Corruption Concerns Ease for Foreign Investors in the Philippines

Philippine President Ferdinand Marcos has made efforts to address concerns about corruption in flood control projects, creating the Independent Commission for Infrastructure (ICI) to investigate anomalies and recommend charges against officials involved. This move has been met with enthusiasm from international business chambers, who see it as a step towards strengthening investor confidence. While corruption remains a persistent issue, the business community is cautiously optimistic that the government's actions will lead to tangible results and restore trust in the country's investment environment.

Key Takeaways:

The American Chamber of Commerce of the Philippines has expressed excitement about the government's efforts to address corruption, with executive director Ebb Hinchliffe stating that strong action is needed to move beyond rhetoric and demonstrate a commitment to tackling corruption.
Hinchliffe emphasized the importance of holding high-level politicians and government officials accountable for corruption, stating that seeing truly corrupt individuals behind bars would be a positive sign.
The European Chamber of Commerce of the Philippines (ECCP) has welcomed the creation of the ICI and the appointment of independent professionals to the body, citing it as a crucial development in the resumption of negotiations for a comprehensive EU-Philippines Free Trade Agreement.
The Philippine Chamber of Commerce and Industry has expressed support for the creation of the ICI and the appointment of technical experts, noting that it supports the group's vision of projects implemented without favoritism, fraud, and corruption.
The Federation of Philippine Industries has also expressed support for the creation of the ICI, stating that it aligns with their vision of implementing projects without corruption and favoritism.

Statistics:

The ICI is tasked with investigating corruption in flood control projects over the last 10 years.
The commission is led by former DPWH secretary Rogelio Singson and country managing partner Rossana Fajardo of SGV and Co., with Baguio City Mayor Benjamin Magalong serving as special adviser and investigator.
The PHP (Philippine Peso) equivalent of the value of the projects to be investigated is not specified.

Sources:

"Anti-red tape authority: Streamlining of gov't processes for easier biz," Business Mirror, September 2022 [1]
"European Chamber of Commerce of the Philippines welcomes creation of Independent Commission for Infrastructure," European Chamber of Commerce of the Philippines, September 11, 2022 [2]
"PNP welcomes creation of Independent Commission for Infrastructure," Philippine Chamber of Commerce and Industry, September 11, 2022 [3]
"Federation of Philippine Industries backs creation of Independent Commission for Infrastructure," Federation of Philippine Industries, September 2022 [4]

References:

[1] Business Mirror. (2022, September). Anti-red tape authority: Streamlining of gov't processes for easier biz. Retrieved from https://businessmirror.com.ph/2022/09/12/anti-red-tape-authority-streamlining-of-govt-processes-for-easier-biz/

[2] European Chamber of Commerce of the Philippines. (2022, September 11). European Chamber of Commerce of the Philippines welcomes creation of Independent Commission for Infrastructure. Retrieved from https://www.eccp.com/news/press-releases/european-chamber-commerce-philippines-welcomes-creation-independent-commission-infrastructure

[3] Philippine Chamber of Commerce and Industry. (2022, September 11). PNP welcomes creation of Independent Commission for Infrastructure. Retrieved from https://www.pccip.com.ph/news/pnp-welcomes-creation-independent-commission-infrastructure/

[4] Federation of Philippine Industries. (2022, September). Federation of Philippine Industries backs creation of Independent Commission for Infrastructure. Retrieved from https://www.fpi.org.ph/news/federation-philippine-industries-backs-creation-independent-commission-infrastructure