WIDESPREAD CASES OF NEPOTISM AND FAVORITISM:

AN IMPEDIMENT TO OUR ECONOMIC PROGRESS

All countries in the world aspire for a government with great leadership. The need

for great leaders is something that is essential because they hold an exceptional power

to govern a country or a region comprising a great number of citizens which are

dependent on them. People depend on the government because it creates and provides

the needs of the society such as laws and policies, benefits, developmental projects,

infrastructures, our natural rights and many more. It somehow put the society in balance

by making laws (in particular) to educate the people about certain rules in order to

maintain tranquility. The government provides these things not because the resources

entirely comes from them but only because they are the ones who allocate and

distribute it since they are given the power to do so. The ability to allocate the resources

and funds associated with specific policies and rules are one of the powers of the

government that is why people continue to need it.

According to Yandow (2013), the government keeps everyone save. There is a

social contract signed between the people and the government ensuring that the

government will be the one protecting the people as long as the people will let them do

what is best for them such as making laws for example. However, not because people

let the government decides doesn’t mean the officials of the government should be

entitled of more powers and abuse it. But most of the time, this situation happens.

Various abuses coming from the government becomes and integral downside of

governance in most of the countries in the world. The most popular type of abuse in the
government is corruption. The ever-wicked deed which all perceives to be nearly an

incurable one.

The problems of corruption have been present in almost all countries around the

globe resulting it to being one of the major areas of study among scholars for many

decades now because of its economic and political impacts in a country. Defining

corruption, Ponce et al (2013) defines it as the commonly known misuse and abuse of

public office for private gain (as cited in UNDP, 1997). According to the Transparency

International (2018), it is a manipulation of institutions, policies and rules of procedures

in terms of allocation of resources and funds by political decisions makers who abuse

their post to sustain and maintain their power, status and wealth. It impacts countries in

many ways that in the worst scenarios, it costs lives.

Corruption is classified in many illicit behaviors such as bribery, extortion, tax

evasion, fraud, graft, embezzlement, falsification of records, ghost projects and payrolls,

nepotism and favoritism, passing of contracts, and many more. There are several forms

of corruption and people are somehow ignorant of it for they commonly known

corruption as only stealing of public funds, an activity done by numerous public officials.

But among these forms, nepotism and favoritism are the focus of this paper. This

paper, in hopes of analyzing more on the topics concerning corruption and its impact

specifically in the form of nepotism and favoritism, presents some analysis that would

hopefully be helpful to upcoming studies in the future regarding the said topic. The

existing researches and some existing cases of nepotism and favoritism in the

Philippines would be the basis of this analysis paper. Any ideas to be presented on this
paper is anchored prior to the topic presented in the existing related studies and cases

found.

In the Philippines, corruption is a phenomenon attributed to the colonial

experience. Corrupt practices are believed to be a part of learned behavior from the

colonizers since it has been colonized by foreign countries for centuries. But decades of

being free from any colonial rulers and after the establishment of the Republic of the

Philippines, corruption still remains an integral problem to the country’s progress. The

country is still experiencing total affliction where practically all government offices and

projects are prone to corruption. No doubt that high corruption levels severely affects

the efficiency of the country.

I. Nature and Concept of Nepotism

A. Nepotism and Favoritism in the Philippines

It is said that in order for a business, organization and institution to grow, it is

determined by the quality of personnel working inside it. It is somewhat related to the

fact that “country’s progress lies on its constituents”. It can never achieve its economic

prosperity alone without its citizens that perform different functions in a variety of

sectors necessary for the country to remain operative. The individuals who hold different

positions in the society together with the common citizens, both contribute to what the

nation and its economy has been reaching from the very start. Likewise, both in the

context of business and organizations, people or specifically called “personnel” is vital

for its progress that is why hiring and choosing the best and fitted personnel for a

certain job should be one of their main goal. Unfortunately, this is hiring qualified
employees or personnel fitted for the job does not happen all the time. There many

different factors why and nepotism and favoritism are one of the common reasons.

One of the forms of corruption that is evident in the Philippines are nepotism and

favoritism. Defining nepotism, it is the patronage bestowed or favoritism shown on the

basis of family relationship, as in business and politics (https://www.dictionary.com.

/browse/nepotism). According to Macabantog (2019), nepotism refers to a variety of

practices related to favoritism. It can simply mean hiring one’s own family members, or it

can mean hiring and improving unqualified or underqualified relatives simply based on

their familial relationship (as cited in https: www.Nepotism.html). Mohanti (2017)

discussed that the term nepotism comes from the Italian word nepotismo, based on the

Latin root nepos which mean nephew. Whereas, favoritism is defined as the act of

giving preferential treatment to someone. It is showing of more kindness and indulgence

to some person or persons than to others; an act of being unfairly partial (https://www.

dictionary .com./favoritism). These two terms, favoritism and nepotism is just the same

only that the latter is more specific in terms of familial relationship but the former also

exercise the same violation extending more than just relatives but also friends and other

associates. But among these two terms, favoritism broader and nepotism is just an even

narrower form of favoritism.

In the Philippine setting, nepotism is very prevalent. Why? Primarily because of

the traditional Filipino family values that are still practice up to this day. Filipinos are

known for having close and strong family ties. There is this thing called “Pagpapahalaga

sa Pamilya” (family-oriented) that most of the Filipinos value the most. Annie (2019)

stated that in the Philippine households, it is common to see not only a husband, a wife
and children living in a house. Usually, the grandparents, the aunt or uncle and some

cousins also live with them under the same roof. That is because of “close family ties”

practices as mentioned earlier that results to extended family structure. It is also

because Filipinos has a belief that families should be together and help each other out.

Because who would be there for them in times of needs? Unquestionably, it is their

family and relatives. Because of such values, the political and economic structures of

the country are affected by this. The value is so strong that Filipinos bring along their

families and relatives in different favorable conditions called nepotism and favoritism

found not only in the government offices but also to some organizations, businesses

and institutions.

There are lots of studies concerning nepotism and favoritism. In the Philippines,

only few existing studies regarding this matter emerge in recent years. However, few

individuals addressed their concerns regarding nepotism by making various articles and

citing available laws in the country. One of these individuals is Toni Umali. According to

Umali (2015), a general knowledge about the laws and rules governing nepotism is very

critical to all officials in the government, as Filipinos are cultured to take care of their

kamag-anak (relatives) first such in appointing or designating an officials or employees

in the government service. On the beginning part of his article, he mainly emphasized

the Section 59, Book V of the Administrative Code of 1987 that provided the limitations

on the rules of nepotism stating that: “All appointments in the national, provincial, city

and municipal governments or any branch or instrumentality thereof, including

government-owned or controlled corporations, made in favor of a relative of the

appointing or recommending authority or the chief of the bureau or office, or of the

persons exercising immediate supervision over him, are hereby prohibited.” The word

“relative” as member of the family who are related contained to third degree either of

consanguinity or of affinity is defined well in the section. This prohibition covers the

following relatives: spouse, siblings, children, parents, grandchildren, great-

grandchildren, grandparents, great-grandparents, uncles and aunts, niece and

nephews. This means that if one appointing authority is about to recruit, the

aforementioned relatives may not be qualified to whatever positions as it is against the

law on nepotism.

B. The dangers brought by nepotism

Digging deeper on nepotism and favoritism, as what has been prevalent

nowadays, because of this form of corruption, graduates of different degrees and even

those with Latin honors find it hard to find a stable job after graduation. Even if they

have enough capabilities fitted to the position, they are neglected to acquire the post

since the management or the appointing authority favors their relatives and friends who

at some point unqualified or merely possess the good qualities or experiences about the

work. This resulted to having low self-esteem and lacking confidence in applying for

work to some people because even if they have the said required abilities, they find it

hard to get employed.

Malik (2018) indicated that studies show that nepotism have resulted in bias in

decision-making process, unfair treatment and losses to company’s performance in the

long run. And that recent studies prove that it makes people feel alienated, demotivated

and lacking in confidence. It also hinders innovation and competition. Such

consequences can weaken an organization or business wherein their performance

could be affected by simply having incompetent personnel who does not undergone

proper process of hiring because of the its familial affiliation with the superiority.

Likewise, Bϋte (2011) tackled that working in an incompetent individual is a

difficult situation for an employee subject to preferential treatment. Inequality between

the benefits offered and contribution rate makes the personnel think that their workplace

is inside an unfair environment. This results to lack of confidence that would eventually

affects job satisfaction, organizational commitment and most especially, individual

performance. Employee’s level of job satisfaction has certain economic and social costs

in respect to themselves and the organization where they in.

Moreover, in this study of Bϋte, it was found out that nepotism and favoritism had

negatively affects job satisfaction and organization commitment, while both positively

affected intention to quit. It is inevitable that an unfair work environment, where no

organizational democracy has been established, heads to job dissatisfaction in workers

and discourages them. Such condition decreases their job involvement and loyalty to

their work. Then it would possibly result to absenteeism, tardiness and turnover among

employees affected. Employees will then tend to quit their job and look for a new one.

This situation could entirely affect the performance of the organization wherein they

could lose valuable and competitive employees who maintains the organizations good

composure all because of unequal treatment suffered by some of them.

Hence, this study has revealed the necessity of having independent and effective

management of human resource departments of the state banks and that practices

should be re-regulated to be fair and in favor of all employees and not only few of them.
 In the study conducted in Kenya by Ombanda (2018), it was revealed that

nepotism one’s job performance negatively. Thus, leaders of institutions should set

strategies that are objective in the process of recruitment and hiring to basically avoid

nepotism that affects job performance at all costs. The performance of employees in

Kenya is significant because it affects the gross domestic product and economic growth

of the country in terms of offered services and products to the citizens and other stake

holders. It is obvious that managers in organizations need to focus on aspects

concerning nepotism to establish fairness and equal opportunity for employment for all

candidates qualified to the criteria.

Furthermore, although the study did not gain 100 percent rate of response from

the respondents due to some reasons why others are unwilling to disclose information,

the study still comes up with some recommendations. Therefore, the study recommends

that in order to deal with nepotism, a law must be enacted or legislated to the labour

statues that stipulate issues that qualify nepotism as punishable by law. Organization

then should carry out an independent audit of existing workers to deal with the growing

intensity of nepotism.

Although some of the consequences of nepotism are already mentioned above,

however, a study on the topic by Safina (2014), listed a detailed consequences

favoritism and nepotism as follows:

 personnel’s demotivation;

 personnel’s apathy, loss of self-belief and capabilities;

 social alienation, the feeling of being useless in the organization;

  constant fear and negative anticipatory thinking (fear of demoting from the

position being occupied, rightsizing, etc.);

 firing of high-potential co-workers desperate to occupy the desired while it is

already occupied by a favorite;

 manpower policy inadequate solutions e.g. appointment to a position those

employees who do not fit in the moral and professional criteria;

 limitations or lack of competition in regard to promising projects or senior

positions among the co-workers;

 irresponsible behavior of the favorites and nepots in view of their certitude

 favorites’ uncontrolled behavior putting at hazard economic security of the

organization activities;

 damaging the foundations of the teamwork;

 generating weak (unhealthy) organizational culture characterized by intrigues

and mobbing’s flourishing, i.e. psychological and in some extreme cases

physical terrorizing by favorite in his sense of impunity;

 a favorite’s bad influence upon managerial decision making being apparent

in the fact that the favorite addressing from his own interests imposes upon

chief his own thoughts about who must either be employed, contracted,

closed a transaction or not, etc.

C. Why nepotism is acceptable at some point

According to Taşdemir, Çayırağası, Güven (2017), family members are given to

special positions in employment, promotion, or family business with the absence of

determining the qualities and competencies of the employees. And that people feel a bit
safer and more comfortable while working with related familiar name. This nepotist

tendencies are embraced when the management of certain family business is believed

to be able to sustain the vision of the new generation of family members more

effectively because of the prior recognition of the business (as cited in Ozler et al.

2007).

In this idea, it can conclude that the nepotist tendencies aim to maintain the

business structures by means of putting family members in position than hiring

outsiders because they are more familiar with the business vision.

Whereas, the study of Malik (2018) revealed that seven (7) interviewees

considered nepotism to be acceptable, claiming it was human tendencies for people to

choose their own family or friend as their trusted employee/staff because in their view,

they know them better than anyone. In addition, they have the thinking of not having the

need to worry that the person might betray them.

These respondents also argued that it is in their responsibility to safeguard that

their relatives have a stable job with a good salary. Even when they do not have enough

skills, the respondents believed they should still be supervised in their work.

II. Degrees of Nepotism

In the study conducted by Macabantog (2019), he discussed the degrees of

nepotism mainly in Texas. It was stated there that the Government of Texas Policy

regarding Nepotism states that “Texas Government Code, Chapter 573, forbids public

officials from assigning any individual to a position that is to be directly or indirectly

compensated from public funds or fees of office if the individual is directly related to the
public official by within the third degree by consanguinity or within the second degree by

affinity” (as cited in http://www.Policyinnepotism.html)

Below is the table of Degree of Nepotism shown by the code of Texas.

Nepotism: Civil Law Degrees of Relationship

1st Degree of 1st Degree of 2nd Degree of 2nd Degree of 3rd Degree of
Consanguinity Affinity Consanguinity Affinity Consanguinity

Father Spouse Grandson Brother-in-law Great

grandson
Mother Father-in-law Granddaughter Sister-in-law Great
granddaughter
Son Mother-in-law Grandfather Spouse’s Aunt
grandfather
Daughter Son-in-law Grandmother Spouse’s Uncle
grandmother
Daughter-in- Brother Spouse’s Niece
law grandson
Stepparent Sister Spouse’s Nephews
granddaughter
Stepchild Spouse of Great
employee’s grandmother
grandparent
Spouse of Great
employee’s grandfather
grandchild
III. Cases charged of Nepotism in the Philippines

One of the known cases of nepotism in the Philippines is the case of Mayor

Aljerico S. Barracoso. A news article written by Tetch Torres-Tupas (2013); MANILA,

Philippines – A mayor has been accused of nepotism for allegedly appointing a relative

in office.
 In a 12-page complaint filed before the Ombudsman Conchita Carpio-Morales,

Coron Palawan Acting Mayor Aljerico S. Barracoso was accused by resident Terencio

Obispado of violating the Administrative Code as well as anti-graft law prohibitions

against appointing relatives.

Based on the complaint, Barracoso appointed Romaliza Setubal Calica, the

common law wife of his brother, to a permanent position as administrative aide last

January.

Calica is the common law wife of the mayor’s brother, Vicente S. Barracoso Jr.

They have two children. Under the Administrative Code, appointments in the national,

provincial, city and municipal governments made in favor of a relative of the appointing

or recommending authority is prohibited.

In legal precedents, the Supreme Court has pointed out that the prohibition is

meant to “ensure and promote the constitutional mandate that appointments in the Civil

Service shall be made only according to merit and fitness and to provide within the

public service a progressive system of personnel administration, and to adopt measures

to promote morals.”

Obispado also charged the mayor for violation of the Anti- Graft and Corrupt

Practices Act which outlaws “giving any private party any unwarranted benefit,

advantage or preference in the discharge of his official administrative or judicial

functions through manifest partiality.”

 There are other cases of nepotism in the Philippines that are argued in court.

However, most of them were acquitted for having lack of evidences in the violation of

laws on nepotism. An example of this is the case of People of the Philippines vs. Diego

T. Lim (SB-07-CRM-0044).

“That on or about February 14, 2005 at the Municipality of Taft, Eastern Samar,

Philippines, and within the jurisdiction of this Honorable court, above-named accused, a

public officer, being the Municipal Mayor of the Municipality of Taft, Province of Samar,

and as such is the Appointing Authority in the said municipality, in such capacity and

committing the offense in relation to office, with deliberate intent, did then and there

willfully, unlawfully and feloniously appoint as Barangay Bookkeeper of the Municipality

of Taft, Eastern Samar, by way of Casual Appointment, Rosario Villareal-Tani ~

n as, wife

of Susiso Tani~
n as, a first degree cousin of the accused, hence a relative within the

fourth (4th) civil degree of affinity which appointment is in violation of the law on

Nepotism, penalized under Sec.49 of PD 805in relation to the 1987 Revised

Administrative Code and RA 7160.

CONTRARY TO LAW.”

The said accused was arraigned on August 29, 2007, where he pleaded “not

guilty” to the offense charged to him. Accused Lim was acquitted of the charged to him

upon the court found that appointment in question is evidently not for a career service

position thus, Section 79 of the Local Government Code cannot apply and was not

violated.

IV. Laws and Policies on Nepotism in the Philippines

 According to the Civil Service Commission (2016), elective and appointive

officials must observe civil service rules on appointments, particularly those that

disapprove nepotism.

Book V, Title I(A), Chapter 8, Section 59 of Executive Order No. 292, also known

as the Administrative Code of 1987, prohibits nepotic assignment or those made in

favor of a relative of the appointing authority, or of the chief of bureau or office, or of the

persons exercising immediate supervision over the appointee.

The term “relative” under the Code means to those that are related within the

third degree of consanguinity (relationship by blood) or affinity (relationship by marriage)

namely spouse (1st degree), children (1st degree), sibling (2nd degree), nephew and

niece (3rd degree), and uncle and aunt (3rd degree).

Under Section 79 of the Local Government Code of 1991, the prohibition covers

the appointing or recommending authority’s relatives within the fourth degree of

consanguinity or affinity, such as first cousin or first cousin-in-law (4th degree).

In fact, the CSC states that nepotism is a form of corruption or abuse of authority

that violates Article IX(B), Section 2(2) of the 1987 Philippine Constitution which states,

“Appointments in the civil service shall be made only according to merit and fitness to

be determined, as far as practicable, and, except to positions which are policy-

determining, primarily confidential, or highly technical, by competitive examination.”

The rule on nepotism covers all kinds of appointments whether original,

promotional, transfer and reemployment, regardless of status, including casuals and

contractuals.
 Exempted from this rule, however, are teachers, physicians, members of the

Armed Forces of the Philippines, scientific and technology personnel under R.A. 8439,

and primarily confidential positions such as Administrator (Provincial/City/Municipal),

Executive Assistant, Private Secretary, and Chauffeur/Driver.

Also exempted are those involved in the personal security of elective or

appointive officials; as well as the personal staff of elective officials, department heads,

other Cabinet officials whose tenure is at the pleasure of the President, and

chairpersons and members of commissions and boards with fixed terms of office.

According again to Umali (2015) in his article regarding nepotism, indicated that

the following are exempted on the rules of nepotism: a.) persons hired in a confidential

capacity; b.) teachers; c.) physicians; and d.) members of the AFP. However, the law

requires that if such appointment fall under the exceptions on the said law on nepotism,

a full report shall be submitted to the Civil Service Commission.

Another operative law on nepotism is the Customs Administrative Order (CAO)

No. 04-2017. The Port Calls Asia (2017) specified that the Philippine Bureau of

Customs (BOC) has delivered new rules regarding nepotism that prohibit the

appointment within the same agency of relatives up to the third degree of consanguinity

or affinity.

Forbidden under Customs Administrative Order (CAO) No. 04-2017 are all

appointments and assignments that favor a relative of the appointing or recommending

authority, or the chief of the bureau or office, or persons exercising immediate

supervision over the employee.

 The new order repeals AO No. 03-2014, or the Anti-Nepotism Rules on

Appointments and Designation in BOC, and CAO No. 02-2015, which clarified and

explained the anti-nepotism rules of the agency.

CAO No. 04-2017 comprises BOC’s policy on appointments and promotions of

personnel relevant to the prohibition on nepotism, as provided under Executive Order

No. 292 or the Administrative Code of 1987. It states that all applicants for employment

are required to include in their application a certification under oath stating that he or

she is “not a relative within the 3rd civil degree of consanguinity or affinity of the

appointing or recommending authority, of the chief of the bureau or office, or of the

person exercising immediate supervision over him.”

CAO No. 03-2014 covers prohibition of relatives up to the fourth civil degree of

consanguinity. The order issued 2014 also prohibited the hiring or recruitment of

applicants who were related to any BOC official, and not just the appointing or

supervising officers.

If a person is employed in a confidential capacity or position, CAO No. 04-2017

indicates that such appointment should be reported to the Civil Service Commission.

Aside from a person appointed in a confidential capacity or position, individuals who,

after being assigned to any position, contracts marriage with someone at BOC are also

exempted from the prohibition. True to Umali’s article about the person employed in a

confidential capacity, that person’s process of appointment should be reported to CSC.

Conclusion

Employees must be selected depending on their fitness to the position applying

for. The basis for selection should include the applicant’s capability and skills fitted on
the job, other job experience, educational degree and other achievements. It is what we

called objective selection wherein hiring individuals are unbiased and only based on the

appointing authority’s satisfaction on the employees’ application. However, such type of

selection does not always happen. Many factors are said to be a threat in the proper

appointment of individuals to positions or vacancies. And two of those are nepotism and

favoritism as what have been tackled above.

Although nepotism is prevalent in different parts of the Philippines, the

government and other agencies are doing their responsibilities in eradicating such form

of corruption by means of enacting laws that prohibits nepotism. However, even if there

are laws provided, not all individual will obey it and stop their practice of favoring the

relatives in terms of appointment and recruitment of jobs and opportunities within

different sectors, organizations and institutions in the country.

Although this paper tackles both the dangers and some good points of nepotism,

the dangers it brings to the economy are way more rampant and therefore conclude that

nepotism is negatively affecting the economy. Down to the different sectors,

organizations and institutions’ performance up to the applicants’ life beyond job and

opportunities are being affected by this form of corruption. Therefore, government

should tighten more their rules and policies on the prohibition of nepotism to help the

economy on the great level becomes more efficient like what everyone desires it to be.

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