PGMA Welcomes World Body's Report on Major RP Gains in Anti-Graft Drive

President Gloria Macapagal-Arroyo has welcomed the report that the Philippines improved its 2008 Millennium Challenge Account (MCA) by gaining a score above the median in 14 out of 17 indicators.

In 2007, it scored above the median in 11 out of 16 indicators.

"This shows that our gains versus corruption are being recognized," she pointed out. "I am calling on all government agencies to draw inspiration from this and persevere in the battle against corruption," the President added.

According to Philippine Ambassador to the United States Willy Gaa, the Board of Directors of the Millennium Challenge Corporation (MCC) met to select countries for MCA funding, with Malawi chosen by the MCC Board as Compact eligible. This was largely due to the strong focus that the MCC has been placing on poverty alleviation in Africa.

A country chosen as Compact eligible can begin the process of applying for a large-scale grant or compact, under this innovative foreign aid program to reduce poverty through economic growth. Since its inception in 2004, MCC has approved compacts totaling over $5.5 billion with 16 partner countries.

The Philippines is currently a Threshold Country, having been given an MCC grant of US$21 million. Ambassador Gaa pointed out that results of the program have been positive based on the MCC's Threshold Report on the Philippines in November 2007.

The MCC's Threshold Program is designed to assist countries that are not yet qualified for the compact grants, but have demonstrated a commitment to enact the reforms necessary to improve policy performance that may eventually help them qualify for compact assistance.

According to the MCC report, capacity building activities have been extensive, and that the Ombudsman is meeting conviction and mediation targets.

The positive report recognizes the major gains the Philippines has accomplished in fighting corruption. The Philippine Threshold program is focused on enhancing anticorruption efforts by strengthening the Office of the Ombudsman, improving revenue administration, and increasing enforcement capacity within the Department of Finance.

Ambassador Gaa said that the Philippines will continue working closely with the MCC to obtain compact status for the country.