Crisis of confidence

The construction and real estate industries are major contributors to economic growth. Businessmen say thousands of jobs in these industries are currently as frozen as the assets of controversial contractors and public works officials.

Approvals for collecting payments from government agencies have also become more complicated, with the required signatures tripling or even quadrupling. This time, the businessmen say the red tape is meant not to collect grease money or “facilitation fees,” but to spread culpability or broaden deniability in case a project is deemed to be anomalous by probers.

The real property sector had already taken a hit from the property bubble created by the proliferation – and then the abrupt shutdown – of Philippine offshore gaming operators.  

Now the construction sector and its downstream industries are reportedly being battered. The corruption scandal has spread to substandard, overpriced or non-existent farm-to-market roads, schools and hospitals.

This week, Securities and Exchange Commission Chairman Francis Lim lamented in a speech that the “crisis of confidence” arising from the corruption scandal has wiped out an eye-watering P1.7 trillion in market value from the stock market. Lim described corruption as a “weapon of mass wealth destruction.”

Presidential investment and economics adviser Frederick Go clarified that the P1.7 trillion was based on sensationalized “fake news” posted on social media, although there has been a slide on a much smaller scale in the stock market in recent weeks.

Regardless of the actual amount of market value losses, the scandal is turning the country into Asia’s basket case. Not only because of the staggering extent of the corruption now being uncovered, but also because of perceptions that after all the hue and cry, there will only be token punishments. The big fish will get a slap on the wrist and everything will return to business as usual.

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Surely there are honest, competent folks who are in government not to rob the nation but to serve the people and the greater good. But for now, they are being tainted by too many rotten eggs at all levels of government.

Are we a nation of thieves? We’re seeing the impact of this perception in that incident reported by One News’ Gretchen Ho, whose mother was humiliated when a foreign exchange dealer at the airport in Oslo, Norway, upon seeing the Philippine passport, refused to accept her 300 US dollars for currency conversion for fear that it was dirty money being laundered.

The currency dealer reportedly acted on an advisory that had not yet been updated: the inclusion of the Philippines in the gray list of countries under closer monitoring for money laundering by the Paris-based Financial Action Task Force.

The FATF took the Philippines out of the gray list last February; the European Union did the same only in August. The currency dealer in Norway – a non-EU state that is part of the Schengen visa zone – still had the old FATF alert, according to the Department of Foreign Affairs.

We might yet be returned to the gray list, if the FATF would take a closer look at our election campaign system and consider the ongoing corruption scandal.

Being flagged for dirty money at currency exchanges abroad is just one of the hassles Filipinos go through because of weak governance and development woes.

A nation’s standing in the international community is reflected in the strength of passports. Singaporeans, who hold the world’s strongest passport as per the Henley Passport Index for 2025, can enter 192 out of 227 global travel destinations visa-free; the second-ranked South Koreans, 190, and the third-ranked Japanese, 189.

Filipinos, ranked 74th, are visa-free only in 64 destinations. When applying for a Schengen visa, we must submit not only an originally issued birth certificate, income tax return and certificate of employment, but also bank statements with transaction records covering six to eight months depending on the Schengen Area state issuing the visa.

Those are humiliating requirements that I suspect are meant to ensure that the applicant is no hampaslupa planning to become a TNT living off welfare or refugee applicant status within the Schengen zone. But the stringent requirements can’t prevent all the obscenely wealthy Pinoy money launderers from entering Europe, buying up properties and regularly depositing their loot in Switzerland.

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The robbers in our country would have scoffed at money laundering involving such a miniscule amount; $300 would buy only one Hermes handkerchief. But that Norway incident deserves attention, because the millions of Filipinos working overseas could suffer the same humiliation.

One answer is to show a resolute response to the corruption problem. China has executed several former officials for corruption, with another ex-minister currently on two-year suspended death sentence. South Korea has sent several former presidents to prison for graft.

We abolished capital punishment. But we can present to the world a swift and credible probe, with full transparency, accompanied by structural reforms to rebuild damaged institutions rather than just patch them up like Humpty Dumpty, and of course the speedy prosecution and punishment of the guilty.

It’s unfortunate that the Independent Commission for Infrastructure has steadfastly refused to open even part of its hearings to the public, preferring instead to conduct its probe like the Supreme Court, to which the ICI chair used to belong. The Philippine judiciary is not known for integrity; it warranted special mention even in the US State Department’s latest country assessments for corruption.

The impression is that it’s just business as usual in dribbling justice, with VIPs mollycoddled. So far the ICI has questioned the Discayas, former Senate finance committee chair Grace Poe and former public works chief Mark Villar. What these key players told the ICI is left to conjecture, fueling suspicions of hush-hush arrangements.

It seems the ICI tack is to wear out those demanding open hearings, as cases crawl at the usual glacial pace through the legal mill. In the meantime, toss the Marites mill a bone, such as the request for immigration lookout bulletin orders for the big guns.

ILBOs, which Jesus Crispin Remulla promptly approved in a parting act as justice secretary, won’t stop any of the 33 covered people from leaving the country.

The government will have to do more than this, to reassure Filipinos and the world that genuine change is on the way – soon, and with full transparency, the lack of which was a key factor in dragging the nation into this mess.

Source: Philstar