Thursday 5 May 2016

(Assignment 1) Cases from Philippines - Sreedhar Vinayak

Philippines is regarded as one of the most corrupt nations in the world.  The country consistently scores low in the Corruption Perception Index (CPI) prepared by Transparency International. For instance, in the year 2015, Philippines ranked 95, which was lower than that of India, China and many nations in the East Asian region. Corruption scandals in Philippines generally involves bribery and graft. If we go by the categorization in Michael Johnston’s Syndromes of Corruption, Philippines falls under ‘Oligarchs and Clans’, where a relatively small number of individuals use wealth, political power and violence to contend over major stakes and to reward their followers. Following are some of the major corruption scandals that Philippines has witnessed.  
 
The first case is that of Lopez family of Iloilo.  The family constantly used their capital to buy political protection – through investing in candidates. This was not only in the form of campaign funds but also making the family-owned newspaper the propaganda paper. In return, for nearly three decades, under the presidential patronage of Marcos and Quirino, this business conglomerate secured subsidized government financing and dominated state regulated industries. This helped them in accumulating public wealth and redistributing it with their followers. As of now, Oscar Lopez and family is the 17th richest in Philippines.

The second case is the textbook scam of 1998. Joseph Estrada, the then President appointed a distant cousin, Cecilia De Castro as Presidential assistant. Estrada was forced to disavow Castro on the wake of a 200 million peso textbook scam that Castro has allegedly taken part in. The president later intervened in the investigation, which was one of the main reasons for Estrada’s impeachment trial. Further inquiries proved Castro’s active lobbying for the textbook contract.

The third case is the recent graft charges against the former Governor of Cavite province, Ireneo Maliksi. He is framed for a 10 million peso scandal. Maliksi allegedly purchased medicines without public bidding and the contract was awarded to a preferred supplier – Allied Pharmaceutical Laboratories Inc. The Ombudsman also found out that Maliksi made the purchase even 3 months before the first tranche of the money came.

All the three instances involved cronyism as well as nepotism. Here the power is neither clearly public nor private; but personal. Relatively small number of elites and their extended personal clans were the major players. In case of Philippines, the narrow definitions of corruption that only focuses on existing legal rules would prove ineffective as most of the aforementioned corrupt practices were not entirely illegal. For instance, Maliksi justified his actions by citing an immediate need of medicines. So, the definition of corruption should be widened to include illegitimate pursuit of a private interest.

i)               Johnston, Michael. “Syndromes of Corruption: Wealth, Power and Democracy”, Cambridge University Press, 2005
ii)             Johnston, Michael. “Corruption, Contention and Reform: The Power of Deep Democratization”, Cambridge University Press, 2014


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