In a striking speech delivered in July 2023, Baguio City Mayor Benjamin Magalong laid out the alarming reality of the Philippines' national debt and the institutional corruption he believes is driving it. His statements were a wake-up call, not just for government officials but for every Filipino. Magalong did not mince words when he shared facts and insights about the national debt, its rapid rise, and the corruption ingrained in infrastructure projects.
The Alarming Growth of National Debt
Mayor Magalong began by emphasizing the significant growth in the Philippines' national debt. He revealed that in April 2023, the country's debt had reached a staggering P13.86 trillion. This represents an astonishing 142% increase compared to the P5.7 trillion debt recorded when President Duterte took office in 2016.
To put this into perspective, Magalong explained:
"Ang ibig sabihin niyan, each and every Filipino kapapanganak pa lang may utang na na P113,000."
This grim statistic paints a clear picture of how the national debt affects every Filipino, from the moment they are born.
Corruption and Financial Leakages
Magalong then shifted his focus to the heart of the issue-corruption. He pointed out that much of the financial burden the country is experiencing stems from "financial leakages," with a substantial portion being siphoned off by corrupt practices. Citing a former Secretary of NEDA, Magalong made it clear:
"Ang final leakage (refers to) a big chunk that goes to corruption."
Corruption, according to Magalong, is not a minor problem but a systemic issue that significantly impacts the country's ability to pay off its debt. He noted with frustration that, despite the seriousness of the debt situation, very few lawmakers have publicly expressed concern:
"Ulitin ko, only very few raised hell. I was very concerned."
Widespread Corruption in Infrastructure Projects
One of the most concerning points in Mayor Magalong's speech was his exposure of how corruption has become embedded in infrastructure projects. He shared his conversations with contractors who disclosed that lawmakers and LGU officials often demand a cut from infrastructure budgets, sometimes as high as 20% to 25%. As a result, contractors are left with only about 45% to 52% of the project funds.
This, according to Magalong, leads to substandard work on essential infrastructure projects. He recounted:
"In short, if the project is worth P100, they said, they will have to settle for P42.50 to P55, including their profit so they will be forced to make substandard projects."
Magalong also pointed out how local officials and lawmakers rig the bidding process to ensure they benefit from both cuts and contracts. While the Supreme Court declared the pork barrel unconstitutional, legislators and officials have found ways to circumvent the ruling, often by becoming both contractors and suppliers themselves.
The Deafening Silence of Legislators
Despite these glaring issues, Mayor Magalong expressed disappointment over the silence of lawmakers. He pointed out that no one seems willing to address the pork barrel issue publicly, much less take responsibility for it. According to Magalong, not a single legislator has openly admitted the ongoing presence of pork barrel funds.
"Nothing have we heard from our legislators that they are willing to give up their pork barrels. Kahit man lang sana sabihin nila na bawasan ninyo yung pork barrel."
He went further, calling on lawmakers to make sacrifices to help alleviate the national debt, just as the police and military are willing to sacrifice portions of their pensions. Magalong's message was a direct challenge to the country's legislators, urging them to step up and contribute toward addressing the nation's financial crisis.
A Call to Action
Magalong closed his speech by reiterating his hope that one day, a legislator will come forward to lead the fight against pork barrel practices. His call for transparency, good governance, and financial responsibility was clear:
"Hintayin natin kung anong sasabihin ng ating mga magigiting na legislators. Hintayin natin silang magsalita."
His words reflect the frustration many Filipinos feel towards the entrenched corruption in government and the lack of accountability from those in power.
Moving Forward: Ending Pork Barrel for a Sustainable Future
Mayor Magalong's speech was not just a critique of the current state of affairs but also a call for reform. The issues he raised are deeply rooted in the country's governance, but they are not beyond resolution. The Philippines' staggering national debt and the institutionalized corruption that exacerbates it demand immediate attention.
Ending pork barrel practices and ensuring that public funds are used transparently and effectively should be a priority. As Magalong rightly pointed out, the solution to the country's debt crisis depends on good governance and the elimination of financial leakages. It is time for legislators to take responsibility and for the public to demand accountability. The future of the nation depends on it.
Full Transcript of Mayor Benjamin Magalong's Speech
Here is the complete speech delivered by Mayor Benjamin Magalong in July 2023:
Let me temporarily set aside my manuscript. Instead, let me speak from my mind and from my heart. Let me give you some facts about what is happening in the entire country today.
Last April, news came out that our national debt is already at 13.86 trillion pesos (US$230-250 billion) . Remember that when we started, when President Duterte started his administration as president of the Philippines, our national debt was at just 5.7 trillion pesos (nearly US$100 billion), accumulated for decades. In just a matter of seven years, our national debt increased by as much as 142%. We're now at 13.86 trillion.
In short, we are already above the 60% debt to GDP ratio. That means that each and every Filipino since birth will each inherit a debt of ₱113,000.00 (nearly US$2,000.00). According to the former Secretary of NEDA Cartua, our ability to pay our debt would depend on our ability to manage our financial leakages. And so I asked, what is financial leakage? And no less than the former Secretary of NEDA said, "The final leakage that I'm saying, a big chunk of that goes to corruption." And surprisingly, when the news came out that our national debt is already at 13.86 trillion, only very, very few members of our legislative branch, people from Congress, raised hell. Again, I repeat, only very few raised hell. It is at this backdrop, or against this backdrop, that I would like to share with you this narrative.
Last year, I was invited by the Civil Service Commission and the Department of Interior Local Government to talk before newly elected officials, twice. In one session, there are about 150 mayors. A second session, about 200 mayors. Last March, I was given a chance again to talk to about 1,100 municipal mayors, all members of the League of Municipalities. Three weeks ago, I had the chance to talk and speak before vice governors of the different provinces.
I was very concerned. The way we process, the way we manage our local government union. For the first 15 minutes, everybody was just so enthusiastic, listening to me, looking at my impressive presentation. And then I start talking about good governance. I start talking about traditional politics. I start talking about corruption. It is a direct correlation with poverty. And when I start doing that, they also start looking at their cellphones. Are we not going to ask ourselves, is corruption now becoming a norm in government? Is good governance becoming an exception?
It is very saddening that they have a percentage in every project. They have not yet become tired. They already have a percentage. They are still the contractor. They are still the supplier. Unfortunately, only a few people raise this issue. We in the Philippine National Police. I've been talking to your Command Executive Senior Police Officer, Louie S. Makilan, and all the other Regional Executive Senior Police Officers. When they visited me two weeks ago, that was about three weeks ago.
We are willing to give or contribute a reasonable percentage of our pension plan or of our pension to national government to address this big issue. But it's saddening. Nothing have we heard from our legislators that they are willing to give up their pork barrels. Even just saying that we reduce the pork barrel. But nobody, for some reason, nobody would admit that they do have pork barrel. But now that I am with local government, the fact remains that there is still pork barrel.
We, in the uniformed service, both from the armed forces and from the Philippine National Police, we risk our lives. We risk equality time with our family. And we are willing to give up a small amount of our pension just to help national government. Just to address this huge deficit. Just to address this big national debt.
We will wait whatever our "patriotic" legislators will tell. We will wait for them to speak. Hopefully, one of them will come out in the open and tell us it is about time that legislators should also give a big contribution to address national government issue, especially on our financial debt.
Frequently Asked Questions (FAQ)
1. What did Mayor Benjamin Magalong say about the national debt?
Mayor Magalong revealed that the Philippines' national debt had reached P13.86 trillion in April 2023, a significant increase from P5.7 trillion when President Duterte took office. He emphasized how this debt affects every Filipino, as each one is effectively born with a debt of P113,000.
2. How is corruption contributing to the national debt, according to Magalong?
Magalong pointed out that a large portion of financial leakages, especially in infrastructure projects, comes from corruption. He explained that corrupt practices like rigged bidding processes and cuts demanded by lawmakers and LGU officials siphon off funds, leaving contractors with only about 45% to 52% of the project budget.
3. What are the consequences of corruption in infrastructure projects?
According to Magalong, corruption leads to substandard infrastructure projects because contractors are forced to make do with a fraction of the project funds after kickbacks are taken by officials. This affects the quality and longevity of essential public works.
4. Why is the pork barrel issue still a concern despite being ruled unconstitutional?
Magalong revealed that, although the Supreme Court has declared pork barrel unconstitutional, some lawmakers and LGU officials have found ways around the ruling. They manage to rig the bidding process by being both the contractors and suppliers, ensuring that they still benefit from these funds.
5. Why is there silence from legislators about the pork barrel issue?
Magalong expressed disappointment that none of the legislators have publicly admitted the existence of pork barrel funds or expressed a willingness to reduce or eliminate them. He pointed out the contrast between their silence and the sacrifices made by those in the military and police to address the national debt.
6. What did Mayor Magalong suggest as a solution to the financial crisis?
Magalong urged legislators to contribute toward addressing the national debt by making sacrifices, similar to how the police and military are willing to give up portions of their pensions. He called for transparency and good governance to eliminate financial leakages and ensure that public funds are used responsibly.
7. Why does Magalong believe good governance is becoming an exception in the Philippines?
Magalong's speech suggested that the normalization of corrupt practices in government has made good governance the exception rather than the rule. He raised concerns that corruption is becoming institutionalized, which is a serious threat to the country's future.
