Building Value-Based Government with Private Sector Interactions

1. Building Value-BasedGovernment with Private Sector Interactions • Cynthia R. Mamon • President & Managing Director • Sun Microsystems Philippines, Inc.

2. “I do nothing of myself; but as my Father hath taught me, I speak these things” Let me start by sharing… • “The Son can do nothing of himself, but what he seeth the Father do.”

3. Outline Underlying beliefs in Government Different types of Government Graft and Corruption in the Philippines Values behind the Procurement Law Government ICT Projects Five warnings Ten Practical Suggestions Inspirations Five lessons Our Challenge: Purpose Driven Life

4. Underlying beliefs in Government 1. We believe in government Government is the mechanism we use to make communal decisions - infrastructure, education, social services. The way we provide for services to people andcollectively solving the country’s problems. 2. We believe that civilized society cannot function effectively without effective government-something rare today.

5. 3. We believe that the people who work in government are not the problem, the systems in which they work are the problem. 4. We believe that neither traditional liberalism nor conservatism has much relevance to the problems our governments face today. Underlying beliefs…

6. 5. We believe in equity – in equal opportunity for all people. “And we believe passionately that increased equity is not only right and just, but critical to our success as a nation!” David Osborne and Ted Gaebler: Reinventing government: How the Entrepreneural Spirit is Transforming the Public Sector. Underlying beliefs…

7. Different Types of Government Government 1. Catalyctic Government - Greek word meaning “To Steer”. - The job of government is to steer not to row the boat. 2. Community-Owned Government - Empowering rather than serving. - Government programs have to be owned by the people they’re serving.

8. Different Types of Government 3. Competitive Government - Injecting competition into service delivery. - The issue is not “public vs private,” it is “competition vs monopoly.” 4. Mission-Driven Government - Transforming rule-driven organizations Social & Cultural

9. Different Types of Government 5. Results-Oriented Government - Finding outcomes, not inputs. - Government programs must keep track of what happens to the people they’re serving. 4. Customer-Driven Government -Meeting the needs of the customer, not the bureaucracy. Quality is determined by the customers.

10. Different Types of Government Economic 7. Enterprise Government - Earning rather than spending. - We have to guarantee future revenues by creating the new revenue sources. 8. Anticipatory Government Prevention rather than cure. We must love our grandchildren more than we love ourselves.

11. Different Types of Government • 9. Decentralised Government • - From hierarchy to participation and teamwork. • 10.Market-Oriented Government • - Leveraging change through the market. • Government function as facilitators and brokers • and seed capitalists in existing marketplaces.

12. Graft & Corruption • WB avoided this term until Wolfowitz (former President) made a speech on the “Cancer of Corruption” • “Implicit taxes”/rent-seeking behavior. • Corruption is a complex and perennial problem.

13. Graft & Corruption • Graft – Illegal appropriation of public resources for personal interests. • Nepotism – Preferential treatment given by virtue of blood relation, friendship or political association, rather than merit. • Bribery – Receipt of offering of valued materials to induce a government official to overlook his public duties. • Corruption – Hampers the government’s drive to eradicate poverty and institute economic development in the country.

14. Two Sides of Corruption • Income Side Officials use their authority to channel government revenues to private interests. • Expenditure Side Outright robbery of the treasury to the more subtle diversion of public funds from government projects.

15. Examples Corruption • Income Side PCIJ reported that BID sells immigrations papers for P50,000.00. BID was the 3rd corrupt agency in 2003. • Expenditure Side DECS Textbook Scandal. Attempt to bribe DBM Secretary Diokno with P3M to secure a P200M textbooks contract with DECS (linking Celia Ejercito de Castro)

16. Graft & Corruption in the Philippines • TI reports 2.9 in 2001 index, 2.6 in 2002, 2.5 in 2003. More corrupt in last 3 years • ADB study Jan 20, 2005: • Philippines ranks 2nd to worst out of 102 countries in irregular payments in public contracts. • Corruption affected 34% of domestic enterprisesresulting to retardation of revenues and laborproductivity • 716 responded of 800 companies surveyed

17. Graft & Corruption in the Philippines • WB 2000 reported that government lost $48B because of corruption over a 20-year period. Morgan Stanley Research estimated that losses from corruption totalled $204B from 1965-2001. Guinness Book of World Records: Biggest robbery by the Marcoses was believed to be $5-10B.

18. Graft & Corruption in the Philippines • ADB reports - 3 concerns: • Macro-economic instability - with poor investmentclimate limiting capital formation, productivityand competitiveness of firms • Corruption – irregular tax payments (77% onlyare reported) and business cost of corruption • Infrastructure – only 20% of roads paved

19. Graft & Corruption in the Philippines • Bribery accounts for an average of 2% of the value of public contracts or firms sales • Bribery slows down sales growth by 7% • In some areas, firms spend 4% of sales for informal payments or bribes. NCR-2.5%, Cebu-1.6% & Davao-1.8%. • Small firms incur bigger losses from making irregular payments as a proportion of sales at 2.2% and 2.6% of contract value than do mediun and large firms.

20. Graft & Corruption in the Philippines • BOC Transactions are commonly perceived to be riddled with corruption. • Delay in getting goods cleared is sped up with briber. • AFP ammunition and weaponry went to the hands of the rebels of shady transaction. • Escape of three (3) terrorists in a PNP compound in Camp Crame: $10M or P530M vs Estimated Costs of P126M. • NAIA III where Liongson, PR Consultant of Piatco showed $2M tax receipts from $425M advanced to Piatco from Fraport. • DBM estimated an average of P22B lost to graft and corruption. • equivalent to the entire DOH budget • Equal to 520M textbooks or 63,000 new classrooms or 1500 kms of farm to market roads • Comelec computerization project $4B

21. Values of E.O. 40 & R.A. 184Declaration of Policy • Transparency • Accountability • Equity • Efficiency • Economy • Eradication of malpractices i.e. graft & corruption

22. True Values behind… • Transparency: To encourage the public to monitor the process and accountability where both public and private officials are liable for their actions. • Uniformity: Streamlined process that will apply to all government procurement, and use of standard forms. • Equity (Competitiveness): Extending equal opportunities for all eligible and qualified bidders. • Efficiency and Effectiveness: The process shall be simple and made adaptable. • Eradication of graft and corruption.

23. New Government ICT Projects • AMLA – P100M (5 years) • BOC ASYCUDA Project – P500M • BIR Integrated Computerization Project – P678.51M • E-Library Project – P166.77M • E-Government Portal – P100M • SEC iReport – P86.86M (eGov) & P41M (SEC) • BFAD – P51.524M • POEA – P72.91M • E-LGU – P100M

24. Source of Corruption • Unlimited power is apt to corrupt the minds of those who possess it. • Power tends to corrupt and absolute power corrupts absolutely. • Corruption < Arrogance < Greed < Power

25. Power… • Power addicts are miserable people. Like Hitler, there is no “zenith“ just as there is there is no zenith to addiction. Such insatiability is a demoniacal mirage of infinity. In reality, the subject becomes increasingly fettered by necessity. In the end all the freedom is gone. The drug addict as well as the power addict makes an initial choice to obtain something and before he realizes it that thing has obtained him. • “When one has reached the summit of power and surmounted so many obstacles, there is a danger of becoming convinced that one can do anything one likes, and that any strong personal view is necessarily acceptable to the nation and can be enforced upon one’s subordinates.”

26. Inspirations from Matthew 16:26 • “What does it profit a man if gainsthe whole world but suffers theloss of his own soul?”

27. Power… • The measure of a man is what he does with power – Pittacus • Power is the potential to influence others for good or evil, to be a blessing or a scourge. • Utility and coercive power often dissipates.

28. What if they are trying to convince you? • Never give in! Never give in! Never, never, never, never-in nothing great and small-large and petty- • Never give in except to convictions of honor and good sense. Never yield to force and the apparently overwhelming might of the enemy. • - Winston Churchill • “It takes years to build a name, it takes only oneact to destroy it.”

29. Self-Analysis • Stephen Covey suggests that when you feel trapped, you ask yourself: • Does this issue have mainly to do with me?” (change your behavior) • Does it have to do with people who are inside my circle of influence?(change method of influence) • Does it have to do with people and things that are only in my circle of concern?(change your attitude) • There is always something you can do!

30. Self-Analysis • Doing nothing is disempowering. The less you do, the less you can do. When you know what you must do, dig deep and act. • Socrates: “Let him who would move the world, first move himself.” • Gandhi:” Be the change you want in this world.” • For I do not do what I want, but I dothe very thing I hate (Romans 7:15) Inner Peace &Clear Conscience

31. Five Warnings LUST-”We should not crave evil things, as they also craved.” Lusting or craving is having wrong desires. We should not crave that which God has not provided. IDOLATRY- “And do not be idolaters as some of them were..” Idolatry is more than having false gods in our hands but having wrong ambitions in our hearts. IMMORALITY-”Nor let us act immorally, as some of them did, and twenty three thousand fell in one day. UNBELIEF- “Nor let us try the Lord as some of them did, and were destroyed by the serpents.” COMPLAINING- “Nor grumble as some of them did and were destroyed by the destroyer.” “If My people who are called by My name humble themselves and pray, and seek My face and turn from wicked ways, then I will hearfrom heaven, will forgive their sin, and will heal their land. (2 Chronicles 7:14)

32. 10 Practical Suggestions in coping with coercive persons • Do not take it lying down. • Spend your time creatively preparing for your moment, your act of power. • Comply as best as you can, as long as your actions do not violate your basic values and standards or hurt others • Invest your time to understand what they want. • Talk to others; brainstorm possibilities, get help from family, friends and agencies. • Go underground. Lie low to protect yourself. • Do something to improve your circumstances, most of us can improve things where we are without quitting, and it feels great. • Bide your time; outlive or outlast the tyrants and you may live to replace them. • If you work in a toxic waste dump, get out. • Tennyson advice: ”the more things are wrought by prayer than this world dreams of”

33. RECOMMENDATIONS FOR GOVT • 1. MAINTAIN A LIST OF ACCREDITED AND HIGHLY REPUTABLE ICT COMPANIES • 2. MAINTAIN ALSO A LIST OF NON RECOMMENDABLE AND THOSE WITH PENDING CASES OR QUESTIONABLE DEALINGS • 3. PART OF EVALUATING ICT COMPANIES IS THEIR CORPORATE VALUES • 4. INVESTIGATION AND PUNISHMENT IS FOR CORRUPTOR AND CORRUPTED OFFICIALS • 5. PUBLISH BOTH SUCCESS AND UNSUCCESSFUL PROJECTS

34. RECOMMENDATIONS • 6. PUBLISH MODELS OF PROJECTS, PEOPLE AND COMPANIES TO EMULATE AND NOT • 7. ORGANIZE AN ICT PROCUREMENT AND PROJECT MANAGEMENT WATCH • 8. USE SOME MODELS FOR PUTTING CRIMINALS IN JAIL EX COMELEC • 9. CICT SHOULD HAVE A HELP DESK FOR ANTI GRAFT AND CORRUPTION CASES • 10. ICT LEADERS MUST PRACTICE CODE OF CONDUCT.

35. Principle Centered Power • Principle centered power is based on honor extended to you from others and by you to others. • It encourages ethical behavior because followers feel free to choose based on what they want most in the long term and not what they merely want now. • Principle centered power has its roots in Honor. • Honor is to have great respect. When we honor others, we respect them, we trust them, we believe in them. • Honor is uprightness, living with the highest moral principles adhering only to truth. • Honor is both a noun and a verb. The verb is the way we treat those we respect. The noun is the result of how we live.

36. Principle Centered Power • The leader who exercises power with honor will work from the inside out, starting with himself. As you increase your capacity to path find, team build, and garden, your power base will enlarge, your ability to serve will increase, and your potential for leading with honor will escalate.

37. Integrity • Integrity means we are committed to matching words, feelings, thoughts, and actions so that we live with congruence and without duplicity. We are authentic. • The greater our integrity, the greater our power. Trustworthiness comes from both character (what we are) and competence (what we can do and are likely to do).

38. Integrity • Fear of God brings contentment • “The fear of the Lord leads to life so that one may sleep satisfied” (Proverbs 19:23) • Fear of God bolsters our courage • “Behold the eye of the Lord is on those who fear Him and on those who hope for His loving kindness, to deliver their soul from death and to keep them alive in famine. (Psalm 33:18,19) • The will of God will never send you where the grace of God cannot keep you.

39. Integrity • Involves a true fear of God: Like Nehemiah,he had confidence. • “In the fear of the Lord is strong confidence…”(Proverbs: 19:23) • Any compromise with integrity brings guilt, which is incompatible with trusting.

40. Inspirations… • What the bible says: • About the business: “Do not have two differing weights in your bag-one heavy, one light. Do not have two differing measures in your house-one large, one small. You must have accurate weights and measures, so that you may live long in the land. (Deuteronomy 25:13-15)

41. Inspirations… • To be a successful person..you have to have integrity. Your word has to be everything you’ve got. You must have moral compass. That’s especially true if you are a leader because you’re exposed more. People will get a sense of you and if you are not true..they’l get a sense that you are sleazy. • - Charles Wang • Chairman, Computer Associates

42. Inspirations… Job refused to give up his integrity: :You are talking like a foolish woman. Shall we accept good from God and not trouble?.as long as I have life within me…my lips will not speak wickedness..I will not deny my integrity.. (Job 2:10,27:2-5)

43. Inspirations… • Herb Kellcher, CEO of Southwest Airlines: • ..makes everything a lot easier. If someone makes a proposal, we didn’t spend a lot of time on it if it’s contrary to our values. We just say, No we’re not going to do that. You might be able to make a lot of money but it doesn’t make any difference. It’s not what we stand for.

44. Inspirations… • Honesty and integrity are not easy traits to implement over the long term, but they’ve stood the test of time-over 5,000years if we want to take a true “strategic” (biblical) view of this issue. • Frances Hesselbein, former CEO of the Girl Scouts of America has noted that the longest lasting organizations are usually blessed with leaders who have a sense of ethics and personal integrity. • She was thinking of the Girl Scouts, Procter and Gamble and leaders in the Old and New Testaments.

45. Lessons from Nehemiah • 1.VISION • - Vision is the ability to see what God wants to accomplish through our lives. • 2. STRATEGY • - Vision with tasks, timing and techniques • 3. SPIRITUALITY • - “Not my will but thine be done.” • 4. COURAGE- comes from the security that our convictions are valid • 5. INTEGRITY- using one’s office to render service and not to “get” • 6. DISCERNMENT-spiritual sixth sense that comes from walking close to God and keeping your eyes open • 7. PERSEVERANCE-enduring all obstacles, hardships and never quitting The right path…

46. Four Lessons The lesson of humbling ourselves The lesson of prayer The lesson of seeking God’s face. I will do whatever is necessary to get right with Him. The lesson of turning from our wicked ways. Repentance is turning from sin to God. It is the only way to moral and spiritual renewal.

47. Inspirations – The 3 S! • Santification of our daily work. • Stewardship – Holding something in trust for another. • Servant Leadership – Deals with the realit of power in every life. Its legitimacy, the ethical restraints upon it and the beneficial results that can be attained through the appropriate use of power. • “..Whoever wishes to become great among you shall be your servant, and whoever wishes to be first among you shall be your slave, just as the Son of Man did not come to be served, but to serve and to give His life a ransom for many.” Matthew 20:25-28

48. “The only thing necessary for the triumph of evil isfor good men to do nothing.” - Edmund Burke Our Challenge… Concerted effort and commitment to eradicate graft and corruption between government and private sector! Concerted effort and commitment to eradicate graft and corruption between government and private sector!

49. Spirituality in a Morally Complex World • “As pilgrims, if we are to believe in Jesus’ promise, to fulfill his commission, and to do all this in this imperfect Church that is found in a messy world, we need a spirituality which takes the world as it is, in all its complexity, ambiguity, messiness, failure, and even sin and sinfulness and engages the world forthrightly with courage, hope, prudence, and love – the basic virtues to living faithfully in a morally complex world.” • - James T. Bretzke, SJ

50. Inspirations… • There is one responsibility which no man can evade, that responsibility is his personal influence. Man’s unconscious influence is the effect of his words and his actions on others. Every moment of life man is changing to a degree, the life of the modern world. • This comes from what a person really is, not what he/she pretends to be.”