Country Report Philippines June 2011

The political scene: The previous president faces more corruption accusations

Mr Aquino evidently hopes that his anti-corruption campaign will make more progress under a new ombudsman, and through closer co-operation with the Commission on Audit, the state agency responsible for auditing government finances, to which he has recently appointed Heidi Mendoza, a whistle-blower who appeared at recent Senate hearings into corruption in the military. One of the first cases that the commission will investigate is a new charge against Ms Macapagal Arroyo. On April 26th a former solicitor-general, Francisco Chavez, filed charges of plunder against Ms Macapagal Arroyo and four former officials for the misuse of P555m (US$13m) in state funds intended for the benefit of migrant workers. The main claim is that an executive order issued in 2003 authorised the transfer of P530m from the Overseas Workers Welfare Administration (a state agency that supports Philippine workers overseas and their families) to the national health insurance scheme, PhilHealth. It is alleged that this money was then used to fund PhilHealth cards issued during Ms Macapagal Arroyo's election campaign in 2004.

© 2011 The Economist lntelligence Unit Ltd. All rights reserved
Whilst every effort has been taken to verify the accuracy of this information, The Economist lntelligence Unit Ltd. cannot accept any responsibility or liability for reliance by any person on this information
IMPRINT