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US dares Noynoy to curb corruption By Michaela P. del Callar 06/18/2010

Friday, June 18, 2010

Additional funding to RP to be granted if Aquino shows political will

US dares Noynoy to curb corruption


By Michaela P. del Callar
06/18/2010

Show political will first in curbing corruption in government.

This was the message conveyed by a United States aid agency that said it may consider granting additional funding to the Philippines this year, but this was followed by a challenge to incoming President Benigno Aquino III to first demonstrate his political will to fight corruption. 

This was the decision of the Millennium Challenge Corporation (MCC) Board, which is headed by US Secretary of State Hillary Clinton, when it reviewed the agency’s portfolio of investments in low income and lower middle income countries on June 16. 

Following the meeting, the Board said it expects to consider grant agreements with the Philippines, Jordan, and Malawi in calendar year 2010, and Indonesia, Zambia, and Cape Verde in its calendar year 2011.

“The Board received an update on discussions with the incoming Philippine administration on the proposed compact program. The Board reiterated its desire for a commitment by the new administration to the ideals and principles of MCC, including fighting corruption, and to the compact’s objectives and implementation,” the MCC said in a statement.

The Philippines failed to secure a large-scale grant from the MCC last year due to the long-standing problem of corruption in the government.
However, the Philippines was re-selected to apply anew for additional funding under the MCC’s compact program for its development projects.

The results of the MCC’s corruption test, which the Philippines flunked, had a great impact on the decision of MCC Board of Directors when they selected and reviewed eligible developing countries for compact funding.
Manila would have received an additional $500-million poverty-reduction funding from the MCC only if it had passed the MCC’s anti-corruption index in 2009.

Control of Corruption is considered by the MCC as the only pass/fail indicator. No country can receive funding under the Compact program unless it passes at least half of the 17 indicators and the Control of Corruption indicator.

The Philippines , which qualified in 2007 under the MCC’s threshold program initially received $21 million for the government’s anti-corruption projects.

The MCC is a US government corporation designed to work with developing countries on Millennium Challenge Account (MCA)-funded programs for economic growth.

Two MCA programs available are the primary “Compact Program” and the secondary “Threshold Program,” which helps countries that are close to qualifying for Compact Program assistance address specific policy weaknesses.
Both programs are based on the principle that aid is most effective when it reinforces good governance, economic freedom, and investments in people that promote economic growth and elimination of extreme poverty, the MCC said.

The Philippines’ compact proposal for 2010-2014 focuses on three (3) high-impact projects - Secondary National Roads Development; Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of Social Services and Integrated Revenue Information System.... MORE

SourceThe Daily Tribune

URL: http://www.tribuneonline.org/headlines/20100618hed1.html

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