Is an FOIA The Best Way to Reduce Corruption in Government?

Posted by BongV on Jan 22, 2013 in Featured, Public Policy | 0 comments

Bayan’s Ted Cansino recently withdrew authorship of the FOI bill. The party list reps withdrew support after realizing the Orwellian twist that came with the amendments to the legislation. The authors’ intention is to make government information more transparent and accessible. The version proposed by the “Daang Matuwid” camp of Noynoy Aquino is anything but transparent – nor accessible.

This is just like the “REPUBLIC ACT NO. 8762, AN ACT LIBERALIZING THE RETAIL TRADE BUSINESS”. A quick read of the title gives the impression that the retail trade in the Philippines has been “liberalized”. The proverbial devil, however, is in the details.

A more detailed read of the qualifications before a foreign retailer can participate in the Philippine retail trade shows that the retail industry, my dear Watson, is anything but “liberalized”. Here are the prerequisites for a foreign retailer as defined in the Implementing Rules and Regulations.

Section 1. Prequalification Requirements. – Before a foreign retailer is allowed to engage in the retail trade business or invest in an existing retail store in the Philippines, it must possess all of the following qualifications:

(a) A minimum of Two hundred million US dollars (US$200,000,000.00) net worth in its parent corporation for Categories B and C, and Fifty million US dollars (US$50,000,000.00) net worth in its parent corporation for Category D;

(b) Five (5) retailing branches or franchises in operation anywhere around the world unless such retailer has at least one (1) store capitalized at a minimum of Twenty-five million US dollars (US$25,000,000.00):

(c) Five (5)-year track record in retailing; and

For purposes of determining compliance with the above requirements, the net worth, track record and existence of branches and franchises of the parent company, its branches and subsidiaries and of its affiliate companies, as well as their predecessors, which substantially owns, controls or administers the operations of the applicant shall be considered.

(d) Only nationals from, or juridical entities formed or incorporated in countries which allow the entry of Filipino retailers shall be allowed to engage in retail trade in the Philippines.

The implication of these prequalifications is that thousands of retired expats who want to engage in retail with their retirement money – thereby providing employment to Filipinos – cannot easily engage or invest in the retail trade business. These prequalifications ensure that Filipino retailers maintain a chokehold on the retail trade – and on the Filipino consumers.

What am I driving at? Here’s what I’m saying – do not expect the passage of an FOI to reduce corruption nor increase transparency much like the “retail liberalization” act opening up the retail trade to foreign investors.

The experience in the developed countries – which supposedly have strong traditions of openness – has shown that governments can easily circumvent the FOIA in many ways – via exemptions; via delays; and via redaction (meaning sensitive names and details were removed for various reasons). Thus, in many instances, the government technically provided the document but details are blacked out – thus citizens are still left without the requested information.

For purposes of discussion however, even if the details are revealed – it will take another act of legislation to repeal a law which can take more years if not forever.

Just so we are on the same page – I adopt the definition of public corruption provided by the Cornell University Law School – “Public corruption involves a breach of public trust and/or abuse of position by federal, state, or local officials and their private sector accomplices. By broad definition, a government official, whether elected, appointed or hired, may violate federal law when he/she asks, demands, solicits, accepts, or agrees to receive anything of value in return for being influenced in the performance of their official duties.”

Based on this definition, I’d say the all the congressmen who were influenced to impeach Corona, or approve the RH bill, after receiving pork barrel or promises of more pork barrel or even campaign funds from Aquino are all guilty of public corruption. You don’t even need a Freedom of Information Act to come to the conclusion of the magnitude of the corruption. Heck, the proponents of the FOI act were probably even recipients of the pork barrel in order to rush the approval of the RH Bill.

Pinoys got talent – for PLUNDER!

I’d say the best way to reduce public corruption is not through an FOIA but by limiting the size of government. To limit the size of government means to downsize government, to reduce the number of departments, to eliminate entire departments like the DA, DOST, DOE, DOTC, DTI, DSWD, DPWH, DENR, CHED, DOH, DOT, and the BSP.

It also means to reduce the regulations which need more government offices and officials to enforce regulations. It also means reducing the taxes paid by citizens so that lawmakers and public officials and employees don’t have discretionary funds which they can hand out as if they were drawing from their personal piggy banks.

Every instance of government action which does not fall into the following basic functions: 1) Police – protect individuals from domestic criminals; 2) Military – protect individuals from foreign threats; and 3) Courts – to enable individuals to settle disputes without resorting to violence - is an act of corruption.

“Daang Makorup” – matuwid patungo sa bangko ng trapo

Any act of government which goes beyond these basic functions ultimately end up as state intervention in markets – agriculture markets, energy markets, transportation markets, communication markets, currency markets, health markets, tourism markets, education markets, and infrastructure markets. In all these instances – there is money to be made. The moment government intervenes in markets – you can bet your life savings that a vested interest like  Ayala, Lopez, Sy, Panglinan, Cojuangco is making money at someone else’s expense  (YOUR expense!) – and a lawmaker like Lagman, Drilon, Abad, Santiago, Enrile – and all the Senatongs and Tongressmen received favors – monetary or otherwise – one way or another – WITHOUT EXCEPTION.

We don’t need an FOIA to tell us that the very act of passing legislation that intervenes in markets is a corrupt act. Passing an FOIA after the fact, does not – and will not make the corrupt act go away.