MANILA, Philippines鈥擳he transition of President Rodrigo Duterte from tough talk to seeming helplessness against corruption was palpable.
The President, who once declared he won鈥檛 condone even a 鈥渨hiff鈥� of corruption, has been drawn to saying 鈥測ou cannot stop corruption鈥� by what he and his explainers said was the sheer enormity of the problem.
READ: As whiff of corruption emits bad odor, Duterte quick to defend his men
In his last State of the Nation Address, Duterte said corruption was 鈥渆ndemic in government鈥� and 鈥渘obody can stop corruption unless you overturn the government completely.鈥�
To get rid of corruption, he said martial law should be declared. He earlier said 鈥渢he most that we can do is to fight it鈥� because 鈥渋f you don鈥檛 want corruption, then close the government.鈥�
鈥淲e are not proclaiming that we have gotten rid of corruption. There is still corruption in this government and any other government that will come after me and in the past 鈥� it is always there,鈥� he said.
In 2016, however, when he was still campaigning for the presidency, Duterte declared that if he was elected, he will get rid of corruption. 鈥淕ive me about three to six months,鈥� he said.
Five years later, the Commission on Audit (COA) released a report finding 鈥渄eficiencies鈥� in the use of P67.3 billion by the Department of Health (DOH) in the fight against COVID-19, including P41 billion transferred to the Procurement Service-Department of Budget and Management (PS-DBM).
The COA said the fund transfer was not covered by documents which led to the delay in delivery of medical supplies essential in pandemic response.
This became a trigger for the Senate to look deeper and to find signs of irregularities in fund use, especially for supplies from Pharmally Pharmaceutical Corp, a company incorporated just months before it bagged billions of pesos in supply contracts.
READ: As probe shines light on COVID deals, more questions arise
Renato Reyes Jr, secretary general of the leftwing militant group Bayan, said the deals had 鈥渢he makings of a scam of the decade.鈥�
From March 2020 to July 2021, the firm that was incorporated last Sept. 2, 2019 with a capital of less than a million had contracts with the government worth P11 billion.
Accountant Jahleel-An Burao said after the analysis of the company鈥檚 financial statements, it was notable that it 鈥渄oes not appear to be financially capable鈥� to finance the contracts given to them.
READ: 鈥楴egosyo lang鈥�: Pharmally鈥檚 meteoric rise
The President, however, insisted that there was no corruption in government procurements for the fight against the pandemic, saying that items were bought at the height of the outbreak, 鈥渨hen the prices of supplies skyrocketed due to scarcity of supply and abrupt demand increase.鈥�
READ: No overpriced purchase of face masks, face shields 鈥� Duterte
In his latest Talk to the People, he alleged that senators were the ones involved in corruption and his Cabinet members were 鈥渃lean.鈥�
鈥淚 would be lying if I say there is no corruption. In some other offices, departments, there are. But I am making you this guarantee, there is no corruption among my Cabinet members. They are all clean,鈥� he said.
READ: Duterte insists 鈥榥o corruption鈥� in gov鈥檛 procurement during pandemic
Last Sept. 1, as the President went all out in his defense of Health Secretary Francisco Duque III, Dennis Coronacion, a political expert from the University of Santo Tomas, said 鈥渢he government has no serious program against corruption.鈥�
鈥榃补蝉迟别诲鈥�
In 2018, Sen. Panfilo Lacson, citing Commission on Audit data, said P583.5 billion had been wasted because of discontinued or shelved projects. 鈥淲e鈥檙e either overtaxed or underserved, or both,鈥� he said.
He thanked COA in August that year for 鈥渄iligently performing your mandate,鈥� saying that it was 鈥渄isgusting鈥� that billions of government funds had been 鈥渨asted on corruption and incompetence.鈥�
Graphic by Ed Lustan
Lacson said in a roundtable discussion with the INQUIRER in 2018 that the P583.5 billion was 17.4 percent of the government鈥檚 P3.35 trillion national budget in 2017.
He said the COA suspended government transactions worth P402.8 billion, disallowed projects worth P20 billion, and issued notices to other projects worth P160.7 billion still in litigation or 鈥渃harged.鈥�
Graphic by Ed Lustan
The COA, as an independent constitutional commission, has the power to issue notices to disallow, suspend or charge 鈥渋rregular, unnecessary, excessive, extravagant or unconscionable expenditures or uses of government funds and properties.鈥�
When asked regarding this, then Presidential Spokesperson and Chief Presidential Legal Counsel Salvador Panelo said 鈥減rojects were stopped, because there is a legal issue involved.鈥�
鈥淧ossibly, the losing bidder filed [a case], so it was stopped. But it doesn鈥檛 mean it was wasted, it was only stopped,鈥� he said.
Panelo, asked if the government will initiate an investigation, said, 鈥淚t doesn鈥檛 have to do that. Because precisely [鈥聽 if COA finds something irregular, then it鈥檚 their duty to recommend filing of charges and [it] is also the duty of DOJ (Department of Justice) to do the same, file it.鈥�
He said the President is always reminding his officials that if there will be problems on how they manage government resources, 鈥測ou will be accountable to me.鈥�
READ: Lacson: Wasteful projects worth P583 billion
The INQUIRER independently checked Lacson鈥檚 list with the COA and found two government offices which had the biggest share of the disallowed or suspended projects.
The Bureau of Customs had suspended projects worth P379.7 billion, disallowances worth P424.2 million and notices of charges worth P12.7 billion.
The Department of Energy had suspended projects worth P146.9 billion while the Department of Agriculture had a share of P8.11 billion. The Armed Forces of the Philippines had P6.46 billion.
Graphic by Ed Lustan
String of scandals
In 2017, P6.4 billion worth of illegal drugs from China were discovered hidden in warehouses in Valenzuela City as the shipment got past what should have been tight screening by the Bureau of Customs (BOC).
The illegal drugs, which were lodged in five metal cylinders that went through the Manila International Container Port, were later seized.
In an investigation by the Senate, Sen. Franklin Drilon said then Commissioner Nicanor Faeldon, who was later transferred to the Office of the Civil Defense and the Bureau of Corrections, was 鈥渃learly鈥� involved.
The President, however, said that Faeldon should 鈥渇ocus on serving the country鈥� because he has confidence in the former rebel soldier.
The following year, 2018, four empty magnetic lifters, believed to have been carrying P11 billion worth of illegal drugs, were discovered in General Mariano Alvarez in Cavite.
Then BOC Commissioner Isidro Lape帽a, who was later moved to the Technical Education and Skills Development Authority, initially insisted that there were no illegal drugs, but he conceded after it was found that these matched two other magnetic lifters in Manila.
In 2019, the National Bureau of Investigation filed complaints against Lape帽a for dereliction of duty, grave misconduct, and graft鈥攆or failing to file a case against the consignees of the magnetic lifters that contained drugs.
Despite the controversies, Duterte said Faeldon and Lape帽a are not corrupt: 鈥淚 will not appoint them if they are corrupt. It really slipped past them. It was the insider. They were eaten by the system.鈥�
鈥淭hey work a lifetime as a soldier, fighting for this country then you will only treat them like that?鈥� he added.
The following year, 2020, officials of the Bureau of Immigration (BI) 鈥渞eceived鈥� bribes allowing hundreds of thousands of Chinese individuals to illegally enter the Philippines and work for Philippine Offshore Gaming Operators.
It was exposed by Sen. Risa Hontiveros in a Senate investigation. It was said that BI officials provided 鈥淰IP treatment鈥� to Chinese individuals for a P10,000 鈥渟ervice fee鈥� each.
The BI officials involved in the 鈥渟cam鈥� allegedly received P20,000 or P8,000 weekly.
Last July, Malaca帽ang said Duterte was expecting the DOJ to make sure that BI officials involved in the bribery scandal will be dismissed from service.
READ: 43 who were supposedly 鈥榝ired鈥� for 鈥榩astillas鈥� scam back from suspension
The remark was made following reports that not one of those linked to the scam had been fired. Presidential Spokesperson Harry Roque explained that the President may have not been aware that the officials have returned to work pending the investigations.
In 2021, the COA called out the Philippine Health Insurance Corporation (PhilHealth) for its payment schemes that lacked control mechanisms to detect and prevent fraud.
鈥淐OA found that PhilHealth was remiss in conducting the annual or even periodic review of the case as required, in order to determine whether the case rate for a particular treatment is responsive to the actual costs,鈥� it said.
It was in 2019 when the INQUIRER exposed that PhilHealth officials approved and released payments for patients who are already dead and those who have not yet completed treatment.
Because of the controversy, Duterte asked PhilHealth executives to resign, saying that he was disappointed with the corruption allegations and that he wanted a 鈥渃lean slate鈥� for the office.
In 2020, Duque was linked to the alleged 鈥渕isuse鈥� of at least P15 billion in the state insurer鈥檚 funds, as ex-officio head of the Board of Directors.
The DOJ was instructed by the President to investigate, but before the investigation could start, Roque said Duterte is keeping his trust and confidence in Duque.
鈥榃hat ifs鈥�
Deputy Ombudsman Cyril Ramos, in 2019, said the government was estimated to have lost to corruption P670 billion in 2017 and P752 billion in 2018鈥攁 total of P1.4 trillion in two years.
Graphic by Ed Lustan
He explained that 20 percent of yearly government appropriations are being lost to corruption.
The Philippines had a national budget of P3.35 trillion in 2017, P3.76 trillion in 2018, P3.75 trillion in 2019, P4.1 trillion in 2020, and P4.51 trillion in 2021.
For 2022, an election year, the government is proposing P5.02 trillion in national budget.
Graphic by Ed Lustan
Ramos said the funds lost to corruption could have been used for the construction of 1.4 million houses for the poor.
鈥淭here are many more 鈥榳hat ifs鈥� on what can be spent for 鈧�700 billion annually: modern hospitals, airports, schools, irrigation facilities, better salaries, decent housing, armaments, and so on,鈥� Ramos added.
鈥楩补颈濒别诲鈥�
In the 2020 Corruption Perception Index (CPI) of the Transparency International (TI), the Philippines placed 115th out of 180 countries. It had a score of only 34 out of 100 possible points. The country was 113th in 2019 and 99th in 2018.
READ: PH drops to 115th place in global index on corruption perception
鈥淲ith a score of 34, efforts to control corruption in the Philippines mostly appear stagnant since 2012. The government鈥檚 response to COVID-19 has been characterized by abusive enforcement and major violations of human rights and media freedom,鈥� TI said.
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Based on the CPI, corruption indicators pertain to 鈥渂ribery; the diversion of public funds; the effective prosecution of corruption cases; adequate legal frameworks, access to information; and legal protections to whistleblowers, journalists and investigators.鈥�
Ramos said in 2019, 鈥淲e may never totally eradicate or defeat corruption in our lifetime. But if we can inspire and marshal the youth to join our duty in fighting corruption, and embrace it as their own, then we have won the war on corruption.鈥�