Biz groups urge reforms to boost good governance

BUSINESS groups on Friday called for changes to bank secrecy laws and the restoration of public access to government officials’ asset statements, saying that these were crucial for good governance and economic growth.

Republic Acts 1405 and 6426, or the Law on Secrecy of Bank Deposits and the Foreign Currency Deposit Act, in particular, were said to have prevented regulators from investigating and prosecuting persons involved in corruption and money laundering.

“These laws’ rigidity, as asserted by the International Monetary Fund, has… placed severe restrictions on our country’s financial and economic stability,” the business groups said.

The passage of proposed amendments, they added, will align Philippine laws with international standards and allow regulators and enforcement agencies to go after illicit economic activities.

“We also support efforts to restore public access to the statements of assets, liabilities and net north (SALNs) of government officials, as originally required under RA 6713, or the Code of Conduct and Ethical Standards for Public Officials and Employees,” they said.

Access to SALNs was restricted during the Duterte administration and it was only this week that the Office of the Ombudsman reopened public access to the documents.

“This law was designed to create an investigative mechanism that will uphold all government employees and public officials to the highest standards of transparency and accountability,” the business groups noted.

“This was supposed to be a critical tool serving as a watchdog to prevent corruption. It sadly hasn’t served those purposes.“

Reforms, they added, should come with the enforcement of mandated penalties to promote good governance.

“Good governance fosters a stable environment in which both local and foreign investors can make long-term commitments with confidence,” the business groups said.

“When governance systems are predictable and information is accessible, the risks of corruption and policy uncertainty decrease, lowering the cost of doing business. This attracts sustained capital inflows, promotes fair competition, and contributes to stronger, more resilient economic growth.”

Signatories to Friday’s statement were the Filipina CEO Circle, Financial Executives Institute of the Philippines, Institute of Corporate Directors, Justice Reform Initiative, Management Association of the Philippines and the Makati Business Club.