CORRUPTION IN GOVERNMENT

CORRUPTION
Corruption refers to abusing public authority for self-benefit. It could be done by such an
elected official, a civil servant, a journalist, a school official, or any individual with authority. In
addition to public corruption, there is private corruption between people and businesses. For
example, education, ancestry, marriage, and so on. As a result, the term corruption applies to
various forms. It is deceptive behavior displayed by individuals who hold positions of power for
personal gain. It is particularly usual in government officials and managers. Bribery,
embezzlement, extortion, networking, under-the-table transactions, actual vote manipulation,
financial crimes, and other forms of corruption exist. It can breed distrust among the involved
parties. Furthermore, this is not appropriate for a state because it can diminish the mechanism
and impede the country's economic development. As a result, it will exacerbate inequalities and
social division.
This abuse of power undermines trust among two or more political parties and weakens
democracy. Not only that, but corruption could stifle a country's economic progress and
exacerbate poverty and inequality. It is crucial to comprehend how politics works in order to
expose it and hold the corrupt accountable for constructing a corrupt political system.

SOURCE OF CORRUPTION
 Tax System - frequently a source of corruption, especially when the underlying
legislature is questionable and otherwise hard to understand, presumably giving tax
assessors and auditors significant leeway throughout analysis.
  Political System – this is where the operation of the country began, where the
processes began and finalized the decisions of the official of the government, and which
is where the beginning of being corrupt could happened.
 Failure of Governance - poor governance can result from poor public-sector
management, an absence of accountability, poor relations between both the citizens
and government, a weak legal structure, an inadequate level of transparency regards to
public sector methods, and poor dissemination of information. Inadequate training also
leads to a lack of competence and capacity, which contributes to governance failure.
 Wages - low wages and the eventually results poverty in the government sector are
thought to be contributing to corruption.
 Social Capital - refers to society's links, shared values, and understandings that allow
both individuals and groups to trust one another and thus operate together; regions
with higher socioeconomic capital are much more likely to have a lower level of
corruption.
 Large Unique Projects / Big Projects - these projects have a higher risk to be corrupted
than relatively small and more planning and action.
 Country Size - countries with a large geographic region and a low density of people are
more vulnerable to corruption due to the challenge of monitoring public officials in
dispersed locations.
 Resources - numerous resource-rich countries are suffering as a result of ineffective
governance and systemic corruption.

CORRUPTION SOURCES EFFECTS TO OUR COUNTRY

 Higher value of taxes
 Lack of rules
 Inequality
 Low salaries
 Higher prices of commodities
 Unemployment
 Lack of wealth of country/region
 Disregards human rights
 Low press freedom
 Low economic freedom
 Weak property rights
 Low levels of education
 Political instability
 Desires or greed of money
 Low levels of democracy
 HOW PERVASIVE IS CORRUPTION IN GOVERNMENT?
Corruption is pervasive everywhere throughout the world; where individuals utilize their own
dialect regarding it and will go to extreme measures to avoid direct confrontation. It can be
seen or felt in any part of the world because corruption can happen anytime, anywhere and
when.
Corruption In government Is Viewed as Pervasive All through the World, THE PHILIPPINES
dropped to a historic low in Transparency International's global corruption index, which noted
a "sharp" decline in freedom of expression under the Duterte administration, making it difficult
for citizens to speak out against corrupt activities.
The Philippines fell two places to 117th out of 180 countries and territories in the 2021
Corruption Perceptions Index (CPI).
According to Transparency International, the Philippines received a "historic low" score of 33
out of 100 on a scale that assesses perceived levels of public corruption in the public sector.
https://www.bworldonline.com/top-stories/2022/01/26/425804/historic-low-phl-slumps-in-
anti-corruption-index/
 BUREAU OF CUSTOMS OF THE PHILIPPINES
The Bureau of Customs (BOC) is a Department of Finance attached agency. Its responsibilities
include assessing and collecting customs revenues, combating illicit trade as well as all aspects
of customs fraud, and facilitating trade through an effective and efficient customs processing
system. The Philippine Bureau of Customs (BOC), established through 1902, is indeed the
government agency which facilitates trade, obtains taxes and duties and exists to protect the
country from the entering of unauthorized materials. The BOC, which is part of the Department
of Finance, employs approximately 3,500 people and provides services to more than 70
national and district ports, as well as operating close to 40 facilities throughout the country.
Each day, BOC processes approximately 12,000 import and export transactions.

The Bureau of Customs is headed by the Customs Commissioner. Assisted by six (6) Deputy
Commissioners, one (1) Assistant Commissioner and seventeen (17) District Collectors who
supervise the country’s principal ports of entry.

 Internal Administration Group (IAG) - This group, led by a Deputy Commissioner, assists
the Commissioner in the formulation of guidelines and the establishment of objectives
pertaining to the BOC's financial, administrative, personnel, planning, and management
improvement services; represents the Commissioner in discussions and conferences;
signs memorandum circulars; as well as reviews official correspondence and transcripts
pertinent to administrative structure.

 Revenue Collection Monitoring Group (RCMG) – Under a Deputy Commissioner, keeps

an accounting of revenue earned, administers the BOC's regulatory requirements,
provides data and analysis of collection statistics, and audits liquidated entries and
bonds.

 Assessment and Operations Coordination Group (AOCG) – Led by a Deputy

Commissioner, collects and publishes commodity import values, as well as oversees the
implementation of laws and regulations governmental assessment, end sorting of goods
for export, warehousing and support processes, and selling and disposal activities.

 Intelligence Group (IG) – This group collects intelligence information about Customs
and economic activities, conducts internal investigations, and develops appropriate
measures to prevent corruption, smuggling, and other aspects of customs fraud.
  Enforcement Group (EG) – This group has police authority over secure the country's
ports and BOC installations, as well as cargoes and property within the customs zone.

 Management Information System and Technology Group (MISTG) – The

implementation of the BOC computerization program necessitated the establishment of
MISTG on January 9, 1998, in accordance with Executive Order No. 463. The need for a
much larger IT group was already reflected in the 1992 ISP as a support for BOC's goal of
assuming direct management and control of IT facilities and services following the
conclusion of the transitional facilities management arrangements under the PTCP
contract. MISTG is led by a Deputy Commissioner, who is in charge of overseeing the
various operating units.

 Post Clearance Audit Group (PCAG) - Formerly known as the Post Entry Audit Group,
has been reactivated by Customs Memorandum Order (CMO) No. 32-2017. (PEAG).
PEAG was established in 2003 by Executive Order 160-2003 to perform post-clearance
audit work for the Bureau of Customs. PEAG's functions were transferred to the
Department of Finance in 2013, until President Rodrigo Duterte signed Executive Order
No. 46 in October 2017, restoring the BOC's post-clearance audit function. PCAG is led
by an Assistant Commissioner who has direct supervision and control over the
management of the organization's operating units, which include the Trade Information
and Risk Analysis Office and the Compliance Assessment Office.

REORGANIZATION OF BUREAU OF CUSTOMS

The Bureau of Customs was reorganized on February 4, 1965, in accordance with Customs
Administrative Order No. 4-65, which was issued under the authority of Sections 550 and 551 of
the Revised Administrative Code of Republic Act 4164. During the reorganization, offices
directly under the Commissioner's supervision and control were elevated to the Department
Level, with ranks higher than the Division Level. Public Relations, Personnel, Legal,
Administrative Service, Budget and Finance, and Management Improvement were among the
departments involved. Similarly, three (3) higher-ranking Customs positions were established:
Assistant Commissioner for Revenue, Assistant Commissioner for Security, and Director for
Operations.

Customs Administrative Order No. 4065 was later amended, eliminating the position of
Assistant Commissioner for Security and creating the position of Director for
Administration. The Tariff and Customs Code of the Philippines was revised by Congress
in 1972. However, before it could be put into effect, the President of the Republic of the
Philippines issued Proclamation No. 1081 declaring Martial Law in the country on
September 21, 1972.

President Ferdinand E. Marcos signed Presidential Decree No. 34, amending the
Philippine Tariff and Customs Code, on October 27, 1972. The new Code went into effect
on November 26, 1972, with the exception of Section 104, which went into effect on
January 1, 1973. On September 24, 1972, Presidential Decree No. 1 went into effect,
creating six (6) Customs Services under the Office of the Commissioner and creating
jurisdictional limits of twelve (12) collection districts with the Principal Ports and Sub-
ports of Entry under the supervision and control of the Collector of the Principal Port of
Entry.

As a result of this reorganization, the heads of various services were renamed Customs
Service Chiefs, and heads of offices with divisional ranks were renamed Customs
Operations Chiefs, with the Head of the National Customs Police serving as Director. The
Directors for Administration and Operations, as well as the Assistant Commissioner for
Revenue, were eliminated as part of this reorganization.

The Bureau underwent another reorganization under Presidential Decree No. 689 in
1975, and the result is what you see now in the Organization Chart, with some minor
changes and modifications. On June 11, 1978, the Tariff & Customs Code was further
amended, modified, and supplemented by new positions to make it a responsive code in
line with the New Society's developmental programs. The new Code was enshrined in
Presidential Decree No. 1464.

The Bureau's most recent major reorganization occurred in 1986, following the EDSA
Revolution, with the issuance of Executive Order No. 127, which expanded the
organization umbrella of the Central Office by providing offices that will monitor and
coordinate assessment and operations of the Bureau and provided for a staff of
approximately 5,500 customs personnel. The computerization program's
implementation also necessitated the formation of a new Group to ensure its ongoing
development and progress. Executive Order No. 463, dated January 9, 1998, authorized
the formation of the Management Information System and Technology Group (MISTG)
under a new Deputy Commissioner with 92 positions.

ORGANIZATIONAL CHART
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 VISION

A modernized and credible Customs administration that is among the world’s best

MISSION

To strengthen border control, enhance trade facilitation and improve collection of

lawful revenues

CORE VALUES

 Professionalism
 Integrity
 Accountability

10-POINT PRIORITY PROGRAM

1. Implementation of Customs Modernization Program
2. Intensification of Post Clearance Audit & Post Modification Measures
3. Onboarding of 15 Agencies to the National Single Window
4. Full implementation of Authorized Economic Operator Program
5. Promotion and Application of Advanced Ruling Program
6. Pursuit of Integrity Development and Quality Management
7. Strengthening of Port Surveillance, Marine Interdiction and Water Patrol Capability
8. Enhancement of Customs Facilities Warehouse Management
9. Streamlining of Export Clearance Process
10. Simplification of Informal Entry Processing

DIRECTORY OF THE BUREAU OF CUSTOMS

https://customs.gov.ph/directory/

HOW DOES CORRUPTION HAPPEN IN BUREAU OF CUSTOMS?

In the present time, the Bureau of Customs (BOC) corruption transpires when smugglers evade
paying taxes. Like when they Mislabeling the Goods as having lower tax rates in order to
eschew paying taxes. They devalue or under-invoice goods, they abbreviate the value which
inclines to declare the commodities to evade taxes or they smuggle out right, they do not
 declare transaction records or do not represent the compulsory sanctions. They do not fixate
on investigation; instead, they utilize electronic contrivances to examine rather than
investigating and verifying what the importers lend them, which can lead to smuggling.
Furthermore, the operation is ineffective, causing smuggling to occur.

EXTENT OF CORRUPTION AND AMOUNT INVOLVED

In developing countries, customs is frequently regarded as among the most corrupt institutions.
Rooting out corruption in customs is possible, though somewhat challenging and complex;
however, it requires an approach which is less focused on the transposition of norms and
practices from developed countries. Although it remains a problem to many countries including
our country.
From January to June, three BOC employees were dismissed, 27 were relieved, one was
reprimanded, and seven were suspended, while 249 were reshuffled to other offices and ports,
according to a statement from the country's second-largest tax-collection agency. The
personnel were found to have engaged in "unusual operations," according to the BOC. Within
the same six-month period, the BOC confiscated P8.4 billion through smuggled items through
293 joint seizures of its enforcement and intelligence organizations. The BOC had seized P5.2
billion in counterfeit goods, P1.7 billion in illegal drugs, and P388.8 million in illicit general
merchandise at the end of June. It also precluded the entry of smuggled agricultural products
worth more than P284 million into local markets. The BOC also stated that 44 smugglers were
apprehended out of the 58 letters of authority (LOA) issued in the first six months. Meanwhile,
78 alert orders were issued, with 57 of them being positive for violations of relevant customs
laws, rules, and regulations," the statement continued.
https://business.inquirer.net/352695/boc-fight-vs-smuggling-corruption-ramped-up-in-h1

EFFECTS OR IMPACTS ON THE ACCOMPLISHMENT OF THE MANDATE GIVEN TO THAT CERTAIN

AGENCY
In the given agency which is BOC or Bureau of Customs, it has negative effects of impacts based
on their accomplishments. The negative impacts when corruption continued and the possible
impacts are that it can result in losses or shortages of revenues, illegal products entering
because they do not check them carefully, more smugglers, has bad controlling, does not
operate, lacks clearance, and violates the rules or laws.
BOC has also had the positive impacts when it controls or implemented on right way which can
had an effective revenue collection by preventing and suppressing contraband and the entry of
 tainted imported goods, has an organized entrance and clearance of goods, and effective
management.

MINIMIZING AND PREVENTING CORRUPTION IN BUREAU OF CUSTOMS

Customs has responsibilities and roles for regulating cross-border trade, along with collecting
taxes, deterring illegal trade, controlling goods that are prohibited or restricted, and enhancing
economic competitiveness through trade facilitation. Ineffective and ineffective customs,
whether caused by a lack of resources or by bulky customs procedures. Procedures or
corruption can have a negative impact on the benefits of international trade and public trust.
Government reforms, as well as sound economic and public-sector reforms, are all necessary.
To stop all forms of corruption, offices, individuals within the said agency, or individuals must
implement a solution that will prevent as well as minimize corruption. To give a solution for the
corrupt activities in BOC, they should think of plans on how they minimize as well as how they
prevent it to avoid corruption on it.
To prevent and minimize it we can provide some ways and do it as well that helps us to lessen
the corruption among this agency.
 Implementing appropriate integrity standards - Integrity standards should be
established in order to provide a clear foundation for disciplinary, administrative, and
criminal proceedings sanctions based on the appropriate legal procedures.

 Transparency - Should verify that its customs procedures are applied predictably,
consistently, and transparently, in accordance with international standards and best
practices. Traders should have access to appeal and administrative review mechanisms
in order to challenge or seek review of customs-related determinations.

 Reform and Modernization - Should review their customs systems and procedures on a
regular basis, with the goal of streamlining out-of-date and burdensome practices and
procedures and increasing transparency in decision-making to reduce opportunities for
unethical, fraudulent, or illegal behavior and such as corrupt behavior.

 Tighten Inspections - Customs must tighten safety checks on risky transactions and
require importers to submit additional documentation if the price they declare falls
below a predetermined threshold level.

 Requiring to submit an Information Update on when the other country Imports - To

thoroughly inspect those items that other countries import onto us, to ensure that they
are not illegal, and to monitor when and where imports occur.
 Identify Interactions with Government Officials - To create reports and a procedure for
providing management and board officials with regular program latest updates.

 Identify Processes for Managing and Payments - Obtain support, and hold regular
reviews of management's progress.

 Implementing Anti-corruption activities or controls - Develop a strategy and timetable

for implementing new policies and regulations throughout organizations.