World Bank praises Phl for drive vs smuggling, tax evasion

WASHINGTON — World Bank president Robert Zoellick singled out for special mention the Aquino administration’s campaign to stamp out smuggling and tax evasion.

At the first meeting of the International Corruption Hunters Alliance here on Tuesday attended by senior government officials from across the globe including Justice Secretary Leila de Lima, Zoellick said at a time of fiscal constraint in many donor countries it was important to spend every development dollar as intended to overcome poverty and boost growth and opportunity.

“Stealing is bad enough; ripping off the poor is disgusting,” he said in his opening address on Tuesday.

Giving a few examples to illustrate what can be accomplished with the right leadership, Zoellick said a public tip-off campaign launched by Finance Secretary Cesar Purisima “in its first six months has already netted dozens of tax evaders and smugglers who have defrauded the government.”

Some 240 government officials and business leaders from 134 countries are attending the three-day meeting organized by the World Bank in its efforts to deter corruption in projects it finances. The aim is to craft a truly global enforcement program.

De Lima in her speech said the issue of transnational corruption has taken centerstage in the Philippines with the assumption into office of Aquino, who campaigned and won on his vow “to bring corruption down to its knees.”

“President Aquino is serious with our reforms. He is aware that the battle against corruption is crucial to our efforts to attract and compete for more investments,” she said.

De Lima proposed what she described as “a bold step to elevate transnational corruption to the level of an international crime.“

“Transnational corruption is a menace that we can defeat only if we get our acts together,” she said.

“We need to be individually responsible for the culture that allows corruption to fester in our respective countries. But we must also take responsibility for the participation of our respective business organizations in acts of corruption that take place in foreign shores,” she said.

De Lima called for a more systematic and aggressive exchange of information among governments in the investigation and prosecution of parties involved in transnational corruption.

She said investments from the multinational sector and assistance from global financial institutions play an important role in the socio-economic development of the Philippines.

“And I see a future when those development resources are utilized in our country in a regime of transparency and integrity,” she said.

In his opening address, Zoellick said the World Bank has joined forces with the United Nations to launch the Stolen Assets Recovery Initiative (StAR), a multilateral partnership to help developing nations recover hundreds of millions of dollars of looted funds.

He said he hoped participants in the Washington meeting would draw strength and learn from one another to create a strong corruption hunters’ network.

“For too long, it has been the poor who have been the hunted and the corrupt who have been the hunters. For too long, those hunters have stalked our communities and preyed on our citizens, wounding and destroying hope of progress and potential. It is time to turn the tables,” he said.

“This International Corruption Hunters Alliance has the potential to make a big difference. Let’s turn this potential into a reality,” he added.

Zoellick said the bank’s Integrity Vice Presidency conducted 238 investigations in fiscal year 2010 (July 1, 2009 to June 30, 2010) and debarred 45 entities – including multinational companies, individuals and non-governmental organizations – from doing business with the World Bank.

Among those debarred were three Philippine companies.

Meanwhile, the Office of the Ombudsman launches today a “shout out” event against corruption in celebration of the 2010 International Anti-Corruption Day.

Dubbed “Sigaw Laban sa Katiwalian, Aksiyon!” the event will be held at the Office of the Ombudsman’s central office in Quezon City at 2 p.m.

The Ombudsman launches the activity in partnership with several sectors including the youth. Ringing of bells in public elementary and high schools will kick off the event.

Representatives of various groups will shout out their achievements for five minutes. –-Jose Katigbak The STAR Washington Bureau (The Philippine Star) with Michael Punongbayan