Business Corruption in the Philippines
Corruption restricts the efficiency of businesses operating in the Philippines. Extensive bribery within the public administration and vague and complex laws make foreign companies vulnerable to
extortion
and manipulation by public officials. Favouritism and undue influence are widespread in the courts, leading to time-consuming and unfair dispute resolution and to an uncertain business environment. Foreign investors are particularly vulnerable to bribery when trying to obtain
licences and permits. Corruption plagues the customs administration, and fraud is routine for companies when filing import and export documentation. The
Anti-Graft and Corrupt Practices Act
criminalises active and passive bribery, extortion,
abuse of office,
and
conflicts of interest
. Gifts are forbidden by law, but small-value gifts are cultural practice. Facilitation payments are not addressed by anti-corruption regulations. The legislative framework for fighting corruption is complicated and is not effectively enforced by the weak and non-cooperative law enforcement agencies.
August 2015
GAN Integrity Solutions