Press Release
December 29, 2008

RP ranked 140 out of 181 in World Bank's Doing Business survey
LET'S DO AWAY WITH RED TAPE IN 2009 - Angara

Senator Edgardo J. Angara today urged his colleagues to enact the "Anti- Red Tape law" in order to address worsening situation of bureaucratic red tape in the country. This is amid the results of World Bank's "Doing Business 2009" survey wherein the Philippines ranked 140 out of 181 countries in terms of providing a conducive environment to business.

"Bureaucratic red tape is an anathema. It is exemplified by the increasing propensity of government agencies or offices to over-regulate and to unnecessarily lengthen the procedures for securing basic government services. Worse, some government employees require "informal payments" or bribes, more commonly known as "lagays," as a condition to any action on an application or request submitted before it," said Angara who is also the author of Ombudsman Law and the Government Procurement Reform Act, the biggest anti-corruption law in the country.

He added, "In these times of Financial Crisis, we should not do anything which can make potential investors hesitant about doing business in the country. Filipinos should remember that investors boost job generation and infuses needed capital in our country's economy."

The "Doing Business 2009" indicated that the country's overall ranking in terms of ease in conducting business declined by four notches. Philippines ranked 140 out of 181 from last year's 136. Our Southeast Asian counterparts have also overtaken us with Singapore ranking first overall. The survey measures the following business indicators: starting a business, dealing with construction permits, employing workers, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and closing business.

The country displayed dismal performance in terms of opening and closing business.

Another survey conducted by the WB and the Asian Development Bank (ADB) concluded that foreign firms used 4% of their revenues as bribe money, 1.8% for local firms, and 3.8% for firms in special economic zones.

The Anti-Red Tape Law, which is authored by Angara, aims to speed up transactions in government offices by limiting the action time on simple and complex transactions. It will also limit the signatories of documents to the officers and employees directly supervising the office where a particular transaction is being acted upon.

"Through this measure, we will require all agencies and offices that provide frontline services to regularly undergo evaluation and modernization of their transaction systems and procedures. If necessary, they will have to re-engineer the same if deemed necessary to cut red tape and expedite public service," said Angara who incidentally is also the charter president of the Southeast Asia Parliamentarians Against Corruption (SEAPAC).

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