A View of Philippine Government Corruption: The Harry Stonehill Scandal Revisited

Abstract

The corruption scandal involving American businessman Harry Stonehill in the 1960s showed how corruption permeated high government offices in the Philippines.  The scandal was the biggest controversy in terms of political and social impact up to that time, and it changed the political fortunes of political leaders like Diosdado Macapagal who lost his bid for a second term for the Philippine presidency in 1965.  The Stonehill affair would be later superseded by future corruption scandals in the latter decades such as those involving President Ferdinand Marcos, Gloria Macapagal-Arroyo and Rodrigo Duterte.  Corruption always involves two parties:  the one that provides the opportunity to do corrupt acts and the other who does the actual corruption.  In the case of Stonehill, his rise to prominence as a genius in Philippine business would not be possible without him providing bribes in exchange for favors and advantages.  It also made him feel untouchable as he felt “everyone has a price” and he could get away with anything.  On the other hand, officials who became corrupt also developed the same impunity knowing that they would not be held accountable for their acts.  They developed ways and means to hide their corruption and its fruits which is ill-gotten wealth.  This article examines corruption in the Philippines and the factors which led to its pervasiveness in Philippine society.  By revisiting the Stonehill scandal in the 1960s, it studies the modes developed by corrupt officials in hiding their wealth and how the Philippine legal system failed in deterring acts of corruption.  

Received:  20 July 2023

Reviewed:  25 July 2023

Accepted: 30 October 2023