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  • Graft limits RP’s MCA drawdowns
     
    By Jun Vallecera
    Reporter

    THE Philippines remains a country intending to but not quite able to lick its corrupt bureaucracy’s ways—and for this reason, it is still unable to draw larger amounts of aid from the US-initiated Millennium Challenge Account (MCA).

    Senior government officials said Friday they met all the performance parameters the MCA required Manila to observe the past two years except one, a failure that rendered it ineligible to draw more than the $20.68 million it drew from the fund much earlier.

    This was money worth more or less P1 billion when the local currency was comparatively weaker as it traded for P50 per dollar.

    The local unit has since traded for around P40.60 to a dollar and is forecast by some analysts to strengthen further to P38 or even P37 toward year-end.

    According to officials, Manila was expected to pursue a specific number of corruption cases during the two-year period when the program ran, to prove its commitment.

    “But as of end-September 2007, the day of reckoning, we did not make it,” officials acknowledged.

    The requirement was pretty straightforward: Manila only needed to file corruption charges against a specific number of crooks in government and then it has the money.

    The problem was the designers failed to enroll the support of the Department of Justice whose head, Justice Secretary Raul Gonzalez, was excluded for some unfathomable reason, the officials said.

    But the Office of the Ombudsman and its particular focus on smugglers and tax evaders reported the filing of 82 cases under the Revenue Integrity Protection Service, or RIPS, program; and 87 more under the Run After Tax Evaders, or RATE, program.

    The Run After Technical Smugglers, or RATS, program was targeted to file 61 cases but managed only 60 as of end-February this year.

    At least 28 cases were to have reached the Court of Tax Appeals during the period but only 11 actually managed to get there, according to Assistant Ombudsman Evelyn Baliton.

    Officials claimed efforts at reforming the government procurement process works, as this was specifically designed to thwart corruption with private-sector participation.

    “But the process, it is now painfully clear to see, did not reckon on corruption on the basis of government-to-government transactions,” the officials said.

    They said this explained Malacañang’s move to abort the pursuit of 11 programs that would have been funded by foreign governments; and decided to pursue them instead under the guidelines of the not-so-new government procurement procedure.

    Even the United States had to acknowledge the new procurement program was superior to most programs elsewhere and was hailed as a model in the region, officials said.

    Superior or not, continued corruption in the government denied Manila the opportunity to tap into larger MCA aid packages reserved only for those who transited from the so-called threshold economies to compact eligible countries.

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