Aquino says Philippines winning war on graft

MANILA, Philippines—The Philippines has begun to win its war against endemic corruption, President Benigno Aquino said on Monday as he outlined more cases of alleged massive graft under his predecessor’s rule.

In his annual “State of the Nation Address,” Aquino said his impoverished country was enjoying direct benefits of the anti-corruption crusade, with fewer people going hungry, the unemployment rate dropping and stock market climbing.

“We are steering our government in a clear direction,” Aquino told a joint sitting of congress.

“A country where opportunity is available, where those in need are helped, where everyone’s sacrifice is rewarded, and where those who do wrong are held accountable.”

Aquino has come under fire from some opponents for his devotion to fighting corruption since taking office on June 30 last year, with some accusing him of using his high-profile crusade to mask a lack of progress in other areas.

But Aquino said his priorities would not change during the remainder of his six-year term, insisting that eradicating corruption in government and society in general was fundamental to tackling poverty.

Aquino said his government had uncovered many corrupt practices during the nearly decade-long rule of his predecessor, Gloria Arroyo.

He highlighted a case in which the state gaming agency, Pagcor, claimed to have spent P1 billion ($23 million) on coffee when it was run by an Arroyo appointee. But that would have equated to 10 million cups of coffee.

“Where did all the coffee go? Who drank it?” Aquino asked.

He promised that his government would finally file some “major” corruption cases this year, after several attempts to prosecute Arroyo and her allies had failed for various reasons over the past 12 months.

“The truth is, we have uncovered so many anomalies,” Aquino said, adding: “These will be real cases, with strong evidence and clear testimonies, which will lead to the punishment of the guilty.”

Arroyo, who won a seat in the lower house of parliament in last year’s elections, was not in congress for Aquino’s speech.

Aquino also revealed how former heads of the Philippine National Construction Corp. had enriched themselves while they were in power.

“Before they stepped down from their positions, the former heads of the PNCC gifted themselves with P232 million,” he said. “Their franchise had lapsed in 2007. The collections should have been remitted to the national government. They did not do this, and in fact even took advantage of their positions. .The bonuses they allotted to themselves in the first six months of 2010 was double the amount of their bonuses in 2005-2009. Yet they had the audacity to award themselves midnight bonuses, when they had already drowned their agencies in debt,” Aquino said.

Aqino said his government also uncovered and stopped an “ill-advised plan” to dredge Laguna Lake. “We would have borrowed 18.7 billion pesos to remove 12 million cubic meters of silt—which would have re-accumulated within three years, even before the debt could be fully paid,” said the President.

He said his adminsitration also uncovered a food-for-school program with no proper targeting of beneficiaries, and other initiatives that were funded without apparent results.
“All of these were discontinued, and the funds rechanneled to more effective programs,” said Aquino.

The President said they likewise uncovered the irregular activity in a district in Region 4B where a district engineer took a project worth P300 million and then cut it into components so as not to breach the P50 million limit which would have required them to seek clearance from the regional and central offices.

“They tried to keep this system going. And often, since lump-sum funding was being used for the projects, no questions were asked about the plans or project details. They could have been spinning webs and they would have still been given the funds, so long as they knew someone in power,” he said.

The said district engineer, Aquino said, had been removed from office..

Aquino said his anti-corruption efforts had helped to ease the hunger rate in the Philippines, with more money going to the poor as government officials had siphoned off less for themselves.

He also said business confidence was improving, with the stock market sitting near record highs and the unemployment rate dropping to 7.2 percent.

And he pointed to a vote in confidence from international credit ratings agencies such as Moody’s and Standard and Poor’s, which have lifted the country’s debt or credit ratings in recent months.

“These improved credit ratings mean lower interest on our debts… our economic team is hard at work to sustain the momentum,” Aquino said.