Understanding the National Budget

28 October 2008 – The Center for National Budget Legislation (CNBL) with support from the Coalition Against Corruption and the Makati Business Club held a half-day public seminar entitled “Understanding the National Budget - Philippine Setting” last 28 October 2008 at the AIM Conference Center, Makati City.

The seminar’s objective was to unravel and simplify the budgetary legislation process to help local officials see how the budget can best serve their constituents, for media practitioners to understand the story behind insertions, lump sums, re-alignments, earmarking and special purpose funds, and for NGOs to specifically dissect the areas for possible graft and opportunities for better governance, and for the general public to understand the nuances of how the national fund is managed.

Joseph A. Rañola, president and founding trustee of the CNBL, and Zoilo "Bingo" P. Dejaresco III, Bantay Budget chairperson, discussed the preparation of the national budget, components of the Regular Budget and the Special Purpose Funds (SPFs), definitions and categories of programs and projects, and budget insertions and lump sums.

DND renews commitment with CAC to sustain transparency in defense contracts

28 August 2008 – The Department of National Defense (DND) reaffirmed its commitment to ensuring continued transparency in procurement transactions within the defense establishment as it re-engaged the Coalition Against Corruption (CAC), represented by officers of the Makati Business Club (MBC) and the Bishops-Businessmen’s Conference for Human Development (BBC) as official observers to the procurement process in the DND.

Defense Secretary Gilberto C. Teodoro, Jr., BBC National Co-Chairman Vicente Paterno, and MBC Chairman Ramon del Rosario, Jr. signed the Memorandum of Agreement (MOA) on 28 August 2008.

Secretary Teodoro vowed his ‘total commitment’ to the implementation of the MOA saying that ‘people’s money and people’s lives’ are best protected by a fair, honest, and transparent process in acquiring equipment for the AFP and other agencies of the DND.

Pursuant to the MOA, the DND officially designates the CAC, through the BBC and MBC, as observers that will monitor the processes of the five-man DND Bids and Awards Committee.

Mr. Paterno warmly welcomed the renewal and updating of the first MOA, saying this will effect continuing improvement in the various aspects of the bids and awards systems within the DND. He also expressed enthusiasm over the possibility their cooperation would “catalyze a national movement for greater transparency”.

“I’m excited at the prospect that with proper documentation, these improvements will be contained as basis of other national agencies and implemented therein after adequate training by DND and CAC,” Paterno said.

The DND and CAC-BBC-MBC first entered into a similar MOA in February 2005.

Millennium Challenge Corporation conducts consultation with CSOs

15 August 2008 – The Transparency and Accountability Network (TAN), together with the Caucus of Development NGO Networks (CODE-NGO), International Center for Innovation, Transformation and Excellence in Governance (INCITEGov), Lawyers' League for Liberty (Libertas), Makati Business Club (MBC), Pambansang Kilusan ng mga Samahang Magsasaka (PAKISAMA) and Transparency International-Philippines (TI-Philippines), organized a Consultation Workshop among various civil society organizations (CSOs) on 8 August 2008 to discuss the Philippines' eligibility to receive grant money from the United States’ Millennium Challenge Corporation (MCC).

The workshop aimed to craft a collective position and a set of recommendations for the Philippine government's proposal to the MCC and to establish a CSO monitoring group for the implementation of the MCC grant. The event was attended by various CSOs working on the MCC themes – Ruling Justly, Investing in People, and Economic Freedom. 

Mr. Troy Wray, MCC Associate Country Director for the Philippines, and Dr. Dante Canlas, the "Point of Contact" or focal person for the MCC process for the Philippine government, addressed the consultation and explained the MCC criteria and compact process. Mr. Wray said “there will be an interface between the MCC and the government” and that an accountability entity will be established. He said CSOs on the ground who stand to benefit from the MCC grant will provide oversight or control in the implementation of the projects. Dr. Canlas also said “CSOs can be involved in the fine tuning of indicators.” He said there should be “transparency in all indicators and in all projects that will be implemented.”

The participants at the consultation identified major issues in the Philippines related to the indicator categories of MCC, including: (1) weak governance and lack of transparency; and (2) inequitable distribution of wealth.  In response to these constraints, the following recommendations were put forward as critical components of the MCC Compact Program: (1) improve transparency and public disclosure policy (e.g. pass the Freedom to Information bill), (2) improve delivery of basic services (health, education, women), (3) ensure meaningful participation of CSOs in MCC processes, programs and projects; (4) develop a 'balanced' indicator system for the MCC; and (5) institutionalize CSO consultation.

The MCC Compact Team also visited the Philippines on 11-15 August and met with representatives of government agencies. They also organized several thematic workshops with representatives of civil society groups:

• Fiscal Constraints: TAN, INCITEGov
• Infrastructure Constraints: MBC, TAN
• Constraints in Agricultural Productivity and Food Security: CODE NGO, PAKISAMA
• Constraints to Poverty Eradication:  CODE NGO, TI Philippines
• Towards Good Governance and Judicial Reforms: TAN, TI Philippines

TAN, with partner CSOs, are currently organizing focus group discussions to thresh out mechanisms in institutionalizing civil society participation and to refine the recommendations.

The Asia Foundation is supporting the CSO consultations to start up continuous dialogues and coordination among CSOs and the government for the MCC Compact program.

PTF inks grant agreement with INCITEGov to monitor LGU projects

24 June 2008 - The Partnership for Transparency Fund has signed a grant agreement amounting to $25,069 with the International Center for Innovation, Transformation and Excellence Governance (INCITEGov) for the latter’s project entitled “Participatory Monitoring for Barangay Infrastructure and Health Projects in the Province of Isabela.”

In cooperation with the provincial government of Isabela, the project will be implemented by INCITEGov within a 6-month period starting 30 June 2008. The project aims to improve the transparency in the utilization of provincial funds allotted to municipalities and barangays for infrastructure and health projects, particularly the procurement of medicines, through (1) the setting up of systems and processes, (2) organization of monitoring teams, (3) basic training on participatory monitoring, (4) actual monitoring, (5) sharing of monitoring teams’ experiences, and (6) the presentation of results.

The grant was approved by the PTF and is an initiative of incumbent Isabela Governor Grace Padaca. Now on her second term, Gov. Padaca wants to focus on strengthening citizens’ participation in governance, specifically to implement and institutionalize participatory auditing of infrastructure and health funds provided by the provincial government to barangays.
 
INCITEGov is a non-stock, non-profit organization committed to bringing about systemic change in Philippine governance through research on and analysis of political and economic systems, program design, implementation and monitoring, and strategic capacity and capability mentoring. INCITEGov draws on the expertise and experience of its members who have held leadership positions in both public and private spheres of reform.

Namfrel Signs Grant Agreement with PTF

12 June 2008 – National Citizens’ Movement for Free Elections (Namfrel) volunteers will now count and monitor deliveries of medicines instead of ballots in between elections. Namfrel secretary general Eric Alvia and Partnership for Transparency Fund (PTF) board member Geert van der Linden have signed a one-year grant agreement for the Medicine Monitoring Project that will cover eight hospitals and two Centers for Health Development.

Namfrel has been helping the Department of Health (DOH) monitor the procurement of medicines in 66 public hospitals since 2005. With the PTF’s support, Namfrel volunteers will participate as observers to witness hospitals’ inventory taking and will conduct spot checks of hospitals’ stock cards and storage of medicines. They will also be trained on the Government Procurement Reform Act (RA 9184) and will sit as observers during public biddings and submit diagnostic reports to the chief of hospital or CHD director.

The Medicine Monitoring Project will aim to engage and encourage communities to monitor the delivery of health services, institutionalize the monitoring in communities, and expand the monitoring to include LGU-managed hospitals.

Mactan Chamber Launches “Catch a Big Pugapo”

5 May 2008 – The Cebu Business Club and the Mactan Island Chamber of Commerce and Industry (MICCI) recently launched their own “Catch a Big Pugapo” campaign as a tie-up with the Coalition Against Corruption’s “Catch a Big Fish” project. “Pugapo” is the Visayan name for a local fish named after national hero Lapu-Lapu, which also happens to be the name of the Cebu city with the most “anomalous” local government. 

MICCI is a graft watch unit that has initiated a number of graft cases now pending before the Office of the Ombudsman-Visayas mainly against Lapu-Lapu City Mayor Arturo Radaza. The local official is facing charges for his involvement in the purchase of grossly overpriced lampposts for Cebu’s hosting of the Association of Southeast Asian Nations (Asean) summit in 2007.

MICCI is also following up some high-profile cases, together with Church-based and civil society groups that are also part of the Coalition Against Corruption. The Ombudsman recently filed graft charges against nine Department of Public Works and Highways officials and two city mayors involved in the Asean lamppost scam. The case arose from the alleged overpricing of lampposts from P83,000 to P224,000 each. The total project cost was P365 million.

Auditors team up with bishops and businessmen to monitor gov't procurement

5 May 2008 – The Philippine Institute of Certified Public Accountants (PICPA) has signed a memorandum of agreement with the Bishops-Businessmen's Conference for Human Development (BBC), a member of the Coalition Against Corruption (CAC), to intensify monitoring of government procurements.

“PICPA supports good governance. We will tap our 90 chapters nationwide to look at the public bidding activities of agencies,” said PICPA national president Andres Cabuyadao during the bids and awards committee (BAC) observers’ regular meeting in Makati City.

CAC-BBC’s procurement monitoring project co-chairmen Magdaleno Albarracin and Paterno Menzon signed the pact to expand the observers’ team deployed in 25 BACs of 21 government agencies. The PICPA auditors will assist CAC-BBC and the Catholic Bishops Conference’s Sangguniang LAIKO in their financial review of government tenders.

Bishop Gabriel Reyes, chairman of the CBCP Episcopal Commission on Lay Apostolate, witnessed the signing and urged volunteers to remain steadfast in the campaign for transparency in government. “You are always in the midst of temptation, but that is the context wherein you can fulfill your Christian vocation,” he said.

CAC Launches Big Fish Project

15 April 2008 – "While the campaign against corruption at the community level helps build a strong base, it is a long and slow process. Unless an example is made of a high official that is indicted, convicted, and finally jailed, it is difficult to make the general public believe that there is hope in overcoming corruption in this country," said Jose Cuisia Jr., chairman of the Coalition Against Corruption, during the launch of a new campaign at the AIM Conference Center in Makati City.

As a serious effort to make people believe there is still hope in turning things around, Cuisia said Makati Business Club will lead in the new project called “Catching the Big Fish.” Initially, the coalition is supporting a case filed by Akbayan Rep. Risa Hontiveros-Baraquel against former Comelec chairman Benjamin Abalos Sr.

Aside from a renewed focus on prosecution, Cuisia said CAC would like to ensure the continuity of its programs. "To raise awareness of the problem as well as raise resources to fund the programs of the Coalition, we intend to build a Governance Investment Fund for Transparency (or GIFT) that will help sustain our anti-corruption initiatives," said Cuisia.

CAC Monitors Defense Procurement

15 June 2007 – A total of P6.4 billion worth of Department of National Defense (DND) projects for 2007 are being monitored by the Coalition Against Corruption (CAC) with the Bishops-Businessmen’s Conference (BBC).

The DND is fast-tracking major procurement projects under the AFP capability upgrade plan to modernize the armed forces. Investing heavily to upgrade troop capabilities, the military’s shopping list includes global positioning systems, night fighting systems, automatic weapons, and radios.

With billions of pesos worth of purchases programmed this year, CAC and BBC are closely monitoring the procurement process to check whether the DND follows the Government Procurement Reform Law (RA 9184) through the Government Procurement Monitoring Project.

In a letter to the department on 3 May 2007, the CAC made several recommendations based on volunteers’ observations on how the DND conducts its biddings. CAC-BBC pointed out that DND frequently chooses negotiated procurement or direct contracting instead of competitive bidding, which promotes transparency and encourages more suppliers to bid. Observers also noticed that few bidders participate in DND procurement considering items for bid vary from equipment, vessels, helicopters, to oil supply, and gunpowder.

Business executives Dr. Magdaleno Albarracin and Atty. Paterno Menzon, who were appointed as co-chairmen of the project on 10 April 2007, guide the current roster of 36 volunteers who are assigned to 23 Bids and Awards Committees in 19 government agencies.

Other agencies being monitored by CAC-BBC include the Philippine Ports Authority, Manila International Airport, Philippine National Police, Department of Public Works and Highways, and Department of Tourism.