- The corrupt pratices of the spaniards continued during the american colonial era where political patronage became rule. Supporters and members of the political part in power were given plum positions in government even without the necessary qualifications. Thus in general, efficiency of public service went down. The Philippine National bank, for example during the period when Sergio Osmena Sr. was president of the Nacionalista party, issued loans to political supporters and padrinos without the proper collateral an the bank nearly went bankrupt.
- The padrino system is the main cause of graft and corruption. In every new administration, it is the common practice of the newly elected President of a country or a newly installed President and Chairman of the Board of a company or the newly appointed department head to employ his or her own confidants and team of advisers. The favored persons may be some relatives, friends. Classmates or associates. The grateful appointee naturally becomes a loyal follower of the appointing official and the willing conspirator in wrongdoings. The "padrino system" is embedded in many offices especially the government. Vacancies or jobs are created for the proteges. Promotions are no longer based on seniority or performance but on right connections.
It is the same as the "compadre system" whereby an enterprising subordinate will persuade his superior to be the godfather of his son to get promotion or salary increase. These corrupt practices often lead to the bloating of the bureaucracy such that a department secretary may have four undersecretaries and numberless assistant secretaries. In the guise of reorganization to streamline the bureaucracy, a new administration can fire or retire early, tens of thousands of civil servants and replace them with their own