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    Business and the saga of Jun Lozada

    Last week, the country was shaken by two separate but related events which had people’s eyes glued to television sets and their ears to radios. They watched the “assassination” of former Speaker Jose de Venecia Jr. as one by one, congressmen explained their role in the “murder” before they stabbed him with their long knives (shades of Brutus!)

                    The furor over de Venecia had barely died down when the country was gripped by even more exciting news. Rodolfo Noel Lozada Jr., president of Philippine Forest Corp. and technical consultant to the national broadband network (NBN) had been abducted upon his arrival from Hong Kong, by a contingent from the Police Security and Protection Office (PSPO).

                    Lozada’s abduction sparked such a storm of media furor and public uproar that his captors were constrained to deliver him to La Salle-Greenhills and the protection of La Sallian brothers and nuns.

                    The rest is history. Last Friday, Jun Lozada recounted his ordeal to the Senate in a hearing which was watched on TV and listened to on radio by a sympathetic public.

                    Some professionals in government wept. They saw themselves in Jun Lozada—professionals and experts who have to give technical justification to corruption-laden government projects. They saw in Jun Lozada a professional who was sucked into the dark world of our “dysfunctional procurement system” where the choice of projects is driven not by public need but by the amount of commissions for middlemen and their powerful principals. 

    Good governance as good

    business

                    Like everyone else, businessmen were also reacting to the Jun Lozada saga even as they celebrated the Lunar New Year and met for cocktails, dinners and celebrations. They asked themselves: what can we do?

                    What are the implications of the Lozada revelations for the business of governance?

                    I have had conversations with friends in the business sector. There are those who sincerely admire the President and credit her for growth in the economy. They are annoyed with the spate of political noise generated in the Legislative branch of government, as well as the endless protest activities by civil-society organizations.

                    Businessmen worry that political upheavals will interrupt the rhythm of business activities and will be bad for the economy.

                    I have always warned my friends that the pace of economic growth may not catch up with the pace at which social development problems are escalating—poverty, unemployment and deficits in Millennium Development Goals-related services. I tell them that I am more scared of spontaneous actions of the desperate and unorganized which are easily subdued by the state, but will lead to so much loss in lives.

                    This time, the storm created by the de Venecia “assassination” and the Lozada testimony can’t be ignored. The latter has revealed so many flaws in governance, which can’t be brushed aside.

                    It is clear that it is not enough to declare on television that those who defy the State should be shot. It is not enough to say that all is well with the economy and politics/governance be damned.

                    It is time for business to do something about governance. After all, as I repeatedly point out, governance is not about the government only. It is about transparency, accountability and predictability in government operations. Most important of all, it is about citizens’ participation, including the business sector.

                    What can business do? 

    Blow the whistle

                    Lozada pinpointed the procurement system as dysfunctional. If only businessmen will blow the whistle when they are subjected to outrageous and illegal demands by fixers and political middlemen! They can insist on compliance with the provisions of the procurement law, which is claimed to be more stringent than the requirements of the World Bank.

                    Joey de Venecia, Jun Lozada and many others have already paved the way. There are more honest and dedicated public officials than we think. The Senate will surely listen, and our church and educational institutions will give refuge. 

    Demand payback for financial contributions to politicians

                    It is no secret that businessmen support political candidates in anticipation of favors. Those who have contributed much to the electoral campaigns of incumbent officials have the “k” to demand payback and advise erring officials not only to moderate their greed but to back off from bribery and wanton abuse of state power to cow people into silence. 

    Performance as criterion for contributions to the 2010 elections

                    This early, candidates are already seeking financial contributions. Actual performance should be the major criterion in financing candidates. Civil-society organizations are already setting up criteria for selecting candidates. Business organizations can do this. 

    The businessman as citizen

                    Last, the businessman is also a Filipino citizen. He has the right and duty to write, to speak out and to act. Now.

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