Business groups cite role of dynastic politics, opaque procurement in corruption scandals

FOUR business organizations said reforms are urgently needed to address corruption in infrastructure projects, citing the need to overhaul procurement process and minimize the negative influence of dynastic politics.

The groups, which include the Management Association of the Philippines, cited earlier cases of official corruption, such as the pork barrel scam, the ZTE broadband deal, and the Pharmally procurement, noting that they represent recurring irregularities in how the government spends.

“These cases reveal a troubling pattern: corruption flourishes where political patronage and dynastic influence intersect with opaque procurement processes, weak oversight, and poor accountability in the use of public funds,” they said.

“Other countries have confronted similar challenges — and many have succeeded in reducing corruption by enforcing transparency in major projects, responding quickly to red flags, and clearly assigning institutional responsibility. The Philippines can — and must — do the same,” they added.

The groups demanded full transparency across the project life cycle starting with the Department of Public Works and Highways (DPWH).

“All disbursements and variations to contracts should be made publicly accessible online and linked to the Modernized Philippine Government Electronic Procurement System (mPhilGEPS),” they said.

The groups also sought the disclosure of beneficial ownership among government contractors to raise transparency and deter money laundering.

They said that the government should interconnect Securities and Exchange Commission Cooperative Development Authority beneficial ownership data and Bureau of Internal Revenue tax records with mPhilGEPS “to enable real-time verification and automatically flag suspicious payments.”

The groups are also seeking to grant the Commission on Audit, the Department of Budget and Management, DPWH, and the Anti-Money Laundering Council the authority to initiate joint audits within 90 days after initial indications of malfeasance.

Citing the example of Hong Kong and Singapore, the groups said that acting before the funds are dissipated disrupts corruption networks.

They backed the launch of a public dashboard with secure whistleblower channels to track delays, cost overruns, and repeat contract winners.

“Citizen oversight strengthens accountability,” they said.

“We stand ready to support these reforms by sharing technical insights, participating in consultations, and assisting independent monitoring — always with full respect for institutional independence and the rule of law,” they said.

“The window for reform is open, and we should seize the momentum without delay,” they added.

The other signatories to the statement were the Institute of Corporate Directors, the Institute for Solidarity in Asia, and the Justice Reform Initiative. — Justine Irish D. Tabile