by LT ANTONIO F TRILLANES IV PN

FINDINGS

DESCRIPTIVE STATISTICS
The survey design was used since it is the most applicable for the quantitative-descriptive and quantitative-explanatory approaches of this research.

PROFILE OF THE RESPONDENTS
Of the 30 accredited dealers chosen as respondents, only 1 (3.3%) is a male while 29 (96.7%) are females (Table 1). This could be explained by the conjecture that since the PN is a male-dominated workplace, having females as dealers may help in facilitating business transactions.

Respondents (30 accredited dealers)	%
Female	96.7
Male	3.3

PERCEPTION OF CORRUPTION ON THE PHILIPPINE NAVY PROCUREMENT SYSTEM
The frequency distribution on the perception of corruption on the PN procurement system yielded an absolute affirmative answer that corruption does exist.

PERCEPTION OF THE LEVEL OF CORRUPTION ON THE PROCUREMENT SYSTEM OF THE MAJOR UNITS OF THE PN
HPHILFLT scored the lowest at 1.43 and would fall under the level of madalang ang corruption. This is due mainly to the integrity and moral resolve of its incumbent commander, RAdm Ruben G Domingo. Most of the respondents even qualified their answers in a way that if it weren't for the lagay at COA, HPHILFLT would have been corruption-free. HPN, HSG came in a distant second with a score of 2.30, followed by the HPMAR at 2.39. Both of these units fall under the level of di-gaano laganap ang corruption. The most corrupt PN units as far as the dealers were concerned were NASSCOM (2.87) and NLC (2.95), whose scores fall under the level of laganap ang corruption. According to them, the high levels of corruption of these units were caused by their commanders' blatant negative bureaucratic behavior.

Level of corruption in major Navy units (from most to least corrupt)	Score
Naval Logistic Center	2.89
Naval Sea Systems Command	2.87
Headquarters PN, Headquarters Support Group	2.39
Philippine Marines	2.39
Headquarters Philippine Fleet	1.43

FORMS OF CORRUPTION
The most common form of corruption being practiced is the lagay, which recorded a 100% frequency. This was followed by the "negotiated canvass" at 86.7% and "rigged bidding" at 76.7%. The least practiced is the "under delivery" at 36.7%.

Forms of corruption	%
Lagay (grease money)	100
Nego (negotiated canvass)	86.7
Bidding-biddingan (rigged bidding)	76.7
Under delivery	36.7

REASONS WHY CORRUPTION IS BEING RESORTED TO
The main reason why corruption is being resorted to by the dealer is, in order "to expedite the processing of documents" (96.7%). A significant number of respondents (63.33%) also said that another reason is "to be able to get a project or transaction". While only 36.7% of the respondents answered that utang na loob was the reason.

Reasons for corruption	%
Expedite the processing of documents	96.7
Get a project or transaction	63.3
Utang na loob (debt of gratitude)	36.7

WHO INITIATES CORRUPTION?
On the question of "who initiates corruption?", a significant nuber (83.3%) claimed that the corrupt practices were mutually agreed upon by both parties with neither one initiating directly. Instead, these under-the-table ransactions have become a routine activity that it had evolved to an SOP or standard operating procedure.

Who initiates corruption	%
Both parties (mutual agreement)	83.3

PERCEPTION OF CORRUPTION PER OFFICE
Surprisingly, the offices, which emerged as the top three from the frequency distribution, are civilian offices; the Commission on Audit (100%); the Accounting Office (66.7%); and the Supply Accountable Office (66.7%). While the finding for the COA is indisputable, a big factor in the findings for other two offices could be that the dealers are more willing to volunteer information against civilian employees than against military officers.

Among the military offices, the procurement office figured the highest in terms of corruption perception at 60%. It is followed by the logistics office and the Commander's office both at 56.7%. The Bids & Awards Committee (16.7%), Deputy Commander's office (20%) and Chief of Staff office (20%) are the three lowest in terms of corruption perception.

Perception of corruption per office	%
Commission on Audit	100
Accounting Office	66.7
Supply Accountable Office	66.7
Procurement Office	60
Logistics Office	56.7
Commander’s Office	56.7
Deputy Commander’s Office	20
Chief of Staff Office	20
Bids and Awards Committee	16.7

IS THERE A FIXED RATE OF "LAGAY" PER OFFICE
According to all 30 respondents, there is a fixed rate of lagay per office. However, this finding is deceiving because, while it is applicable to the COA where there is consistency in the fixed indicated by the respondents at 1-2% of the total amount of the purchase order, the entries for the other offices had a wide range of variance. This could be explained by the tendency of the dealers to get confused in assigning fixed values for every office. They further qualified that these are dependent on the total amount of the transaction. At any rate, the finding for the COA is very significant and indisputable at the same time.

IS IT PROFITABLE TO DEAL WITH THE PN?
28 out of 30 respondents (93.3%) felt that despite the existence of corruption, transacting business is still profitable. This could give us an idea of the high profit margins being padded by the dealers on the goods and services delivered to the end-users just to cover for the expenses incurred by the corrupt practices.

Profitability of dealing with Navy	%
Profitable	93.3
Not profitable	6.7

PERCEPTION ON THE ERADICATION OF CORRUPTION IN THE PN PROCUREMENT SYSTEM
Amazingly, a slight majority of the respondents (53.3%) were not in favor of the eradication of corruption, while 46.7% felt otherwise. One possible explanation for this is that the dealers who did not favor the eradication of corruption are apprehensive that a level playing field may not assure them of getting transactions and, thus, not favor them as mush as the status quo. Specifically, a level playing field would negate whatever "business" connections they have with those with discretionary powers.

Eradication of corruption	%
Not in favor	53.3
In favor	46.7

INFERENTIAL STATISTICS RELATIONSHIP BETWEEN CORRUPTION PROPENSITY AND BOUNDARY EXCHANGE
Chi-square statistic was used to establish if there is a relationship between boundary exchange and corruption propensity for every office involved in the procurement system. Of the 12 offices subjected to the research, only the Deputy Commander's office and Bids & Awards Committee obtained a significance level higher than the 0.05 threshold set to conclusively establish a relationship. Hence, for these two offices, there were not evidence to conclude that there is a relationship. But for each of the other offices, the relationship between boundary exchange and corruption propensity was found to be conclusive.