Flood control probe strengthens investor confidence – business groups

MANILA, Philippines — Corruption remains a concern for foreign investors, but recent government efforts to look into anomalous flood control projects and hold officials accountable could help strengthen investor confidence, according to the American and European business chambers.

American Chamber of Commerce of the Philippines executive director Ebb Hinchliffe said in a Viber message to The STAR that corruption has been a consistent concern.

“I am excited to finally see and hear strong action,” he said.

Under Executive Order 94 issued on Sept. 11, President Marcos created the Independent Commission for Infrastructure (ICI) to investigate corruption in flood control projects in the last 10 years.

The ICI is tasked to recommend appropriate charges against government officials, employees or individuals involved in anomalies in flood control and related projects of the Department of Public Works and Highways.

Marcos has named former DPWH secretary Rogelio Singson and SGV and Co. country managing partner Rossana Fajardo as members of the ICI, while Baguio City Mayor Benjamin Magalong will serve as special adviser who will act as an investigator of the commission.

Hinchliffe said the move is expected to “have a positive impact on investment” if it moves beyond rhetoric to action.

“Seeing truly corrupt people behind bars would be a great sign,” he said, noting that it must include high-level politicians and government officials.

When asked about protests being mounted against rampant corruption in the government, he expressed no concern noting these show democracy at work.

For the European Chamber of Commerce of the Philippines (ECCP), corruption issues have hindered investments in the country.

“With the resumption of negotiations for a comprehensive EU (European Union)- Philippines Free Trade Agreement, these developments become all the more crucial,” the ECCP said.

It also cited steps being taken by the Anti-Red Tape Authority in streamlining government processes and transactions to promote the ease of doing business.

The Philippine Chamber of Commerce and Industry also welcomed the creation of the ICI as well as the appointment of independent professionals and technical experts to the body.

The Federation of Philippine Industries also expressed support for the creation of the ICI, noting that it supports the group’s vision of projects implemented without favoritism, fraud and corruption.