2020/06/10 by Eric Vincent C. Batalla · 1 citation
Social Sciences · Business, Management and Accounting · Economics, Econometrics and Finance · #Corruption and Economic Development #International Arbitration and Investment Law #Global Financial Regulation and Crises
paper · pdf · doi:10.1108/pap-11-2019-0036
openalex publication_date 2020/06/10 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/25
Purpose The purpose of this article is to analyse the weaknesses of governance institutions in constraining grand corruption arising from the government procurement of large foreign-funded infrastructure projects in the Philippines. The weaknesses are revealed in the description and analysis of two major scandals, namely, the construction of the Bataan Nuclear Power Plant during the Marcos era and the National Broadband Network project of the Arroyo presidency. Design/methodology/approach This research employs a historical and comparative case approach to explore patterns of grand corruption and their resolution. Primary and secondary data sources including court decisions, congressional records, journal articles and newspaper reports are used to construct the narratives for each case. Findings Top-level executive agreements that do not require competitive public bidding provide an opportunity for grand corruption. Such agreements encourage the formation of corrupt rent-seeking relationships involving the selling firm, brokers, politicians and top-level government executives. Closure of cases of grand corruption is a serious problem that involves an incoherent and politically vulnerable prosecutorial and justice system. Originality/value This paper aims to contribute to research on grand corruption involving the executive branch in the Philippines, particularly in the procurement of large, foreign-funded government projects. It examines allegations of improprieties in government project contracting and the politics of resolving corruption scandals through the justice system.