Corporate Accountability, Freedom of Information, Judicial Reform

First things first, we need to ascertain whether the platforms that caused political aspirants to win their posts are promises or commitments. We all know what promises are and so we need to shoot for getting these platforms in the form of commitments that serve as the performance metric of each candidate.

The voting public must demonstrate at this stage a tenacity to make elected officials accountable for their commitments if we are to break the cycle of political incredulity in the country with the hope of winning back the public trust.

These metrics are important not only to restore political credibility, but more importantly to allow every citizen to experience the benefits of a purportedly improving economy. These metrics too, can serve as the foundation of introducing a new system of thinking that will lead to new behavior, which will lead to new outcomes.

Here’s my take on the areas that I believe are important performance metrics:
1. Enforcement of Private Sector Corporate Governance policies
2. Freedom of Information
3. Judicial Reform

These three areas address the economic, democratic, and judicial aspects of our country as parts of a whole that are in themselves wholes.

Corruption in the Philippines is fed by private industry. Government left by itself will have no reason to increase bureaucratic processes (red tape) that provides multiple points of failure and multiple opportunities for corruption (it makes the life of everyone simply miserable). Corruption occurs when private industry comprised of big and small businesses both local or foreign intends to beat the system for their own advantage. For example, the incentives offered by the BOI and PEZA for foreign companies to invest in the country are doing nothing to improve the economic condition of the workforce. While they do provide jobs, virtually every single one of these entities practice a 6 month employment cycle which disadvantages the very workforce they purport to help. I would be surprised if any of these agencies even enforce the provision that expatriates must train local counterparts on how to do their work!

These multinational corporations typically operate a koga or cartel style of business. The suppliers that these foreign entities choose to do business with are those that are typically from their own groups who overcharge the local entity for their products and services. The net effect is that the local company posts a loss, but the global conglomerate as a whole (publicly listed) posts surging profits. By posting a loss, the company is robbing the country of the expected revenues gained from income taxes! All you have to do is monitor the performance of these groups via www.hoover.com. The government must control the outflow of cash, by limiting the amount of allowable electronic transmissions that leave the country. There must be some form of an investment lockdown enforced the keep national coffers in a state of balance.

I know of several large Japanese owned manufacturers who intentionally buy expensive raw materials from another Japanese company (within their group) despite the higher prices when there are local suppliers that can provide the same at a much lower price point. American MNC’s have also continued to practice this same cartel-type of operations as most of their suppliers (even when these suppliers are available locally) are imported from their country of origin. The only place where the country expects to benefit from such as secured employment and revenues from taxes are not at all realized. The moment incentives mature, all they do is leave for a more conducive environment in the region.

How large conglomerates gets away with this is interesting. The only reason they could continue to operate this way is that they have put influential personalities under a “retainer” – a mutually destructive agreement where both parties are bound to remain mum about.
If elected officials concentrate on this one area alone for the next three years, and publicly disclose their findings, it may create chaos at first, but the type of chaos that will force big business to become accountable for their actions and make them think twice about actions that protect only their interests.

Freedom of Information. This is something that we need to enforce in the Philippines. There is simply too much confidential information that should otherwise be made public. Have you visited the SEC lately? Have you tried to check on the financial records of major corporations? They say that they do not have the budget to bring their technology up to par. Fine! If they really want to I can give them the technology for FREE (and I’m darned serious about it). This culture of “confidence” is ridiculous and just another opportunity for corruption to fester. Every citizen should be given the capability to secure public information about public officials and corporations. We must be made accountable by each other. If we maintain this culture of confidence, accountability will only be a concept. Too much plausible deniability exists in our public and private systems and it is the primary fuel for corruption

Judicial Reform. We must lobby to force legislators to transform our judicial system from one that is controlled by a single jurist to one that is controlled by a jury of peers. This is the only way we can minimize the corruptibility of jurists. Without a judicial system controlled by a jury of peers, we will never come full cycle to becoming a real democracy. There should also be a unit of law enforcement tasked to protect the integrity of judges, a group of marshals who can ensure the public that judges are beyond reproach. As long as our judicial system is under the absolute control of a single jurist, and unduly influenced by an arrogant justice secretary (who does not understand the meaning of discretion and public trust), the justice system will remain a tool in the arsenal of the rich and powerful.

One way to stem corruption is for everyone in public office to receive a decent pay at the end of every month. But unless we make private corporations and big business tycoons accountable (have them pay their taxes), the government will not be in any position to improve the livelihood of its employees. It is impossible to eliminate corruption, but it is possible to make the practice so risky so that its occurrence is minimized.

Virtually every country in the world is plagued by corruption (even the US has corrupt legislators). We are not the most corrupt country in Southeast Asia, but it seems that the most corrupt country is doing far better economically than the Philippines. Go figure! We need public officials with big “cajones” and nerves of steel who will run after and defy even the most powerful every time the interests of the powerful few runs contrary to the interests of the country and our national security (the economy is a matter of national security).

In my humble opinion, the public official who can push for these reforms and enforce the same is a suitable candidate that deserves my vote for the 2010 presidential elections.

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