partnerships for integrity and jobs (project...

Partnerships for Integrityand Jobs (Project I4J)

BOOKLET

Contents

Introduction 5

PART 1Partnerships for Integrity and Jobs (Project I4J) 6

Project Rationale 8

Project I4J Pilot LGUs 11

Expanding the Integrity Initiative, Focusing on Local Government Units 12

PART 2National Laws and Regulations Relevant to Integrity 17

Revised Penal Code: Title VII 18

R.A. No. 1379 19

R.A. No 3019 20

P.D. No. 46 20

P.D. No. 749 21

1987 Philippine Constitution: Article XI 21

R.A. No. 6713 22

R.A. No. 7080 23

R.A. No. 9160 24

R.A. No. 9485 26

R.A. No. 10365 26

Restoring Integrity in the Public Sector 28

PART 3The Integrity Circles Strategy 29

The Need for Integrity Circles 30

Experiences with Integrity Circles Application of Integrity Circles for the Moral Recovery Program of former President Fidel V. Ramos 32

Situation (Problem) 32Task (Role of Change Agents) 33Approach (Strategy) 33Result (Outputs/Outcomes) 35Thoughts (Lessons Learned) 36

Application of Integrity Circles to Support DPWH Transformation 38

The Integrity Pledge 39Integrity Circles in support of DPWH Transformation Goal 1 40

Concluding Remarks 41

5

IntroductionThe Partnerships for Integrity and Jobs (Project I4J) Booklet is a basic

document that introduces the Project and the relevant concepts that will guide its implementation. It is the first of a series of publications that will serve as an orientation for the development of integrity mechanisms and good governance in small business registration, business and investment promotion procedures at the pilot local government units (LGUs).

It is primarily composed of three parts.

Part One gives a brief background of the Project, its rationale and its relation to the Integrity Initiative.

Part Two outlines the legal framework in which the Project operates by discussing the relevant legislation that supports and promotes integrity.

Part Three presents the concept of Integrity Circles and its relevance to the Project’s strategy of institutionalizing integrity mechanisms at the local government level.

The Project I4J Booklet aims to make the integrity concepts, methods and mechanisms accessible to all stakeholders (local government officials, civil servants, civil society and business groups) through the use of concrete examples and understandable language.

6 PARTNERSHIPS FOR INTEGRITY AND JOBS (PROJECT I4J)

The high level of poverty is perhaps the most difficult challenge for government leaders in the Philippines. One in four Filipinos lives on US$1 (roughly, PhP45) per day. Majority of them are in rural areas who are mostly farmers and fisher folk but significant numbers also live in slums and informal settlements in major urban centers.

US$1(PhP45) / Day

The situation in most of the islands, rural municipalities and cities of the country is characterized by a major and continuously growing problem of unemployment and underemployment. This often lead to strong migration into the slums of the bigger cities forcing family members into lowly paid overseas employment and to miserable living conditions. Recurrent shocks due to natural disasters, conflicts, major episodes of economic crises and unmanaged high rate of population growth have greatly contributed to these conditions.

Partnerships for Integrity and Jobs (Project I4J)

7PART 1

Main Engines of Growth and Development

Direct InvestmentsEntrepreneurial Activity

In rural areas, poverty is often blamed on very low productivity which has led to low incomes, further reinforcing their lack of access to credit and again, inability to raise production levels. In urban centers, poverty is attributed to lack of job opportunities and a skills mismatch. In both cases, the major cause is lack of access to direct investments and entrepreneurial activity which are the main engines of growth and development.

LACK OF JOBOPPORTUNITIES & SKILLSMISMATCH

POVERTYIN URBANCENTERS

VERY LOWPRODUC-TIVITY

LOWINCOMES

LACK OFACCESS TOCREDIT

INABILITYTO RAISEPRODUCTIONLEVELS (AGAIN)

POVERTYIN RURALAREAS


Project Rationale

The low budget share and poor quality of the education system, the non-existence of relevant research promotion for innovative economic development, the lack of adequate supportive infrastructure for production and marketing activities in the vast agricultural areas of the country – high electricity prices, bad roads, high transportation and service costs (for example, at the numerous ports of the country) are all directly related to the failure of national policies. However, the other key reasons are related to flaws and failures at many of the LGUs in the country including too much dependence on funding from the national government.

a business venture decision must begin with having trust in the community where an investment is to be made

The link between good governance, transparency and integrity, on one hand, and high levels of investment as well as business performance, on the other, has been recognized in studies by the World Economic Forum in their Global Competitiveness Reports. This is because a business venture decision must begin with having trust in the community where an investment is to be made.

Investors – whether large scale capitalists or small entrepreneurs – must strongly believe that a particular social and political setting will produce returns for their ventures and investments. Integrity and the availability of information promote accountability and greater predictability of outcomes.

9PART 1

There is a direct connection between integrity and jobs although this is not very obvious in the short run.

Many poor farmers, fishermen, craftsmen, vendors and other small business owners face the problem of highly nontransparent, cumbersome and costly procedures at local administrations. Good progress is being reported in some models LGUs but these are few and far between. The problems are not only caused by complicated or unclear regulations or lack of guidelines for these regulating activities at local administrations. It is also aggravated by business policy changes and the lack of long-term investments at the local government units.

It is not uncommon to hear efforts of powerful families and clans at many places to use the local administrations, controlled by them through the linkage of economic power and political positions, to protect their dominant market positions against potential competitors. As a result many local markets are closed markets with low competition and comparatively high prices. The Philippines has a very low rate of only about 10% of their total active labor force employed in the formal sector.

10%Onlyof Philippines total active labor force are employed in the formal sector.


The “Partnerships for Integrity and Jobs” also dubbed as “Project I4J,” is a three-year Integrity Project which is co-funded by the European Union and the German Ministry for Economic Cooperation and Development through the Philippine office of the German political foundation, Konrad-Adenauer-Stiftung.

Project I4J focuses on the development of integrity mechanisms in local government unit (LGUs) pilot sites. The Project also aims to develop models of transparent and effective procedures of registration, and promotion of small businesses and investments, and the development of a lasting business policy environment. Project I4J aims to contribute to the reduction of poverty in the Philippines through integrity and the sustainable creation of jobs.

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Project I4J Pilot LGUs

In coordination with representatives from the three local government leagues (League of Cities of the Philippines, League of Municipalities of the Philippines and League of Provinces of the Philippines), three cities, three municipalities and three provinces across Luzon, Visayas and Mindanao were chosen as the pilot LGU partners of Project I4J.

MUNICIPALITIES

• Naujan, Oriental Mindoro• Tuburan, Cebu• Iranun Cluster, Maguindanao

(Parang, Barira, Matanog and Buldon)

CITIES

• Puerto Princesa City, Palawan• San Carlos City, Negros Occ.• Cagayan De Oro City, Misamis Oriental

PROVINCES

• Oriental Mindoro• Cebu• South Cotabato

LMP

LCP

LPP

PROJECTI4J


Expanding the Integrity Initiative,Focusing on Local Government Units

Local governments are seen as key players for clean administrative procedures which is why Project I4J specifically aims to include them in the Integrity Initiative set up by the European Chamber of Commerce of the Philippines and the Makati Business Club.

COMPANIES WITH INTEGRITY COMPETITIVE ADVANTAGE

GOVERNMENT TRANSACTIONS

BUSINESS TRANSACTIONS

The Integrity Initiative aims to strengthen ethical standards in business. It aspires for a level playing field where companies with integrity have competitive advantage in both government and business transactions. The Integrity Initiative developed an accreditation system for companies that consistently uphold integrity in their business processes. It is also a system to make ethical standards in business stronger. Through the principle of collective action, the Initiative brought business and industry associations together in following a common roadmap that institutionalized integrity in all aspects of their business processes.

Since then nearly 3000 local and foreign companies and organizations in the Philippines have joined the Integrity Initiative and committed themselves in the campaign for adherence to ethical business practices. Some 25 National Government agencies and departments have signed

13PART 1

the Integrity Pledge to promote honesty and transparency in transactions and better, more efficient action in the delivery of services.

Project I4J recognizes the role of LGUs as a sustainable network for self-obligation and monitoring of transparent and uncorrupt structures and procedures. It also aims to create models of transparent, effective small business and investment registration and promotion procedures which will be disseminated later to other LGUs.

Nontransparent procedures and corruption in many local government units are seen as major obstacles for business registration and successful development in the local markets especially for small and medium business owners. These problems have also hindered the potential success of the projects implemented by local and foreign investors.

Project I4J will develop mechanisms and models of cooperation between selected LGUs and civil society. It will also root for the integration of Local Government Units into the “Integrity Initiative” and for more efficient and effective small business and investment promotion by LGUs. These mechanisms and models will be disseminated by the three local government associations, the League of Municipalities, the League of Cities and the League of Provinces, to LGUs all over the country. Local government leaders/officials, civil society, small business leaders and potential investors will be the main beneficiaries of the project.

INTEGRITY PLEDGE

3000 LOCAL & FOREIGN COMPANIES

& ORGANIZATIONS

25 NATIONAL GOVERNMENT AGENCIES

& DEPARTMENTS


Project I4J Partner Institutions

The project partners of I4J in the Philippines are Konrad-Adenauer-Stiftung (KAS), the European Chamber of Commerce of the Philippines (ECCP), the Centrist Democracy Political Institute (CDPI), the League of Provinces of the Philippines (LPP), the League of Cities of the Philippines (LCP), and the League of Municipalities of the Philippines (LMP).

The Philippine office of KAS develops programs on issue areas that helps democratic processes in the Philippines stronger. Since it was established in the 1960s, KAS Philippines has focused on

Social Market Economy, Institutional and Political Reform and Peace and Development in Mindanao. Under the framework of Project I4J, KAS communicates with and reports to the European Commission, submitting narrative and financial reports from interim to final. It also manages finances (cash flow, accounting, budget control; manages activity, overseeing and ensuring timetable and deliverables, and quality control of activities of all partners). It also coordinates communication among the six partners and of external visibility activities. It identifies, contracts, and implements missions of short-term experts, including evaluations by an external evaluator.

The ECCP is a bilateral foreign chamber that promotes European interests in the Philippines as well as Philippine interests in Europe. Due to its extensive experience in the field of business and investment

registration and promotion in the Philippines, it is the starter and partner coordinator of the “Integrity Initiative,” a private-sector led effort to help the Philippines level the playing field for business. For Project I4J, the ECCP implements training and consulting activities for small

15PART 1

and informal business representatives and potential investors, partly in cooperation with CDPI. The ECCP also prepares and submits reports from the activities under its responsibility or supervision in the LGUs, both narrative and financial.

CDPI is an institutional partner organization of KAS in the Philippines. Since 2010, it has organized quite a number of local, regional and national training courses, workshops and advocacy

activities. For Project I4J, the political institute establishes integrity circles at the LGUs involved; and prepares and implements consulting/ trainings with civil society representatives.

LPP ventilates, articulates, and crystallizes issues affecting provincial and metropolitan government administrations. Through proper and legal means, it secures solutions to problems confronting the locales.

LCP brings urban governance agenda at the forefront of the country’s development strategies. It believes effective change in the national consciousness starts with the primary visions of the LGUs.

LMP provides municipalities with relevant and adaptive best practices, linkages with pertinent international and local organizations, capacity development, research and advocacy services.

PARTNERSHIPS FOR INTEGRITY AND JOBS (PROJECT I4J)

Under Project I4J, the Leagues (of provinces, cities and municipalities) communicate with their respective local governments involved in the action; support and cooperate in implementing training and consulting activities for political leaders and officials/ experts/ civil servants at the LGUs involved. They also support the advocacy activities on national legal and political framework of the activity and are involved in the implementation of dissemination activities.

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Integrity in politics is a rare find. In an environment of systemic non-integrity, politicians who aspire to live up to high standards of accountability often do not last-either they shy away from politics or bail out when their non-negotiables are compromised or they just let go and succumb to the system.

To combat systemic corruption, relying on a few politicians with personal integrity is not the solution. Institutionalizing transparency and accountability, with rules in place that pertain to full disclosure, freedom of information, public declaration of personal assets, and open invitation to public scrutiny is the better and doable alternative.

The Philippine laws are not wanting in putting in place good governance and integrity in public service. There has been effort on this matter since 1930.

National Laws and Regulations Relevant to Integrity

To combat systemic corruption, relying on a few politicians with personal integrity is not the solution.


Revised Penal Code: Title VIICrimes Committed by Public Officers (1930)

This law forewarns any public officer – elected or appointed by competent authority, who performs public functions and duties in the Philippine government and its branches as an employee, agent or subordinate official, of any rank or class.

It speaks of crimes this public officer must be aware of to protect himself/herself from being trapped into committing any of them. It’s a provision that specifically puts a public officer’s integrity to test. Lack of integrity means lost of trust; public office operates primarily on public trust.

In this law, no excuse is given for non-intentional commission of illegal acts. For instance, bribery is defined comprehensively and that there are two kinds:

• direct, agreeing to perform official duties and functions in consideration of any offer, promise, gift or present; and

• indirect, accepting gifts offered by reason of his office. It also enumerated a litany of corrupt practices, among them:

1. Malversation and presumption of malversation of public funds or property

2. Failure of accountable officer to render accounts

3. Frauds and illegal exactions and transactions

4. Taking advantage of one’s official position to facilitate prohibited transactions

5. Removal, concealment or destruction of documents or papers officially entrusted to the officer

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R.A. No. 1379An Act Declaring Forfeiture in Favor of the State Any Property Found to have been Unlawfully Acquired by Any Public Officer or Employee (1955)

6. Usurpation of legislative powers as in the case when s/he makes general rules or regulations beyond the scope of his/her authority, or by attempting to repeal a law or suspend its execution

7. Unlawful appointments, when a public officer knowingly nominate or appoint to any public office any person lacking legal qualifications.

This defines what a public officer’s “legitimately acquired property” is, as against what s/he has “unlawfully acquired.” The former refers to any real or personal property, money or securities which the public officer has at any time acquired by virtue of inheritance and his/her income prior to becoming a public officer or employee, or gains from the income of his/her spouse. As such, whenever any public officer or

employee has acquired during his incumbency an amount of property which is manifestly out of proportion to his/her salary as public officer or employee and those of his/her other lawful income and the income from legitimately acquired property, the newly acquired property shall be presumed prima facie to have been unlawfully acquired.


R.A. No 3019Anti-Graft and Corrupt Practices Act (1960)

While it is a Filipino practice to gift a person as a matter of showing appreciation of the good things done for him/her or building good relations, receiving gifts under this provision can be construed as a corrupt practice. As stated:

“Receiving any gift” includes the act of accepting directly or indirectly a gift from a person other than a member of the public officer’s immediate family, in behalf of himself or of any member of his family or relative within the fourth civil degree, either by consanguinity or affinity, even on the occasion of a family celebration or national festivity like Christmas, if the value of the gift is under the circumstances manifestly excessive.

Another factor that warrants graft and corrupt practices is using the public servant’s office for personal purposes or gains.

P.D. No. 46Making It Punishable for Public Officials and Employees to Receive, and for Private Persons to Give Gifts on any Occasion, including Christmas (1972)

Under Marcos’ New Society program, the practice of gift-giving to government men was strictly prohibited to wipe out all conceivable forms of graft and corruption in the public service; hence, requiring public servants not only to be honest, but above suspicion and reproach.

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P.D. No. 749Granting Immunity from Prosecution to Givers of Bribes and other Gifts and to their Accomplices in Bribery and other Graft Cases Against Public Officers (1975)

While this decree protects the briber from prosecution should s/he decide to be an informant or witness of the gift or bribe-giving, this does not prevent the denounced public servant and his/her supposed accomplice for the act from taking action, civil or criminal, against said informant or witness.

1987 Philippine Constitution: Article XIAccountability of Public Officers

Because public office is a public trust, “all public officers and employees must, at all times, be accountable to the people, serve them with utmost responsibility, integrity, loyalty, and efficiency; act with patriotism and justice, and lead modest lives.” Those, knowingly or unknowingly breach this trust, will be removed from office by impeachment (for high officials of the land) or as provided by law (for all other public officers and employees) for and conviction of, culpable violation of the Constitution, treason, bribery, graft and corruption, other high crimes, or betrayal of public trust.


R.A. No. 6713An Act Establishing a Code of Conduct and Ethical Standards for Public Officials and Employees, To Uphold the Time-Honored Principle of Public Office being a Public Trust, Granting Incentives and Rewards for Exemplary Service, Enumerating Prohibited Acts and Transactions and Providing Penalties for Violators Thereof and Other Purposes (1989)

A code of conduct and ethical standards for public officials and employees puts in place efforts in upholding integrity in public office. There’s no reason therefore, for public servants to unknowingly commit violations in the exercise of their duties and functions nor claim that integrity in public service is just a concept, a mere aspiration difficult to concretize, more so impose and uphold.

23PART 2

R.A. No. 7080An Act Defining and Penalizing the Crime of Plunder (1991)

The matter about commission of plunder is explicitly defined in this law, leaving no room for misinterpretation. The operative idea here is amassing, accumulating, or acquiring ill-gotten wealth through a combination or series of overt or criminal acts as:

1. Misappropriation, conversion, misuse, or malversation of public funds or raids on the public treasury

2. Receiving, directly or indirectly, any commission, gift, share, percentage, kickbacks or any other form of pecuniary benefit from any person and/or entity in connection with any government contract or project or by reason of the office or position of the public officer concerned

3. Illegal or fraudulent conveyance or disposition of assets belonging to the National Government or any of its subdivisions, agencies or instrumentalities or government-owned or -controlled corporations and their subsidiaries

4. Obtaining, receiving or accepting directly or indirectly any shares of stock, equity or any other form of interest or participation including the promise of future employment in any business enterprise or undertaking

5. Establishing agricultural, industrial or commercial monopolies or other combinations and/or implementation of decrees and orders intended to benefit particular persons or special interests

6. Taking undue advantage of official position, authority, relationship, connection or influence to unjustly enrich self or selves at the expense and to the damage and prejudice of the Filipino people and the Republic of the Philippines


R.A. No. 9160An Act Defining the Crime of Money Laundering, Providing Penalties Therefor and For Other Purposes (2001)

This law defines money laundering as “a crime whereby the proceeds of an unlawful activity are transacted, thereby making them appear to have originated from legitimate sources. It is committed by the following:

1. Knowing that any monetary instrument or property represents, involves, or relates to, the proceeds of any unlawful activity, transacts or attempts to transact said monetary instrument or property.

2. Knowing that any monetary instrument or property involves the proceeds of any unlawful activity, performs or fails to perform any act as a result of which he facilitates the offense of money laundering

3. Knowing that any monetary instrument or property is required under this Act to be disclosed and filed with the Anti-Money Laundering Council (AMLC), but fails to do so.

25PART 2

‘Unlawful activity’ refers to any act or omission of series or combination thereof involving or having relation to the following:

a. Kidnapping for ransom

b. Drug trafficking

c. Ill-gotten wealth

d. Plunder

e. Robbery and extortion

f. Illegal gambling

g. Piracy on the high seas

h. Qualified theft

i. Swindling

j. Smuggling

k. Violations of the Electronic Commerce Act of 2000

l. Hijacking , destructive arson and murder, including those perpetrated by terrorists against non-combatant persons and similar targets

m. Fraudulent practices and other violations of the Securities Regulation Code of 2000

n. Felonies or offenses of a similar nature punishable under the penal laws of other countries


R.A. No. 9485An Act to Improve Efficiency in the Delivery of Government Service to the Public by Reducing Bureaucratic Red Tape, Preventing Graft and Corruption, and Providing Penalties (2007)

This law obliges all government offices and agencies including LGUs and government-owned or –controlled corporations (GOCCs) that provide frontline services to simplify their procedures that will reduce red tape and expedite their transactions. Such measure should promote integrity, accountability, proper management of public affairs and public property, as well as establish effective practices aimed at preventing graft and corruption.

R.A. No. 10365An Act Further Strengthening the Anti-Money Laundering Law, Amending for the Purpose Republic Act No. 9160, otherwise known as the Anti-money Laundering Act of 2001”, as amended (2013)

The following were added to the list of ‘unlawful activity’:

1. Terrorism and conspiracy to commit terrorism

2. Financing of terrorism

3. Bribery

4. Frauds and illegal exactions and transactions

5. Malversation of public funds and property

27PART 2

6. Forgeries and counterfeiting

7. Trafficking of persons

8. Violations of the Revised Forestry Code of the Philippines

9. Violations of the Philippine Fisheries Code of 1998

10. Violations of the Philippine Mining Act of 1995

11. Violations of the Wildlife Resources Conservation and Protection Act

12. Violation the National Caves and Cave Resources Management Protection Act

13. Violation of the Anti-Carnapping Act of 2002, as amended

14. Violations of the decree Codifying the Laws on Illegal/Unlawful Possession, Manufacture, Dealing In, Acquisition or Disposition of Firearms, Ammunition or Explosives

15. Violations of Presidential Decree No. 1612, known as the Anti-Fencing Law

16. Violations of Section 6 of Republic Act No. 8042, known as the Migrant Workers and Overseas Filipinos Act of 1995, as amended by Republic Act No. 10022

17. Violations of Republic Act No. 8293, known as the Intellectual Property Code of the Philippines

18. Violations of Section 4 of Republic Act No. 9995, known as the Anti-Photo and Video Voyeurism Act of 2009

19. Violations of Section 4 of Republic Act No. 9775, known as the Anti-Child Pornography Act of 2009

20. Violations of Sections 5, 7, 8, 9, 10(c), (d) and (e), 11, 12 and 14 of Republic Act No. 7610, known as the Special Protection of Children Against Abuse, Exploitation and Discrimination.


Restoring Integrity in the Public Sector

When integrity is given premium as a matter of standard, trust in government is built, a more equitable society is conceivable, and fair market conditions, achievable. This will result in improved competitiveness and increased business confidence, which will be evident with the increase in domestic and foreign investments and more employment generated for Filipinos. Subsequently, with more Filipinos employed in a vibrant and dynamic Philippine economy, the alleviation of poverty should become inevitable. Of course, this initiative must be a multi-sectoral endeavor to institutionalize integrity standards among other sectors of society – business, judiciary, academe, youth, civil society, church, and media. This should pave way for the diminishing, if not fully eradicating, the vicious cycle of corruption in the country that has not only exacerbated poverty, but also obstructed the development of a competitive business environment operating on a level playing field.

When integrity is given premium as a matter of standard, trust in government is built, a more equitable society is conceivable, and fair market conditions, achievable. EMPLOYMENT

29PART 3

The Integrity Circles StrategyUnder the framework of Project I4J, Integrity Circles will be set up in

the pilot LGUs. In several well prepared visits to the pilot LGUs and in small informal meetings, the selection of Integrity Circle members from existing civil society groups or respected personalities at these places will be moderated in a strictly non-partisan way by experts from CDPI.

The Integrity Circles will serve as the supervising and partner bodies of the integrity and good governance efforts of the local administration. Schools, academic institutions and the youth will be represented in these groups too. Members of the Integrity Circles will be chosen based on the following criteria:

1. Good reputation

2. Professional competence

3. Independence

5. Willingness to fruitfully cooperate with the local administration.

4. Strong belief in the necessity of integrity and good governance in local administration; and


The Need for Integrity Circles

The Integrity Circle (IC) is the formation of networks of friends: representatives of government, business, community organizations and youth groups who are active in the community, are committed to the ideals of honesty, simplicity and professionalism, and could contribute good ideas. The formulation of specific IC projects is meant to prevent specific acts of corruption or unethical practices in their area of responsibility. Its formation helps encourage and strengthen performance and good governance within and helps promote integrity in the organizations.

The IC approach is similar and complementary to the Quality Control Circles (QCCs or QCs) that was introduced by the Japanese in the business sector in the 1960s which helped Japanese companies achieve world-class product quality. Small groups of employees who do similar or related work meet regularly to identify, analyze, and solve problems related to product quality and production. They improve general operations with the formal consent, support and encouragement of management.

A quality circle is a volunteer group composed of workers (or even students) who do the same or similar work – usually under the leadership of their own supervisor (or an elected team leader) – who meet regularly during office hours and who are trained to identify, analyze and solve work-related problems and present solutions to management. The employees at the lowest level are able to talk to managers. It mobilizes the active worker into participating in improving productivity, quality control, and processes; managing total quality, and complying with ISO registration standards.

31PART 3

Integrity Circles seek to raise awareness, identify integrity-related issues that affect performance, promote fair and good practice, as well as participate in the development of practical tools to help enhance integrity and reduce risks of corruption by strengthening transparency and accountability. ICs aim to promote transparency/trust, improvement of performance,

a level playing field, enhanced competitiveness and attractiveness to business, and the creation of more jobs leading to inclusive growth and sustainable development.

ICs promote and institute the value, system and culture of integrity and honesty. Building a culture of integrity requires the participation of the whole community. At the local community level, the creation of ICs will be applicable to all parties that have a stake in the development of the locality. Building ICs is encouraged in all stakeholder organizations.

As ICs are created among stakeholders, a collective action among them will be created to safeguard the integrity standards of the locality. By bringing all these ICs together, a local Integrity Consortium can be formed to promote exchanges of best practices and improved coordination as well as enhance cooperation among all stakeholders.

Accountability for behavior and integrity is the cornerstone of the circle-building process. Within the circles, people are held accountable for their actions and commitments.


Situation (Problem)

One year after the restoration of democracy in the Philippines, former Senator Leticia Ramos Shahani raised a concern in the Senate on mass demoralization due to the resurgence of the same social ills (divisiveness, corruption and patronage) which plagued the past administration. She asked the Senate to investigate the root cause of the moral decay which created opportunities and justifications for ultra-leftist and rightist groups to repeat the foiled attempts to grab political power by force.

When Fidel V. Ramos won the Presidency of the Philippines in 1992, one of his first acts was to issue Presidential Proclamation No.62 “Declaring a Moral Recovery Program” in support of his sister’s initiative to stop the moral decay of Philippine society.

Experiences with Integrity Circles Application of Integrity Circles for the Moral Recovery Program of former President Fidel V. Ramos

This case study is based on the findings of the Appreciative Inquiry conducted by Transparency International Philippine Chapter in 2009. It is also presented here using Organization Development Associates International’s (ODAI) S-T-A-R-T (Situation-Task-Approach-Result-Thought) Format.

33PART 3

Task (Role of Change Agents)

He designated the KABISIG People’s Movement National Operation Center, with Ms. Marietta Goco as its executive director, as its implementing arm. As a start-up activity, she outsourced the services of the country’s top values educators and organization development experts and consultants, including Dr. Antonio Roldan Jr., President of OD Associates International (ODAI) and his new consulting firm HRD Philippines. These values educators and consultants developed and conducted the training modules of the Moral Recovery Program (MRP).

Approach (Strategy)

As lead Organization Development consultant to the Moral Recovery Program (MRP), Dr. Roldan :

1. Designed and facilitated a series of strategic planning workshops to guide MRP secretariat and champions to implement smoothly the three phases of the program;

2. Facilitated the process of defining and redefining the vision, mission, goals and strategy of the Moral Recovery Program until its officers, secretariat, champions and trainers reached consensus on the statements;

3. Designed and facilitated the First National Congress on Filipino Values. This dialogue of 300 values formators throughout the Philippines highlighted the pervasive alienation of the ruling elite from popular/indigenous culture due to the process of colonization; and thus the necessity of mainstreaming the process of decolonization by way of recovering and remembering the positive Filipino cultural values as positive forces for restoring national pride and identity;


4. Designed and facilitated the 4th National Summit on Peace and Order. This gathering of 500 representatives of the five pillars of the criminal justice system produced a Five-Year Master Plan of Action for Peace and Order (1997-2001). In addition, they proposed ten (10) Presidential Directives in support of this plan. An example is Executive Order 319 (EO 319), directing all government agencies to institutionalize the Moral Recovery Program in their respective organizations by establishing Integrity Circles and allocating a budget for it;

5. Conducted Training of Trainers Workshops for most HR officers of government agencies to establish integrity circles for promoting integrity and preventing corruption in their respective organizations.

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Result (Outputs/Outcomes)

1. After a series of MRP Training of Trainers seminars conducted with national government huma resources and administration officers, the MRP Integrity Circles Movement spread like wild fire from 1995-1996. Most active were Integrity Circles from:

• Department of Interior and Local Government

• Department of Education, Culture and Sports

• Department of Science and Technology

• Department of Labor and Employment

• National Police Commission

• Department of Agrarian Reform

• Armed Forces of the Philippines

• Department of National Defense

• Commission on Audit

• Philippine Economic Zone Autority

• Government Service Insurance System

2. By mid-year 1996, the MRP secretariat reported 360 Integrity Circles throughout the government bureaucracy.

3. Each of the 360 registered Integrity Circles submitted at least IC Project with projected savings of ten to fifty thousand pesos each for government, by eliminating small time corruption (use/misuse/abuse of public power and/or resources for personal gain) in their respective offices.


Thoughts (Lessons Learned)

1. The experience of applying Integrity Circles in the Moral Recovery Program of former President FV Ramos (1992-1998) confirmed fully each of the ten core beliefs/principles that the Integrity Circles Movement (ICM) hold about corruption and the conditions to cope with it namely:

• Corruption is a universal plague which needs to be prevented and eventually eliminated because it not only robs people of their human dignity but even kills them physically and spiritually.

• But corruption can be prevented because it is a function and triangle of three interdependent factors/variables. It cannot be committed when even one of these factors is absent.

Thus C = A R O

Where, C = Corruption

A = Attraction

R = Rationalization

O = Occasion

• To curb it, the top leader/executive/CEO/COO needs political will not just to reduce it but eliminate it by words and example.

• To curb it, everyone must be guided by a Common Code of Ethics which clearly defines the ethical/professional standards of behavior expected of both leaders and members.

RATIONALIZATIONATTR

ACTIO

N

OCCASION

CORRUPTION

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• To curb it, there must be effective formal (Performance/Quality/Integrity Appraisal Systems) and informal (IC Kaibigan Feedback System) feedback mechanisms.

• To curb it, there must be an effective system of reward and punishment. We should make integrity and honesty rewarding and not punishing.

• To curb it we need peer support groups of good people (Integrity Circles) to neutralize syndicates of bad people.

• To curb it, change agents must be the first to undergo the personal changes they advocate.

• To curb corruption, one must involve people with power, authority and/or influence to effect the change.

• Integrity is its own reward. Where corruption ends, true peace of conscience begins.

2. To succeed in promoting integrity in national and local government, one must be ready to expect the unexpected. The sudden change of national leadership with different values and priorities caught all MRP leaders and implementers by surprise. Nobody expected that the next administration would scrap all projects advocated by his predecessor. The only contingency action that the implementers organized in case of withdrawal of support from the next administration was the creation of a Moral Recovery Officers Foundation, Inc. (MROFI) to pursue the program.

3. Through the MROFI, the internal movement of reform for good governance through the MRP and IC continue to be implemented in the government bureaucracy, although in a very limited manner.


Application of Integrity Circles to Support DPWH Transformation

Ever since corruption watch dogs started rating government agencies, the Department of Public Works and Highways (DPWH) has been at the top five most corrupt government agencies in the Philippines. In 2009, the agency had a -65% rating for perception of corruption, according to a survey conducted by the Social Weather Stations. It dropped to -21% in 2012. In the 2013 State of the Nation Address, President Aquino cited DPWH for combating corruption and saving 18.4 billion pesos due to a competitive and transparent bidding process.

2009Department of Public Works & Highways (DPWH) rating for perception of corruption

-65% rating

-21% rating

18.4 billion pesos saved

20132012

39PART 3

The Integrity PledgeIn the 2nd Integrity Summit, hosted by the Integrity Initiative of the

European Chamber of Commerce of the Philippines and the Makati Business Club in 2012, DPWH Sec. Rogelio Singson candidly revealed his Transformation Framework/Plan for attaining full transparency and accountability and reducing corruption in DPWH. He set three strategic goals:

In the same revelation, Sec. Singson committed to sign and get all his top management team sign the Integrity Pledge of the Integrity Initiative and comply with the standards of the Unified Code of Conduct for Business. At the same time he promised to oblige all DPWH contractors to do the same.

TRANSFORMATON of employees to actively support and participate in DPWH transformation and corruption reduction through a Values Formation Program (VFP);

SIMPLIFICATION of procurement bidding systems and procedures to improve efficiency and reduce corruption;

OPTIMIZATION of public-private resources in order to deliver the FIVE R’s of what the public and the President expects of DPWH namely: Right Project, at Right Quality and Right Cost, delivered Right on Time, by the Right People

1

2

3


Integrity Circles in support of DPWH Transformation Goal 1

As first step in achieving DPWH Transformation, DPWH bided out the Values Formation Program (VFP) Phase I for Top Management. The winning service conducted six batches of Integrity Circles Workshops for top management. The DPWH Secretary attended the first batch. Through the VFP Phase I, the Secretary was able to emphasize the urgency of change and formulate and communicate his vision and strategy of DPWH transformation in such a way that he won over the top management to fully support him.

The next step was to bid out the Values Formation Program (VFP) for Middle Management. The same outside service provider won the bid and conducted 26 batches of Integrity Circles Workshops customized for middle managers. In this way middle managers shared the vision of change and organized themselves into 104 Integrity Circles. Each Integrity Circle is committed to achieve one IC Project to prevent one form of corruption in their respective offices.

VALUES FORMATION PROGRAM FOR MIDDLE MANAGEMENT

=

=

26 BATCHESOF INTEGRITY

CIRCLES

104 INTEGRITY CIRCLES

1

1

1

1

Each Integrity Circle is committed to achieve one IC Project to prevent one form of corruption in their respective offices.

41

Concluding RemarksProject I4J builds on the experiences and results of these three different

agenda presented in the Booklet in the efforts to promote integrity and to organize it as a participative process with the stakeholders and potential beneficiaries of improved integrity.

• Building on the mechanisms, procedures and experiences of the Integrity Initiative, Project I4J works on the adaptation of these substantial processes for local government units in order to make them the necessary counterpart of the private business for clean business and investment procedures.

• Building on the broad list of legal regulations promoting honesty, ethical behavior, transparency and protection against corruption in administrative procedures and actions, Project I4J will design and implement monitoring and control mechanisms at the local level to ensure the implementation of these laws, regulations and guidelines, with active involvement of the stakeholders from local governments, local business and local civil society.

• Building on the interesting and encouraging experiences of using quality circles and integrity circles in private business and in public administration during the past decades, Project I4J takes up these mechanisms in the form of “Multisector Integrity Circles” and makes it a key mechanism in this project, providing them with the tasks of

(1) assisting and complementing the efforts of the local administration to design mechanisms for the cleaning up and improvement of their business and investment related procedures and interventions,

(2) monitoring and consulting regularly in the spirit of constructive criticism, the step by step implementation of


these mechanisms and

(3) developing a sustainable culture of integrity at the respective localities with strong involvement of media, religious sector, civil society and private business which lasts beyond the legislative terms of decision makers in local governments.

We encourage the readers of this Booklet to make themselves an active part of this action.

43

For comments, questions and suggestions, contact:

“Partnerships for Integrity and Jobs” (Project I4J)Coordination OfficeKonrad-Adenauer-Stiftung5/F Cambridge Center, 108 Tordesillas cor. Gallardo Sts., Salcedo Village, Makati City 1227 Philippines

Phone: (632) 819 7530Fax: (632) 893 6198Website: www.euprojecti4j.com

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