Business groups to Marcos: Implement reforms, recover ill-gotten wealth

Over 30 business groups on Monday appealed to President Ferdinand “Bongbong” Marcos Jr. to immediately implement institutional reforms and ensure the restitution of ill-gotten wealth and embezzled funds of the government, following controversies on corruption that his administration is seeking to clean.

In a joint statement, the business groups called on the Marcos administration to immediately address without delay what they described as a “historic, massive, and unprecedented” corruption scandal involving flood control and infrastructure projects.

“We have contributed to national funds through taxes locally and nationally and have paid additional assessment of taxes. We provided many fees to enable us to do business,” the statement read.

“Yet, trillions of pesos supplied and intended to protect our communities from disasters have been squandered through ghost projects, substandard work, and inflated contracts. This is more than financial loss – it is a fatal breach of public trust that leaves our people vulnerable and outraged,” it added.

The business groups also urged Marcos to implement institutional reforms and ensure recovery of ill-gotten wealth from the corruption scandal and empower the Independent Commission on Infrastructure (ICI) with full legal authority and independence to conduct a swift and comprehensive investigation.

They also sought regular public updates on the progress of the investigations and the public disclosure of all audit findings, as well as the prosecution of all those responsible – impartially and without regard for rank, position, political affiliation, or personal relations.

The signatories of the statement include: the Association of Abaca Pulp Manufacturers of the Philippines; Association of Certified Public Accountants in Commerce and Industry; Association of International Shipping Lines Inc.; Association of Petrochemical Manufacturers of the Philippines; Capital Markets Development Foundation Inc.; Employers’ Confederation of the Philippines; Federation of Filipino-Chinese Chambers of Commerce and Industry Inc.; Federation of Philippine Industries; Financial Institute Executives of the Philippines, and the Fintech Alliance Ph.

It was also signed by the Fintech Philippines Association; Good Governance Advocates of the Philippines; Institute of Corporate Directors; International Chamber of Commerce-Philippines; IT and Business Process Association of the Philippines; Justice Reform Initiative; Makati Business Club; Management Association of the Philippines; Philippine Association of Legitimate Service Contractors; and the Philippine Chamber of Commerce and Industry.

Other signatories are the Philippine Exporters Confederation; Philippine Franchise Association; Philippine Hotel Owners Association Inc.; Philippine Plastics Industry Association, Philippine Retailers Association; Philippine Steelmakers Association; Philippine Young Entrepreneurs Association; Samahan sa Pilipinas ng mga Industriyang Kimikia; Supply Chain Management of the Philippines; Tax Management Association of the Philippines; Women’s Business Council Philippines; Filipino CEO Circle; and the Healthcare Information Management Association of the Philippines.

Sought for comment, Palace press officer Atty. Claire Castro assured that the Marcos administration is undertaking efforts to address the business sector’s concerns about corruption in government projects.

In a press briefing on Monday, she underscored the President’s decision to establish the Independent Commission for Infrastructure in order to get to the bottom of the corruption scandal and ensure greater transparency and accountability in public spending.

Castro pointed out that implicated personalities had their assets frozen and are the subjects of immigration lookout bulletin orders, while some are now facing charges for the flood control controversy.

“Marami na pong nagawa at marami pa pong iniimbestigahan. Nararamdaman po ng Pangulo at ng administrasyon ang mga nararamdaman ng mga businessmen kaya po patuloy ang ginagawang pag-iimbestiga at patuloy ang pagpapabilis ng aksiyon para po mapanagot ang dapat na mapanagot,” she said.

(Many steps have been done and we will be investigating more. The President and the administration is aware of the sentiments of our businessmen. This is why the investigation is ongoing and actions are being expedited to make sure that we hold people accountable.)

Last month, the Department of Finance (DOF) said "ghost" flood control projects may have cost the Philippine economy about P42.3 billion to P118.5 billion. This figure could have also generated 95,000 to 266,000 jobs for Filipinos from 2023 to 2025.

For his part, Marcos previously ordered a sweeping review of the proposed budget of the Department of Public Works and Highways (DPWH) under the National Expenditure Program (NEP). The DPWH is the government agency tasked to implement flood control projects.

He also earlier launched a website on flood control and urged citizens to report any wrongdoings through the platform. This was after he found out that only 15 construction firms cornered 20% of flood control contracts across the country in the past three years. — JMA, GMA Integrated News