Analysts warn of corruption risk over the Philippines’ year-long calamity declaration

By Kenneth Christiane L. Basilio, Reporter

PRESIDENT Ferdinand R. Marcos, Jr.’s year-long national calamity declaration will fast-track rehabilitation efforts across typhoon-ravaged regions in the country, but it may also carry corruption risks, analysts said on Monday.

While the declaration may accelerate fund disbursement and disaster recovery, they warned that relaxed bidding rules could expose an already corruption-prone procurement process to further abuse.

“Calamity declarations usually have two-fold effects — make available the resources and funds over and above that are regularly appropriated, and ensure that their processing is easier and faster than normal,” Nigel Paul C. Villarete, a senior adviser at technical advisory group Libra Konsult, Inc., said in a Viber message.

Mr. Marcos last week placed the Philippines under a year-long state of national calamity after two successive typhoons that left hundreds dead swept across the country. Damage valuation is still underway, but losses to infrastructure and agriculture often run into hundreds of millions, if not billions, of pesos.

The Southeast Asian nation is hit by an average of 20 typhoons a year, and a 2017 World Bank report estimates the country suffers $3.5 billion (P206 billion) in annual asset losses from typhoons and earthquakes.

Typhoon Kalmaegi, locally known as Tino, brought “torrential rains, widespread flooding and multiple landslide incidents” across the Philippines, according to Proclamation No. 1077, which authorizes streamlined procurement rules to fast-track recovery efforts, among others.

But the move may trigger a wave of corruption as authorities are empowered to bypass regular bidding and directly negotiate with suppliers, analysts said.

“During time of emergencies, the government can use negotiated procurement that has less checks and controls,” Joy G. Aceron, convenor-director of government watchdog G-Watch, said via Messenger.

Officials can directly negotiate with suppliers instead of undergoing competitive bidding, she said, often in ways that are vague and opaque to the public.

“In competitive bidding, there are transparency measures, such as civil society observers and the Commission on Audit (CoA) attending the biddings,” said Ms. Aceron, noting that watchdog participation under negotiated procurement is unclear, with auditors only able to review contracts after they are awarded.

Authorities are empowered to enter into negotiated deals under the 2024 New Government Procurement Act, which allows direct engagements with suppliers without bidding during times of “imminent danger to life or property during a state of calamity,” according to Section 35 of the law.

Party-list Rep. Terry L. Ridon said that while agencies are allowed to engage in negotiated procurement, “they must still uphold the core principles of competitive bidding,” like securing the lowest possible price and dealing only with firms that have an established track record.

Contracts are also limited to goods and services related to rescue, rehabilitation and rebuilding activities, he added.

“These safeguards are essential to ensure transparency and accountability in disaster response,” said Mr. Ridon, who headed the infrastructure watchdog InfraWatchPH before being elected as congressman.

Still, the process leaves room for authorities to engage in corruption and collude with suppliers, said Jean S. Encinas-Franco, a University of the Philippines political science professor.

“This gives a lot of discretion to authorities, and this is where corruption might take place,” she said in a phone call in mixed English and Filipino. “When discretion is too broad — as we’ve seen in the flood control program… it creates the perfect setup for corruption.”

The Philippines is facing a scandal over flood control projects that has sparked widespread public outrage due to the scale of the alleged corruption and the revelation that government officials, lawmakers and private contractors colluded to divert billions of pesos from critical infrastructure,

“Given the recent corruption scandal, this flexibility must come with strict transparency and accountability safeguards,” John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said in a Viber message. “Without strong oversight, relaxed procurement rules can be abused.”

He said authorities should ensure that emergency procurement is traceable and reported in real time, with independent auditors granted access to contracts to help restore public trust.

Yet the procurement process remains vulnerable to corrupt practices, Arjan P. Aguirre, who teaches political science at the Ateneo de Manila University, said.

“There are still areas that could be gamed by individuals,” he said in a phone call, referring to weak disclosure mechanisms for government officials who may have ties to businesses despite being prohibited by law.

“Laws meant to mitigate corrupt practices… still have gaps that some individuals exploit to advance their business or profit-driven interests.”

Some would likely still attempt to engage in corruption, even as the country faces calamities, as the system can easily be manipulated, Mr. Aguirre said. “As long as there is an opportunity to do it, they will do it.”

“The Marcos government must ensure that all its actions are transparent, that responses are appropriate and adequate — not excessive or reckless — because the system is prone to abuse,” he added.

The House of Representatives joint committee on infrastructure, which investigated the multibillion-peso flood control scandal, will continue to monitor potential violations of negotiated procurement rules,” its chairman Mr. Ridon said.