President: Manila winning war on graft

The Philippines has begun to win its war against endemic corruption, President Benigno Aquino said yesterday as he outlined more cases of alleged massive graft under his predecessor’s rule. In his annual “State of the Nation Address”, Aquino said his impoverished country was enjoying direct benefits of the anti-corruption crusade, with fewer people going hungry, the unemployment rate dropping and stock market climbing. “We are steering our government in a clear direction,” Aquino told a joint sitting of congress. “A country where opportunity is available, where those in need are helped, where everyone’s sacrifice is rewarded, and where those who do wrong are held accountable.” Aquino has come under fire from some opponents for his devotion to fighting corruption since taking office on June 30 last year, with some accusing him of using his high-profile crusade to mask a lack of progress in other areas. But Aquino said his priorities would not change during the remainder of his six-year term, insisting that eradicating corruption in government and society in general was fundamental to tackling poverty. Aquino said his government had uncovered many corrupt practices during the nearly decade-long rule of his predecessor, Gloria Arroyo. He highlighted a case in which the state gaming agency, Pagcor, claimed to have spent P1bn ($23mn) on coffee when it was run by an Arroyo appointee. But that would have equated to 10mn cups of coffee. “Where did all the coffee go? Who drank it?” Aquino asked. He promised that his government would finally file some “major” corruption cases this year, after several attempts to prosecute Arroyo and her allies had failed for various reasons over the past 12 months. “These will be real cases, with strong evidence and clear testimonies, which will lead to the punishment of the guilty,” he said. Arroyo, who won a seat in the lower house of parliament in last year’s elections, was not in congress for Aquino’s speech. Aquino said his anti-corruption efforts had helped to ease the hunger rate in the Philippines, with more money going to the poor as government officials had siphoned off less for themselves. He also said business confidence was improving, with the stock market sitting near record highs and the unemployment rate dropping to 7.2%. And he pointed to a vote in confidence from international credit ratings agencies such as Moody’s and Standard and Poor’s, which have lifted the country’s debt or credit ratings in recent months. “These improved credit ratings mean lower interest on our debts... our economic team is hard at work to sustain the momentum,” Aquino said. Aquino outlined a range of social plans from better health care and a proper pension system for soldiers to adequate compensation for Martial Law victims. He also announced the appointment of a retired Supreme Court associate justice as head of the country’s anti-graft agency, a clear signal he wants corrupt government officials to face charges in court. “I expect this year we will file corruption charges against all those who had connived with one another to steal money from government and lead us to this situation,” he told lawmakers sitting in a joint session.  “Some of my critics say that I take this campaign against corruption personally,” said Aquino, the only son of democracy heroine Cory Aquino. “It should be personal for all of us, because we have all been victimised by corruption.” He said funds for rice imports, elections especially in the Autonomous Region of Muslim Mindanao, state gaming firm and toll way firm, and road contracts of the public works agency were all tainted by graft. Manila plans to bring its territorial claims on the South China Sea to the UN International Tribunal on the Law of the Sea, Aquino reiterated. The Philippines has been at odds with China over vast areas in what it calls West Philippine Sea, believed to be rich in oil and gas deposits. Aquino said he would level the playing field for investors. But he did not mention his government’s flagship public-private partnership (PPP) scheme aimed at tapping private investors to upgrade and develop the country’s creaking infrastructure. But analysts said his announcements fell short of expectations for economic development, with the country just one notch away from investment grade status. “Aquino fell short of (meeting) his agenda and people’s expectations that he will lay down his economic blueprint. It only served to reinforce the idea that he lacks vision,” said Joselito Zulueta, analyst on church issues and lecturer at the University of Santo Tomas.  “One year is short for the president to do some house cleaning, but he should start delivering on his promises because he can abuse the patience of the Filipino people,” Zulueta said. Aquino said 140 firms were interested in participating in a state tender for 15 oil and gas exploration contracts requiring total investment of at least $7.5bn. Manila, which aims to lessen its dependence on imported fuel, expects to award the contracts early next year.