Business groups urge broad transparency reforms for 2026
Business and civil society groups are proposing four reform measures to help curb corruption in major infrastructure projects and the use of public funds that will, among other things, identify the ultimate beneficial owners of private contractors and real-time verification of payments to these companies.
In a joint statement on Thursday, the Management Association of the Philippines, Institute of Corporate Directors, Justice Reform Initiative and the Institute for Solidarity in Asia said these transparency measures would improve oversight of government processes. They urged the Marcos administration to implement them by January 2026.
One proposal is a real-time payment verification system that would link data from the Securities and Exchange Commission, Cooperative Development Authority, Bureau of Internal Revenue and the Modernized Philippine Government Electronic Procurement System (mPhilGEPS) to flag suspicious government payments.
The groups are urging the government to expand this system by March 2026 to include the disclosure of the ultimate beneficial owners of private entities to help prevent the use of shell companies in government contracts.
Launched in October, mPhilGEPS is an open data electronic portal intended to expand public access to government procurement data—from preprocurement to awarding of contracts. It will replace the existing PhilGEPS, which will be decommissioned in phases by March 2026.
Publicly accessible
Another proposal from the groups was to make all disbursements and contract variations publicly accessible and linked to mPhilGEPS to ensure full transparency throughout the life cycle of government projects.
The third proposal is to launch an audit within 90 days of the first red flag raised on a government project. This must involve the Commission on Audit, Department of Budget and Management, Department of Public Works and Highways, and Anti-Money Laundering Council.
The fourth is the creation of a public dashboard that would allow citizens to track project delays, cost overruns and repeat contract winners, while providing secure channels for whistleblowers.
Similar measures have helped deter corruption in countries, such as the United Kingdom, Chile, Hong Kong, Singapore, Brazil and Estonia, the groups said.
“Other countries have confronted similar challenges—and many have succeeded in reducing corruption by enforcing transparency in major projects, responding quickly to red flags, and clearly assigning institutional responsibility,” they said. “The Philippines can—and must—do the same.”
“Statements of concern are not enough. Now is the time to act,” they added. “Business, professional and civil society groups should demand for urgent reforms to be implemented now to end the grim consequences of corruption whose magnitude has shocked the country.”
Set off by Marcos
Massive corruption involving billions of pesos in kickbacks alleged to have gone to lawmakers and other officials was unearthed after President Marcos revealed in August that only 15 companies out of over 2,000 won around 20 percent of the over P500 billion worth of flood control projects—a large number of which were nonexistent, substandard or incomplete.
Following public outrage, the President created the Independent Commission for Infrastructure (ICI) in September to investigate and recommend criminal charges against those involved in the irregularities in the government’s flood mitigation program.
Despite criticisms of the ICI from some business circles, the business and civil society groups said the fact-finding commission, or a similar body, should continue to lead compliance monitoring and transparency enforcement in major projects.
Speedy case resolution
They also urged the Office of the Ombudsman to remain focused on independent investigations, prosecution of corruption cases and protection of whistleblowers.
The courts, particularly the Sandiganbayan and designated trial courts, should prioritize the swift resolution of major corruption cases, the groups said, warning that delays may perpetuate impunity and erode public trust in the rule of law.
They committed to assist the government in implementing their reform proposals.
“We stand ready to support these reforms by sharing technical insights, participating in consultations, and assisting independent monitoring—always with full respect for institutional independence and the rule of law,” they said.
The groups made their four-point proposal on the same day that the bicameral conference committee wrapped up its work on the proposed P6.793-trillion 2026 national budget, which was closely watched and livestreamed for the first time amid concerns over corruption-tainted budget insertions made behind closed doors.
Ping: ‘Safeguards’ in place
Senate President Pro Tempore Panfilo “Ping” Lacson said that “safeguards” have been inserted in the General and Special Provisions of the proposed 2026 General Appropriations Act (GAA) against any abuse of public funds.
He said Sen. Sherwin “Win” Gatchalian, the Senate finance committee chair, insisted on safeguards, such as “absolutely no guarantee letters allowed and any form of ‘epal’ for all ‘ayudas’ (aid programs).”
These letters from politicians or government officials have been criticized as enabling political patronage instead of guaranteeing citizens’ right to access state social services.
Another safeguard is the strict implementation of the Medical Assistance to Indigent and Financially Incapacitated Patients (Maifip) under the universal health care (UHC) law, Lacson told reporters.
There would also be “monthly oversight” on infrastructure and farm-to-market road projects that would include their precise locations on maps for easy monitoring by media and the public.
With safeguards and with continued public vigilance, Lacson held high hopes that the 2026 budget would help bring positive change for Filipinos.
‘Two thumbs up’
He lauded the Senate bicam panel led by Gatchalian for fighting for the safeguards and transparency measures included in the proposed GAA by the Senate.
“Amid all the disinformation and unreasonable criticisms, we have all the reasons to be proud of our Senate panel under the leadership of our Finance Chair Senator Win. I give my two thumbs up from start to finish,” Lacson said.
“We do not live in a perfect world, much less in an ideal situation, so we cannot be perfectionists and idealistic given the circumstances. That’s why adjustments must be made both ways,” he added.
Lacson urged the public to join him and like-minded lawmakers in maintaining vigilance against abuses of public funds, even after the budget is ratified by Congress and signed into law by the President.
“As long as we all remain vigilant in guarding against abuse of public funds, we can always remain hopeful that things can change for the better,” he said.
The bicameral meeting wrapped up in the early hours of Thursday, after lawmakers from both chambers reconciled the differing provisions of the Senate and House versions of the General Appropriations Bill.
