Pillars of Federalism – A Proposed Whistleblower Law

by Crispin Fernandez, MD

Whistleblowers also protested against the pork barrel system | Photo by James Sarmiento via Wikimedia Commons

Part 7 of 10

Pending versions of a proposed Whistleblower Law in the Philippine Senate, S.B. 3533, and House Bill 5715, passed on the third reading, are emblematic of inutile legislation that aims to pay lip service to fight graft and corruption in the Philippines.

With 234 affirmative votes, the House passed House Bill 5715, to be known as the “Whistleblower Protection, Security and Benefit Act of 2011,” which aims to promote good governance and safeguard the national interest through the prosecution of corrupt and erring public officials and employees, not by incentivizing whistleblowers, but by providing ‘protection’ for whistleblowers. Violating said Act imposes laughable penalties on individuals seeking reprisal or otherwise discrediting whistleblowers.

Senate Bill 3533, on the other hand, would limit rewards to whistleblowers to P5M or 10% of the recovered assets. The Senate bill also seeks to deter harassment and reprisals against whistleblowers.

As discussed under another pillar of Federalism – Plunder Law, these pending legislations fall far short of what is required to address the magnitude of graft and corruption in government fully. Any pecuniary survey of everyday Filipinos will reveal that corruption impacts at least 50% of the national budget, from overpricing to ghost employees to forgone tax collection. For context, the national budget is P5.26 Trillion with a ‘T.’ Around $300B, a full 30% of which is from a 30% structural deficit, meaning around P1.5 Trillion to be financed by debt. Philippine debt is now over $200B, with a 70%-30% local and foreign debt mix. Philippine banks are somewhat profitable due to loans to the national government. The Bangko Sentral is only too happy to keep printing money.

Currently, the impressive Philippine GDP growth is primarily driven by the debt used to pay for unprecedented spending on infrastructure. Admittedly, the government can do worse than spend all the borrowing elsewhere on infrastructure. It is hard to counter-argue that, at a macro level, the infrastructure built today will support economic growth in the future. This is a generally accepted economic concept. Whether the economic benefits ultimately benefit the marginalized sector, those surviving on conditional cash transfers, the underemployed and the unemployed, or worse, the unemployable, who do not eat three meals a day, will remain the biggest question for economic managers for decades to come.

The most obvious solution, at least to this biased writer, is strengthening incentives for whistleblowers, for example, rewards up to the total value of exposed malfeasance. Consider just 10% of the national budget being subjected to graft and corruption, which no Filipino will ever consent to that is, P52B or almost $1B, annually. It bears repeating this is before provincial, city, municipal, and barangay budgets are considered, plus the uncollected taxes at the Bureau of Internal Revenue, Bureau of Customs, and other government departments and agencies that have to do with clearances, permits, and import controls. The reality is beyond imagination, and the social impact is incalculable – from poor health insurance resulting in death in the worst cases and deprived futures for the impoverished who can’t even dream of attending higher education – both inescapable traps that only complicate poverty.

” … in often repeated acts of self-destruction, the Filipino electorate re-elects those politicians already found guilty of graft and corruption into office. In the countryside, it is not enough that despite politicians openly flaunting their wealth after swearing an oath to serve, most voters seem to be in awe of their elected officials and their ability to plunder instead of anger.”

As crucially, the government should negotiate asylum treaties with willing countries to host whistleblowers, especially considering the financial windfall that await these whistleblowers cum asylum seeker and their families. Any subsequent testimony may be obtained remotely, far from those who would harm the whistleblower and their families or otherwise intimidate or prevent them from testifying. It is indeed shameful that despite assertions of a witness protection program, reality manifests only fear from would-be whistleblowers. This is only compounded by the societal hopelessness that prevails and the general acceptance of the impunity of offenders. Further complicated by the slow turning gears of justice beset with laws seemingly intentionally riddled with loopholes as to resemble Swiss cheese and made a mockery of by even the least wily of lawyers.

Finally, in often repeated acts of self-destruction, the Filipino electorate re-elects those politicians already found guilty of graft and corruption into office. In the countryside, it is not enough that despite politicians openly flaunting their wealth after swearing an oath to serve, most voters seem to be in awe of their elected officials and their ability to plunder instead of anger. This detrimental behavior is, of course, beyond remedy by any whistleblower law. We are left with a prayer that the Almighty saves us from ourselves.

There are sporadic acts of courage within the Philippine government, like the Philippine Retirement Authority. Without having to wait for national dictum, this office promulgated internal whistleblower policy as follows:

Source: Philippine Retirement Authority Whistleblowing Policy, Resolution No. 10, Series of 2017

Any legislation should address legal arguments such as undue delay, lack of superior accountable parties, any eligibility for parole, even medical, nor any eligibility for a presidential pardon, and ambiguity on a lifetime ban from any public office, elected or appointed, lest the offenders be empowered to silence or engage in any form of reprisal against whistleblowers.

Legislators should avoid the perception that the laws they write embody more their own protection than that of the whistleblower. This writer will concede only that in the case of unsubstantiated whistleblowing, the accusers should also be subject to due process and commensurate penalties.


ABOUT THE AUTHOR: Dr. Crispin Fernandez advocates for overseas Filipinos, public health, transformative political change, and patriotic economics. He is also a community organizer and leader, and freelance writer.

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