PNoy to ADB crowd: PHL's 'endemic corruption' coming to an end

(Updated 9:31 p.m.) Financial assistance to the Philippines will not “end up like water leaking through a broken pail,” President Benigno Aquino III on Friday assured the Asian Development Bank in his address before the 45^th annual meeting of the bank’s board of governors in Manila. In his speech, Aquino highlighted the contrast between the “corrupt” previous administration and the changes being instituted under his governance. “None of us could have imagined how deeply eroded the foundations of government had become, in the nine and a half years of my predecessor.” He cited the ADB for sharing his administration’s vision of an equitably progressive Philippines and generously augmenting the country’s finances.   “The Asian Development Bank’s official development assistance to the Philippines amounts to $761.97 million. This includes $643.85 million to projects concerning social protection and support, agrarian reform, rural infrastructure enhancement, credit for better health care, and irrigation in the Southern Philippines,” Aquino said.   The President noted how the bank helped government fund and launch the electric tricycle project, public-private partnership program, and its efforts to reform the justice system.   “We are getting to where we want to be faster because of your assistance. For this, you have the gratitude of our people, and a commitment from my administration. Gone are the days when the funds you funnel to our country will end up like water leaking through a broken pail,” Aquino said.   He assured the ADB board of governors that they will continue to see results and see a Philippines that is finally living up to its potential. “We are prepared to follow through on our commitments, and you are by all means welcome to see if we're living up to our word.”   One of his administration’s first moves when he took over the seat of power was to institutionalize a zero-based budget approach where expenditures are rationalized and are not mindlessly carried over to the next year, regardless of whether they worked or not, Aquino noted.   The Department of Finance and its Bureau of Internal Revenue went after tax evaders aggressively. “And we showed our resolve that no public official, regardless of his or her position, will be beyond the reach of justice and accountability,” he said.   “All of these efforts have allowed us to reclaim our national honor; they have boosted confidence in the country, restored our citizenry's morale, and are reaping dividends on the economic front,” the President claimed.    The Aquino-Arroyo divide   Aquino spent a substantial portion of his speech attacking his predecessor. During the past administration, he said, rice imported by the government at inflated cost was left to rot in rented warehouses while stewards of government-owned and controlled corporations advanced their interest at the expense of the people.   Bidding for public works had been orchestrated to favor individuals, he noted. “Endemic corruption had sapped the system of its vitality. Public funds ceased to be used for the public good, and [ended up] in private hands, whom we are now holding accountable,” Aquino said.   “The message, for nine and a half years, was: Nice guys finish last. To finish first, you had to lack conscience, exhibit a certain degree of shamelessness, and be an expert at giving handshakes with one hand, while picking pockets with the other,” he added.   The playing field then was skewed toward those who had connections or those who could afford to bribe their way into contracts or permits, Aquino noted   “Politics permeated poverty-alleviation programs. Slots on the conditional cash transfer program were handed out in exchange for votes,” he said.   Because of these, domestic investments had plunged and foreign investors were reluctant to come in, said Aquino. “With too few jobs being generated, our people were trapped in a downward spiral: no education, no work, no chance to improve their lot in life.”   Reforms and results   The reforms under his young administration, Aquino claimed, have yielded six credit rating upgrades from global agencies in less than two years–a stark contrast to the single upgrade and six downgrades in the nine years of the Arroyo administration.   “We have experienced all-time highs in our stock market 27 times in our 22 months in office,” Aquino noted.   The government’s social welfare programs are now insulated from political considerations, he said.   “Now we are confident that the more than three million households in our conditional cash transfer program are actually the neediest families, and not merely the best-connected; now we know that we are actually sponsoring the 5.2 million poorest families through our PhilHealth program,” the President added. —KG/VS/HS, GMA News