Discover how corruption and ineffective law and order enforcement in conjunction with organized crime networks open the country of the Philippines to easy business operations for illicit ventures.
#IllegalBusiness #Philippines #Corruption #OrganizedCrime #BusinessEthics #IllicitTrade #LawEnforcement #PharmallyScandal
The Philippines has become notorious for high levels of corruption and organized crime in the recent past, thus creating fertile ground for illegal business operations. This article digs deeper into factors that contribute to the ease of conducting illegal business, using real-life examples such as the Pharmally Pharmaceuticals scandal.
Why is it Easy to Conduct Illegal Business in the Philippines?
Several interrelated factors characterize the Philippine business landscape, notably illegal activities in the country:
- Corruption on All Scales: Corruption is rampant on every scale public and private. For example, public officers commonly accept bribes and solicitations, which enables illegal operations to run with impunity by channeling them through legal conduits. In fact, there has been documented massive bribery in public administration, which exposes foreign firms to collusive behavior by corrupt officers.
- Weak Law Enforcement: The Philippine National Police is inefficient and corrupt. There are many reports that indicate widespread police involvement in local rackets seriously corrodes public trust and tends to empower criminal networks. Many businesses rely on hiring private security because they cannot depend on the police service.
These massive networks of organized crime are all over the country, doing everything from drug trafficking to human trafficking. Usually, these networks exploit the weaknesses in legal loopholes and corrupt officials to have the capability to run their nefarious operations. The quadrangular committee investigation, as stated earlier, found that such criminal organizations are interlinked in so many ways with legitimate business that these organizations use them as fronts to execute such illicit activities.
Pharmally Scandal Real-Life Example
Perhaps one of the most scandalous cases to illustrate that point is Pharmally Pharmaceuticals. This was established hastily at the height of the pandemic brought by the COVID-19 pandemic, as the firm reportedly generated $7 billion in sales in a year when it only had a paltry capitalization of ₱650,000. Such breakneck growth obviously bred suspicion, and investigations revealed that through sham transactions, Pharmally garnered government contracts worth ₱47 billion.
One of the most significant people who came under the scanner is Michael Yang, a Chinese citizen, and ex-president's advisor, who had been involved as an enabler of this scam that suffered from grave violations of procurement laws. This scam exposed how easily corrupt practices resulted in big money for a few while damaging the general public trust in the institutions.
The Social Impact of High Incidence of Illegal Business
Illegal businesses have resulted in losses at various social levels:
- Economic Losses: Illegal trade costs billions of pesos yearly because of the losses in taxes due to smuggling. The government, for instance, lost ₱40 Billion or $750 Million each year in taxes due to smuggling alone. Of course, it is not just a loss of government funds but also how it affects the competitiveness of legitimate businesses; fighting against cheaper products that are tax-free altogether.
- Social Impact: Given the nature of the activities organized crime engages in, it encourages violence and insecurity within communities. Cases of extrajudicial killings attributed to drug operations raise fundamental human rights concerns and instill fear in the citizens.
- Public Health Risk: The entry of pirated goods poses health risks to consumers. Low-grade imports may create hazardous conditions for its users, especially pharmaceuticals and food products.
What Filipino Can Do about Criminal Business
These calls need a multi-faceted approach.
- Improving Law Enforcement: Reforms in the integrity and efficiency of agencies should be critical. This would include proper training of police and stronger punishments for corrupt practices.
- Improving Regulatory Frameworks: Simplification of business regulations can act as a deterrent by closing opportunities for corrupt practices. Simplification of processes for legitimate businesses will also make it tough for illicit businesses.
- Public Awareness Campaigns: Educating citizens on the danger of transacting with illegal businesses will reduce the demand for illicit goods and services.
In Conclusion, even if illegitimate business is easy in the Philippines, the combined push from the government and civil society will lead to the opening up of a more transparent and fair business environment. And with issues concerning corruption and a strengthening of the rule of law, trust in the institutions can likely be regained and illegal practices curbed for the boom of legitimate economic growth.
About the Writer
Jenny, the tech wiz behind Jenny's Online Blog, loves diving deep into the latest technology trends, uncovering hidden gems in the gaming world, and analyzing the newest movies. When she's not glued to her screen, you might find her tinkering with gadgets or obsessing over the latest sci-fi release.What do you think of this blog? Write down at the COMMENT section below.
No comments:
Post a Comment