Philippines fails to qualify for US grant due to poor mark in fighting corruption — MCC

The Philippines has failed to qualify for a grant from an independent American aid agency next year after getting a red mark in the “control of corruption” requirement.

In a statement on November 9, the Millennium Challenge Corp. (MCC) said that to be eligible to receive funding, countries must pass at least 10 of 20 indicators, as well as both categories that the aid agency considers “hard hurdles” for eligibility, namely, the political rights or civil liberties indicator, and the control of corruption indicator. 

In the MCC’s Fiscal Year 2022 scorecard, the Philippines passed 12 of the 20 indicators —fiscal policy, inflation, regulatory quality, trade policy, gender in the economy, land rights and access, political rights, civil liberties, government effectiveness, natural resource protection, girls’ secondary education enrollment rate, and child health.

However, the country received a red mark in the control of corruption indicator— a must-pass according to the MCC.

Apart from failing the “hard hurdle” indicator, the Philippines also received failing marks on access to credit, business start-up, rule of law, freedom of information, health expenditures, primary education expenditures, and immunization rates.

Asked for comment, presidential spokesperson Harry Roque said that the Duterte administration does not tolerate corruption.

"Kung iyan ay kulang sa tingin ng mga dayuhan, so be it. Pero ang ating mga ginagawang polisiya dito sa Pilipinas [ay] independent of what other countries will say," Roque said at a news conference on Thursday. 

(If foreigners view our efforts as not enough, so be it. But our policy is independent of what other countries will say.)

"Seryoso tayo sa kampanya laban sa korapsyon, at si Presidente, hindi talaga nagku-kunsinti ng korapsyon," Roque added.

(We are serious in our fight against corruption, and the President does not tolerate corruption.)

The aid agency said scorecards are a key component in its competitive selection process that determines which countries are eligible to develop a five-year grant agreement known as a compact. 

This year, the MCC said it created scorecards for 81 countries —28 passed and 53 countries did not.

The scorecard consists of a collection of 20 independent third-party indicators that measures a country’s policy performance in the areas of economic freedom, ruling justly, and investing in people. 

“MCC’s Board of Directors selects new partner countries annually in December based on scorecard performance, supplemental information, the opportunity to reduce poverty through economic growth, and the availability of funding,” the aid agency said.

“After considering the pool of countries that have passed the scorecard, MCC’s Board of Directors makes the decision on which countries to select for compact investments,” it said.

The MCC said that only low- and lower-middle income countries as classified by the World Bank are eligible for its assistance.

In December 2016, the MCC deferred the selection of the Philippines to receive a multi-million dollar development grant, citing concerns about the “rule of law and civil liberties.”

In response, President Rodrigo Duterte said the MCC could "eat its money," saying the Philippines could survive without its assistance.

The MCC is an independent US government agency working to reduce global poverty through economic growth, by providing time-limited grants and assistance to countries that meet rigorous standards for good governance, fighting corruption, and respecting democratic rights.

It was created by the US Congress in 2004. — with a report from Llanesca Panti/VBL, GMA News