PHILIPPINESCORRUPTION IN THE PHILIPPINES IN THE MIDST OF THE
PANDEMIC
Olivia I. Laroza-Torrevillas *Corruption is a form of dishonesty or a criminal offence which is undertaken by a person
or an organization which is entrusted in a position of authority, in order to acquire illicit benefits
or abuse of power for one's personal gain. While corruption appears to be a legal andinstitutional problem, the same should be treated as a social, political, and cultural phenomenon
driven by human behaviour and circumstances.
Philippine Laws Penalizing Corruption:1. Acts of Graft and Corruption punishable under the Revised Penal Code;
2. Republic Act No. 3019, or the Anti-Graft and Corruption Practices Act;
3. Republic Act No. 7080, or An Act Defining and Penalizing the Crime of Plunder;
4. Republic Act No. 6713, or the Code of Conduct and Ethical Standards for Public
Officials and Employees;
5. Republic Act No. 9184, or the Government Procurement Reform Act;
6. Republic Act No. 9485, as amended by RA 11032, or the Ease of Doing Business andEfficient Government Service Delivery Act of 2018;
7. Republic Act No. 6770, or the Ombudsman Act of 1989;
8. Presidential Decree No. 46 series of 1972, Punishing the Receiving of Gifts by Public
Officials and Employees; and9. Anti-Red Tape Act of 2007.
I. THE DUTERTE ADMINISTRATION’S FIGHT AGAINST CORRUPTION
It was the commitment of then President Rodrigo Duterte to rid the government of corrupt
officials and employees. He issued Executive Order No. 43 creating the Presidential AntiCorruption Commission, the anti-corruption government agency during the Duterteadministration. Also, in a Memorandum dated 27 October 2020, he mandated the Departmentof Justice to investigate allegations of corruption in the entire government. Thus, theDepartment of Justice, in a Department Order, created the mega Task Force Against Corruption
which consists of other bodies and agencies of the government. The Task Force Against
Corruption was authorized to investigate, prosecute and file appropriate charges in allegationsof corruption, taking into consideration the gravity of the acts and the impact on the deliveryof government services. The creation of TFAC resulted in the filing of corruption complaints
directly with the Office of the Secretary of Justice who acted as the Chairperson of the Task
Force Against Corruption.
The Covid-19 outbreak increased corruption risks, exposing the health sector andundermining the health care system of the Philippines. The pandemic led to the granting ofemergency powers to then President Rodrigo R. Duterte who enacted measures, rules and laws
to address the Covid-19 crisis.
*Deputy State Prosecutor, National Prosecution Service, Department of Justice, Philippines.

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II. REPUBLIC ACT NO. 11469 OR THE BAYANIHAN TO HEAL AS ONE ACT
Republic Act No. 11469, also known as the Bayanihan Act, is a law in the Philippines thatwas enacted in March 2020 granting the President additional authority to combat the Covid-19
pandemic in the Philippines. The law provides the President of the Philippines the power toimplement temporary emergency measures to respond to the crisis brought about by Covid-19,
such as:•adopting and implementing measures, to prevent or suppress further transmission
and spread of Covid-19;•authorizing the National Health Insurance Program of the Philippine HealthInsurance Corporation to cover the cost of medical expenses due to Covid-19;•providing an emergency subsidy amounting to five thousand pesos (₱5,000.00) toeight thousand pesos (₱8,000.00) to low-income households based on prevailingregional minimum wage rates;•partnering with the Philippine Red Cross in giving aid to the people;•implementing an expanded and enhanced Pantawid Pamilya Pilipino Program andproviding an assistance programme through the Department of Social Welfare andDevelopment and the Department of Labor and Employment;•enforcing measures against hoarding, profiteering, injurious speculations,manipulation of prices, product deceptions, cartels, monopolies or othercombinations to restraint trade or affect the supply, distribution and movement offood, clothing, hygiene and sanitation products, medicine and medical supplies,
fuel, fertilizers, chemicals, building materials, implements, machinery equipment
and spare parts for agriculture, industry and other essential services;•procuring of goods and services for social amelioration measures, in the mostexpeditious manner through exemptions from Republic Act No. 9184 or the"Government Procurement Reform Act" and other relevant laws; and•

Others.
III. RECENT CORRUPTION SCANDALS

The emergency powers given to the President under the Bayanihan Act did not deter private
and public individuals from committing corruption activities during the pandemic. A numberof corrupt acts emerged during the Covid-19 pandemic which are magnified in the following
scandals:
A. Pharmally Scandal
The emergency procurement system was hit by corruption when in 2020-2021, thegovernment of the Philippines entered into a string of multi-billion-peso contracts with acompany called Pharmally Pharmaceuticals, despite the fact that Pharmally is a small firm thatwas incorporated only in 2019 and lacked the funds, experience and credibility to handle major
government contracts. It was later revealed that Pharmally has direct ties with Chinese- 114 - 114 -PHILIPPINES
businessman Michael Yang, a close friend and former advisor of President Rodrigo Duterte.
While direct corruption in this case has not yet been proven, the circumstances are extremely
suspicious, and this is just one high-profile example of questionable Covid-related procurement
deals.
B. Wasted Pandemic Response Fund
The Commission on Audit reported trillions of pesos of wasted pandemic response funds.
In August, the Commission on Audit (COA) flagged deficiencies in the use by the DOH ofP63.72 billion in funds which were supposed to be used to help fight the Covid-19 pandemic.
The COA found billions of pesos in the coffers of the health department, as well as suspectedirregularities in transactions made using the Covid-19 funds. COA findings also showed that:(1) P6 million was spent on expired drugs and medicines; (2) P69 million was spent on
overstocked, slow-moving or idle drugs and medicines; and (3) P20 million was spent on nearly
expired drugs and medicines. Senators also questioned the alleged P550 million worth of test
kits that had expired in 2020 without being used, as well as the acceptance by PD-DBM of faceshields deemed unfit for use by health care workers at the frontline.
C. Corruption in PhilHealthThe problem of corruption in PhilHealth more than anything victimizes the vulnerable, thesick and poor Filipinos who are being cheated on medical assistance that could have been usedto treat their illnesses and possibly save their lives. The current composition of PhilHealthunderrepresents patients, health providers, concerned civil society groups and the public(Filipino citizens) in general, and overrepresents the government. There’s only one slot on thePhilHealth board dedicated to consumer/patient representation. This is a major deficiency thatneeds to be addressed if accountability and transparency are to be ensured in PhilHealth’s
operations and decision-making processes.
D. Corruption in the Implementation of the Social Amelioration Program (SAP)
According to the Presidential Anti-Corruption Commission, a total of 7,601 complaints ofcorruption in the distribution of cash aid in time of the pandemic have been reported andinvestigated by its office. It shows that the billions of pesos could have been misused. One of
the Philippine senators claimed irregularities when DSWD tapped a private corporation to issue
the cash assistance through e-wallets. Thus, the recipients who do not know how to download
the app for e-wallets did not receive the allocated financial assistance.

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