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Stories of Corruption in The Philippines?

Yesterday i asked a question about how difficult it is to do business in the Philippines. I got lots alot of good information. So today i would like to ask another,and apologise in advance for any controversy it may cause.

I hear the system is designed to work against the entrepreneur due to corruption. I am wondering if anyone could give me a example of corruption they have faced in their time in the Philippines. LIkewise if you feel the reputation is exaggeration please discuss here.

To make this clear i am not attacking the people or the nation of the Philippines. I am simply trying to gain a understanding of the Issues. Thank you for your time.

This is posted in the Philippines travel section so as to harness the experiences of the Philippine People.

9 Answers

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  • 9 years ago
    Favorite Answer

    Singapore is probably the only place in Asia where you won't find a Filipina flight attendant. Singapore Airlines went to the Philippine Overseas Employment Administration (POEA) for assistance in recruiting cabin crew during Estrada's time, and instead of giving assistance, the POEA was asking for a massive kickback for every person they hire (knowing how much an SQ cabin crew earns compared to local flight attendants). so they didn't even bother coming to the Philippines. now you see all these Arab airlines who don't need any assistance from anyone and do all these one-day recruitment screenings.

    this is the reality of doing business in the Philippines, the second you get a government agency involved... expect to pay them something.

  • Anonymous
    9 years ago

    Two small enterprises have been my mistake. No great enterprise, just a store and a Hamburger Bar. 1st, the premises, empty , in a block of four like units. 3 rented at P4000 per month. The one --I--- wanted to rent P20-000. That's right, 20 thousand. Im white , Im rich remember.

    Next, the unit had to be totally made over BEFORE I could move in. No formal lease was going to be necessary as the Landlord was a ''family member'' . It became obvious I would either do up the vacant unit to top standard then have it rented out from under me anyway but at the P20 thous a month there was no chance of sustaining my small operation . Rent like that would have to have a huge cash flow business turning over big money , Take way food, even the best doesn't generate that kind of money.

    So, even there in this small example you can see how a European is treated. The Filipino Land lord --and Uncle is a total fool. He not only has his unit still empty and un renovated but no future income from it because of his greed. I will NEVER even talk to this greedy little creep ever again. He loses out on the building and rent Right now he would be earning money off it if he was a decent fellow but being typically Filipino took me for a fool with deep pockets. Now he has what he had before --an empty shop he cant rent. Business in the PI ? FORGET IT

  • 9 years ago

    No need to apologize for asking.

    The system is against foreigners not necessarily entrepreneurs.A foreigner cannot open a business here on his own. I t must have a larger partnership of Filipinos..

    The corruption does not come in on small people only when there is more money involved.

    One of the worst cases I have seen was on the island of Siquijor. A German & his Filipino wife built & opened a fish hatchery. It started making money when a politician told him I want to be your partner. The German asked do you want to invest or help work? the reply was neither I only want part of the money & if you do not cut me in I will make things very hard on you. The German said NO & closed the business down. The building still stands empty.

  • 9 years ago

    Corruption in the Philippines has many forms and substance. A simple bribe of a cop is already corruption. A bribe so that the policeman will not issue a ticket for you for a mere violation of a traffic rules and regulation on the street.

    There are countless or many corruption stories in the Philippines. Frankly I do not know where to start really. I bet you know the definition of corruption yourself one time or another. But the greatest corrupt practices are those who belong to the government itself or working as government employee but taking the money of the people of the Philippines for their own use and gain. One of the recent stories we have are those bridges of no return build from the former administration of GLORIA ARROYO MACAPAGAL term as President of the Republic of the Philippines. A project called 'PRESIDENT BRIDGES" different Congressman of Mindanao area has constructed a bridge in a no man zone or in an isolated area where no people or animals live. Out of these project they constructed 99 bridges in the middle of a rice field where no people needed them and out of these project 111 Billion pesos has been spent. This is clearly a CORRUPTION of magnitude proportion. And one of the Congressman is still in the house of representative until now.

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  • 9 years ago

    these are not stories, but rather realities of everyday corruption.

    visiting forces agreement - this is the term some restaurant owners use. usually cops, health inspectors, and unnecessary government officials will pay a visit to your restaurant. the trick here is to not charge them anything, they will be happy and leave you alone. if you charge them, you will receive complaints, notices, and threats.

    kickback - again, if you are a restaurant, chances are you need your ingredients in bulk, so sending out someone to buy your ingredients is necessary. but oftentimes, they will look for cheaper substandard ingredients elsewhere instead of where you instructed them to buy, and pocket the extra money, leaving you with bad ingredients.

    blocking - BFAD knows this very well, if you are a new pharmaceutical company with a new drug ready to launch, you need to have it tested by BFAD, aside from the tremendous paper work and waiting period, you have to make "arrangements" with them to process it with a higher chance of approval. The best part is bigger pharma companies will pay BFAD to block your product, disapprove it and instead grant approval to the bigger company, and in the process tipping them off on any new products.

    milking - before, during, and after your business, you will be milked for almost everything. before you start a business, you will experience slight pressure as your wallet deflates a bit. when you are already starting, you will feel good amount of pressure as your wallet enjoys up and down movement of income and expenses. after you've realized that you are losing money in your business, you will want to close it down. but the milking does not end there, you will continue to dole out cash for more paper works, then there will be threats and blackmails. i think you get the picture.

    philippines is not exactly a business-friendly country. sure there's opportunities, but you dont see people clamoring on the said "opportunity"

  • Anonymous
    9 years ago

    The corruption part is true but it can also happen in the states. A fool and his money are soon separated. I have heard of and read about successful foreigners in the Philippines. They marry a Filipina and do all the business thru her and her family contacts.

    Their name is not included in the contract. Its more like a co-owner who just puts up the capital. In every business venture there is a risk of failure. You have to know who to trust and who not to trust.

    Good Luck. I wish you all the success.

    One more thing. Once in a while you have to stick your neck out, even a turtle knows this.

  • ?
    Lv 4
    5 years ago

    annullment has no relation in any respect with the corruption contained in the philippines. If the filipina that ur courting with became annulled thoroughly which include her ex husband then she will educate some archives concerning to it. possibly NSO has a replica of the annullment attempt to ask also.

  • J@ps
    Lv 6
    9 years ago

    I've seen corruption, fraud, schemes, scams, you name it, everywhere (both sides of the Pacific).

    In the Philippines? It might very well be a way of life for many.... Examples? I don't want to go into details, just know that it's out there.

  • 9 years ago

    I used to help a friend manage a business in Manila. We often have government officials have work done by us. During billing, EVERYONE, want us sign a receipt or paper stating the cost of our services which is MORE THAN what we actually charged them. Of course, I didn't sign any of those papers but my friend did because it is his business.

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