Philippines Country Profile

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Business Corruption in the Philippines

Philippines flag, corruptionCorruption restricts the efficiency of businesses operating in the Philippines. Extensive bribery within the public administration and vague and complex laws make foreign companies vulnerable to extortion and manipulation by public officials. Favouritism and undue influence are widespread in the courts, leading to time-consuming and unfair dispute resolution and to an uncertain business environment. Foreign investors are particularly vulnerable to bribery when trying to obtain licences and permits. Corruption plagues the customs administration, and fraud is routine for companies when filing import and export documentation. The Anti-Graft and Corrupt Practices Act criminalises active and passive bribery, extortion, abuse of office, and conflicts of interest. Gifts are forbidden by law, but small-value gifts are cultural practice. Facilitation payments are not addressed by anti-corruption regulations. The legislative framework for fighting corruption is complicated and is not effectively enforced by the weak and non-cooperative law enforcement agencies.

August 2015
GAN Integrity Solutions