Speech
of
His Excellency Fidel V. Ramos
President of the Philippines
During the 92nd anniversary of the Bureau of Customs

[Delivered at the Port Area, Manila, February 7, 1994]

Customs at the
crossroads

IN KEEPING with the spirit of the day, I would like first to commend all of you for your accomplishments in the year just passed.

Judging from your collection of P80.66 billion which exceeded the target by P3.11 billion, the Bureau of Customs indeed fared well in 1993.

Your year-end report says you have attained your objective to facilitate trade by reducing your “container dwell times” in both the Manila International Container Terminal and the port of Manila.

The infrastructure needed to fulfill your commitments in the blueprint for customs development toward the year 2000 is now almost fully in place, particularly as regards your computerization program.

Plugging revenue leakages

And your antismuggling campaign, with arrests well over the Pl-billion mark, cannot but speak well of the renewed fervor and efficacy of your units.

You have also carried out programs to plug revenue leakages and to dispose of confiscated goods more efficiently.

These include the close monitoring of goods declared at less than $500, a new and computerized centralized accounts receivable system, the implementation of Executive Order 90 concerning the collection of deficiency duties on imported motor vehicles, control measures in the transfer of shipments, the establishment of a valuation library, and significant reforms in warehousing operations.

The traveling public should also appreciate the marked reduction you achieved last year in clearing passengers at the Ninoy Aquino International Airport from two hours to 30 minutes per flight.

Of strategic importance to the growth of our foreign trade, you have pledged, by 2000, to clear and release all shipments arriving at the country’s ports within 48 hours of their arrival.

Sad to say, these accomplishments notwithstanding, the Bureau of Customs is still generally perceived as a center of graft and corruption. Critics of the Bureau even play down your overshooting of your collection targets by saying that the targets might have been set low in the first place.

“Flagship of corruption”

This perception was not helped any by the recent attention heaped rightly or wrongly on the Bureau by Senator Ernesto Maceda as a “flagship of corruption.” The political theatrics and rhetoric we can discount. The charge, however, is a serious one. I have been told that while indeed there is corruption in the Bureau, its level is no longer as much as it used to be.

This much I have to tell you: We should not stop until we get rid of the grafters and corrupt officials and employees in this Bureau. Since this negative image casts doubt also on the honest officials and employees among you, Bureau personnel themselves should do something about it—and soon.

What good is it to be proud that you have exceeded your collection by so many billions of pesos when you are also aware that substantial sums may have been lost by Government to the pockets of the unscrupulous? How can you earn the full respect of your countrymen, especially your coworkers in Government, if personnel receiving meager salaries are able to pursue lavish lifestyles?

This, I can not, and will not, condone. This is among the main reasons why I have been moved to create the Presidential Commission Against Graft and Corruption. Let me now warn you: Should there be anybody out there who would openly defy the law and our code of ethical behavior, I will not hesitate to initiate the investigation so that culprits can be put behind bars.

Removing opportunities for corruption

As far as anyone can remember, the Bureau of Customs has been known to offer many opportunities for corruption. I agree with Commissioner Guillermo Parayno Jr. that the key to minimizing, if not eliminating, corruption in the Bureau is to systematically do away with such opportunities.

Thus I am happy to note that your Customs chief has adopted the strategy to achieve the phased reduction of the level of personnel control over shipments and passengers, since this has proved to be the greatest temptation to commit a corrupt act.

You have my full support for the reduction of such level of personnel control from 100 percent at the start of my Administration to not more than 20 percent by 1998, and to just one percent to five percent by the year 2000.

Still, the basic issue here is that if we have personnel who are honest and decent, they should not succumb to whatever temptation may come their way to commit a corrupt act. The issue of honesty in government should be the crusade of the entire bureaucracy, starting with the highest officials.

I will continue to champion this crusade. This is the surest way that we can all uplift our country to the progress that it deserves.

Beyond the tremendous boost that increased revenue collection will give to our development, we have to face a basic truth that many seem to have forgotten. We do have honest taxpayers and honest revenue officials, and their combined efforts should serve to push our country forward.

So while we continuously adopt measures to improve efficiency in our revenue collection, let us also aim to increase the numbers of those honest taxpayers and honest revenue officials. Better still, let us show our people that the taxes they pay are well spent and go toward public—not personal—welfare. Then and only then can we be sure that all taxpayers will pay their taxes correctly and willingly.

This is why only last month, the Bureau of Internal Revenue launched a nationwide tax information campaign. I authorized the Bureau of Customs to ride on this information drive, and today I ask you to launch your own information and education campaign not only to maximize your collection but, more important, to inform the public of how you propose to do it and to account for where the money you collect goes—all of which must be done transparently. This would be the best way to rectify the negative image many people have of the Bureau.

Inadequate tax collection

Some key members of Congress, especially in the Senate, have been reluctant to pass our proposed tax measures because they think that the Government’s tax effort is inadequate. Indeed, we do not have much choice but to improve on our tax-collection efficiency because with a tax effort of only about 14 percent, we are not able to generate more revenues to support urgent programs we need for economic takeoff.

We must remember that the combination of improved revenue-collection efficiency and these proposed revenue measures could have been the better alternative to the PI .00 levy, which in turn triggered the oil price increases on January 28. In other words, had our revenue-generating agencies been doing their job more effectively, we could have avoided all the ongoing difficulties and controversies spawned by the levy.

Whatever the final action of Congress may be on our still pending revenue enhancement proposals and tax measures— and I hope that they will be passed soon—we just will have to increase our revenue collection because the requirements of our programs to ease the poverty of the majority of our population are rising formidably.

A moral imperative

Beyond enhancing the attainment of our material objectives, however, your success on the job is a moral imperative.

We cannot ask our people to make further sacrifices until we have made sure that we have done all we can to pay the costs of development principally from our own internally generated revenues and resources.

It is, again, this moral test that we must pass before the people can appreciate what we have done, and before the people will accept and support what yet needs to be done.

As your President, I can understand why some of our people would feel outraged at having to pay more for their gasoline and their fares, when they see or suspect that some officials are leading luxurious lifestyles far beyond their legitimate means.

I have dwelt on this before, but it bears repeating: as frontline public servants you in the Bureau of Customs are highly visible representatives of Government. The people see you, the people know you, and if you are dishonest, they will not be fooled.

And I can assure you that neither they nor I will be forgiving when conclusive proof of anyone’s wrongdoing is finally established.

But finally, my coworkers in Government, it is to your basic sense of integrity and responsible citizenship that I must appeal.

The tasks ahead of us are tremendous. If we are to achieve the goals of “Philippines 2000,” then each of us must make no less than a personal commitment to work hard-and work honestly—for the good of all.

As we have asked sacrifices of our people, this is the sacrifice we in Government will have to make ourselves. You shall have to excuse me if it appears that I had come here to take you all to task for the wrongdoings of a few. Nothing could be further from my intentions, and no one could be prouder than I am of your performance under the challenging conditions of the past 20 months.

Drawing the moral line

But if I have to speak to the many to be heard by the few who need to be warned by no less than their President, then we will have achieved something significant today.

We have drawn the moral line: Those who cannot follow can go—and we will make sure that they do.

Again, let me assure you of my faith and confidence in the integrity of the broad majority of the personnel of this much maligned Bureau who, despite the temptations and the risks swirling around them, have given their honest best to the noble cause of public service.

It is for them that we celebrate this anniversary; it is they who have earned our deepest thanks and congratulations.