Public, private sectors unite against corruption

Officials from both the public and private sectors have reaffirmed their commitment to restoring investor confidence amid the government corruption scandal gripping the country.

On 23 October 2025, the fourth annual Sycip, Gorres, and Velayo (SGV) Tax Symposium — themed “From Compliance to Confidence: Trust, Transformation, and Transparency” — brought together business executives and government officials to pledge their support for transparency and financial integrity, particularly in public revenue collection and allocation.

Leaders of Tomorrow

“This symposium is not simply about compliance, not about just ticking boxes. It is about bringing awareness of how we, as advisors, as practitioners, as professionals, can play our part in preventing diversion, misuse, and malpresentation of public funds,” said Atty. Jules Riego, Tax Leader at SGV & Co.

Riego estimated that around P1.7 to P1.8 trillion, or roughly $27.5 billion, has been lost to anomalous infrastructure projects over the past decade—funds that could have been redirected toward education.

“Just out of curiosity, I went to visit the website of DECS (the Department of Education, Culture and Sports) and I saw that the cost estimate for a regular classroom in a public school is around P2.5 million, or about $43,000 per classroom in a five-story building where there will be 25 classrooms,” he said, noting that despite the modest cost, the country still faces a deficit of 165,000 classrooms in public schools.

“So, I began to compute that [the allegedly embezzled] P1.7 trillion would have covered more than three times our classroom deficiency and pay and train our public school teachers better so that our children do not lag behind their peers in Southeast Asia,” he added.

Riego emphasized that sustained political reforms and stronger financial transparency will be vital in restoring market confidence.

His concern reflects broader economic sentiment, as recent Bangko Sentral ng Pilipinas data show business confidence falling to 23.2 percent in the third quarter of 2025 down 9.7 percentage points year-on-year, signaling both domestic and foreign investor apprehension amid ongoing corruption controversies.

Despite these headwinds, Riego expressed optimism about the future, highlighting how younger generations are increasingly demanding accountability. “We will help change the culture, we will help shift behavior, we will pursue transparency, both domestic and foreign, to gain their confidence. Because we believe that transformation is not passive—it demands courage.”

‘Your Government Hears You’

Department of Finance (DOF) Undersecretary Charlito Martin Mendoza also addressed the forum, assuring the business community that the government is taking the issue seriously.

“We hear you, and we are working firmly, steadily, and transparently to build a business environment for you where compliance breeds confidence, and confidence strengthens growth,” Mendoza said. “We are listening, and we have always been open to the wisdom and guidance of you, our partners in the private sector.”

He emphasized that the DOF views itself as “a vigilant guardian of the public purse,” and is reinforcing internal controls, strengthening audits, and ensuring that “every peso collected goes to the right place.” Mendoza said future spending will focus on projects with the greatest economic and social impact, including investments in human capital, social protection, and infrastructure.

The undersecretary also cited the Philippines’ strong fiscal performance, with revenues growing by an average of 13.8% annually over the past three years and tax collections increasing by 11.5% per year. These gains lifted the revenue-to-GDP ratio to 16.7% in the first half of 2025—its highest level in nearly 30 years. Mendoza stressed that the DOF remains focused on prudent debt management, efficient spending, and zero tolerance for graft.

Mendoza called on businesses to be “active partners” in institutional reform. “We need the influence of the business sector to be used for transparency, not advantage—for equity, not entitlement,” he said, adding that the DOF’s ongoing initiatives aim to build “a globally competitive, fundamentally fair, and perpetually stable” tax ecosystem that supports both investor confidence and inclusive national growth.

Restoring Confidence and Growth

The symposium underscored a growing consensus between government and private industry that transparency and accountability are essential to economic recovery. With corruption scandals threatening public trust and investment momentum, the collaborative push for cleaner governance, stronger fiscal management, and youth-driven civic engagement reflects a shared determination to rebuild credibility—laying the groundwork for a more resilient and trusted Philippine economy.