Dereliction – willful negligenceBribery – the process of offering something in order to gain an illicit advantage
Malversation – misconduct in public officeFraud - Something intended to deceive; deliberate trickery intended to gain an advantage.
2009 – 1392011 – 1292008 – 141Out of 180 countries
Graft and corruption
Honesty is very much a part and parcel of the
Filipino culture. This trait was one of the
endearing qualities of our ancestors. In fact,
the Code of Kalantiao, one of four earliest legal
compendiums, considered it important so much
so that whoever was found to be dishonest in
dealing with others was meted out with
appropriate punishment. That is why even
trades with foreigners like the Chinese then
went on smoothly because the early Filipinos
never cheated them. Such trait has been
passed on to us from one generation to
another. (Garcia, 1994)
At our contemporary times, however, honesty
seems to be a rarity among us Filipinos.
Probably because of the pervasive effects of
materialism and the worsening socio-economic
conditions, we only put premium on honesty
theoretically. Our excessive desire to own more
wealth and money is so overwhelming that
such virtue of honesty seems to be a thing of
the past already.
Corruption, as most
scholars have found, is
more rampant or
uncontrolled in newly
independent states. It is
marked and prevalent
during the period of rapid
social and economic
growth. Thus, this
condition is attributed to
the discrepancy between
the cultural norms and
the legal norms.
According to the Sage’s
English Dictionary, a
software dictionary, it
says that corruption is
the inducement (as of
public official) by
improper means (as
bribery) to violate duty
(as by committing a
On the other hand, graft
is a form of corruption
but is an individual act. It
is the illegal
appropriation of public
resources by a single
official or a group of
officials. It does not
among officials or
between officials with
Forms of Graft and Corruption
Dereliction of duty or
failure to discharge one’s
Bribery or utilizing one’s
public or official position
as a means in performing
an unlawful act in
exchange of any offer,
promise, gift, and money
Forms of Graft and Corruption
Malversation of public
funds or property in which
he appropriates, takes or
funds and/or allows
another person to do the
against the public
treasury and be involved
in illegal evictions and
The Philippines was considered
private property of the King of Spain
when the Spanish government was
established in the whole archipelago
due to the reason that the expedition
of Magellan and the subsequent
expeditions were put into reality thru
the finances that was given by the
private funds of the Spanish
monarchs. The used of the term
property included in its definition the
colonial offices, privileges and
gainful positions in the colonies.
“Many offices of the government were therefore
sold and auctions were lively affairs. Some of the
saleable offices were those of clerks in the central
and provincial government; clerks of courts,
notaries-public, constable, sheriffs, wardens, and
guards; members of municipal councils;
treasurers, assayers, and inspectors of all
categories.” Even positions which were not
saleable were bought. It was inevitable that
officers of this caliber were there to make the
most of their positions. The excesses and abuses
of these government personnel regarding the
finances of the king and the Filipino people were
notorious and scandalous.
Thus, to check and control
the abuse of selling
government offices, the
residencia, to be
conducted by a judge
(juez), was created to
investigate and assess all
actions taken by the
official while he is in office.
But then, it was not
effective since resourceful
and clever officials where
they bribe and buy the
juez de residencia.
The government then allocated certain sums for
the improvement of the colonies but such funds
were deployed elsewhere leaving very little for
the public works projects, communication,
sanitations, and others. More than one half of the
budget was spent for the salaries of the officials
leaving very much less for the conduct of
government and practically no item for public
The Filipinos then view the government as
guardia civil. With this view the Filipinos had of
the government, the people looked elsewhere for
the means within which their welfare and security
were to be safeguarded. And the institution which
was most available was the family. The
government is a public institution while the family
is a private one.
Filipinization of the colonial civil service, it was
observed that in many departments of the
government, many employees were related to
one another. It was also found out that there were
cases when two bureau directors would appoint
each other’s relatives in their respective offices.
This is designed to counteract any charge of
nepotism, an illegal act that is based on the
exchange of favors or sentiments. An officer is
corrupt if he deals with the hiring, promotion or
service allocation with clients of other officials on
the basis of ascriptive or particularistic
consideration of kinship, friendship or regional
ties rather than merit.
After liberation, military stocks and supplies were turned
over to the Philippine Government by the United States.
Many of these supplies were found in the black market.
The disposition of these supplies became scandalous
and precipitated the so called “surplus scandals.” The
money obtained was used to strengthen political party
build-ups and many became instant millionaires. The
massive corruption that followed resulted in a situation
that was unknown in pre-war years.
more corruption continued even starting from the
top to the bottom. Influence peddling, kickbacks,
overpricing, rigged biddings, padded projects
expenses, expense accounts and payrolls, use of
public funds for vote-buying and personal
expenses, profligate spending, nepotism,
cronyism, tampering of public documents and
election returns, paid prosecutor and judicial
decisions, smuggling, test leakages, sale of juicy
positions, bribery, rigging of board examinations,
even surreptitious insertion of questionable
clauses and provisions in bills awaiting
presidential approval characterized the conduct of
Corruption is massive and has
gone beyond the realm of
family and personalistic
considerations. It happens in
the lower level, middle and
higher level. In the years before
the administration of President
Corazon Aquino, there was little
public denunciation and
popular indignation. At most,
these were only politically
motivated denunciations during
the electoral campaign which
died down afterwards.
The ₱ 520 million DAR loans on December 3, 1992.
Senator Kit Tatad discovered that BIR officials helped
cigarette manufacturers to reduce their tax payments. The
government loss because of this amounted to ₱3.1 billion in
The Laharscam – 58 former incumbent government officials
reportedly colluded with 40 private contractors to steal ₱5
billion in rehabilitation funds.
Oil pilferage of the National Power Corporation amounting
to almost ₱9 million involving officials of the agency.
Joseph Estrada, chairman of the Presidential Anti-Crime
Committee, exposed on the floor of the Senate the different
complaints against “hoodlums in robes” meaning members
of the judiciary.
Rampant corruption from the top echelon to the lowest
ranks of the police and the military.
The Ill-Effects of Corruption
Graft and corruption decreases respect for
allegiance to the government. It counteracts
growth of nationalism. It distracts unity in
government leadership and endangers political
Corruption dislocates national economic
planning. It introduces an element of irrationality
in plan fulfillment by influencing negatively the
actual course of a national development plan.
Corruption accentuates already existing
inequalities by providing more power and
opportunities to those who are already
The Ill-Effects of Corruption
Corruption causes wasteful dissipation of
limited resources by increasing the cost of
development because funds are channeled
outside the government to private pockets.
The cost of corruption is eventually passed on
to the public and becomes a form of taxation.
Whatever amount is illegally channeled to
private use, the people shoulder the cost
because public funds are the people’s money.
The Positive Effects of Corruption
Corruption provides supplement mechanism for
investment purposes. Corruption money may
be invested in private enterprises if not kept in
Swiss banks for personal purposes.
Corruption may increase the effectiveness level
of the bureaucracy. Corruption money could be
another form of inducement for able persons to
enter government services.
Corruption may benefit the depressed sector in
the form of gainful employment as in nepotism.
The General Causes of Corruption
Corruption occurs more in developing societies
because of the marked discrepancy between
the cultural norms.
The inability of the new independent states to
cope with the multiple demands and problems
in moving towards modernizations.
The unrealistic salaries of government officials
may lead them to accept sources of income.
The General Causes of Corruption
The excessive discretionary power extended to
public officials, the cumbersome red tape in the
bureaucracy usually results in corruption due to
high attractive inducements offered under the
The bad example set by leadership.
The complex system of justice which hinders
the prosecution of public servants who have
been accused of corruptive behavior.
There are certain segments of the population
that are prone to corruption.
Prohibited Acts and Transactions
As stated in the Code of Conducts and Ethical
Standards, under section 7, the following shall
constitute prohibited acts and transactions:
Financial and material Interest.
Outside employment and other activities related
Disclosure and/or misuse of confidential
Solicitation or acceptance of gifts.
Article II State Policies
Sec 27 of the 1986
constitution: The senate
shall maintain honesty
and integrity in the public
service and take positive
and effective measures
against graft and
The office of the
Ombudsman is the
official authorized to
receive and act on
government officials who
The anti-graft court is
known as the
Tanodbayan is also
known as the Special
The Congress of the
Philippines has a “blue
ribbon commission” with
the responsibility of
in government in aid of