Philippines customs and international airport officials have given their consent for the Office of the Ombudsman to examine air cargo handling operations to eradicate graft and corruption plaguing the system.

"We are thankful that the Manila International Airport Authority and the Bureau of Customs have opened up for scrutiny of their system, processes, personnel and records," said Ombudsman Merceditas Gutierrez.

The three-month study, funded by the European Commission, is aimed at identifying and assessing the internal and external factors that render the air cargo system vulnerable to corruption, reports The Manila Inquirer.

The probe will consist of an intensive analysis of the functions, the physical and architectural organization at Ninoy Aquino International Airport (NAIA) and the interaction of its service providers and clients.

The anti-graft body is then expected to use the findings of the study to compile measures to reform laws on the importation and exportation of goods to create a clean and honest air cargo operation at NAIA, Ms Gutierrez said.

The model could then be applied to other major airports, the report said to stamp out corruption. The probe is being financed by a PHP7 million (US$153,207) grant from the European Commission.

Mr. Gutierrez revealed that corruption in air cargo handling and services usually ranges from mis-declarations to under-valuations of goods being shipped into the country, resulting in the loss of millions of pesos in taxes.

Cezar Tirol III, resident Ombudsman of the NAIA, said that according to a recent global study by the International Logistics Quality Institute, 20 per cent of the total cost of cargo is spent on delivery while 25 per cent is lost due to "customs constraints," such as red tape and questionable deals and regulations.

"The government could be losing millions if there is really corruption in the system," added Customs Commissioner Napoleon Morales.