CORRUPTION Syndromes of Corruption

Oligarchs and Clans 143
General Fidel Ramos, who had played a critical role in overthrowing
Marcos, succeeded Aquino in 1992, although he won less than a quarter
of the vote (Kang, 2002a: 155). His government attempted a number of
anti-corruption reforms (Riedinger, 1995: 211–212; Batalla, 2000) with
increasing backing from international agencies and domestic business
organizations. Ramos’s Presidential Commission Against Graft and
Corruption (PCAGC), established in 1994, is the country’s most sustained
reform effort to date (Batalla, 2000: 6); it builds upon the 1987
Constitution, which among other changes created an anti-graft court
(Sandiganbayan) and an Ombudsman’s office with anti-corruption
responsibilities (Tanodbayan) (Batalla, 2000: 6–7). But while the
Ramos campaign generated major publicity, evidence of real progress
was scant.
In 1998 Ramos was succeeded by Joseph ‘‘Erap’’ Estrada, whose 40 percent
of the vote was the most solid mandate of the modern era (Kang,
2002a: 175) but owed much to his former film career. Within less than a
year Estrada was surrounded by scandals: his connections to gambling
interests were one major issue, but family members and political allies were
also implicated in bribery cases involving government contracts for drug
testing of law enforcement officers, school textbooks, and police and
military radio equipment. Estrada and his wife concealed business holdings
worth over US$600 million, along with directorships of a variety of businesses.
Philippine law requires top officials to disclose financial information
on themselves, their spouses, and children under eighteen, but was
never designed to deal with someone like Estrada who had families with
several women and used those ties to conceal even more wealth.
Impeachment proceedings dragged on for two years, all but collapsing in
2001 as key figures refused to give evidence. Demonstrations reminiscent
of 1986 demanded Estrada’s removal, and with Supreme Court backing
Gloria Macapagal Arroyo – leader of yet another prominent political
family – assumed the presidency in January, 2001. Estrada, refusing to
accept the handover, was placed under virtual house arrest at Malacañang
and eventually resigned; he has since been charged with major offenses
(Batalla, 2000; Coronel, 2000; PCIJ,2000).
A tenacious syndrome
The damage produced by Philippine corruption is difficult to overstate.
In 1999 the Ombudsman’s office estimated losses due to corruption
at about 100 million Philippine Pesos (about US$2.5 million) daily;
World Bank estimates put the loss at around one-fifth of the national
government budget, or at about 3.8 per cent of GDP (Batalla, 2000: 7,