BIZ BUZZ: Scourge of ‘patong’ practice

As public confidence in the government dwindles, so does the trust of businesses in the country’s state agencies.

In a survey conducted by behavioral science and data firm BS Works covering 149 senior management executives from micro to large companies, business leaders expressed “moderate dissatisfaction” with transacting with national government agencies.

Interestingly, businesses are more satisfied with their experience in doing business with local government units.

Cities and municipalities received a “moderate satisfaction” rating, with business hubs Quezon City, Makati and Taguig leading them.

For the business executives, the Department of Trade and Industry is the easiest agency to transact with, while the Bureau of Internal Revenue (BIR) is the most difficult.

BS Works CEO Cliff Eala said concerns with the BIR primarily stem from perceptions of corruption.

“I’m not saying everyone in BIR is corrupt. But the perception is that if I’m going to the BIR, I have to be ready for corrupt people,” Eala said. “Fixing that is a different problem altogether.”

The study measured satisfaction across five key areas: respondent’s positive experience with the agency, expenses or fees, clarity of requirements, turnaround time, and efficiency of online tools.

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Astonishingly, business leaders reported being most satisfied with the amount of fees that the agencies collect. What’s frustrating for them is the under-the-table payment that some officials ask for to expedite the process.

“The fees seemed to be okay; it’s what’s made patong (grease payments) on top of the fees that’s an issue,” he said.

As corruption scandals continue to plague certain government agencies, this study shows that business leaders are not turning a blind eye.