June 3, 2026 l Business Mirror
The Financial Executives Institute of the Philippines (FINEX) has called on the Senate to demonstrate credibility by strictly adhering to its existing rules and established procedures at a time when public confidence in institutions remains fragile. This came after the 11-member minority bloc staged a walkout last week after heated debates regarding Sen. Rodante D. Marcoleta’s proposal to allow remote voting during sessions via video conferencing.
“Physical presence and direct participation in Senate proceedings remain important elements of accountability and transparency. The Senate plays a critical constitutional role that benefits from in-person debate, active engagement, and visible participation by its members,” the Finex statement emphasized.
Political uncertainty unsettles markets especially now when inflation is high and economic growth is weak. There is a concept in corporate governance that institutional investors refer to as political risk premium—the additional return that foreign capital requires to park itself in a market where the rules of the game are uncertain, oversight bodies are unreliable, and the enforcement of accountability depends on who is in power rather than the integrity of the system itself.
Our economy has carried this premium for most of its modern history. It shows up in equity discount rates, bond spreads, and in the quiet but consequential decisions made in boardrooms across global financial hubs about whether the Philippine market justifies the investment exposure. Credible governance is therefore a precondition of economic performance.
Since the new majority in the Senate assumed power on May 11, it has done two things that matter institutionally. First was to start the impeachment court proceedings forthwith, followed by the creation of a dedicated subcommittee to investigate decades of flood control spending—with a stated commitment to an inquiry free of protected interests.
To give the 13-member ruling bloc the benefit of the doubt, these twin moves are governance signals that carry implications beyond their immediate physical context. A legislative body that functions by holding hearings that produce findings and enforces accountability through proper constitutional channels is a positive governance signal for the country’s institutional rating.
An impartial Senate investigation into flood control spending that results in credible findings—regardless of which administration is implicated—could definitely send a message that the Philippine government’s self-correcting mechanisms are functioning. The impeachment trial adds a separate but related dimension: if the Senate manages the proceedings with procedural clarity, it reduces political uncertainty even if the outcome is contested.
However, another polarizing event happened when all members of the Senate majority were absent from the June 1 session—thus preventing a quorum and effectively shutting down the upper chamber’s operations on that date. Based on media reports, the immediate trigger for the no-show was the arrest and surrender of Sen. Jinggoy Estrada on plunder charges related to the flood control controversy.
Was that a boycott with a broader political message, or just in retaliation for the minority walkout? As the two incidents involved one bloc withholding participation that disrupted proceedings, observers have described these as an escalation of Senate brinkmanship rather than a purely procedural dispute.
Both the domestic and foreign business communities are watching the senators intently – not with hostility, but with the kind of patient attention that precedes an investment decision on whether the market has earned its next round of confidence. Businessmen are less concerned about which political faction wins but are more focused on whether institutions function predictably, transparently, and according to the rule of law.
Ultimately, investors’ trust is anchored on institutional stability and the quality of economic governance.
***The views expressed herein are his own and do not necessarily reflect the opinion of his office as well as FINEX. For comments, email nextgenmedia@gmail.com. Photo is from Pinterest.