sws corruption data

8/3/2019 SWS Corruption Data

http://slidepdf.com/reader/full/sws-corruption-data 1/40

COPYRIGHTED MATERIAL/STRICTLY CONFIDENTIAL.NOT AUTHORIZED FOR QUOTATION, PUBLICATION OR RELEASE.

FOR INFORMATION OF THE ASIA FOUNDATION ONLY.EMBARGOED UNTIL NOVEMBER 21, 2008.

C:\Documents and Settings\All Users\Documents\ANNE A\Tag8\Tag8 visuals

TAG 8_NCR HANDOUT FINAL.ppt/20/11/08 1

SOCIAL WEATHER STATIONS

Transparent Accountable Governance:

The 2008 SWS Surveys of Enterprises on Corruption

2The 2008 SWS Surveys of

Enterprises on Corruption

The SWS Surveys of Enterprises on

Corruption are sponsored by The Asia

Foundation (TAF).

Opinions expressed here are those of the

SWS research team and do not necessarily

reflect the views of TAF.










Outline

Survey Design Survey Results 1. Public Sector Corruption 2. Sincerity in Fighting Corruption

3. Government Efforts To Fight Corruption 4. Enterprises Solicited For A Bribe

5. Anti-Graft Legislation 6. Private Sector Corruption 7. Business Efforts To Fight Corruption

8. Honest Business Practices 9. The Business Climate

Summary of Findings



Survey Design










The TAG Project Surveys

a. Are Time Series

8 rounds (2000-08): National Capital Region 5 rounds (2004-08): Metro Cebu

5 rounds (2004-08): Metro Davao 3 rounds (2005-07): Cavite-Laguna-Batangas,

Cagayan de Oro-Iligan.*

b. Are Stratified by Size 2/3 weight: Small & Medium Enterprises

1/3 weight: Large Enterprises.

*Not part of TAG-2008 due to lack of funds.



Fieldwork Total Small & Error Dates Sample Large Medium Margin

SWS SURVEYS OF TOP/MIDDLE MANAGEMENT OF ENTERPRISES ON CORRUPTION, 2000-2008

Aug14-Oct26 2000 604 204 400 ± 4%

Sep4-Dec4 2001 505 200 305 ± 4%

Oct25-Feb25 2002/03 500 214 286 ± 4%

Nov13-Jan28 2003/04 701 285 416 ± 4%

Jan21-Mar15 2005 701 232 469 ± 4%

Feb18-Apr27 2006 700 231 469 ± 4%

Mar4-May11 2007 703 233 470 ± 4%

Sep9-Oct10 2008 402 135 267 ± 5%

NCR 202 67 135 ± 7%

C=Metro Cebu 100 34 66 ±10%

D=Metro Davao 100 34 66 ±10%










A partial-panel design

NCR/C/D 402 282 120

NCR 202 127 75

METRO CEBU 100 80 20

METRO DAVAO 100 75 25

Total Interviewed Newly inter- 2008 in both 2007 viewed in

interviews & 2008 2008



Public Sector Corruption










% WHO SAY “THERE IS A LOT OF CORRUPTION IN THE PUBLIC SECTOR” – HIGH; NO TENDENCY TO FALL

NCR Cebu Davao

63

77

60

67

7167

65

71

6366

63

5759 58 58

71

60

55

0%

20%

40%

60%

80%

2000

2001

2003

2004

2005

2006

2007

2008

Q40. How much corruption do you think there is in the public sector? (A lot, Some, A

li ttle, None)



“MOST/ALMOST ALL COMPANIES IN MY LINE OF BUSINESS GIVE BRIBES TO WIN PUBLIC SECTOR CONTRACTS” Base: Total who say there is corruption in the public sector

NCR Cebu Davao

5456 57 56

52

46

42

49

62

54

47

56

4850

57

49 49

35

0%

10%

20%

30%

40%

50%

60%

70%

80%

2000

2001

2003

2004

2005

2006

2007

2008

In NCR, the downtrend stopped. Davao has a new low.

Q42. In your line of business, how many companies do you think give bribes to win

public sector contracts? (Almost all, Most, Few, Hardly any, None)










MEDIAN PERCENTAGE OF CONTRACT ALLOTTED AS BRIBE FOR A PUBLIC SECTOR CONTRACT

Base: Total who say there is corruption in the public sector

20

15

20

17

15

20 20 20

15 15

10

15

10

15 15 15

20

10

0%

5%

10%

15%

20%

25%

2000

2001

2003

2004

2005

2006

2007

2008

Higher allotment now in NCR than in Cebu or Davao.

NCR Cebu Davao



PERSONAL KNOWLEDGE OF PUBLIC SECTOR CORRUPTION IN ONE’S SECTOR OF BUSINESS IN THE PAST THREE MONTHS

Base: Total who say there is corruption in the public sector

48

39

43

3739

37

48

36

49

27

46

41

4548

40

0%

10%

20%

30%

40%

50%

60%

2004

2005

2006

2007

2008

Apparent downtrend in Davao only.

NCR Cebu Davao










Sincerity in Fighting Corruption



NCR/C/D 2008: RATINGS OF SINCERITY IN

FIGHTING CORRUPTION

Filipino Business Assns. 72% 8% +64

SSS 62 16 +46 DTI 60 18 +42

Supreme Court 57 20 +37

City/municipal gov’t 57 22 +35

DOH 53 23 +30

COA 48 25 +23

DOF** 44 29 +15

Very/ Somewhat/ Somewhat Very Net*

Sincere Insincere Sincere VERY GOOD

(over +50)

GOOD (+31 to +50)

MODERATE (+11 to +30)

Q7-37. PLEASE EVALUATE THE FOLLOWING INSTITUTIONS IN TERMS OF SINCERITYIN FIGHTING OR PREVENTING

PUBLIC SECTOR CORRUPTION IN THE PHILIPPINES.

**DOF was covered f or the f irst time in 2008.*Net figures (% Sincere minus % Insincere) correctly rounded.

Page 1 of 4










DepEd 43% 36% +7 AFP 39 33 +6

Sandiganbayan 37 32 +5

Ombudsman 38 33 +4 Trial Courts 31 37 -5

Senate 35 41 -6 DBM 34 41 -7

MEDIOCRE (-10 to +10)

Q7-37. PLEASE EVALUATE THE FOLLOWING INSTITUTIONS IN TERMS OF SINCERITYIN FIGHTING OR PREVENTING PUBLIC SECTOR CORRUPTION IN THE PHILIPPINES.

*Net figures (% Sincere minus % Insincere) correctly rounded.


Sincere Insincere Sincere

NCR/C/D 2008: RATINGS OF SINCERITY IN FIGHTING CORRUPTION

Page 2 of 4



GSIS 30% 42% -12 DA 30 47 -17

DOJ 29 47 -17

PNP 28 46 -18 DILG 27 50 -23

PAGC 24 48 -23

DENR 26 50 -25 COMELEC 24 51 -27

DOTC 25 52 -27 Office of the Pres. 27 55 -27

POOR (-11 to –30)





NCR/C/D 2008: RATINGS OF SINCERITY IN

FIGHTING CORRUPTION Page 3 of 4










LTO 22% 54% -32

PCGG 19 50 -32

House of Reps. 18 59 -41

BIR 14 70 -56

DPWH 9 72 -63

Bureau of Customs 6 79 -72

BAD (-31 to -50)

VERY BAD (below -50)





NCR/C/D 2008: RATINGS OF SINCERITY IN FIGHTING CORRUPTION

Page 4 of 4



VERY GOOD (over+50): Filipino Business Associations

GOOD (+31 to +50): SSS, DTI, Supreme Court,City/Municipal Government

MODERATE (+11 to +30): DOH, COA, DOF

MEDIOCRE (-10 to +10): DepEd, AFP, Sandiganbayan,Office of the Ombudsman, Trial Courts, Senate, DBM

POOR (-11 to –30): GSIS, DA, DOJ, PNP, DILG, PAGC,DENR, ComElec, DOTC, Office of the President

BAD (-31 to -50): LTO, PCGG, House of Representatives

VERY BAD (below –50): BIR, DPWH, BOC

NET SINCERITY IN FIGHTING CORRUPTION, 2008










NCR/C/D: Moderate to Very Good Sincerity Ratings

2006

2007

2008

+40+44

+24+27

+8

+67

+52 +51+48

+27+29

+21

+64

+46+42

+37 +35+30

+23

+15

0

+10

+20

+30

+40

+50

+60

+70

Very

Good

Good

Moderate

SSS DTI Supreme

Court

City/

Municipal Govt.

DOH COA DOF Filipino

Business Assns.NET SINCERITY IN FIGHTING CORRUPTION

LGUs and COA improve.



NCR/C/D: Mediocre Sincerity Ratings

2006

2007

20080

+10

+20

-10

-20

+2

-17

+13

+6+4

-20

+4

+10

-10

+15

+9+8

-7

+6+7

+6+5

+4

-5-6

-7

DepEd

AFP

Sandigan-

bayan

Ombuds-

man

Trial

Courts

Senate

DBM

NET SINCERITY IN FIGHTING

CORRUPTION

The AFP and Senate are no longer ‘Poor’. The Sandiganbayan has

become ‘Mediocre’.










NCR/C/D: Poor Sincerity Ratings, Part 1 of 2

2006

2007

2008

+5

-26

-20

-36-34

+13

-8

-21

-25

-21

-12

-17 -17-18

-23

0

+10

+20

-10

-20

-30

-40

GSIS

DA DOJ PNP DILG

NET SINCERITY IN

FIGHTING CORRUPTION

GSIS falls from ‘Moderate’ to ‘Poor’.PNP rises from ‘Bad’ to ‘Poor’.



NCR/C/D: Poor Sincerity Ratings, Part 2 of 2

2006

2007

2008

-16

-39

-59

-22

-15

-5

-24

-36

-15

-3

-23-25

-27 -27 -27

0

-10

-20

-30

-40

-50

-60

PAGC

DENR

Comelec

DOTC Office of the

Pres.

NET SINCERITY IN FIGHTING CORRUPTION

PAGC, DOTC and OP drop.

Comelec rises to ‘Poor’.










NCR/C/D: Bad to Very Bad Sincerity Ratings

BOC

-34

-13

-44

-57

-68

-75

-29

-20

-33

-48

-60

-69

-32 -32

-41

-56

-63

-72

0

-10

-20

-30

-40

-50

-60

-70

-80

LTO

PCGG

House of

Reps.BIR

DPWH

Bad Very Bad

2006

2007

2008

PCGG is worsening.



DTI 13% 1% +12 SSS 12 1 +12 DOH 11 3 +8 DepEd 12 6 +6

Supreme Court 5 1 +4 LGUs 7 4 +3 DOF 4 1 +3 AFP 4 5 -1

DENR 3 6 -2 LTO 8 10 -2 GSIS 3 6 -4 DOTC 2 7 -5

DA 4 11 -7

Office of the President 1 18 -17 BIR 6 32 -26 DPWH 1 27 -26

BOC 1 44 -43

*Net figures (% Less corrupt minus % More corrupt) correctly rounded.

Less More Corrupt Corrupt Net*

NCR/C/D, 2008: CITATIONS OF CHANGE IN CORRUPTION COMPARED TO 5 YEARS AGO (OPEN-ENDED, VOLUNTEERED)










DTI +2 +8 +12 SSS +7 +7 +12 DOH +5 +6 +8 DepEd +9 +5 +6

Supreme Court +4 +3 +4 LGUs +5 +2 +3 DOF +1 +1 +3 AFP -3 -4 -1

DENR -6 -2 -2 LTO +6 +4 -2 GSIS +1 +2 -4 DOTC +1 -1 -5

DA -7 -3 -7 Office of the President -9 -4 -17 BIR -7 -3 -26 DPWH -16 -20 -26

BOC -29 -29 -43

*Net figures (% Less corrupt minus % More corrupt) correctly rounded.

2006 2007 2008

NCR/C/D: LESS CORRUPT CITATIONS MINUS MORE CORRUPT CITATIONS (OPEN-ENDED, VOLUNTEERED)

Steadily

improving

Steadily

worsening



Government Efforts to Fight Corruption:










FEELINGS THAT “THE GOVERNMENT CAN BE RUN WITHOUT CORRUPTION” ARE WEAKENING.

NCR Cebu Davao

Govt. can be runw/o corruption

Part of the waygovt. works

55 57 5660

56 5548

42

57 58 5449

42

60 57

4741

50

43 42 4440

44 4452

58

42 42 4650

58

40 42

5358

50

0%

20%

40%

60%

80%

100%

01 03 04 05 06 04 05 06 04 05 06 07 07 07 00 08 08 08



Q3. Statement: “Compared to about 5 years ago, it is now easier for anyone who wants

to bid on a government contract to get informati on about the bidding.”

PROVISION OF INFORMATION ABOUT BIDDING FOR A GOVT.CONTRACT HAS APPARENTLY IMPROVED IN CEBU.

STRONGLYAGREE

SOMEWHATAGREE

UNDECIDED

SOMEWHATDISAGREE

STRONGLY

DISAGREE

19 20 17 18 21 25

36 3635

4331

30

21 16 2315

23 17

1216 16 15

9 15

8 9 8 814 13

20%

40%

60%

80%

100%

0%08 08 08 07 07 07

NCR Cebu Davao










MOST DISAGREE THAT “COMPARED TO ABOUT 5 YEARS AGO,GOVERNMENT OFFICIALS ARE NOW DOING MORE TO AVOID

CORRUPT PRACTICES” (2008)

7

24

8

30

31

6

29

12

29

24

11

28

9

22

30

0%

20%

40%

60%

80%

100%

STRONGLYAGREE

SOMEWHAT

AGREE

UNDECIDED

SOMEWHATDISAGREE

STRONGLY

DISAGREE

NCR Cebu Davao



Enterprises Solicited

For A Bribe










NCR/C/D, 2008: ENTERPRISES ASKED LAST YEAR BY ANYONE IN GOVT. FOR A BRIBE ON THE FOLLOWING TRANSACTIONS:

Any of the listed bribes71%

Getting Local government permits and licenses49%

Getting National government permits and licenses47%

Assessment and/or payment of income taxes46%

Complying with import regulations includingpayment of import duties

31%

Supplying government with goods/services29%

Collecting receivables from government24%

Availing of government incentives22%



NCR/C/D: SOLICITATIONS FOR BRIBES PEAKED IN 2008

0% 20% 40% 60% 80%

Getting Local government permits and licenses49

4437

Assessment and/or payment of income taxes46

3431

Collecting receivables from government2421

17

Any of the l isted bribes71

6462

65

42

Getting National government permits and licenses47

4032

31

31Complying with import regulations including

payment of import duties

3127

2524

Supplying government with goods/services

2923

1918

19

Availing of government incentives

2214

1111

2008

2007

2006

2005










SOLICITATIONS FOR BRIBES ARE HIGHEST IN NCR: 2008

Getting Local government permits and licenses

Assessment and/or payment of income taxes

Collecting receivables from government

Any of the l isted bribes

Getting National government permits and licenses

Complying with import regulations including

payment of import duties

Supplying government with goods/services

Availing of government incentives

83

60

59

55

41

32

27

25

64

46

42

41

27

25

21

21

53

29

27

32

14

28

20

15

0% 20% 40% 60% 80% 100%

NCR

Cebu

Davao



ENTERPRISES ASKED FOR A BRIBE LAST YEAR RE

LOCAL GOVERNMENT PERMITS/LICENSES

55 5450

46 4542

48

60

32 33

24

37

46

26

39

3337

29

0%

20%

40%

60%

80%

100%

2000

2001

2003

2004

2005

2006

2007

2008

In NCR, the favorable trend in 2000-06 was

reversed in 2006-08.

NCR Cebu Davao










ENTERPRISES ASKED FOR A BRIBE LAST YEAR RE NATIONAL GOVERNMENT PERMITS/LICENSES

42

3437

32 3336

43

59

2523 22

3942

9

3027

3027

0%

20%

40%

60%

80%

2000

2001

2003

2004

2005

2006

2007

2008

NCR Cebu Davao



ENTERPRISES ASKED FOR A BRIBE LAST YEAR RE ASSESSMENT OR PAYMENT OF INCOME TAXES

0%

20%

40%

60%

80%

2324

2932 32

5250

43 42

3633 34

55

38

2224

36

41

2000

2001

2003

2004

2005

2006

2007

2008

In NCR, the favorable trend in 2000-06 was

reversed in 2006-08.

NCR Cebu Davao










ENTERPRISES ASKED FOR A BRIBE LAST YEAR RE COMPLYING WITH IMPORT REGULATIONS INCL. IMPORT DUTIES

0%

20%

40%

60%

2

1916

18

14

17

10

18

14

2528

31

41

16

24 23

2527

2000

2001

2003

2004

2005

2006

2007

2008

NCR Cebu Davao



ENTERPRISES ASKED FOR A BRIBE LAST YEAR RE SUPPLYING GOVERNMENT WITH GOODS/SERVICES

15 14

18

1315

18

22

32

18 17

13

24 25

18

29 2824

28

0%

20%

40%

60%

2000

2001

2003

2004

2005

2006

2007

2008

NCR Cebu Davao










ENTERPRISES ASKED FOR BRIBES LAST YEAR RE COLLECTING RECEIVABLES FROM GOVERNMENT

9 8

1310

1815

19

27

12

1513

1921

13

2628

30

20

0%

20%

40%

60%

2000

2001

2003

2004

2005

2006

2007

2008

But there was a 10 pt

drop in Davao.

NCR Cebu Davao



ENTERPRISES ASKED FOR BRIBES LAST YEAR RE AVAILING OF GOVERNMENT INCENTIVES

0%

20%

40%

60%

64

10

4

911

13

25

6

9 9

14

21

2

17

1114 15

2000

2001

2003

2004

2005

2006

2007

2008

NCR Cebu Davao










NCR/C/D: REPORTING OF BRIBE- SOLICITATION IS LOW BUT GROWING

Base: Total solicited for a bribe

Formally reported it

to an anti-corruptionauthority

Did not report it

2005 2006 2007 2008 7 6

914

93 94 9186

0%

20%

40%

60%

80%

100%



THE RATE OF REPORTING OF BRIBE-SOLICITATION IS

MUCH HIGHER IN CEBU & DAVAO (2008) Base: Total solicited for a bribe

NCR Cebu Davao

1020 19

9080 81

0%

20%

40%

60%

80%

100%

Formally reported it

to an anti-corruptionauthority

Did not report it










NCR/C/D: FUTILITY IS THE MAIN AND PEAK REASON FOR NOT REPORTING Base: Total solicited for a bribe, who did not report it

Nothing would be done anyway

Can not prove anything

Will spend much

It is standard practice not to report

Afraid of reprisal

Too small a thing to bother

Don't know how or whom to report

Don't want to betray anyone

It is embarrassing

2008

2007

2006

2005

79

61

59

57

55

52

40

29

24

68

46

46

47

47

46

33

25

17

69

50

42

52

54

41

34

27

17

61

46

33

45

42

37

29

16

120% 20% 40% 60% 80%

Q55. IF DID NOT REPORT: Why d id you not report thi s? (ENCIRCLE ALL THAT APPLY)



REASONS FOR NOT REPORTING, BY AREA, 2008 Base: Total solicited for a bribe, who did not report it

Q55. IF DID NOT REPORT: Why d id you not report thi s? (ENCIRCLE ALL THAT APPLY)

Nothing would be done anyway

Can not prove anything

Will spend much

It is standard practice not to report

Afraid of reprisal

Too small a thing to bother

Don't know how or whom to report

Don't want to betray anyone

It is embarrassing

81

60

57

54

60

51

40

28

21

80

61

65

65

43

65

43

24

29

72

65

58

56

51

40

40

37

30

20% 40% 60% 80% 100%

NCR

Cebu

Davao

0%










NCR/C/D: WHAT AGENCIES DO YOU TRUST TO BRING A COMPLAINT TO?

Page 1 of 3

None 22% 26% 32%

Office of the Ombudsman 28 29 25 Municipal/City Government 13 5 8

National Bureau of Investigation (NBI) 5 6 6

Dept. of Justice (DOJ) 7 3 5 Dept. of Trade and Industry (DTI) 5 4 3

Supreme Court 2 3 3

Trial Courts 3 2 2 Dept. of Finance (DOF) 1 1 2

Phil. National Police (PNP) 3 2 2 Office of the President 7 4 2

2006 2007 2008

Note: Responses below 0.5% in the 2008 survey are not shown.

Q44. If a company in your sector is being harassed by corrupt government officials, to which government agency can it trust to bring a complaint?



NCR/C/D: WHAT AGENCIES DO YOU TRUST TO

BRING A COMPLAINT TO? Page 2 of 3

Presidential Anti-Graft Commission (PAGC) 4% 2% 1% Senate 2 1 1

House of Representatives 1 1 1

Sandiganbayan 5 3 1Dept. of Interior and Local Government (DILG) 3 3 1

Commission on Audit (COA) 1 1 1

Securities and Exchange Commission (SEC) 2 0.4 1Dept. of Energy (DOE) 0.2 0.2 1

Bangko Sentral ng Pilipinas 1 1 1

2006 2007 2008

Note: Responses below 0.5% in the 2008 surv ey are not shown.











Note: Responses below 0.5% in the 2008 survey are not shown.


Page 3 of 3

Commission on Higher Education (CHED) -- -- 0.5

Government Service Insurance System (GSIS) -- -- 0.5

Civil Service Commission 0.4 1 0.5 Dept. of Transportation and Communication (DOTC) 0.2 1 0.5

Phil. Commission on Good Governance (PCGG) 1 0.4 0.5

Armed Forces of the Philippines (AFP) 1 1 0.5 Phil. Economic Zone Authority (PEZA) 0.2 0.2 0.5

Don’t know/refused 3 6 2

2006 2007 2008

NCR/C/D: WHAT AGENCIES DO YOU TRUST TO BRING A COMPLAINT TO?



Private Sector Corruption:










COMPARATIVELY FEW SAY “THERE IS A LOT OF CORRUPTION IN THE PRIVATE SECTOR”

0%

20%

40%

14

9

13

1011

87

9

12

9 910

7

4

8 87 7

2000

2001

2003

2004

2005

2006

2007

2008

NCR Cebu Davao

Q45. How much corruption do you think there is in the private sector? (A lot, Some, A

li ttle, None)



“MOST/ALMOST ALL COMPANIES IN MY LINE OF BUSINESS GIVE BRIBES TO WIN PRIVATE SECTOR CONTRACTS”

Base: Total who say there is corruption in the private sector

23

2729

2422

18 18

22

2724

2018

27

18

28

20

27

18

0%

10%

20%

30%

40%

50%

60%

2000

2001

2003

2004

2005

2006

2007

2008

NCR Cebu Davao

Q46. In your line of business, how many companies do you think give bribes to win private business sector contracts? (Almost all, Most, Few, Hardly any, None)










MEDIAN PERCENTAGE OF CONTRACT ALLOTTED AS BRIBE FOR A PRIVATE BUSINESS CONTRACT

Base: Total who say there are companies, in their line of business, br ibing to win private sector contracts

10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10

0%

5%

10%

15%

20%

2000

2001

2003

2004

2005

2006

2007

2008

NCR Cebu Davao



Business Efforts to Fight Corruption










FEELINGS OF POTENCY IN FIGHTING CORRUPTION ARE SLIPPING

Q2. Statement: “A person like me cannot do anything to reduce corruption in the government.”

STRONGLYDISAGREE

SOMEWHATDISAGREE

UNDECIDED

SOMEWHATAGREE

STRONGLY

AGREE

08 08 08 07 07 07 0%

20%

40%

60%

80%

100%

40 36 3932

4641

3230 25

24

1317

4

43

9 4 6

1117 22

20 20 22

13 13 11 15 17 14

NCR Cebu Davao



Q5. Statement: “Compared to about 5 years ago, businesses are now doing more to

avoid tax-evasion.”

ONLY ABOUT HALF SAY BUSINESSES ARE MOVING TOWARDS PAYING TAXES MORE HONESTLY

12

44

15

20

9

14

29

16

28

13

19

36

10

22

13

0%

20%

40%

60%

80%

100%

STRONGLY

AGREE

SOMEWHATAGREE

UNDECIDED

SOMEWHATDISAGREE

STRONGLYDISAGREE

NCR Cebu Davao










Q6. Statement: “Compared to about 5 years ago, businesses are now doing more to avoid smuggling.”

LESS THAN HALF SAY THAT BUSINESSES ARE DOING MORE TO AVOID SMUGGLING

8

38

11

30

12

8

35

14

29

14

12

32

15

24

17

0%

20%

40%

60%

80%

100%

STRONGLYAGREE

SOMEWHATAGREE

UNDECIDED

SOMEWHATDISAGREE

STRONGLY

DISAGREE

NCR Cebu Davao



AWARENESS OF THE COALITION AGAINST CORRUPTION (CAC) IS GROWING STEADILY

Q62. Were you previously aware of the CAC, or is this the first time that you hear about it?

Previously Aware

Previously Not Aware

5155

59

72

5548

5763

4654 56

67

4945

41

28

4552

4337

5446 44

33

0%

20%

40%

60%

80%

100%

05 06 07 08 05 06 07 08 05 06 07 08

NCR Cebu Davao










EXPECTED CHANGE IN NET INCOME, IF CORRUPTION IS REDUCED TO THAT OF SINGAPORE, IS POSITIVE

positive change

no change

negative change

No ans/ref/not aware

5460 62 65

6054 57

5056

4654

46

5752 53

4739

32

31 3030

3235

34

3129

40

40

45 23

2023

45

52

12

22

33

3

54

7

3

4

7

98

34

137 6 3 5 8 5

14 11 7 513

19 16

5 7

0%

20%

40%

60%

80%

100%

01 03 04 05 06 04 05 06 04 05 06 07 07 07 08 08 08

NCR Cebu Davao



MEDIAN % OF NET INCOME ENTERPRISES ARE WILLING TO PAY TO

FUND A PROGRAM TO CUT CORRUPTION BY HALF IN 10 YEARS

2000

2001

2003

2004

2005

2006

2007

20081

2 2

2.5

3 3

1

2

5 5

2

5

2

4

5 5

2

5

0%

2%

4%

6%

NCR Cebu Davao










MEAN SPENDING IN THE LAST 2 YEARS & IN THE NEXT 2 YEARS TO COMBAT FRAUD AND CORRUPTION IN OWN COMPANY

2007

2008Amount spent in the last 2 years

Amount likely to

be spent in the next 2 years

157,000

87,000

79,000

126,000

74,00082,000

0

20

40

60

80

100

120

140

160

180In pesos

158,000

106,00097,000

139,000

92,000

0

20

40

60

80

100

120

140

160

180In pesos

NCR Cebu Davao NCR Cebu Davao

132,000



MEAN CONTRIBUTION IN THE LAST 2 YEARS & IN THE NEXT 2 YEARS TO A PRIVATE ANTI-CORRUPTION PROGRAM

37,000

8,000 8,000

51,000

36,000

31,000

0

10

20

30

40

50

60

64,000

31,000

46,000

74,000

44,000

57,000

0

20

40

60

80

100

2007

2008

In pesos

In pesos

Amount

contributed in

the last 2 years

Amount willing to contribute in the

next 2 years

NCR Cebu Davao NCR Cebu Davao










WAYS FOR PRIVATE BUSINESSES TO REDUCE CORRUPTION, 2008

83

75

68

25

19

19

6

82

77

62

17

8

17

22

88

84

62

23

13

5

11

0% 20% 40% 60% 80% 100%

NCR

Cebu

Davao

Use honest business practices at all times

Never pay bribes

Know the laws and rules of governmenttransactions

Join a civil society organization

whose mission is to fight corruption

Report corruption to mass media

Campaign against corrupt

political candidates

Report government corruption to the

Office of the Ombudsman



Q48. In your sector of business, how often do enterprises punish their corrupt

executives? (Almost always, Often, Seldom, Almost never, Not applicable)

ENTERPRISES THAT PUNISH CORRUPT EXECUTIVES ALMOST ALWAYS OR OFTEN

44

48 47

54

61

53

61

53

43

52

47

32

5351

43

0%

10%

20%

30%

40%

50%

60%

70%

2004

2005

2006

2007

2008

NCR Cebu Davao










Honest Business Practices: Mixed Trends



“ALMOST ALL COMPANIES IN MY LINE OF

BUSINESS PAY TAXES HONESTLY”

NCR Cebu Davao

0%

10%

20%

30%

40%

17

14

2021

11

1517

19

1715

21

13

18

22

20

26 2003

2004

2005

2006

2007

2008










“ALMOST ALL COMPANIES IN MY LINE OF BUSINESS ALWAYS ISSUE RECEIPTS FOR ALL REVENUES”

3536

33

42

38

33

28

3537

35

41

3735 34

37

45

0%

10%

20%

30%

40%

50%

2003

2004

2005

2006

2007

2008

NCR Cebu Davao



“ALMOST ALL COMPANIES IN MY LINE OF BUSINESS

KEEP ONLY ONE SET OF BOOKS”

2003

2004

2005

2006

2007

200818

2122

2523

19

2321

3433

20

17

23 2321

28

0%

10%

20%

30%

40%

50%

NCR Cebu Davao










“ALMOST ALL COMPANIES IN MY LINE OF BUSINESS ALWAYS DEMAND RECEIPTS FOR ALL PAYMENTS FOR EXPENSES”

49 50 49

53 52 5355

50 495052

62

0%

10%

20%

30%

40%

50%

60%

70%

2005

2006

2007

2008

NCR Cebu Davao



The Business Climate










Q81. How satisfied or dissatisfied are you with the National Government’s performance

in promoting a good climate for business in the Philippines?

SATISFACTION WITH THE NATIONAL GOVERNMENT IN PROMOTING A GOOD BUSINESS CLIMATE HAS FALLEN

60

94

10 9

43

28

50

37

46

35

19

15

21

22

25

18

22

41

11

26

13

27

1015

9 115

11

0%

20%

40%

60%

80%

100%

Very Satisfied

Somewhat Satisfied

Undecided

Somewhat Dissatisfied

Very Dissatisfied

08 08 08 07 07 07

NCR Cebu Davao



SATISFACTION WITH THE CITY/MUNICIPALITY IN PROMOTING A GOOD BUSINESS CLIMATE IS HIGHER, AND STABLE

Q82. How satisfied or dissatisfied are you with the City/Municipal Government’s performance in promoting a good climate for business in this City/Municipality.?

Somewhat Dissatisfied

Very Satisfied

Somewhat Satisfied

Undecided

Very Dissatisfied

0%

20%

40%

60%

80%

100%

9 6 11 13

27 27

5050

60 57

5348

1818

1511

1014

17 21

1015

9 86 4 4 4 1 3

08 08 08 07 07 07 NCR Cebu Davao










NCR/C/D: BUSINESS EXPECTATIONS HAVE TURNED DOWN

Q83. In the next 2 years, do you expect that business conditions will be . . .

2004 2005 2006 2007 2008

3 6 5 9 6

25

41 44

53

33

40

40 40

31

43

21

10 9

5

13

6 2 2 2 3

0%

20%

40%

60%

80%

100%

Excellent

Good

Fair

Poor

Very Poor



BUSINESS EXPECTATIONS IN THE NEXT 2 YEARS, BY AREA

Q83. In the next 2 years, do you expect that business conditions will be . . .

8 4 11 6 9 12

50

29

64

40

54

33

34

42

20

42

30

47

5

18

38

4 82 6 2 2 2 0

0%

20%

40%

60%

80%

100%

Excellent

Good

Fair

Poor

Very Poor

08 08 08 07 07 07 NCR Cebu Davao










Summary of Findings



Summary of Findings-1 The TAG8 survey reports views of 402

enterprises in NCR, Cebu and Davao. 3/5 see “ a lot ” of corruption in the public

sector; no improvement here. Anti-corruption ratings up: LGUs, COA,

AFP, Senate, PNP, Comelec.

Anti-corruption ratings down: Sandiganbayan, GSIS, PAGC, DOTC, OP,

PCGG. Feelings that the govt. can be run without

corruption are weakening.










Summary of Findings-2 7 of 10 companies were asked for a bribe in

an index-transaction -- a peak, since 2005. Most bribe-solicitation trends are up;

previous downtrends in NCR re LGU

permits and income tax transactions were reversed.

Reporting of bribe-attempts rose slightly,but is still low.



Summary of Findings-3 Less than 10% see “ a lot ” of private sector

corruption. The usual allotment for a bribe in a private

deal is still 10%, vs. 20% in a public deal.

Managers ’ feelings of efficacy in fighting corruption have declined a bit.

At most 1/2 see business becoming more

honest in taxpaying and importing.

Financial contributions to private anti- corruption programs are going up.

At most 1/2 punish their corrupt executives.










Summary of Findings-4 Trends in using four honest business

practices are mixed. Satisfaction with national govt. promotion

of a good business climate dropped in 2008.

Satisfaction with local govt. promotion of a good business climate is higher, and stable.

Business expectations are now only Fair,compared to Good in 2005-07.

Surveys of Enterprises on Corruption Surveys of Enterprises on Corruption 2008 PROJECT STAFF 2008 PROJECT STAFF

Project Director Linda Luz B. Guerrero

Survey Consultant Mahar Mangahas

Project Manager and Leo Laroza

Publication Editor

Project Coordinator Anne Abcede

Field Manager Germelita Caron

Data Processing Manager Gerardo Sandoval Data Processing Assistant Malou Laxamana

Lhuz Borja





www.sws.org.ph www.sws.org.ph www.sws.org.ph

#52 Malingap Street,

Sikatuna Village, Quezon City

Tels: 926-4308, 924-4456, 924-4458, 924-4465

E-mail: [email protected]