Former finance secretary Teves warns of economic risks from government corruption

Margarito “Gary” Teves, former Finance Secretary, shared his insights on the financial impact of rampant government corruption. In a Friday interview on a radio program, he was asked about the effects on the general public of learning about the “shenanigans” happening behind the scenes in government.

“Hindi maganda po,” Teves responded, “dahil ang pera ng gobyerno ay dapat makatulong sa mga kailangan ng ating ekonomiya.”

He elaborated that cutting funding to non-flood control infrastructure projects could dissuade foreign investors from doing business with the Philippines. He also noted that salaries for workers on infrastructure projects play a significant role in the economy, as their spending injects more cash into the country. Teves further lamented the country’s unemployment rate, emphasizing the need for better domestic labor opportunities before Filipinos consider working abroad.

“Kailangan ng mga mamamayan, dumadami sila kaya kailangan ng employment opportunities sa Pilipinas. Kasi kung hindi, iisipin ng mga graduates na magtrabaho na lang abroad. Maaapektuhan ang potential growth ng ating ekonomiya,” he added.

When asked about the hypothetical demonetization of P1,000 and P500 bills, Teves acknowledged that while it may help curb graft and corruption, the system itself also needs improvement. “Makakatulong [ito] pero mas fundamental na iimprove ang system. Hindi ko akalain na may problema na agad sa budget deliberations pa lang,” he said.

Cesar Purisima, Teves’ successor as Finance Secretary, recently advocated for the demonetization of the larger Peso bills, claiming that smaller bills would make it more difficult to launder stolen funds, such as “kickbacks” from anomalous flood control projects.

Teves also called for full transparency from the Bicameral Conference and stressed the importance of government accountability in addressing corruption.

“Mahalaga na sa mga nangyayaring ito, may enforcement. Kung kapos ang enforcement at conviction, hindi masyadong effective. Ituloy natin not only to improve the system but to improve accountability as well,” he said.