone who prevents a whistleblower from testifying can face between six months to six years in prison. On the other hand, the bill also imposes six to twelve year prison terms on whistleblowers who report false and misleading testimonies. According to the same source cited above, the bill is expected to be reported out for plenary approval within a short time frame. Until a specific law is passed, whistleblower protection is, according to Global Integrity 2008, covered in laws that deal with witness and complainants protection (R.A. 6981 and P.D No. 749). Whistleblowers are frequently subject to harassment and intimidation. In the beginning of 2008, a high-profile case of a whistleblower feeling threatened and harassed broke in the media. According to several 2009 news sources including The Philippine Star, police officers sent by the government kidnapped Jun Lozada, a government official, in order to prevent him from testifying in the Senate on the overpricing of a government contract for national broadband. This case directly implicated former President Arroyo's husband and the chairman of the COMELEC. The government allegedly sent the police as protection against death threats against Lozada. In 2009, Lozada was arrested on charges of perjury filed by one of former President Arroyo's close associates. In sum, whistleblower protections in the Philippines are still very weak.

• General Comments on the Public Anti-Corruption Initiatives: In December 2010, the Supreme Court declared that the Executive Order No.1 creating the Truth Commission was unconstitutional, impeding President Aquino’s campaign to probe corruption allegations against former President Arroyo and her administration. It remains to be seen how President Aquino can tackle the country's corruption problem. Although the government declares that anti-corruption measures are of the highest priority, public sentiments on corruption issues in the country suggest that there is a mismatch between the proclaimed commitment to counter corruption and the actual effects of these measures. The government has shown commitment to e-governance as an attempt to increase transparency and to stamp out much of the corruption caused by face-to-face interactions with public officials, but one of the obstacles is that many Filipinos have no Internet access. Many anti-corruption initiatives are conducted in cooperation with international donor organisations. However, even though there are a large number of anti-corruption measures and initiatives, implementation of and compliance with such measures still lags behind. 

• Media: Freedom of the press is legally protected in the Philippines; however, Freedom House 2010 describes the Philippines' press environment as only 'partly free' due to an increase in violence against journalists. Assaults, arrests, lawsuits and censorship against journalists in the Philippines pose a serious threat to the freedom of the press. Freedom House 2010 further reports that the Philippines has become the world's most dangerous place for journalists, after 29 journalists were killed in a single incident in November 2009. Most of the journalists who have been killed or threatened were working on exposing corruption, or writing critically about the government, police or the army. An example of this, according to a June 2010 article from The New York Times, is that two radio broadcasters were killed within 24 hours. Both were known for searing commentaries on sensitive issues such as corruption and illegal logging. In recent years, suing a journalist for libel has been another way for people to set obstacles for the press. Libel is punishable by prison or large fines. According to Freedom House 2010, former President Arroyo's husband has been particularly active in this respect and by 2007; he had filed 11 libel suits against 46 journalists, as reported by Global Integrity 2008. Reporters Without Borders 2010 ranks the Philippines 156th out of 178 countries, while Freedom House 2010 ranks the country 97th out of 196 countries and describes the its media environment as 'partly free'.

• Civil Society: In the Philippines citizens have a constitutional right to association and assembly and thus to form and participate in civil society organisations (CSOs). According to the Bertelsmann Foundation 2010, CSOs in the Philippines are very active, and the number of CSOs is estimated to be around 116,000. A variety of NGOs exist, from religious groups to poverty alleviation groups etc. NGOs working with anti-corruption conduct joint projects to monitor government activities. According to a 2008 news article by ABS-CBN News, the Catholic Church was very vocal in criticising the Arroyo government for corruption and advocated via the Bishop-Businessmen Conference for a new government to bring down the level of corruption. According to Global Integrity 2007, several anti-corruption CSOs have dual character; they work outside the state advocating reforms while, at the same time, being part of state institutions (for instance, legislators, government executives, local government officials) working within the system to advance the cause of good governance. However, the Bertelsmann Foundation 2010 reports that CSOs do not have much influence over policy-making processes. Even though consultations are often being conducted, their recommendations are not always being taken into consideration. Kidnapping, arrest and extra-judicial killing of government opponents and CSO activists has been a serious problem in recent years, and CSO work continued to be somewhat risky in 2008, as reported by Global Integrity 2008.

• Transparency International Philippines: Transparency International Philippines is active in raising public awareness concerning corruption. On its website, it provides updates about anti-corruption activities in the Philippines and internationally.

• Philippine Center for Investigative Journalism (PCIJ): An independent, non-profit media agency which was founded in 1989 by nine journalists. The PCIJ publishes articles and books on malfeasance, presidential graft, irregular bidding in local governments, irregularities within the judicial system and more.

• Transparency and Accountability Network (TAN): The TAN has launched websites to supply public information as well as expose corruption. The network's members come from academia, the private sector and civil society groups with an interest in anti-corruption and good governance, including the research network which conducts quarterly surveys, Social Weather Stations, Transparency International Philippines and Procurement Watch Inc.

• Public Service Labor Independent Confederation (PSLINK): The PSLINK is a confederation of public sector unions of Philippine government employees from different national government agencies, state universities and colleges, local government units, government-financial institutions, health, teachers and special sectors. One of its main causes is to fight corruption and protect whistleblowers. The PSLINK has a small fund to help whistleblowers financially in cases where they have lost their job because of reporting their superior's corrupt behaviour.

• Makati Business Club (MBC): Originally established in 1981 as the Forum for Constructive Ideas, MBC is an influential forum of the Philippines' largest companies. MBC seeks to address public policy issues that go beyond business, including topics such as governance, politics and media control. MBC is also behind the private sector initiative Coalition on Corruption (CAC) that monitors procurement activities such as pork-barrel monitoring, Internal Revenue Allotment monitoring, textbook procurement, corruption diagnostics, etc. In response to criticism that the Ombudsman mostly goes after so called 'small fish', CAC and MBC introduced a project called 'Catching the Big Fish' to build up an anti-corruption fund in April 2008 that targets corruption among high-level politicians and other major players. In this connection, the MBC asked for the resignation of former President Arroyo's advisor, Romulo Neri, for his role in a corruption scandal involving kickbacks in a government deal with the Chinese company ZTE, which also implicated former President Arroyo.

• Transparent Accountable Governance (TAG): The TAG is a coalition of private sector organisations, civil society organisations and government institutions. The project attempts to gather information about corruption in Philippine society and provides investigative reports on corruption cases and anti-corruption initiatives. The project is funded mainly by the Asia Foundation and USAID.

The websites listed below provide useful facts on the Philippines as well as contacts and tools for companies operating in the Philippines:

• International Finance Corporation: Philippines SME Toolkit
  Guide to sustainable business management practices for SMEs.
• Business Fighting Corruption
  An online resource centre for business on collective action to avoid corruption which contains a guide and resources for partnerships with companies and other stakeholders to fight against corruption.
• CIA World Factbook: Philippines Profile
• World Bank: Philippines Data Profile

Sources for further reading:

• US Department of State: Investment Climate Statement - Philippines 2011.
• The Bertelsmann Foundation: Transformation Index - Philippines 2010.
• Transparency International: Global Corruption Barometer 2010.
• Global Integrity: Philippines Country Report 2008.
• Transparency International: Bribe Payers Index 2008.

UNCAC Status: Signed 9 December 2003. Ratified 8 November 2006.

Status on UNCAC Implementation
This field describes the country's status on the United Nations Convention against Corruption. Please note any declarations and reservations made upon ratification. The list of signatories can be found on the UNODC website. Read more about the UNCAC.

Other Relevant Conventions or Treaties:

• ADB & OECD Anti-Corruption Initiative for Asia-Pacific Anti-Corruption Action Plan for Asia and the Pacific: Endorsed 30 November 2001.
  Read Transparency International's summary and assessment of the action plan.
• United Nations Convention against Transnational Organized Crime: Signed 14 December 2000. Ratified 28 May 2002.
  Read Transparency International's summary and assessment of the convention.

Transparency CPI: 2011: 129/182 (Score: 2.6)

Transparency CPI
This field consists of the score for the country in question on the Corruption Perceptions Index from Transparency International as well as its ranking.

World Bank CORR Index (-2.5 - +2.5): 2010: - 0.82

World Bank Corruption Index
This field consists of the score for the country in question on the 'Control of Corruption' indicator in the World Bank Governance Research Indicator Country Snapshot (GRICS): 1996-2010.

OECD Country Risk Classification (0-7): 2011: 4

Country Risk Classification
The classification of countries by risk category has the aim of providing OECD countries with a basis for calculating the premium interest rate to be charged to cover the risk of non-repayment of export credits. Countries are placed in risk categories 0 - 7, with 0 being the lowest risk category and thus the least expensive. Conversely, premium group 7 is the highest risk category. Each classification is comprised of 2 components: 1) an assessment of the country's economic/financial situation, and 2) its overall political stability. Access the complete list of OECD Country Risk Classification figures.

Data Verification:

Publication date: June 2011

Data verified by: Global Advice Network

General Information Sources

• The World Bank & IFC: Doing Business 2011.
• The Heritage Foundation: Index of Economic Freedom - Philippines 2011.
• US Department of State: Investment Climate Statement - Philippines 2011.
• World Economic Forum: The Global Competitiveness Report 2010-2011.
• Freedom House: Freedom in the World - Philippines 2010.
• Transparency International: Global Corruption Barometer 2010.
• Jurist Org: 'Philippines high court rules 'truth commission' unconstitutional', 7 December 2010.
• ABS-CBN: 'Aquino needs to deliver in graft fight', 29 September 2010.
• Inquirer: 'Aquino signs EO on Truth Commission', 30 July 2010.
• Xinhua News: 'Philippine President's SONA reflects his seriousness to fight corruption',26 July 2010.
• The Wall Street Journal: 'Aquino's Graft Probe Sparks Fears for Economy', 1 July 2010.
• AFP: 'Aquino to be proclaimed Philippine president', 8 June 2010.
• The Philippine Star: 'Tipping the salary scale', 1 June 2010.
• Social Weather Stations: '2009 SWS Surveys of Enterprises on Corruption: Most managers say renewal of local business permits is getting easier; 31% expect companies to donate to election campaigns', 11 February 2010.
• The World Bank & IFC: Enterprise Surveys 2009.
• Asian Development Bank: Republic of the Philippines: Strengthening the
  Philippine Government Electronic Procurement System, March 2009.
• The Manila Times: 'Don't Ratify Revised Kyoto [customs] Convention Yet', 10 November 2009.
• Philexport: 'News and Features', 3 April 2009.
• Social Weather Stations: Survey of Enterprises on Corruption 2008.
• Transparency International: Bribe Payers Index 2008.
• Global Integrity: Philippines Country Report 2008.
• AmCham Vietnam: 'U.S. firm to pay $ 300,000 to resolve Foreign Corrupt Practices Act violations in the Philippines', August 2008.
• US Securities and Exchange Commission: 'SEC Files Settled Enforcement Action Charging Con-way Inc. with Violations of the Foreign Corrupt Practices Act', Press Release, 27 August 2008.
• United Nations Asia and Far East Institute: Corruption Control in Public Procurement July 2008.
• Reuters: 'Thousands Protest Against Philippines' Arroyo', 15 February 2008.
• Freedom House: Countries at the Crossroads - Philippines 2007.
• Transparency International: Global Corruption Barometer 2007.
• Reuters News: 'Arroyo 'most corrupt' Philippine leader - poll', 12 December 2007.
• Social Weather Stations: Business Survey on Corruption 2007.
• Transparency International: National Integrity Systems Country Study Report Philippines 2006.

Corruption Levels Sources

Judicial System

• The World Bank & IFC: Doing Business 2011.
• US Department of State: Investment Climate Statement - Philippines 2011.
• World Economic Forum: The Global Competitiveness Report 2010-2011.
• Freedom House: Freedom in the World - Philippines 2010.
• Transparency International: Global Corruption Barometer 2010.
• The World Bank & IFC: Enterprise Surveys 2009.
• US Department of State: Human Rights Report - Philippines 2009.
• ABS-CBN News: 'Timeline: The Story of the 'Alabang Boys', PDEA and DOJ', 7 January 2009.
• The Manila Times: 'The Alabang Boys', 6 January 2009.
• Social Weather Stations: Survey of Enterprises on Corruption 2008.
• Global Integrity: Philippines Country Report 2008.
• Transparency International: Bribe Payers Index 2008.
• ABS-CBN News: 'Court of Appeals Scandal: The Many Faces of Bribes', 9 September 2008.

Police

• World Economic Forum: The Global Competitiveness Report 2010-2011.
• Inquirer.net: 'PNP objects to ‘second most corrupt agency’ tag ', 29 March 2011.
• Pulse Asia: 'Corruption', 28 March 2011.
• The Peninsula: 'Armed Forces of Philippines backs probe', 31 January 2011.
• Transparency International: Global Corruption Barometer 2010.
• US Department of State: Human Rights Report - Philippines 2010.
• Inquirer: '2 cops in extort, bribe raps freed', 25 July 2010.
• Inquirer: 'I-Team Report: Think Issues: Ali Baba is gone, but thieves still around, thriving', 17 February 2010.
• The World Bank & IFC: Enterprise Surveys 2009.
• Global Integrity: Philippines Country Report 2008.
• Transparency International: Bribe Payers Index 2008.
• South China Morning Post: 'More Big Fish to Fry', 14 September 2007.
• Immigration and Refugee Board of Canada: Philippines - Reports of corruption and bribery within the police force; government response; frequency of convictions of members of the police force accused of criminal activity 2004-2006.

Licences, Infrastructure and Public Utilities

• The World Bank & IFC: Doing Business 2011.
• US Department of State: Investment Climate Statement - Philippines 2011.
• World Economic Forum: The Global Competitiveness Report 2010-2011.
• Pulse Asia: 'Corruption', 28 March 2011.
• Transparency International: Global Corruption Barometer 2010.
• The World Bank & IFC: Enterprise Surveys 2009.
• Procurement Watch Incorporated: A Study of Anti-Corruption Initiatives in the Philippines’ Construction Sector, December 2009.
• Philippine Center for Investigative Journalism: '$45m lost to bribes for ‘cartel’ backed by DPWH, pols', 13 February 2009.
• International Herald Tribune: 'World Bank Bars Philippine, China Firms for Graft', 15 January 2009.
• Transparency International: Bribe Payers Index 2008.
• Social Weather Stations: Survey of Enterprises on Corruption 2008.
• The Bertelsmann Foundation: Transformation Index - Philippines 2008.
• UNDP: Asia-Pacific Human Development Report - Tackling Corruption, Transforming Lives 2008.
• Global Integrity: Philippines Country Report 2008.

Land Administration

• The World Bank & IFC: Doing Business 2011.
  World Economic Forum: The Global Competitiveness Report 2010-2011.
• Transparency International: Global Corruption Barometer 2010.
• US Department of State: Investment Climate Statement - Philippines 2010.
• UPI Asia: 'Filipino Farmers Struggle for Land Rights', 9 December 2008.

Tax Administration

• The World Bank & IFC: Doing Business 2011.
• Transparency International: Global Corruption Barometer 2010.
• Bloomberg: 'Philippine Government Seeking Tax Evasion Reports via Facebook, Twitter', 7 July 2010.
• The World Bank & IFC: Enterprise Surveys 2009.
• Transparency International: Bribe Payers Index 2008.
• Global Integrity: Philippines Country Report 2008.
• Social Weather Stations: Survey of Enterprises on Corruption 2008.
• The Manila Times: 'BIR files tax evasion cases versus holders, sellers of fake tax credit certificates', 25 July 2008.
• Integrity Watch News: 'Three BIR-Cebu Officials Dismissed', August-October 2007.
• Global Integrity: Philippines Country Report 2004.

Customs Administration

• The World Bank & IFC: Doing Business 2011.
• World Economic Forum: Global Enabling Trade Report 2010.
• Transparency International: Global Corruption Barometer 2010.
• Philippine Public Transparency Reporting Project: 'Too Corrupt to Change? The Battle to Reform the Bureau of Customs', 6 October 2010.
• Inquirer: 'I-Team Report: Think Issues: Ali Baba is gone, but thieves still around, thriving', 17 February 2010.
• The World Bank & IFC: Enterprise Surveys 2009.
• US Department of State: Investment Climate Statement - Philippines 2009.
• Social Weather Stations: Survey of Enterprises on Corruption 2008.
• Global Integrity: Philippines Country Report 2008.
• Transparency International: Bribe Payers Index 2008.
• AmCham Vietnam: 'U.S. firm to pay $ 300,000 to resolve Foreign Corrupt Practices Act violations in the Philippines', August 2008.
• UPIAsia: 'Rampant Smuggling in the Philippines', 18 March 2008.
• Integrity Watch News: 'BOC Officials Suspended for Smuggling', November-December 2007.

Public Procurement and Contracting

• US Department of State: Investment Climate Statement - Philippines 2011.
• World Economic Forum: The Global Competitiveness Report 2010-2011.
• The Bertelsmann Foundation: Transformation Index - Philippines 2010.
• Transparency International: Global Corruption Report 2009.
• The World Bank & IFC: Enterprise Surveys 2009.
• International Herald Tribune: 'Business groups join fray in Philippine corruption scandal', 17 February 2008.
• Social Weather Stations: Business Survey on Corruption 2007.
• ADB & OECD Anti-Corruption Initiative for Asia-Pacific: Curbing Corruption in Public Procurement in Asia and the Pacific: Philippines Country Report 2006.
• The World Bank, Campos and Syquia: Managing the Politics of Reform: Overhauling the Legal Infrastructure of Public Procurement in the Philippines, World Bank Working Paper No. 70 2006.

Environment, Natural Resources and Extractive Industry

• Transparency International: Global Corruption Report 2008.
• UNDP: Asia-Pacific Human Development Report - Tackling Corruption, Transforming Lives 2008.
• Global Integrity: Philippines Country Report 2008.
• BBC News: '"Bribery" Secured Philippine Mine', 23 October 2008.

Public Anti-Corruption Initiatives Sources

• The World Bank & IFC: Doing Business 2011.
• The Heritage Foundation: Index of Economic Freedom - Philippines 2011.
• The Philippine Star: 'House panel passes whistleblowers' Act', 20 May 2011.
• The Philippine Star: 'JBC: New Ombudsman to get fresh 7-year term ', 3 May 2011.
• The Philippine Star: 'Supreme Court orders Palace to answer petition on PAGC abolition', 2 May 2011.
• BBC News: 'Philippine anti-corruption chief steps down', 29 April 2011
• The Philippine Star: 'House to pass Whistleblowers' Act in May', 11 April 2011.
• AFTA Sources: 'New 6-year blueprint to speed up Philippines' development to catch up with the neiboring countries', 31 March 2011.
• Inquirer: 'Casinos proposed to be covered under anti-laundering law', 8 March 2011.
• Future Gov: 'Philippines e-procurement system targets late 2011 launch', 24 February 2011.
• ABS-CBN News: 'Aquino wants Freedom of Info bill 'fixed'', 8 February 2011.
• GMA News: 'Palace: SC decision on Truth Commission sets back reform efforts', 7 December 2010.
• ABS-CBN News: 'Aquino abolishes anti-graft body', 24 November 2010.
• Inquirer: 'Aquino signs EO on Truth Commission', 30 July 2010.
• The Philippine Star: 'House fails to pass Freedom of Information bill', 4 June 2010.
• US Department of State: Investment Climate Statement - Philippines 2009.
• Transparency International: Global Corruption Barometer 2009.
• The Philippine Star: 'Senate passes Freedom of Information Act', 9 December 2009.
• The Philippine Star: 'Approval of Congress' own witness protection program seen', 22 August 2009.
• UNDP: ' UNDP Supports Philippine Summit on the United Nations Convention Against Corruption', 27 May 2009.
• InquirerNet: 'Senators see Palace Hand in Lozada Arrest', 29 April 2009.
• The Philippine Information Agency: Rising to the Challenge of Good Governance February 2009.
• Freedom House: Freedom in the World - Philippines 2008.
• Global Integrity: Philippines Country Report 2008.
• Inquirer.net: 'Asian Antigraft Academy Rises in Philippines', 9 September 2008.
• Presidential Anti-Graft Commission: 'Php 1 Billion Anti-Corruption Fund Given by H.E. President Gloria Macapagal Arroyo', 31 July 2008.
• Reuters: 'Manila's Arroyo Vows to Pass Anti-Corruption Law', 11 March 2008.
• Asia Sentinel: 'Philippines + Scandal = Life Goes On', 19 February 2008.
• International Herald Tribune: 'Business Groups Join Fray in Philippine Corruption Scandal', 17 February 2008.
• Nationwide International News: 'Philippine Gov't Vows to Intensify Drive vs. Graft, Corruption', 16 January 2008.
• House of Representatives: 'Committee looks into anti-corruption funds', 19 December 2007.
• Freedom House: Countries at the Crossroads - Philippines 2007.
• Transparency Watch: Whistleblowing in the Philippines - an interview with Annie Geron, Secretary General of PSLINK 2007.
• Manila Times: 'Maricel Cruz: JdV dares President: Lead Moral Revolution', 18 October 2007.
• The World Bank: 'Philippines: Bureau of Internal Revenues Receives Support From World Bank For More Efficient And Equitable Tax Administration', 14 March 2007.
• Aim-Hills Governance Center: Whistleblowing in the Philippines: Awareness, Attitudes and Structures 2006.
• The World Bank Philippines Country Management Unit: Country Assistance Strategy for the Philippines 2006-2008, 2005.

Private Anti-Corruption Initiatives Sources

• Reporters Without Borders: Philippines Country Report 2010.
• Reporters Without Borders: Worldwide Press Freedom Index 2010.
• Freedom House: Freedom of the Press Index 2010.
• Freedom House: Freedom in the World - Philippines 2010.
• Freedom House: Freedom of the Press - Philippines 2010.
• The Bertelsmann Foundation: Transformation Index - Philippines 2010.
• The New York Times: 'Radio Journalist Slain in Philippines', 16 June 2010.
• Reporters Without Borders: Philippines Country Report 2009.
• Reporters Without Borders: 'Wars and disputed elections: The most dangerous stories for journalists', 30 December 2009.
• Global Integrity: Philippine Country Report 2008.
• Inquirer.net: 'Says Paterno: Only 2 Cabinet Members Are Upright', 4 November 2008.
• ABS-CBN News: '5 Catholic Church Leaders Say "Time to Prepare New Gov't is Now"', 28 October 2008.
• The Nation: 'Private Sector Group launches Anti-Corruption Fund', 16 April 2008.
• International Herald Tribune: 'Business Groups Join Fray in Philippine Corruption Scandal', 17 February 2008.
• Global Integrity: Philippine Country Report 2007.
• Freedom House: Freedom of the Press - Philippines 2007.
• Transparency Watch: Whistleblowing in the Philippines - an interview with Annie Geron, Secretary General of PSLINK 2007.