Gone are the dark days when investors fear to take the risk in pouring in their money to Vigan and engage in business. I still remember when I was in grade school when people have to be in their homes before six o’clock in the evening or else get cross-fired by warring political factions. Young as I am then, I’ve heard people talk about local businessmen leaving Vigan and the country for another place due to the deterioration of peace and order and unfavorable business climate. How can I forget the literally dim Vigan due to inefficient power supply. The roads then were bumpy and rough due to scattered potholes. Despite Vigan’s charm, business investments then were few and limited. GONE ARE THOSE DAYS!
The Vigan of today is a growing business hub in Ilocandia. This can be attributed to its inclusion in the UNESCO World Heritage List of Sites and Monuments. As a World Heritage Site it became more attractive not only for tourists but also to investors. Being also able to restore its status as a City, Vigan has now become a major tourist destination. It continues to attract more people to visit the place, to taste its authentic food, and to do business.
As the policy-making body the City, the Vigan City Council enacted the VIGAN INVESTMENT INCENTIVES CODE to attract more investors. This Code provides incentives for businessmen in the form of tax breaks, holidays, and discounts. Thus, the establishment of more businesses in Vigan can generate more employment opportunities. I consider Investment Incentives Code as basic in any local government unit. This is an indicator whether or not a place is ready for business. Defining a policy to regulate business through the exercise of police and taxing powers is a common concern but enticing investors to provide the economic impetus spells the difference.
44 comments:
Lucio Tan may have doctored its Vigan sales. This has nothing to do with so-called investment incentives.
Get Real
Questions raised on Ilocos Sur’s adopted son
By Solita Collas-Monsod
Philippine Daily Inquirer
First Posted 03:25:00 07/12/2008
(Elpidio Que, whose letter to the Ilocos Sur Provincial Board protesting its resolution to adopt the tobacco tycoon Lucio Tan as a son of the province I quoted extensively last week, has sent me several email with further information volunteered by other people regarding Tan. I will forward all of them to the Philippine Center for Investigative Journalism. More than 15 years ago, the late Raul Locsin’s Business Day newspaper published an investigative report on so-called “ghost companies” that “bought” the cigarette and beverage products at extremely low prices, thus depriving the government of tax revenues, because tax collections were—and still are—based on the manufacturer’s registered prices.)
MANILA, Philippines — Elpidio Que supports his statement that Vigan City is being shortchanged of taxes with two documents: an internal sales volume report by a branch accountant of the Vigan sales office and noted by the “Market Territory Manager” (Que was the regional sales manager until 2005), and a certification from the Vigan City Treasurer’s Office of the sales volume reported by Wellform Trading Corp. (the company handling Vigan) for the same period of time. The documents show the peso value of the sales of beer and distilled water in 1999 as over P33 million, while the gross sales reported by Wellform was P2 million. The next year, the Vigan sales office reported sales of P39 million, while Wellform reported sales revenues of P2.1 million. The same pattern was followed for 2004 showing sales of almost P50 million, and taxes paid on only the P4 million reported by the trading company.
Que was obviously aware of, and participated in, what he claims are the successful efforts, allegedly under the instructions of one Anthony Dy, to underdeclare sales (by more than 90 percent). He says that in the course of his career with the Tan company, he also handled North Metro Manila, Southern and Bicol Region, and Central Luzon—under similar instructions.
If Que’s assertions are correct, underdeclaration seems to be company policy, with declared yearly sales revenue of no more than 10 percent of actual sales. He claims that Mayor Delfin Ting of Tuguegarao City once padlocked the Asia Brewery sales office in his city when he became aware of such practices.
Aside from the documentary, Que offers an indirect calculation of lost taxes as follows: “Consider the year 2005. It is public records (sic) that Philip Morris (PM) declared … a sales revenue of P29 billion. FTC [Fortune Tobacco Corp.] declared lower at P27 billion. FTC commands no less than 70 percent of the cigarette market while PM has about 25 percent, with the rest shared by … other small players.” He does a little arithmetic: If P29 billion represents a 25 percent market share, the total market must be P116 billion; and 70 percent of that would be about P81 billion. Thus, he estimates an underdeclaration of P54 billion (P81 billion minus P27 billion) for 2005. How much was the lost taxes on that?
The question that comes to mind, of course, is how come the Bureau of Internal Revenue cannot come to the same conclusions? And how come the BIR/government doesn’t grab Que, who seems to know where all the dead bodies are, and use him as their witness, or at least pick his brain and follow his leads?
The government in its case against FTC (which it lost) cited as evidence of tax evasion such data as: the trading corporations having the same addresses, their articles of incorporation notarized by the same notary public, having the same auditor (who was also the auditor of the FTC, etc., etc. as listed in my column two years ago). Judge Alex Ruiz of the Marikina Trial Court ruled in 2006 that there was no evidence that the Tan companies had anything to do with those trading companies, and that there was no evidence that the 2000 or so individual “buyers” from FTC—none of whom, according to the government, had a tax identification number or even an address, and who would have had to carry on their persons P4 million to P6 million in cash for their transactions with FTC—were fictitious.
And of course, the next question that comes to mind is: How can the province of Ilocos Sur think of adopting as a son someone who is accused of exploiting Ilocano tobacco farmers, treating Ilocano laborers with contempt, and cheating on taxes to the provincial government (not to mention the national government)? That is, of course, if Elpidio Que is to be believed.
Is Que credible? One can only say that he would have to be insane to take on someone like Tan unless he is sure and can fully support his allegations. And he would have to be angry enough at what he says is the injustice to himself and his co-“provincianos.”
I don’t know how the Provincial Board of Ilocos Sur will respond to Que’s letter. Of course, it can cite the fact that it is not the only entity that has adopted Tan: reportedly Tan has also been adopted by Dagupan City in Pangasinan as well as Bacolod City in Negros Occidental. I am also told that a Lucio Tan Day is celebrated in Guam every year. And Tan has a foundation that reportedly makes numerous charitable contributions to needy groups.
In any case, it has to be easy to be generous when one has saved an estimated minimum of P11 billion in taxes (at 1991 prices up to that time), as calculated by the government. Even a small percentage of that amount would be a huge donation that can buy a lot of respectability.
As a quarter-blooded Ilocano, I join Elpidio Que in his protest.
Suwitik does not pay proper taxes. Lucio Tan is untouchable under the corrupt Arroyo regime. This is a big challenge to the City Council. Tax revenues may finance Vigan's nutrition program and other social services. Mr. Ranches, its time for action! Kaya ba ninyo si Kapitan Lucio?
Do they have the yagballs? I doubt.
Dear Ross and Gabrielle,
Kayang kaya! There are many ways of skinning a cat. Kayo nga dyan e, puro kayo kantiaw, nagtatago pa sa kung ano anung panagalan. Ha ha ha. Just keep on reading my blog guys, i'll update you. Hope to see you someday. He he he!
By the way gabrielle, if you want yagballs, marami kami nun. Don't doubt.
Dear hollywoodside kid,
Thank you for the forwarded article. I was also able to read this but wasn't able to clip it. We'll look into this and see what the Vigan City Council can do. Thanks for visiting my blog.
Re: There are many ways of skinning a cat.
Mr. Ranches, just do it!
Dear Ross,
K. Sinabi mo e!
So, the long battle has begun. Show to the real world that you are the ‘sons’ and ‘daughters’ of Diego Silang. Please update us (Biganuenos) what courses of action taken against the imperial dragon.
Kayang kaya ba? Tell that to the Marines!
why do people judge, just judge without thinking? sana sila na lang maging pulitiko, lakas loob nila eh(kuno) ha ha ha
to all of you making all these "crap"comments:
are you not used with the philippine politics full of red tapes and here you are blaming a "small vice mayor" whose hands are tied but inspite of that, he's still trying to make your Heritage City a good place to live in. just remember, he get very limited control in your city. he's just doing his job fare and square.
correction pls: fair & square
Dear anonymous,
Thanks!
What crap comments? The truth really hurts. If you can’t stand the heat, please stay out the Liberal View blog. Nobody is blaming the Vice-Mayor. The main issue here is tax incentives. Tax manipulation is not part of Vigan's incentives codes. Cheating is cheating, big or small. Don’t blame the red tapes. What are the courses of action taken by the City Council to stop these illegal practices?
What crap comments? The truth really hurts. If you can’t stand the heat, please stay out the Liberal View blog. Nobody is blaming the Vice-Mayor. The main issue here is tax incentives. Tax manipulation is not part of Vigan's incentives code. Cheating is cheating, big or small. Don’t blame the red tapes. What are the courses of action taken by the City Council to stop these illegal practices?
What’s rate of conviction against tax evaders in the Philippines? Lucio Tan won the case filed by BIR for tax evasion. Justice system in South Korea is working fine or as you say fair and square.
SEOUL, South Korea (AP) -- Former Samsung Chairman Lee Kun-hee saw the suspension Wednesday of his prison sentence in a tax-evasion conviction, a move that confirmed South Koreans' view that tycoons are immune from jail.
The Seoul Central District Court convicted Lee for failing to pay tens of millions of dollars in taxes, and imposed a hefty fine of 110 billion won ($109 million) against the man who led the country's most powerful business conglomerate before he resigned in April over the allegations that included a range of fiscal crimes.
Still, the court said putting the 66-year-old Lee behind bars would be too harsh because he did not actively seek to evade the taxes.
''The extent of his crime is not serious enough to sentence him to prison,'' Judge Min Byung-hun said. He sentenced Lee to three years in prison and then suspended the sentence for five years, meaning Lee will not go to jail as long as he avoids further legal woes.
After the verdict, a relieved-appearing Lee said: ''I'm sorry for causing trouble to the people.''
Lee, one of the richest men in South Korea, is the latest in a series of South Korean tycoons whose lawyers deftly used their clients' ''contributions'' to the country's economic development to help them avoid jail despite guilty verdicts.
Last year, Hyundai Motor Co. Chairman Chung Mong-koo was sentenced to three years in prison for embezzlement, but a higher court suspended the sentence, saying he was too important for the nation's economy to go to jail.
The chairman of another big conglomerate who assaulted bar workers allegedly involved in a fight with his son -- Kim Seung-youn from Hanwha Group -- received 1 1/2 years in prison last year, but also saw that sentence suspended on appeal.
South Korean judges' penchant for such leniency toward heads of big conglomerates, known as chaebol, has often been dubbed in local media as the phenomenon of ''rich means not guilty.''
''The judiciary ... officially confirmed today that families of South Korea's chaebol chiefs are immune to the law,'' the Solidarity for Economic Reform, a Seoul-based civic group, said in a statement. ''The court declared on its own that it is no longer an organization that is seeking judicial justice.''
Prosecutors had sought a seven-year sentence and 350 billion won ($347 million) in fines against Lee. The office of special prosecutor Cho Joon-woong said it would appeal Wednesday's ruling.
But Cho had drawn strong criticism from civic groups in April when he indicted Lee for financial wrongdoing but cleared him of bribery allegations and did not arrest him, saying it would cause disruption to Samsung's corporate management and have ''negative repercussions on our economy.'' Lee himself resigned less than a week later.
The probe against Lee and Samsung was prompted by allegations by a former company lawyer that Samsung created a large slush fund to bribe prosecutors, officials and other influential figures.
Lee, who personified Samsung Group as its head for two decades while it grew into one of the country's most prominent global brands, was indicted in April on three charges -- tax evasion, breach of trust and securities law violations.
The court cleared Lee of the breach of trust charges, citing insufficient evidence. Those charges stemmed from allegations of dubious financial transactions to transfer corporate control to his son.
The court did find that Lee violated the securities exchange law by failing to report changes in ownership of his stock assets. But the judge said the violation was minor and did not weigh much in deciding the sentence.
It was Lee's second conviction. In a 1996 case, he was found guilty of having made payments to South Korean President Roh Tae-woo, who served from 1988 until 1993. About half a dozen other chiefs from chaebol, South Korea's family-run conglomerates, were also convicted.
Read and compare. Lack of evidence??? No way Jose’!
Lucio Tan, 69 others in P25.6-B tax evasion case acquitted
Manila Bulletin 10/07/2006
By ANNA LIZA T. VILLAS
After 13 years, the P25.6-billion tax evasion case against Chinese-Filipino business tycoon Lucio Tan and 69 co-accused was dismissed yesterday by the Metropolitan Trial Court (MTC) in Marikina City.
Judge Alex Ruiz of MTC Branch 75 said the court dismissed the nine criminal cases, Nos. 98-38181 to 98-38189, against Tan and the other 69 accused, including officials of Fortune Tobacco Corp. (FTC) for nine counts of tax evasion.
"The court also finds that the acts and or omissions upon which the aforementioned criminal information was based on and was anchored do not exist," Ruiz said.
The court also granted the two demurrers to evidence earlier filed by defense panel Atty. Estelito Mendoza and Atty. Roberto Abad, stating that the prosecution failed to prove the case on the tax evasion case against all the accused.
In a 34-page decision, the court acquitted Tan from the charges, saying, "There was no document relative to the FTC taxes for the years 1990, 1991 and 1992 that shows the name of accused Lucio Tan."
Citing National Internal Revenue Code, Section 252, the court said "in the case of associations, partnerships or corporations, the penalty shall be imposed on the partner, president, general manager, branch manager, treasurers, officer-in-charge, and employees responsible for the violation."
The court noted that it is "tasked to impose a sentence, in case of conviction, only against the persons expressly made criminally liable by statute… Nowhere in Section 252 is a member of the board of directors or its chairman, mentioned in the tax code as person liable on which a penalty shall be imposed in case of a corporate violation, and FTC is admittedly a corporation."
Tan, with some other accused FTC officials, attended the hearing yesterday.
The case stemmed from a case filed by the Bureau of Internal Revenue (BIR) in 1993 at the Department of Justice (DoJ) that the Tan- owned company FTC allegedly failed to pay the correct sum for its ad valorem, and income tax for the years 1990, 1991 and 1992 by employing "dummy" corporations and using some 2,000 fictitious or nonexistent individual buyers to evade the payment of correct taxes.
The nine corporations were Carlsburg and Sons, Crimson Croker Distributors, Dagupan Combined Commodities, First Union Trading Corporation, Landmark Sales and Marketing, Mt. Matutum Marketing Corporation, Omar Ali Distributors, Townsman Commercial, and Oriel and Company. Officers of these corporations were among the accused.
The court said "no record was produced to show that FTC, Lucio Tan and their co-accused own a single share in their dummies."
The dummy corporations have been incorporated and are registered with the Securities and Exchange Commission (SEC).
The prosecution also failed to prove that FTC evaded the payment of correct taxes by using the nine dummy corporations. "There is no evidence that dividends were declared or received by the alleged," the court said.
"The evidence of the prosecution does not show that any of the alleged corporations or the so-called "ghost" individuals gave any money or interest or anything of any kind to FTC and or its officers," the court said.
The court also stated that the BIR examiners who investigated the case made use of sales invoices and from there began "extrapolating" the amount of tax, saying, "the gross sales, income tax, ad valorem tax and VAT of FTC for said years were also extrapolated without any hard evidence."
The decision also said that the prosecution failed to show the correct computations paid by FTC which were prepared by teams of BIR examiners.
Earlier, the prosecution lawyers led by Edna Valenzuela and Susan Dacanay presented nine witnesses in court including BIR officials, namely former Commissioner Liwayway Vinzons Chato, Regional Division Officer Lorna Sun Tobias, and revenue officers Jose Pascoguin Jr., Marcelino Quito, Bonifacio Caringal, and Special Investigator
What types of investment do you encourage in Vigan city? Do they have anything to do with heritage conservation, especially those in the historic core zone.
We encourage tourism-related investments such as hotels, restaurants, souvenir shops,traditional crafts and industries convention centers, resorts, service providers, telecommunications, transport business, theme parks and the like.
Develeopment should be in accordance with the Vigan Master Plan and anchored on heritage conservation.
Tracing your kababayan, who must be "the-man-of-the hour" in Vigan, at Yahoo led us to your blog-site.
It makes us feel good to read the comments in your blog that even in as far a place as Vigan, people know the true character of Lucio Tan, the charlatan philantropist who is the Number One Salot sa Ating Bayan.
We are sending some articles about him into your blog to let the Ilocanos know more about the demon behind this "generous" philantropist Chinaman.
We are a group of from without and from within the group of companies of this Lucifer incarnate in our Inang Bayan who we brand "The Yellow Economic Lucifer in the Filipino Land." We watch the effect of his puppeteering of politicians, bureaucrats and court judges and justices in our land that he ravages without let-up.
We salute you for your initiative to nail this evil Chinaman to cross of justice.
Lucio Tan, the Cancer Maker in the Filipino Land, Heads Clean Air Drive?
Reaction to the Philippine Star January 2, 2008 full-page ad of Lucio Tan as bogus environmentalist.
Lucio Tan, the Yellow Economic Lucifer and Cancer and Cirrhosis Maker, Air and River Polluter in the Filipino Land, Heads Drive for Clean Air?
To let the world know that he is a man of honourable and noble purposes, not the Yellow Economic Lucifer he really is in the country that gave him refuge when he was an urchin, the China-born Number One Salot ng Bayan, Lucio Tan, the collector of honoris causa doctorate degrees, buying each at a cost of multi-million pesos provided advertised as a philanthropic school “donation,” is in desperate upswing of publicity stunt.
The on-going forfeiture case of PCGG against his 9 major tax-cheating and ill-gotten companies, with the backing of the Marcos heirs’ evidences and testimonies, to include the testimony of ex-PCGG Chief and former Senator Jovito Salonga for the government, and the announced coming out of ex-SolGen Frank Chavez to do the same, that the late strongman Ferdinand, his Dr. Frankenstein, has substantial shares in them, must be causing him sleepless nights to become desperate and panicky. His rotten image becomes more rotten because he is not only known now as the most rotten tax evader cum smuggler in the country, but also as an ingrate and covetous economic criminal who can even bite the hand of his master. He badly needs publicity cosmetics to mask his rotten image, thus the publication of his pictorial book portraying him a “good” husband and honest yellow Cinderella businessman, minus, of course, the realities in his life, like as the employee of Bataan Cigar and Cigarette robbing blind his uncle owner, the old Cheng Ka-Chiong, who took him in his hours of need; the buyer of the same factory when he was made rich by becoming a Marcos crony and had it burned for big insurance money; the smuggler of Ban-Lon shirts and socks and transistor radios when still starting his economic crookedness; and the sexual pervert for having unquenchable thirst for one-night-stands with under-aged girls he choppers off to his scattered love-nests as on-the-side dishes, on top of his unabashed maintenance of multiple mistresses and concubines as main dishes, the last, a Mongolian lass he bought for $200K who just gave him a child in addition to his countless legitimate and illegitimate children. Newspaper magazines, like “his” Philippine Star’s, weekly magazines, like Graphic and the once respectable Free Press, and financial magazines, like Business News, are his tools for his damage control. It is highly noticeable of these to paint this economic criminal as an honest from-rags-to-riches taipan, although for certain that these media concerns, including columnist Marichu Villanueva of “his” Star who doubled lately as a reporter in making a news story of him, omitting all his wickedness largely known in the country considering the abundance of articles about his evilness at Yahoo and Google.
The latest of this feat is his full-page ad in “his” Philippine Star, complete with pompous photo-op, aimed to project him a man of honorable and noble intentions, although the arrogant that he is, his pose compromised his presumptuous mind-set as the puppeteering yellow emperor of tax evasion, making the people puke. He wants the world to know that he and Mitsubishi Company spearhead the campaign for clean air? This Chinaman phoney philanthropist is again insulting the intelligence of the Filipinos! His multi-billion-per-annum-tax-evading Fortune Tobacco makes low quality cigarettes that gives cancer to smokers and pollutes air! His Tanduay Distillery and Asian Alcohol make low quality liquor that give cirrhosis to drinkers, dump wastes to pollute rivers and pens, killing fish that provide livelihood to many Filipinos in the process! He thinks his “clean air” is thunderous publicity stunt, needing full-page advertisement? The Filipinos have intelligence left to dissect his object!
“Lost opportunities in 20 years!” he yelled when SC upheld the sequestration lifting of some of his top tax-cheating firms (among them, his Allied Bank, the former General Bank, which he acquired by fraud for a mere P500K in connivance with Governor Lecaros of the Central Bank). The intrepid “un-Tan-ned” BIR Chief Liwayway Vinzons-Chato even discovered that in just two years of his yelled “lost opportunities in 20 years,” he defrauded the government P26 billion in taxes! And until now, if the BIR and SEC officials are not “tan-ned” to play blind, they could see hidden in plain sight that his “sin” companies still steal billions of taxes due for the Filipinos whom he is causing cancer and cirrhosis, and still wantonly violating the Anti-Dummy Law, by using still dummy distribution companies for his “sin” products, to defraud further the government on taxes and to circumvent labor laws to cheat and oppress his Filipino workers!
This China-born Number One Salot ng Bayan thrives in the corruptibility of our so-called “honorable” public servants, the politicians, officials of the BIR, BoC, and Malacanang, including judges and justices. Ahead of his P26 tax evasion economic crime to lodge in our judicial slumberland, lullabyed by trickles of his ill-gotten billions, just to cite two, are his indictments in early 1980’s for printing P8 billon worth of fake BIR cigarette stamps and his fraudulent acquisition of Century Park- Sheraton Hotel at the full expense of DBP, the people’s money, in cahoots with Don Perry. If these concerned public servants relish being parasitic to Lucifer Effect to sell their own Filipino kind, who would stop this Yellow Economic Lucifer from plundering the Filipino Land while oppressing its farmers and Filipino workers? Should they wait for the Filipino people to rise up to take the law into their own hands, and inflict racial violence on ethnic Chinese, including the mostly law-abiding ones? Such had happened in Jakarta and Kuala Lumpur before. God forbids that to happen!
OLIGARCHIC CRIMES GO UNPUNISHED: LUCIO TAN
efdargon posted on May 22, 2008 | views: 3,422 | Tags: Lucio Tan, oligarchy, tax evasion, cronyism, graft, the Yellow Economic Lucifer in the Filipino Land
by Erle Frayne Argonza
The politico-economic structure of Philippine reality never seems to change at all. It’s still the oligarchic system that lingers here, as it is anywhere in the planet. Oligarchs are simply in control of every strategic sector of life, both economic and political.
That’s why they are above the Law, that they can pay anything worth their pockets to meet their objectives, bribe their way to continuing hoarding and accumulation way beyond their daily needs. The Law adjusts to them, not them to the Law.
Take the case of the long-time Marcos crony Lucio Tan. Tan is almost everywhere in Philippine business life, name it and he’s there. The once state champion Philippine National Bank is in his control now, and so the former state champion Philippine Airlines. And his business concerns continue to expand, both here and overseas.
But one thing glaring about his behavior is his non-payment of taxes that date back to the 80s yet or maybe even earlier. The consummate tax evader, he is the exemplar in this regard here in Manila.
As of last year, estimates put his back tax arrears at P26 Billion. If all we know, this could be an underestimation. This could just be but the top of the iceberg, the real back taxes running probably in the hundreds of billions of pesos. We can’t say anymore. That is because documents can be doctored, and there are always ‘doctor of forgery’ everywhere including the state bureaucracy.
Perhaps we may have discovered, in the criminal behavior of oligarchs, a new universal law, the “law of the bending of the Law.” It’s like the pattern about the ‘bending of light’, this time we substitute Law for light.
Which means that Law is relative, or is of no value to oligarchs save that they serve oligarchic interests. This is true everywhere, and it won’t be long when even those colonies to be installed in other planets and the moon will face the same reality: the ‘bending of the Law’ to make oligarchs happy.
(What should be done to this Yellow Economic Lucifer? He should be strapped to rock 'n roast in an electric chair!)
GET REAL
Incredible logic
By Solita Collas-Monsod
Inquirer
First Posted 01:48am (Mla time) 10/14/2006
Published on Page A12 of the October 14, 2006 issue of the Philippine Daily Inquirer
IF GENERAL outrage met the decision of the Ombudsman, which held that no personnel of the Commission on Elections (Comelec) was criminally liable for the P1.3-billion contract that the Supreme Court had declared illegal and void, the reaction to the decision of Metropolitan Trial Court Judge Alex E. Ruiz, which acquitted Lucio Tan et al. in a P25-billion tax fraud case, can be characterized as muted. Why this is so (former internal revenue commissioner Liwayway Vinzons-Chato, who initiated the case way back in 1993, tells me that she was interviewed only by the ANC television channel -- no calls from radio), I will leave to others to analyze.
The Ruiz decision is extremely well-written -- its command of the English language would put some of the Supreme Court decisions to shame, as far as articulation and grammar are concerned, so much so that one wonders how come Ruiz is still a Metropolitan Trial Court judge and has not risen in the judicial ranks. But his reasoning and, therefore, his conclusions, are about the same quality as those which characterized the Ombudsman’s decision -- they stretch credulity to the breaking point.
Setting aside the legalese, the government claimed that Tan and his Fortune Tobacco Corporation had defrauded the government of P25 billion in taxes (including interest and penalties). How? By selling their cigarettes at ridiculously low “Manufacturers Registered Wholesale Price,” or MRWP. (When I wrote about this 13 years ago, I pointed out that although labor costs and cigarette retail prices had gone up, the MRWP hardly moved, which meant that Fortune Tobacco was allowing its profit per unit to decrease, while presumably the middlemen were reaping financial bonanzas.) And since by law the MRWP was the basis of Fortune Tobacco’s tax liabilities, the government’s tax take was made correspondingly low. The fraud came about because, the government (through then-internal revenue commissioner Chato) claimed, the middlemen -- nine “exclusive” marketing corporations and more than 2,000 individuals -- were used as dummies or were non-existent.
What proof did the government have to buttress this claim? Insofar as the nine corporations were concerned, the government produced evidence to the effect that: eight of the nine corporations were incorporated at around the same time; their articles of incorporation were notarized by the same notary public; seven out of nine corporations had the same auditor, who was also the external auditor of Fortune Tobacco; they held office at buildings owned by Tan; all sales invoices of these corporations were identically printed as to format and registered in Makati, Metro Manila despite the fact that their bases of operation were in the provinces; all corporations did not have visible, tangible assets -- this indicating that they were not going concerns and were not actually conducting business operations; neither did their stockholders show any visible assets consistent with conducting business involving millions of pesos; all corporations did not appear to have any personnel or workforce at their registered addresses; all corporations had their alphabetically arranged list of customers and their official receipts chronology showed that these customers also made their purchases in alphabetical order; and the corporations had interlocking directors/officers.
Insofar as the more than 2,000 persons/buyers were concerned, the bases of the government’s claim that they were fictitious are as follows: Not one of them is registered with the Bureau of Internal Revenue (BIR), or has a Tax Identification Number (TIN), or appears in telephone directories, or has middle initials; or has acknowledged receipt of goods, despite the volumes and values involved; and their addresses are not available. The Fortune Tobacco list just has general directions; each of them transacted business with Fortune Tobacco only once and never came back to reorder; plus the fact that the “barangay” [village] captains and/or municipal treasurers in the areas involved issued certifications that these persons were non-existent. The government documents also pointed out that if these buyers were first-timers or one-timers, the transactions between them and Fortune Tobacco would have had to be in cash, and they would have had to pick up the merchandise on their own. Which means that they had to carry on their persons an average of P4-6 million. Not only that: if they were the ones who picked up their orders, they would have used their own trucks or delivery equipment. So how come the Fortune Tobacco spent close to P110 million in the period under consideration (1992) for gas, oil and freight and delivery?
To the lay person, it would seem that all the above would be clear evidence that Tan’s Fortune Tobacco was indeed using dummies. The dictionary defines a dummy as a person or agency secretly in the service of another -- to cheat the government of its rightful sales (not to mention income) taxes.
But Judge Ruiz, in effect, pooh-poohed the government claims. With respect to the corporations, he pointed out that there was no evidence that Tan and cohorts had even a single share in any of the nine corporations -- so how could there be a connection between him and them? To him, the link had to be overt, which essentially means that he does not accept the concept of a dummy. Duh? He also swept away the evidence that the more than 2,000 individuals were fictitious by the simple expedient of labeling them “hearsay.” Hello?
They say bad news come in threes. Let us hope that the maxim does not apply to bad judicial decisions as well.
YOU SEE HOW THIS SUPER TAX CHEAT INTSIK IS? SUPER-HYPOCRIT, ISN'T HE? SUPER-INSULTO SA MGA PILIPINO PERO WALA NI ISANG NAGSALITANG PULITIKO TUNGKOL ITO. PURO TUMATANGGAP KAY BEHO LUCIO? LAHAT AY WALANG PUEDENG LEADER DAHIL LAHAT AY FOLLOWER NI MAGNANAKAW NA LUCIO?
Hope maker sees no hope for country, blames politics.
(From Philippine Daily Inquirer, August 28, 2002)
Byline: Clarissa Batino
NO GROWTH for the next 100 years. A foreign exchange rate of P120 to the dollar in the next four to six years. And no real national leader for at least the next three generations.
Billionaire tycoon Lucio Tan read his own version of the country's fortune cookie on Monday night, and it foretold nothing but bad news.
"I think this country would continue to sleep in the next 100 years. We cannot grow because of politics, politics and politics. Our leader is not yet produced. Maybe in the next century, maybe three generations more," said Tan in impromptu remarks delivered in halting English.
Tan, the man who rose from poverty to build a billion-dollar fortune selling tobacco, including Hope cigarettes, and liquor and eventually expanding to banking and airline services, is the last person one would expect to have given up hope in the country that gave him so many opportunities.
Yet disillusionment appears to have caught up with the Chinese-Filipino taipan, who advised an audience of bankers and reporters "not to be too optimistic" on the Philippines.
The taipan, whose disposition with the media had improved immensely in the last couple of months, even challenged anybody in the crowd to contact him "in heaven" by 2102, or a hundred years from now, to collect on the bet-in case, that is, his prophecies were wrong.
"For me, I don't feel optimistic until we have discipline and we believe in ourselves," Tan said.
But this is not the case with Filipinos who seem to have pursued wrong priorities, Tan added.
"In China, everybody has to learn English. In the Philippines, we reversed English. Education is popular but very low standard. No wonder the Philippine economy is bankrupt," Tan said.
Simple 'magbobote'
Tan started his tobacco business in 1966, a year after the late dictator Ferdinand Marcos was elected as president.
Born in China's Fujian province, Tan migrated to the Philippines as a boy and worked his way through college. Former First Lady Imelda Marcos once referred to him as a simple "magbobote" before he met Ferdinand, who was then a congressman. Marcos changed the life and fortune of the struggling Chinese migrant.
When Marcos became president, Lucio's tobacco business was accorded much-favored treatment. From tobacco, Tan expanded into liquor and brewery, bought Allied Bank, Philippine National Bank, Philippine Airlines, and engaged in diverse businesses in the Philippines, Hong Kong and China.
At Allied Bank's "media thanksgiving" event at the Century Park Sheraton on Monday, Tan reminded the audience that when he projected that the peso would fall to P50 so many years ago, nobody believed him. "Look how much the peso is now. So I say it could go to P120 in the next two, four, or six years," he added.
He said politics was making Filipinos poorer. That the population was growing at a faster rate than the economy did not help.
Tan also took the opportunity to take a swipe against the government's tax policies.
"The taxpayer is skin and bones and yet we keep on milking. Talagang no more money but yet we keep on squeezing," said the taipan whose flagship company Fortune Tobacco Corp. was accused by the Bureau of Internal Revenue during the Ramos administration of having evaded about P25 billion in taxes.
Unlike China that just keeps on developing, Tan said the Philippines was just deteriorating. "In China, every year there is change. In Manila, in 50 years there is no growth, just squatters growing," he said.
According to Tan, the Philippines will continue to decay unless Filipinos believe that they could change and they could improve things.
"If time is infinity, nothing is impossible. How soon do we put a base in Seattle or in Denver, Colorado. Why not? The Americans keep on putting base in Subic, in Clark, in Zamboanga. Why not we put our base in America?" Tan asked.
He said the Japanese believed they could defeat the Americans and so bombed Pearl Harbor.
"We have to wake up. Or we would be like sleeping lions in the next 100 years," Tan said.
YOU SEE HOW THIS SUPER TAX CHEAT INTSIK IS? SUPER-HYPOCRIT, ISN'T HE? SUPER-INSULTO SA MGA PILIPINO PERO WALA NI ISANG NAGSALITANG PULITIKO TUNGKOL ITO. PURO TUMATANGGAP KAY BEHO LUCIO? LAHAT AY WALANG PUEDENG LEADER DAHIL LAHAT AY FOLLOWER NI MAGNANAKAW NA LUCIO?
Hope maker sees no hope for country, blames politics.
(From Philippine Daily Inquirer, August 28, 2002)
Byline: Clarissa Batino
NO GROWTH for the next 100 years. A foreign exchange rate of P120 to the dollar in the next four to six years. And no real national leader for at least the next three generations.
Billionaire tycoon Lucio Tan read his own version of the country's fortune cookie on Monday night, and it foretold nothing but bad news.
"I think this country would continue to sleep in the next 100 years. We cannot grow because of politics, politics and politics. Our leader is not yet produced. Maybe in the next century, maybe three generations more," said Tan in impromptu remarks delivered in halting English.
Tan, the man who rose from poverty to build a billion-dollar fortune selling tobacco, including Hope cigarettes, and liquor and eventually expanding to banking and airline services, is the last person one would expect to have given up hope in the country that gave him so many opportunities.
Yet disillusionment appears to have caught up with the Chinese-Filipino taipan, who advised an audience of bankers and reporters "not to be too optimistic" on the Philippines.
The taipan, whose disposition with the media had improved immensely in the last couple of months, even challenged anybody in the crowd to contact him "in heaven" by 2102, or a hundred years from now, to collect on the bet-in case, that is, his prophecies were wrong.
"For me, I don't feel optimistic until we have discipline and we believe in ourselves," Tan said.
But this is not the case with Filipinos who seem to have pursued wrong priorities, Tan added.
"In China, everybody has to learn English. In the Philippines, we reversed English. Education is popular but very low standard. No wonder the Philippine economy is bankrupt," Tan said.
Simple 'magbobote'
Tan started his tobacco business in 1966, a year after the late dictator Ferdinand Marcos was elected as president.
Born in China's Fujian province, Tan migrated to the Philippines as a boy and worked his way through college. Former First Lady Imelda Marcos once referred to him as a simple "magbobote" before he met Ferdinand, who was then a congressman. Marcos changed the life and fortune of the struggling Chinese migrant.
When Marcos became president, Lucio's tobacco business was accorded much-favored treatment. From tobacco, Tan expanded into liquor and brewery, bought Allied Bank, Philippine National Bank, Philippine Airlines, and engaged in diverse businesses in the Philippines, Hong Kong and China.
At Allied Bank's "media thanksgiving" event at the Century Park Sheraton on Monday, Tan reminded the audience that when he projected that the peso would fall to P50 so many years ago, nobody believed him. "Look how much the peso is now. So I say it could go to P120 in the next two, four, or six years," he added.
He said politics was making Filipinos poorer. That the population was growing at a faster rate than the economy did not help.
Tan also took the opportunity to take a swipe against the government's tax policies.
"The taxpayer is skin and bones and yet we keep on milking. Talagang no more money but yet we keep on squeezing," said the taipan whose flagship company Fortune Tobacco Corp. was accused by the Bureau of Internal Revenue during the Ramos administration of having evaded about P25 billion in taxes.
Unlike China that just keeps on developing, Tan said the Philippines was just deteriorating. "In China, every year there is change. In Manila, in 50 years there is no growth, just squatters growing," he said.
According to Tan, the Philippines will continue to decay unless Filipinos believe that they could change and they could improve things.
"If time is infinity, nothing is impossible. How soon do we put a base in Seattle or in Denver, Colorado. Why not? The Americans keep on putting base in Subic, in Clark, in Zamboanga. Why not we put our base in America?" Tan asked.
He said the Japanese believed they could defeat the Americans and so bombed Pearl Harbor.
"We have to wake up. Or we would be like sleeping lions in the next 100 years," Tan said.
The question is if your end has the backbone to go against the will of Chavit and Eric in nailing down this super crook,super tax cheat intsik.Both are kitang-kita na at the mercy of this fake philantropist,non-pilipino speaking taipan's shower of ill-gotten money which he is robbing from the Pinoy race,including the Marcoses whom he coveted ownership of their entrusted large business shares.We pray you not to waiver in your duty as elected leaders of Ilocandia's oldest city.Even here in Ilocos Norte,takaw bwis met dayta nga intsik.The dummy company for his beer is also cheating big taxes due for the municipality of San Nicolas,like in your city of Vigan.We pray to God to give you the will to cause a wildfire for the unveiling of this Sino tax evader's endless kababuyan. We wish you luck in your crusade.MABUHAY KA!
Yellow Economic Lucifer on the Rampage in the Filipino Land
centurioparko posted 1 day ago | views: 102 | Tags: Philippines October 30, 2006
Yellow Economic Lucifer on the Rampage
(Unsolicited “addendum” to Newsbreak October 9, 2006 Issue re Deadly Industry article)
Concerned government officials and politicians are made blind by Lucifer Effect. Company financial statements are public records at the BIR and SEC. One can readily check on these records that Lucio Tan, the China-born economic Lucifer of the Philippines, with the administrative case of his P26 billion tax evasion case crawling at a snail pace in the courts, is still cheating more than a hundred billion of taxes year after year. In 2005, to cite a case, Philip Morris had sales revenues of P28.9 billion. Tan’s Fortune Tobacco had a lower at P26.5 billion despite his command of no less than 70% of the cigarette market. Considering the “sin” tax slapped on tobacco products, which is about half of their selling price, and considering Philip Morris, sales revenue as benchmark, though it might also have been shaved to a certain extent, many billions of taxes had been cheated by him in that year through his cigarette company alone. Blinds are officials in almost every corner of the Philippine government to keep this Yellow Economic Lucifer go on with his plunder.
It is noteworthy that in today’s money, the P26 billion in Tan’s tax evasion case is now worth at least P80 billion already. It is noteworthy also that 15 years ago, the VP for Sales of Fortune Tobacco, a shareholder and a confidant of Lucio, often rejoiced to his trusted people that their monthly sales revenue ran at about P9.5 billion, translating into a yearly P114 billion in those period. Cigarette prices have doubled since then.
In 2003, Tan did not buy tobacco produce of the north. His tobacco people merely relayed to the traders high inventory on hand as the reason. No concerned government official, especially the politicians in the tobacco producing provinces and NTA officials, ever voiced disapproval of this arbitrary move to protect the multitude of affected farmers and their dependents, including its adverse impact on the economy. Their muteness suggested them all to be in Tan’s payroll. In reality with said tobacco embargo, he brought in tobaccos from China to please its rulers as a “patriotic” hoa-chiao. He needed to so that when reckoning time catches on him, China would welcome him as his sanctuary. Until now, he still gets tobacco from his native land at the expense of the land that adopted him. The next question that matters gravely is if these tobaccos are duly paid with customs duties. Knowing him to have started his plundering career by smuggling varied things before he was able to ingratiate himself into the late dictator’s portfolio of cronies, the answer should be a big no. Ex-BoC Chief Salvador Mison, who is now among his ex-military general scarecrows, should know.
Trickles of Tan’s tax cheated billions are used to control media concerns. Multi-million ad placements are given to those that toe his line, not to give him bad press lest they would lose millions of revenues. Broadcast commentators and talk show hosts and newspaper and magazine columnists are in his generous payroll for the same reason, like the corrupt politicians, judges, justices and other government officials concerned in his enterprise of economic plunder in his pocket. Huge bonuses are given them when “service” done was for a great concern of this Yellow Economic Lucifer. A recent case was the dismissal of his criminal liability regarding his P26 billion tax evasion case by Marikia MTC Judge Alex Ruiz. Ms. Solita Monsod, the only journalist, economist and public figure who appears a true nationalist, aptly commented the decision in her PDI Get Real column of October 14, 2006 as “incredible logic.” It suggested Ruiz a rotten judge to make Judge Roy Bean of the Wild West a man of honour if compared.
Ruiz’ dismissal of Tan et al’s criminal liability in his P26 billion tax case is an immortal joke. But at a price of many millions to save thisYellow Economic Lucifer from going to a barred hell, the corrupt judge could commit professional suicide. Never in his life time could he have gained such bounty with countless zeros if he had not played fool for this Yellow Economic Lucifer. He even “agreed” with Tan and Estelito Mendoza that the 8 dummy marketing companies in the tax case were not dummies because the incorporators and officers of which were Tan’s ex-employees. He did not check the ITRs of these persons if the companies with their names put in as incorporators and officers were declared therein for their earnings. If he did so, he would have found out that Tan and Mendoza had committed perjury. It would have revealed that most of these dummy officers were under the employ of Tan’s companies, in his legitimate companies; in the dummy companies that replaced the court cased dummy companies; or in the dummy companies of his other “sin” companies. On this matter, the “honourable” public servants in the Cabinet of Malacanang, in both houses of Congress and onther politicians never wagged their tongue, to give a howl of protest, or even a shout of praise if they thought the decision to be correct. Guilt and duty to Lucifer Effect must have made their tongue roasted.
It is clear that Lucio Tan has grown into a puppeteering economic monster, monster who made his creator Ferdinand a Dr. Frankeinstein. This Chinaman is worst economic plunderer in making the public servants his servants. He is now on a spree of buying honoris causa PhDs at a cost of P20 million each as “donation” to the bestowing universities provided advertised as ab “act of philanthropy.” Anybody can smell it as a desperate perfumery to cover his stinking filth.
The Filipino race is in yellow economic peril for many years more to come. All politicians, public officials and media concerns seem all “tan-ned,” puppeteered to deprive justice to their own blood, the Filipino blood, just like Jose Bunag, the Tan-man taxman, for detaching himself from Tan’s P26 billion tax rap, obviously to help rogue Ruiz do his “tan-ned” duty, compelling state witness Danilo Lihaylihay to sue him for dereliction of duty
Manila Bulletin
October 17, 2007
Lucio Tan offered P500-M settlement, says Salonga
Edmer F. Panesa
Former Senate President Jovito Salonga yesterday told the Sandiganbayan Fifth Division that taipan Lucio Tan had offered P500 million to the government by way of settlement in 1986, but the offer was turned down by then President Corazon C. Aquino.
Testifying for the government in the latter’s ill-gotten wealth case against Tan and several others, Salonga said the offer was contained in a 10-page written declaration prepared by Tan in which the businessman also made “full disclosures” of his relations with the family of the late President Ferdinand E. Marcos.
Salonga likewise testified on the factual circumstances surrounding the affidavit of former Security Bank president and Marcos “financial executor” Rolando Gapud, who claimed Tan “belongs to the group that could get presidential decrees and letters of instruction from Mr. Marcos for their joint benefit.”
Presidential Commission on Good Government (PCGG) counsel Catalino Generillo Jr., who was assisted by Solicitor Mauricia Dinopol, presented Salonga as witness in lieu of Ilocos Norte Rep. Ferdinand “Bongbong” Marcos Jr.
Bongbong had asked that he be excused from going back to the witness stand until the original copies of the documents that would prove his father owned 60 percent of the nine companies currently controlled by Tan are turned over to him by the United States Customs Service next month.
Generillo made Salonga to confirm his statements found in the book entitled, “Presidential Plunder: The Quest for the Marcos Ill-Gotten Wealth,” that the former Senate chief wrote in 2000.
The book, published by the University of the Philippines’ Center for Leadership, Citizenship, and Democracy, and Regina Publishing Co., was an account of Salonga of the continuing saga of the PCGG’s efforts to recover the alleged ill-gotten wealth of the Marcoses and their cronies.
The 87-year-old Salonga served as the first chairman of PCGG.
In his book, Salonga said that on April 29, 1986, Tan “came to the house to give me a partial and preliminary draft of the fair and full disclosure of his relations with the Marcoses, which I had required him to submit, plus the restitution of the money he should now give back to the government.”
“I remember telling him, in the presence of his lawyer, I would not tolerate any attempt to influence, in any way or manner, any member of our commission. I promised to study his draft and verify its contents,” he added.
He said Tan made another written disclosure in the early morning of May 10, 1986 and because of his impending trip then, he said, he asked his fellow commissioners to go over the disclosures to find out whether they may be considered fair and full.
Sometime on Oct. 28 of the same year, Salonga said Tan went to the PCGG office in Pasig City and offered P500 million by way of settlement, on an installment basis of P100 million every year.
Salonga said he thought the offer, which was way below what had been recommended by then PCGG Commissioner Ramon Diaz, would probably be rejected by Malacañang.
Nevertheless, Salonga said he told Tan and his lawyer that he would transmit the offer to President Aquino.
“My guess was correct. It was turned down,” Salonga said in his book.
At this juncture, Tan’s lawyer Estelito Mendoza pointed out that the testimony and documents on the supposed compromise offer of Tan cannot be used as evidence against the businessman.
“Under the rule on evidence in civil cases, the offer of compromise is not admissible. It is not an admission of liability,” Mendoza, who served as Justice minister during the Marcos administration, said.
The court merely noted the manifestation of Mendoza.
When asked to confirm the statements in his book pertaining to Tan’s compromise offer, Salonga said: “I confirm that it was rejected, turned down by the President and may I add it (was) rejected in the presence of (then) Executive Secretary Joker Arroyo.”
He said the rejection was made during a meeting held in President Aquino’s office in Malacañang. Tan was also at the meeting, he added.
At the same time, Salonga told the court he was the one who prepared the controversial affidavit Gapud executed in Hong Kong in 1987.
Mendoza and some other defense lawyers objected to Salonga’s testimony on the Gapud affidavit for being “hearsay and inadmissible.”
They pointed out that Gapud was never presented in court to verify the contents of the affidavit.
Despite vigorous objections of the defense lawyers, the court allowed Salonga to testify on the Gapud affidavit because of the fact that he was able to interview him before he executed the document.
The court also noted the fact that it was Salonga who typed the affidavit and signed as witness.
Nevertheless, the court warned it will consider the affidavit as hearsay if the affiant will not testify later on.
Salonga described the Gapud affidavit as “the most important sworn statement needed in the prosecution of the criminal cases against the Marcoses.”
It will be recalled that Gapud was also mentioned in the testimony of Bongbong that during his meeting with Tan in 1995 — the first and last since the 1986 People Power revolution that toppled the Marcos regime — the businessman was so angry at the former Security Bank president for tagging him as a Marcos crony.
Due to time constraint, Salonga was not able to finish his testimony yesterday.
It was not certain yet when he will resume his testimony because government lawyers said they will just inform back the court when they will call him
Who do you believe, Jovy or the Yellow Lucifer?
Manila Bulletin
June 5, 2008
New witness testifies in Sandigan trial of taipan Lucio Tan wealth case
Edmer F. Panesa
Despite the absence of a vital state witness, the Fifth Division of the Sandiganbayan resumed yesterday the trial of the ill-gotten wealth case against taipan Lucio Tan with the government presenting a document that paved the way for Tan to acquire Allied Bank with the help of the late President Ferdinand Marcos.
Presidential Commission on Good Government (PCGG) special counsel Catalino Generillo and Solicitor Mauricia Dinopol called to the witness stand PCGG chief librarian Lourdes Magno in lieu of former First Lady Imelda R. Marcos.
Mrs. Marcos failed to show up at yesterday’s proceedings despite being subpoenaed by the anti-graft court last week. Her lawyer Robert Sison said she was not feeling well and that she will also not be able to attend the hearing scheduled today.
Sison, however, told the three-member division headed by Associate Justice Ma. Cristina Cortez Estrada that Mrs. Marcos has expressed her willingness to testify and she will be available for the hearings on June 10 and 11. The government deems Mrs. Marcos a vital witness against Tan because of her continuing claim that 60 percent of the taipan’s business empire is owned by her late husband.
Unfazed by Mrs. Marcos’ absence, state lawyers yesterday presented another witness in the person of Magno, who turned over to the court original copies of 14 documents that include a letter dated March 26, 1977, of Tan to the former President.
Tan’s lawyer Estelito Mendoza, however, dismissed the letter as immaterial and irrelevant to the case. He said the letter did not prove the government claim that some of Tan’s businesses were ill-gotten.
In his letter, Tan asked Marcos to persuade then government-owned Philippine National Bank (PNB) to issue a P310-million standby letter of credit in favor of the Central Bank (CB) for his acquisition of General Bank and Trust Co. (Genbank), which is now known as Allied Banking Corp.
A standby letter of credit serves as a guarantee in the fulfillment of a contract or obligation.
The PNB issued a letter telling CB that it would issue such letter of credit for P300 million despite the fact that the state-owned commercial bank, based on its 1972 financial statement, had a single-borrower limit of P200 million.
It will be recalled that prior to Tan’s acquisition of Genbank, it was temporarily closed by CB because of liquidity problem. CB wanted at that time to reopen Genbank so it invited prospective investors and one of them was Tan. However, Tan had difficulty complying with the condition of CB for a standby letter of credit, so he wrote Marcos.
According to PCGG’s Generillo, Tan’s March 26, 1977, letter made it possible for him to acquire Genbank, which he later changed to Allied Bank.
“Even Lucio Tan admitted in his letter that it would be very difficult for them to comply. The letter was dated March 26 but the bidding of CB was to take place on the 28th, meaning they only had one day to produce that standby letter of credit,” Generillo said in an interview.
Generillo said Tan obtained Genbank after the PNB issued a mere letter saying that it would issue a standby letter of credit. “It was not a standby letter of credit, just a letter saying that PNB would issue a standby letter of credit. What happened next is that after Central Bank awarded Genbank to Lucio Tan, they changed the terms and condition of bidding,” Generillo said.
“But instead of submitting a standby letter of credit, which it promised Central Bank, hindi rin ‘yun natuloy kasi pinalitan ng mortgages na lang instead of standby letter of credit,” he added.
Generillo said the March 26, 1977, letter bolstered their claim that Tan and Marcos were business partners as shown by the preferences given by the former President for the advancement of Tan’s businesses.
“Lucio Tan was really given preferences by Marcos, as I have presented through testimonial and documentary evidence,” he said.
Can you see how a super-cheat this Intsik is? P500k is the value of a commercial bank only? Even a rural bank costs much more than that! Gregorio Lecaros must be burning in hell, howling on the Yellow Economic Lucifer!
Manila Bulletin
Supreme Court clears way for prosecution of GenBank sale for only P500,000
By REY G. PANALIGAN
The Supreme Court yesterday paved the way for the criminal prosecution of the heirs of the late Central Bank (CB) Governor Gregorio Licaros who allegedly conspired with the late former President Ferdinand Marcos in the purchase by businessman Lucio C. Tan of the more than P688 million assets of the then-General Bank and Trust Company (GenBank) now Allied Banking Corporation, for only P500,000 in 1977.
In a decision written by Justice Artemio V. Panganiban, the High Court dismissed the petition filed by the Licaros heirs challenging the August 13, 2002 resolution of the Sandiganbayan ordering their prosecution for ill- gotten wealth based on a complaint lodged by the Presidential Commission on Good Government (PCGG).
The Licaros heirs also challenged the Feb. 6, 2003 resolution of the Sandiganbayan that dismissed the motion for reconsideration.
In a 22-page decision, the High Court ruled: “Wherefore, the petition is hereby dismissed and the assailed resolutions affirmed.”
The decision issued by the High Court�s third division, chaired by Panganiban, was concurred in by Justices Angelina Sandoval Gutierrez, Renato Corona, and Cancio Garcia. Justice Conchita Carpio-Morales was on official leave of absence.
On July 17, 1987, the PCGG filed with the Sandiganbayan a complaint for reversion, reconveyance, restitution, accounting, and damages (ill-gotten wealth) against the Marcoses and Tan in connection with the 1977 acquisition of GenBank.
The criminal complaint alleged that Tan, in connivance with government officials in 1977 � notably the late former President Marcos and the late CB Governor Licaros � took over GenBank with assets of more than P688 million for only P500,000.
Four years later, the complaint was amended by the PCGG which detailed the alleged participation of Licaros in the reported fraudulent transaction.
The amended complaint stated that Tan, besides using his influence with Marcos, also capitalized on the manipulation made by Licaros and former Philippine National Bank (PNB) president Panfilo Domingo in the purchase of the financially-distressed GenBank.
Ruling in favor of the PCGG, the Sandiganbayan accepted the amended complaint and impleaded Licaros in the charges.
When the Licaros heirs� motion to dismiss and the subsequent motion for reconsideration of the dismissal were denied, they elevated the case to the Supreme Court.
Ruling on the issue, the High Court said the allegations in the amended complaint “clearly and unequivocably outlined the cause of action against defendant Licaros. The alleged conspiracy to defraud the Republic put the case against the estate or heirs of Licaros squarely under the exclusive jurisdiction of the Sandiganbayan,” the High Court said.
At the same time, the High Court noted that the contention of the heirs that the actions imputed against Licaros were official acts of the members of the Monetary Board in 1977 and that the acquisition of GenBank was done through public bidding and in good faith “were evidently matters of defense, the veracity of which must be determined in a full blown trial and not in a mere motion to dismiss.”
The High Court paid tribute to the PCGG and the Office of Solicitor General “for their demonstrated zeal in prosecuting this case.”
This court is as interested as the government in recovering ill-gotten wealth, it pointed out.
This ingrate Intsik thinks he can cheat the high IQ Ferdinand? He is lucky that Bongbong and family don’t still think of stopping him breathing.
Manila Bulletin
February 14, 2008
Bongbong Marcos ends testimony at Sandiganbayan
Edmer F. Panesa
Ilocos Norte Rep. Ferdinand “Bongbong” Marcos Jr. yesterday presented nine certified true copies of Deeds of Sale of Shares of Stock and Deeds of Assignment covering several companies controlled by taipan Lucio Tan at the conclusion of the congressman’s direct testimony before the Sandiganbayan.
The documents, which were endorsed in blank and duly notarized sometime between 1980 and 1984, were all signed by Tan, his wife Carmen, and relatives and close associates of the tycoon.
The Deeds of Sale involve bulk shares of stock that were transferred to Shareholdings Inc. from Fortune Tobacco Corp., Asia Brewery Inc., Foremost Farms, Himmel Industries Inc., Silangan Holdings Inc., and Grandspan Development Corp., making Shareholdings the holding company of the six corporations.
Bongbong, in his previous testimony, said Shareholdings was divided into three holding companies, Basic Holdings Inc., Supreme Holdings Inc., and Falcon Holdings Inc.
Yesterday, Bongbong presented to the anti-graft court’s Fifth Division hearing the ill-gotten wealth case against Tan the originals of the Deeds of Assignment covering the transfer of shares from Shareholdings to the three holdings companies.
The Marcos scion said Supreme and Falcon belonged to his father, the late President Ferdinand E. Marcos, and that the latter was the majority owner of Shareholdings, which controls six other Lucio Tan companies.
On direct examination by Presidential Commission on Good Government (PCGG) special counsel Catalino Generillo Jr., Bongbong also testified on the role of former Security Bank president and Marcos “financial executor” Rolando Gapud in the business partnership of his father and Tan.
He narrated: “In terms of Lucio Tan corporations, I remember what he (Gapud) told me that he was finalizing the 60-40 sharing arrangement between Lucio Tan and my father. He was commenting on the discussions being made between Lucio Tan and my father. He said Lucio Tan made a counter proposal that the sharing be 50-50 instead of 60-40. In the end, my father’s proposal of 60-40 sharing was followed.”
Certified true copy is as good as original copy, correct? Wakanga! Paktay na Lusutan!
Lucio Tan, the Philanthropy Charlatan with No Heart for His Dead Passengers
arkangel posted on Jun 30, 2008 | views: 956 | Tags: Quezon City, Philippines
After receiving a barrage of criticisms from politicians and media men for the sinking of its MV Princess of the Stars passenger vessel, Sulpicio Lines now offers P200 thousand for each of the perished victim. Why should this be brought to mind relative to Lucio Tan, the Yellow Economic Lucifer in the Filipino land (copied from CenturioParko)? When his Air Philippines flight 541 crashed in Samal Island in April 19, 2000, seen burning in the sky by eye-witnesses, no politician or media man ever made such a cry. As reported by PDI in March 19, 2008, bannered “$165M for crash victims,” this crooked Chinaman in the Filipino land offered the families of each of the 124 dead passengers only about $20 thousand. No politician or media man made a howl of protest considering that Tan, with his tax cheated and Marcos wealth coveted fortune, is the country’s richest man, and considering that he advertises his being a philanthropy charlatan. With these considerations, should Sulpicio Lines deserve a shout of praise from the same for its settlement offer to its dead passengers’ families?
It is not attempted here to extricate Sulpicio Lines from its responsibility on the death of its passengers. It is to point out that the politicians and media-men we have are selective in their attacks, for political and journalism mileage respectively. Whenever an event would give bad image to Tan, the mouths of grandstanding of politicians are none, and so with media-men, suggesting them all to be parasitic to Tan.
Going back to the said crashed plane of Tan, “President Erap’s appointed commission to investigate the matter blamed the crash on pilot error and found no evidence of mechanical failure. But lawyers for the families said no one will ever know what caused the crash because the parts of the mangled plane were dumped in a pit and buried in concrete before they could be examined by independent experts.” The insurers in the US settled with $165M for the families of 100 victims that pursued justice. It meant that the air plane was defective, not as what Erap’s appointed investigators declared. That was so because Erap then was dangling on this Yellow Economic Lucifer’s strings. Bring this up to Erap now and surely he would admit having been dictated by this Yellow Economic Lucifer. Erap, knowing how he was immediately betrayed by Tan when the EDSA II mob was building up, even admitted in public that his campaign fund when he ran for president was provided by Tan, with a chain attached that when he would become president, his P26B tax rap should be made to die before reaching the High Tribunal.
So, politicians and media-men in our Inang Bayan, you are letting yourselves known to have been “Tan-ned!” You are all dung!
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Bulatlat News
February 16-22, 2003
Lucio Tan’s Fortune Continues to Reign in Tobacco Sector
Ilocos Region farmers press GMA to raise tobacco prices to P65 a kilo
Government authorities say that despite its ups and downs, the tobacco industry is performing well. Badgered by increasing production costs and Fortune Tobacco’s monopolistic practices, however, Ilocos farmers say the industry’s performance amounts to nothing to them and they are asking government to raise tobacco prices to P65 a kilo.
By Gerry Albert Corpuz
Bulatlat.com
Government claims that the Philippines’ P21-billion ($3.9 million) tobacco industry provides income to 62,470 farmers and 300,000 direct dependents. In addition, around 11 million Filipinos are also involved in this industry in production, marketing and distribution. If the claim is true, the industry provides hope to nearly 12 million Filipino farmers, their dependents and other workers.
Not so, say Ilocos farmers who are directly involved in tobacco production. And they are accusing government of being biased to magnate Lucio Tan who happens to own also Fortune Tobacco. Fortune, organized farmers say, corners the bulk of tobacco that is produced locally.
Some 39,327 hectares of agricultural land are planted with tobacco. Production yields an average of 1,734 kilos per hectare every year.
The National Tobacco Administration (NTA) said for trading year 2001, about of 68,195 kilos of locally-grown leaf tobacco with a farm-gate value of P2.63 billion ($4.8 million) were bought by the NTA through its 123 trading centers. Compared to year 2000, production dropped by 9.30 percent, although total farm gate value registered a growth rate of 2.67 percent in 2001, the NTA also said.
Data obtained from NTA shows that in 2001, 24.46 percent of some 15.3 million kilos worth $33.1 million were exported. About 3.1 million kilos representing 34.66% of total un-manufactured leaf exports were shipped to the United States during the same period.
What are the politicians doing to save the tobacco farmers from the exploitation this Yellow Economic Lucifer? Are they all in his pay-roll? Kawawa naman ang mga kababayan naming mga Ilokano.
Bulatlat News
September 12-18,2004
LABOR WATCH
Workers Face Mass Lay-Offs as Lucio Tan Takeover
of VMC Looms
Filipino-Chinese taipan Lucio Tan, allegedly one of the biggest contributors to President Gloria Macapagal-Arroyo’s election campaign, is gradually taking over Asia’s biggest sugar mill, the Victorias Milling Company in Negros. As a result, 253 FSD-VMC security guards were already relieved and more retrenchments are forthcoming.
By Karl G. Ombion
Bulatlat
BACOLOD CITY – Filipino-Chinese taipan Lucio Tan, owner of Philippine Airlines, Asia Brewery, Allied Bank, and Fortune Tobacco, among others, and allegedly one of the biggest contributors to President Gloria Macapagal-Arroyo’s election campaign, is gradually taking over Asia’s biggest sugar mill, the Victorias Milling Company.
But Tan’s takeover of the sugar milling company, located in Victorias City some 40 kms north of Bacolod, portends of things to come for its employees. At least 253 members of FSD, the company’s security agency, were already relieved and more retrenchments are coming.
Sources from the union and from the group of former VMC President and CEO Arthur Aguilar last week said that Tan had reportedly infused more than P300 million into the company through the Philippine National Bank (PNB). The amount was a loan purportedly to ensure the firm’s financial stability. PNB, which Tan heads as chairman, is among the leading creditor-banks of VMC.
While the possibility of a takeover by Tan still looms, two of his representatives in the board of directors, Mariano Tan, his brother, and Wilson Young now practically call the shots in the VMC even as another representative of a creditor-bank, Omar Mieir, sits as the chairman of the board.
Senior vice-president and VMC Officer-in-charge Abelardo Bugay, who now manages VMC takes orders from the taipan, his brother and Young. Likewise, the chiefs of various departments and divisions in VMC have to comply with Tan’s orders.
Efren Lagdamen, VMC new chief security officer, has also been quoted by union sources as saying that Tan cannot just be ignored because he is the “biggest contributor” to the campaign kitty of Mrs. Macapagal-Arroyo during the last election campaign.
First casualties
Upon his takeover as VMC security chief Lagdamen ordered the relief of 253 security guards, believed to be loyal to former VMC President and CEO Arthur Aguilar, and replaced them.
Ernesto Laserna Jr., supervisor of FSD-VMC detachment, and spokesperson of the relieved security guards said, in a press conference Sept. 10 at the office of the National Federation of Sugar Workers-Kilusang Mayo Uno (NFSW-KMU), that 120 out of the 253 assigned with the VMC have already received their relief orders from FSD Assistant Manager Ma. Jose De la Peña last Sept. 1.
Laserna said that they were surprised by their relief because the contract with FSD was renewed by VMC last June 30, 2004. At the same time, a new security agency was also hired.
“Without giving any reason, we were asked to report to our main office in Bacolod City”, Laserna added.
Albert Agudillo, another security guard slammed the relief saying “Amo ni nga krisis, ginkakasan pa gid kami sa amon solo nga pangabuhian” (We are already in crisis, still they removed us from our only job). His companion Romeo Panisales added “Mayo man amon performance, pero ngaa islan pa kami sg mga bag-ohanon kag indi taga-Victorias?” (Our performance is good so why replace us with new ones who are not from Victorias?).
Laserna said that “the management could have been more considerate in its decision especially that many of the relieved security guards are from Victorias and are without any other means of livelihood”.
The relieved security guards have been with the FSD-VMC detachment since March 7, 2001. Majority of them are from Victorias and neighboring towns.
FSD is a big national security agency with more than a thousand security guards deployed under its branches in Negros, Iloilo City, Roxas City, Metro Cebu and Metro Manila.
More retrenchments loom
Guillermo Barreta, KMU Negros spokesperson, slammed the relief of the FSD-VMC security guards as part of the grand scheme of Tan to consolidate his hold over Asia’s biggest sugar milling company.
Barreta revealed that the VMC workforce, currently numbering a mere 2,700 from a peak of more than 6,000, could be further reduced. Bugay has already issued a memorandum regarding the possible downsizing of the VMC workforce.
Bugay issued another memorandum early this week saying that no salary increase and other benefits would be provided the workers of the VMC Industrial Workers Association (VIWA) in the coming Collective Bargaining Agreement negotiations scheduled soon.
Ironically, Barreta warned, the new security force “may also be used against the expected surge of worker’s protests against the forthcoming mass retrenchments and the new labor flexibility schemes in the company.” Bulatlat
You see how this Chinaman controls any Malacanang occupant? He gave Erap P1.5 billion for his presidential campaign fund, but when the wind of EDSA II was blowing him out from Malacanang, with his ass still in-tack on his throne, this Yellow Economic Lucifer had already dumped him, supporting Gloria Macapagal-Arroyo!
PCIJ January – March 1999
Demonized by his foes, Lucio Tan is hailed a hero by the new administration.
by Sheila S. Coronel
LUCIO TAN is obviously uncomfortable with the camera. He looks at it with a plastic grin that barely masks the grim forbearance with which he faces crowds.
Yet, unknown to many, both men go a long way back. The president himself said so last April, at the height of the election campaign, when he was guest at a dinner at the Tan-owned Century Park Sheraton Hotel for the managers of the tycoon’s sprawling business empire. “Alam ninyo, itong si Mr. Tan, mayor pa ako ng San Juan, magkaibigan na kami (Mr. Tan and I have been friends ever since I was mayor of San Juan),” Estrada told the gathering, according to Salvador Mison, a retired general who heads Tan’s management company, Basic Shareholdings, Inc.
Mison remembers a smaller and more intimate dinner just days before the May 11, 1998 elections, this time at the Tan residence on Biak-na-Bato street in Quezon City. Lucio Tan and his brothers were there, as were key officials of Tan companies. Estrada came with Senator Franklin Drilon, both of them assuring the tycoon about the prospects of the campaign. Tan was, after all, not only Estrada’s long-time friend; it is widely acknowledged that he was also a major donor to the Erap campaign. Although the tycoon is not included in the list of contributors submitted to the Commission on Elections, his brother Harry is shown as having contributed P3 million to the ruling party. Well-placed sources in the Erap camp, however, estimated Lucio Tan’s donation at P1.5 billion.
Not only that, says Mison, the resources of the Tan companies—trucks, distributors, salesmen and other employees—were mobilized for Estrada, as they were for Ramon Mitra in 1992 and Ferdinand Marcos in 1986. The grassroots sales and distribution network of Tan’s cigarette and liquor conglomerate is an asset to any campaign. Extending to the remotest reaches of the archipelago, it is rivaled only by San Miguel Corporation, the biggest company in the country.
To the politically sophisticated, this is nothing new. Money is a central feature of Philippine elections, and businessmen have invariably bankrolled campaigns. The conventional wisdom is that a campaign contribution is an investment that guarantees access and favorable treatment once the recipient of the contribution is elected. Ethnic Chinese businessmen have traditionally been the big spenders: Before the 1970s, when they were awarded Filipino citizenship, their uncertain status made their enterprises vulnerable to political intervention and election contributions were an insurance against shakedowns. Citizenship made Chinese-Filipino businessmen more secure, but unlike native Filipino entrepreneurs, who have access to high officials through family networks, the ethnic Chinese are outsiders who literally have to buy political influence.
Lucio Tan just happens to play this role on a far grander scale than any other Chinese-Filipino businessman before him. Moreover, the questionable origins of his business empire and his unorthodox business practices make him a controversial character. But more than that, the sheer obstinacy—and audacity—with which he has taken on the Aquino and Ramos governments stand in stark contrast to the generally politically safe and compliant behavior of ethnic Chinese tycoons. His high-profile support for Estrada also breaks the traditional mold of Chinese businessmen putting their money on both sides to avoid political controversy.
Not surprisingly, the image of Lucio Tan—whose multibillion-dollar business empire makes him probably the richest man in the Philippines and who is facing legal charges for evading over P26 billion in taxes—side by side with Joseph Estrada, as president the most powerful individual in the land, makes many Filipinos shudder. In a country where the intimacy between wealth and power has had such disastrous results and where businessmen with access to Malacañang had always ended up looting the nation’s coffers, the alarm bells were sure to ring.
Says Solita Monsod, economics professor and former economic planning secretary: “Lucio Tan is a role model for the worst kind of conduct as far as our national economic objectives are concerned. He signals that you can evade taxes and get away with it, pay the courts and get the judges to decide in your favor, get good lawyers and delay your cases. The messages that are given by the kind of treatment that he gets from the government are the antithesis of what we need for sustainable development: an even playing field and government intervention of the right kind.”
TAN’S DEFENDERS, though, portray him a victim of elitism and racism. In the 1950s and ‘60s, Eugenio Lopez Sr. was as audacious in his dealings with the government. Today, if a blueblood Lopez or Ayala were seen publicly so cozy in presidential company (as indeed Jaime Zobel de Ayala was during the Aquino administration), most people would probably shrug it off as their birthright. But Tan stirs things up not because he is believed to be evading taxes or paying off politicians—after all, many businessmen in this country do so—but because of the magnitude of his alleged sins: supposedly billions of pesos in unpaid taxes and outsized campaign contributions that make politicians too beholden to one man. There is, moreover, the discomfiting fact that Tan is a parvenu, a Chinese upstart, an outsider. Tradition dictates that his place is in the shadows.
Which was where, not too long ago, Lucio Tan was. His beginnings are as obscure as they come; his story, the classic émigré rags-to-riches tale. Born in 1934 to a struggling immigrant family in Naga, he worked his way through college, set up a business dealing with scrap in the late 1950s, and also found employment in a cigarette factory, where he was assigned to buy leaf tobacco in the Ilocos provinces. This was where Tan probably encountered the young congressman Ferdinand Marcos, says a long-time associate who asks not to be named. Politicians were then, as now, very much involved in the trading of the region’s biggest cash crop, and were often dealing directly with the ethnic Chinese traders who were buying it.
By the time Tan ventured off on his own and set up Fortune Tobacco in 1966, Marcos had just been elected president. Fortune grew phenomenally after martial law, thanks to generous tax and other incentives (at one point, it would later be alleged, the Bureau of Internal Revenue allowed Tan to print his own cigarette stamps). By 1980, Fortune was the country’s biggest cigarette manufacturer. Today, it accounts for over half of the cigarettes sold in the country and buys 75 percent of all the tobacco produced here.
In 1977, Tan acquired from the government the bankrupt General Bank and Trust Co. for only P500,000, in what is widely described as a sweetheart deal. Genbank is now Allied Bank, one of the country’s top banks. In 1982, Tan put up the Asia Brewery, benefiting from a Marcos ruling that lifted the ban on the establishment of new beer companies.
Without doubt, Tan has extraordinary business acumen, but like other businessmen close to Malacañang during martial law, he flourished not only because he was “smarter than others” but with the help of generous incentives from the Marcos regime. Such generosity came with a price. As Marcos’s financial adviser, Rolando Gapud, revealed in an affidavit issued in 1987 to the Presidential Commission on Good Government (PCGG): “I know that Mr. Marcos and Mr. Lucio Tan had an understanding that Mr. Marcos owns 60 percent of Shareholdings, Inc. which owns shares of Fortune Tobacco, Asia Brewery, Allied Bank and Foremost Farms...Mr. Lucio Tan, apart from the 60 percent equity of Mr. Marcos, had been regularly paying, through Security Bank, P60 to P100 million a year to Mr. Marcos, in exchange for privileges and concessions Mr. Marcos had been giving him.”
In 1986, when Marcos was fighting for his political life, Tan gave him full support, even busing employees to the ailing dictator’s rallies. Romeo Magtubo, Fortune Tobacco’s union president who is now a party list representative in Congress, recalls how the factory’s workers were loaded into “Love Buses” and sent en masse to cheer for Marcos, after which they were given allowances by the company for their effort.
When Marcos fell and Corazon Aquino became president, Tan, like other Marcos cronies, was out of favor. The PCGG investigated his companies, several of his firms were sequestered, and he found himself, at least in the beginning, without a lifeline to Malacañang. What transpired in the next 12 years is a remarkable story of how a politically savvy tycoon has subverted government efforts to keep him in line and tame his influence. Tan’s triumph, his journey from the shadows into the light, shows the power of money and connections, the weakness of government, and the vulnerability of individuals and institutions.
Dr.Fu-Manchu, lording over the Filipinos!
PCIJ January to March 1999
M E D I A — W E L O V E L U C I O
BUT MORE visible and effective than ownership or an intimate relationship with the press is the clout Lucio Tan wields by practically subsidizing the media, thanks to the numerous ad placements of his companies. Tan’s firms are among the country’s top advertisers. In 1996 alone, his top three companies—Asia Brewery, Tanduay Distillery and Fortune Tobacco—altogether plunked down almost a billion pesos in media advertising. A year later, just when the economic crisis began, the figure jumped to P1.621 billion.
The bulk of Tan’s advertising money is spent on radio and television, the media most relied upon to reach the targets of his consumer products, the masa. For airing commercials of Hope, Winston, Champion, More and Mark cigarettes, Fortune Tobacco paid the television industry nearly P600 million in 1997, and the radio industry almost P400 million. In contrast, Fortune spent only P17.55 million for print ads.
Tan’s ad money is spread out to various television and radio stations, and following industry practice, is placed in programs which are most watched by consumers. His managers are said to report directly to a committee—chaired by Tan himself—which has made it a policy to underwrite only programs considered Tan-friendly.
These managers deal directly with the sales departments of broadcast stations, the units that sell airtime to clients. The managers also monitor whether the advertisements come out and whether the program over which it is aired did not make any derogatory remark about the product or the client himself, i.e. Tan. Hence, when Korina Sanchez read aloud that Lucio Tan was a tax evader in 1996, Fortune Tobacco executives immediately pulled their ads out of her program. Sanchez can only call it “pure blackmail and harassment.”
Unlike other networks, the giant ABS-CBN could probably afford to let go of the Tan account because several others are waiting in line to fill its slot. But it’s a sizable account nonetheless; in 1998, the network earned P98 million from advertisements placed by Tan-owned companies in Channel 2 alone, not counting radio station DZMM.
It really isn’t the big companies like ABS-CBN that are most affected by pressure from advertisers, but rather the smaller broadcast stations and outfits that jostle for the advertising crumbs thrown away by the big boys. But even the mid-size stations are bound not to pass up any advertising revenue, especially in times of crisis.
A major broadcast network has developed a modus vivendi as far as Lucio Tan is concerned. “There are stories about Lucio Tan you really can’t kill,” says a TV news executive connected with the network. But rather than get annoying calls from Tan’s minions, the station has come up with the policy that “if we’re running a story on Lucio Tan, we pull out his advertisement from that program and put it elsewhere.”
“Mr. Tan has all the right to withdraw his sponsorship of a program if he’s being attacked! ” Mison declares. “Can you imagine listening to a news program that calls Mr. Tan a tax cheat, then it’s brought to you by Tanduay Rhum? You’re paying for that program and then you’re being attacked in that program! Hindi tama (It’s not right)!”
To be fair, there are other advertisers who would not hesitate to use their business clout to whip the media into line. For years, the weekly magazine show ‘The Probe Team’ earned considerable income producing “The Good News,” a regular segment on successful entrepreneurs sponsored by another major broadcast advertiser, Philippine Long Distance Telephone Co. (PLDT). But when ‘Probe’ producers did a story on rival Bayantel and the sorry state of phone services in the country, PLDT immediately withdrew its ads from ‘Probe.’ The PLDT account was small but substantial enough for an independent outfit like Probe, which competes with the established and station-produced programs for revenue. But that was three years ago and time seems to have healed the rift. ‘Probe’ will soon be producing “The Good News” for PLDT again.
Lessons like this teach broadcast journalists especially to be shallow and sensationalistic. Rather than make insightful inquiries into the country’s economic problems and consumer woes that might offend advertisers, television and radio news programs encourage safer stories that deal with sex, crime and entertainment. Many years ago, Fortune Tobacco took ABC Channel 5 to task for airing, on a Fortune-sponsored news bulletin, a story on the harmful effects of smoking. Nowadays, the company would rather subsidize “harmless” ventures like sports news or late night movies than serious news programs.
Pressure from advertisers has also fostered self-censorship among broadcast journalists. A managing editor in an AM radio station says it’s not uncommon for reporters to first check with bosses before covering touchy stories involving big advertisers. Once they hear the advice, “Pare, may account yan (That one has an account)!” they retreat.
In television news and public affairs, executives warn correspondents to stay away from stories that might offend patrons. A story on the cattle industry and the country’s beef supply, no matter how harmless, might anger a major fast-food chain. A report on bottled water may irk a water company, or even the water utility. And the worries go on.
Offending advertisers—any advertiser, really—could be costly. In Lucio Tan’s case, the flight of Fortune Tobacco could mean millions of pesos in potential revenue, plus triple jeopardy. Not one but at least two other major Tan account could go down with it.
Now with Tan rumored on a buying binge—he is supposedly interested in acquiring businesses that include Meralco and Mimosa, PNB and Petron—there may be even less room for journalists to maneuver. Big Brother may truly have arrived.
There’s a postscript to this report. Sometimes, sensitive stories have a way of turning up in the most unexpected places, no matter how hard a reporter avoids it.
As the rest of the country greeted 1999 with fireworks, ABS-CBN reporter Mike Cohen was seated on the steps of the Guesthouse in Malacañang, waiting for a story to take home for his early morning program, ‘Alas Singko Y Medya.’ Earlier, he had gotten clearance from Palace guards and staff to be there for a story about a presidential son who had just moved into Malacañang. Upon arriving there, he was told the First Family was having New Year’s eve dinner with the closest of the president’s friends—the inner circle. And so Cohen and his crew waited.
The party apparently broke up shortly past 2:00 am of January 1, and the First Family was seeing its guests to the door. Who would appear but Lucio Tan with a tipsy President Joseph Estrada whom Cohen overheard telling the tycoon: “Pare, don’t worry about your problems. This year will be better.”
Cohen had no idea what those problems were and probably couldn’t care less. For moments later, his thoughts were on trying to get out of the place fast. The president had seen Cohen and his camera crew recording the whole thing. Estrada’s amiable countenance changed, recalls Cohen, and after Tan left, the visibly furious president demanded that they turn over the tape to him at once. “He was really upset,” says Cohen. “My only thought was on getting out of there alive. What if he hit me?”
Estrada reached down to yank the tape out of the camera himself, and he may be the only one who knows what Cohen and his crew caught on camera that New Year’s morning. But it sent yet another message to media: taipan Tan’s clout goes all the way to the top.
Now you know why no bad press for this Yellow Economic Lucifer? The media is at his mercy, ignoring their sworn role in our society as reporter of truth!
Copyright © 1998 All rights reserved.
PHILIPPINE CENTER FOR INVESTIGATIVE JOURNALISM
PRESS STATEMENT
By Victor Briz President,
Bukluran ng Manggagawang Pilipino
Friday, 30 August 2002
Lucio Tan evades again
For once, but a fleeting moment, we agree with Lucio Tan's whining on the deteriorating state of country.
Lucio Tan calls a spade as it is, while he confirmed the Philippine economic crisis. In doing so, he contradicted Malacanang's persistent deception that the country has "sound economic fundamentals".
However, his analysis is but a half-truth. He blames politics, politics and politics for the worsening living conditions of Filipinos. An astute and shrewd tycoon, Lucio Tan evades capitalist liability on the issue of poverty in the same way as he eludes on his taxes.
Poverty is a question that is caused by the inequitable distribution of the social wealth that is generated by nature and labor. And at present, the scales of wealth distribution are tipped in favor of the propertied.
It is to be resolved not by simply "enlarging the bibingka" but by apportioning bigger slices to the toiling majority.
Capitalist society is but a mirror image of Lucio Tan's factories. From a petty entrepreneur, Tan has graduated into a big-time industrialist; his capital accumulating by leaps and bounds.
Meanwhile, his workers inch with their everyday existence, whose improvement is brought by their self-organization in order to collectively strengthen labor's bargaining leverage.
Hence, it is sheer hypocrisy for Lucio Tan to merely blame politics as the cause of poverty, not only because he stood as financier to elite politicians in their electoral campaigns - including his kumpare, the infamous Joseph Estrada.
Moreover, Lucio Tan has continuously derailed and resisted attempts by workers to improve their living conditions. Organized labor will never forget Lucio Tan's notoriety.
In his latest dastardly act, he blackmailed the workers of Philippine Airlines to accept a 10-year moratorium of their collective bargaining agreement (CBA). Even the 2nd division of the Supreme Court ruled in his favor, when it promulgated that the 10-year waiver of the Constitutional right to collectively bargain is legal.
But Lucio Tan is merely feigning hopelessness in his accurate description of the sorry state of the country. With all his riches and influence, he could easily shift his capital to China. And the good life goes on for Lucio Tan.
Yet, amidst the worsening conditions and growing destitution, militant workers would not share Lucio Tan's despair - presuming that he sincerely sees no hope for the country - we pin our hopes to the revival of a militant and broad labor front that would effectively struggle and affect changes in workers' lives.
[Intl-tobacco] Philippines: Lucio Tan, Master dealmaker (fwd)
Robert Weissman rob@milan.essential.org
Wed, 11 Apr 2001 11:00:58 -0400 (EDT)
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________________________________________
Lucio Tan, Master dealmaker
by Hugh Williamson
Source: Financial Times, Wednesday, 2/28/01
It seems that Lucio Tan still relishes a challenge. Although he was the
best-known of Joseph Estrada's business cronies, the Filipino-Chinese
tycoon has been quick to cosy up to the people who last month deposed the
actor-turned-president in a military-backed popular uprising.
The morning after Alberto Romulo was named finance minister, Mr Tan sent
him a congratulatory bunch of flowers. The tycoon followed that with a
visit to Gloria Macapagal-Arroyo, the new president, in her palace, to
"hail and congratulate" her on taking office.
This display of bravado is typical of the man who has risen in his 50-year
career from poor immigrant labourer to arguably the richest man in the
Philippines and one of south-east Asia's most powerful business
personalities. Mr Tan has an estimated wealth of $7bn, built from his
patchwork of more than 50 companies in the airline, beer, tobacco,
banking, hotel, property and other sectors in the Philippines and around
Asia.
The reactions to Mr Tan's apparent about-face were also typical,
reflecting his status as one of the Philippines' most controversial
figures. For anti-corruption activists - and many in Manila's monied elite
- he is top of the list of businessmen Mrs Macapagal should bring to book
for alleged tax evasion and corruption. Yet to many in the Chinese
community, and to poor Filipinos dependent on his companies for jobs or
products, Mr Tan remains a hero who is willing to work hard, cut a deal
and move with the times.
This need to make new political friends is possibly the last big challenge
of the 66-year-old's career. It will cast new light on the business and
political skills of one of the few remaining old-style taipansin
south-east Asia's influential overseas Chinese business network. And it
may help answer a question about Mr Tan: is he a crook who built his
fortune on corrupt political deals, or a crafty entrepreneur with an eye
for a deal and a willingness to use unorthodox means?
An answer would be welcome, because the controversial Mr Tan remains a
complex, mysterious figure. Often dressed simply in a white short-sleeved
shirt and ill-fitting black trousers, Mr Tan commonly appears reserved and
awkward in public gatherings outside Chinese business circles. This is
partly, say his friends, because of his lack of fluency in both English
and the Filipino language.
Yet this simplicity barely hides Mr Tan's love of the good life. He
travels everywhere by helicopter. In private, he is a flamboyant host. In
addition, friends admit, he is the father of many children by several
mistresses. Mr Tan is deeply private. Few of his large companies are
publicly listed, he has ignored rules on filing company accounts and his
spectacular takeovers in recent years of Philippine Airlines (PAL) and
Philippine National Bank were both mounted covertly using front companies
and proxy votes. He rarely talks to journalists - he refused repeated
requests to be interviewed for this article.
As with many older members of Asia's overseas Chinese business community,
Mr Tan's explanation of his success is rooted in his rags-to-riches past.
Last year, in a rare full-length interview, he explained what this meant
to him: "I grew up in poverty. I had no choice but to work harder than my
peers, to endure more hardships and probably harbour bigger dreams."
Born Tan Eng Tsai in Fujian province, eastern China, he emigrated to the
Philippines as a small boy. Although his parents struggled, he worked his
way through college, at times being employed as a stevedore.
In the late 1950s, he set up a scrap-metal business. He later found a job
in a cigarette factory and it was probably on trips to the northern
Philippines to buy leaf tobacco that he met a young congressman called
Ferdinand Marcos.
Critics say his friendship with the future president-cum-dictator
underpinned his successful empire. He set up Fortune Tobacco in 1966, a
year after Marcos became president, and saw it grow rapidly thanks to tax
breaks and other incentives. By 1980, Fortune was the country's largest
cigarette maker.
Before the country's "people power" revolt removed Marcos in 1986, Mr Tan
had also partly used his friend's help to move into, among other things,
brewing, pig farming and banking - paying the government a knock-down
price to acquire what is now Allied Bank.
With Marcos gone, subsequent presidents tried to sequestrate some of Mr
Tan's companies, claiming they represented assets stolen from the state.
They also filed huge tax evasion cases against his companies. These moves
failed - indeed, Mr Tan was able to expand his empire, for instance by
acquiring PAL in the mid-1990s.
This is evidence of Mr Tan's skills as a rich, political operator. It is
also evidence, say his critics, of the vulnerability to powerful and rich
individuals of Philippine instit utions, especially the courts, tax
collection agencies and Congress. "Tan has gotten to a science the ability
to go around the laws but it is that kind of behaviour that has kept the
Philippines from joining the tigers of Asia," says Solita Monsod,
economics professor at the University of the Philippines, who has pressed
government officials to prosecute Mr Tan.
Bulatlat News
September 12-18, 2004
LABOR WATCH
Workers Face Mass Lay-Offs as Lucio Tan Takeover
of VMC Looms
Filipino-Chinese taipan Lucio Tan, allegedly one of the biggest contributors to President Gloria Macapagal-Arroyo’s election campaign, is gradually taking over Asia’s biggest sugar mill, the Victorias Milling Company in Negros. As a result, 253 FSD-VMC security guards were already relieved and more retrenchments are forthcoming.
BY KARL G. OMBION
Bulatlat
BACOLOD CITY – Filipino-Chinese taipan Lucio Tan, owner of Philippine Airlines, Asia Brewery, Allied Bank, and Fortune Tobacco, among others, and allegedly one of the biggest contributors to President Gloria Macapagal-Arroyo’s election campaign, is gradually taking over Asia’s biggest sugar mill, the Victorias Milling Company.
But Tan’s takeover of the sugar milling company, located in Victorias City some 40 kms north of Bacolod, portends of things to come for its employees. At least 253 members of FSD, the company’s security agency, were already relieved and more retrenchments are coming.
Sources from the union and from the group of former VMC President and CEO Arthur Aguilar last week said that Tan had reportedly infused more than P300 million into the company through the Philippine National Bank (PNB). The amount was a loan purportedly to ensure the firm’s financial stability. PNB, which Tan heads as chairman, is among the leading creditor-banks of VMC.
While the possibility of a takeover by Tan still looms, two of his representatives in the board of directors, Mariano Tan, his brother, and Wilson Young now practically call the shots in the VMC even as another representative of a creditor-bank, Omar Mieir, sits as the chairman of the board.
Senior vice-president and VMC Officer-in-charge Abelardo Bugay, who now manages VMC takes orders from the taipan, his brother and Young. Likewise, the chiefs of various departments and divisions in VMC have to comply with Tan’s orders.
Efren Lagdamen, VMC new chief security officer, has also been quoted by union sources as saying that Tan cannot just be ignored because he is the “biggest contributor” to the campaign kitty of Mrs. Macapagal-Arroyo during the last election campaign.
First casualties
Upon his takeover as VMC security chief Lagdamen ordered the relief of 253 security guards, believed to be loyal to former VMC President and CEO Arthur Aguilar, and replaced them.
Ernesto Laserna Jr., supervisor of FSD-VMC detachment, and spokesperson of the relieved security guards said, in a press conference Sept. 10 at the office of the National Federation of Sugar Workers-Kilusang Mayo Uno (NFSW-KMU), that 120 out of the 253 assigned with the VMC have already received their relief orders from FSD Assistant Manager Ma. Jose De la Peña last Sept. 1.
Laserna said that they were surprised by their relief because the contract with FSD was renewed by VMC last June 30, 2004. At the same time, a new security agency was also hired.
“Without giving any reason, we were asked to report to our main office in Bacolod City”, Laserna added.
Albert Agudillo, another security guard slammed the relief saying “Amo ni nga krisis, ginkakasan pa gid kami sa amon solo nga pangabuhian” (We are already in crisis, still they removed us from our only job). His companion Romeo Panisales added “Mayo man amon performance, pero ngaa islan pa kami sg mga bag-ohanon kag indi taga-Victorias?” (Our performance is good so why replace us with new ones who are not from Victorias?).
Laserna said that “the management could have been more considerate in its decision especially that many of the relieved security guards are from Victorias and are without any other means of livelihood”.
The relieved security guards have been with the FSD-VMC detachment since March 7, 2001. Majority of them are from Victorias and neighboring towns.
FSD is a big national security agency with more than a thousand security guards deployed under its branches in Negros, Iloilo City, Roxas City, Metro Cebu and Metro Manila.
More retrenchments loom
Guillermo Barreta, KMU Negros spokesperson, slammed the relief of the FSD-VMC security guards as part of the grand scheme of Tan to consolidate his hold over Asia’s biggest sugar milling company.
Barreta revealed that the VMC workforce, currently numbering a mere 2,700 from a peak of more than 6,000, could be further reduced. Bugay has already issued a memorandum regarding the possible downsizing of the VMC workforce.
Bugay issued another memorandum early this week saying that no salary increase and other benefits would be provided the workers of the VMC Industrial Workers Association (VIWA) in the coming Collective Bargaining Agreement negotiations scheduled soon.
Ironically, Barreta warned, the new security force “may also be used against the expected surge of worker’s protests against the forthcoming mass retrenchments and the new labor flexibility schemes in the company.” Bulatlat
“Run after tax evaders!” screams the stringed-by-the-Yellow-Economic-Lucifer little president? She should tell that to the goblins!
Asia Times October 2, 2004
The chop suey gang
As for the ultra-wealthy - and very discreet - Chinese-Filipino tycoons, they have always preferred to remain in the shade and fund their own congressmen. But post-Marcos some taipans have sprung up, such as Sherwin Gatchalian, the son of the Filipino king of plastics, and stockbroker Harry Angping. But no Chinese-Filipino taipan comes close to matching Lucio Tan, the ultimate embodiment of the Filipino dream: from janitor to the nation's wealthiest man - and one of Asia's Top 50. He made his fortune with tobacco, built a diversified empire, merged from being the ultimate Marcos crony to a supreme in-the-shade arm-twister of the House and the Supreme Court, and practically made president Estrada. Tan, additionally, has excellent relations with Beijing - something that largely explains the $1 billion in investment and soft loans that Arroyo brought from her recent trip to China.
Another invaluable volume by the Philippine Center for Investigative Journalism, Investigating Estrada: Millions, Mansions and Mistresses, published in 2000, before Estrada was ousted from power, documents in minute detail the many facets of Estrada-Tan cronyism. Economist Solita Monsod paints Tan as "the role model for the worst kind of conduct as far as our national economic objectives are concerned. He signals that you can evade taxes and get away with it, pay the courts and get the judges to decide in your favor, get good lawyers and delay your cases. The messages that are given by the kind of treatment he gets from the government are the antithesis of what we need for sustainable development."
Martin Scorsese would have loved this larger-than-life version of Goodfellas with Tagalog subtitles. Lucio Tan bet heavily on Joseph Estrada in the 1998 presidential election: at least $37 million, plus total cooperation by his nationwide business network. And he won - big. With his pal Joey running the country, the biggest tax-evasion case in recent Philippine history, slapped on him by former president Fidel Ramos, simply disappeared. Tan's deep-in-trouble Philippine Airlines was protected from competition by Estrada. And on top of it, he was handed the Philippines National Bank by Estrada on a silver platter.
Manila's coterie of resident Sinologists cannot list enough reasons for a Filipino politician to seek a Chinese connection - as Estrada did. Chinese businessmen "swim between the rivers". They are not a political threat. They ask - or feign to ask - nothing in return for their largesse. They quickly share their fortunes with close friends and godfathers. They spend fortunes on the campaign trail. They keep their word - even when it's not on paper. And most of all they keep their mouths shut.
As to where the elites stand at the moment, analysts broadly agree they now are congregated into roughly four groups: 1) The traditional elite - the Ayalas, Aquinos, Lopezes, De Leons, Osmenas and a few other families that were snubbed by Marcos; 2) The "sons of Marcos" who blossomed handsomely during the dictatorship - tycoons Lucio Tan, Danding Cojuangco and former president Estrada, for instance; 3) The anti-Marcos camp, which includes former president Fidel Ramos and ultimately his protege Arroyo; and 4) A group of gung-ho parvenus that includes shady businessmen Dante Tan and Mark Jimenez. These are the people who actually rule the country.
Asia Times 0ctober 31, 2003
Southeast Asia
Tangled web of Philippines' impeachment saga
By Miriam Grace A Go
MANILA - As the Philippines' chief magistrate, impeached last week over alleged malversation of hundreds of millions of pesos in judicial funds, has temporarily prevented his own trial and is being continuously projected by his supporters as a saint who should be spared the venom of politics, there is a story about a controversial businessman-cum-kingmaker worth recalling.
It is the story of tobacco, beer and banking tycoon Lucio Tan with whom Supreme Court Chief Justice Hilario Davide Jr, 67, reportedly has a cozy relationship. It is a story that may reveal much about the kind of person Davide is, and what kind of political games he is capable of playing.
The first chief magistrate to be impeached in Philippine history, Davide is, after all, still a politician - an assemblyman from the vote-rich province of Cebu whom dictator Ferdinand Marcos allowed to win in 1978 in an election where all oppositionists were cheated; and an impeachment presider in 2001 whom some sectors cajoled into running for president come 2004.
If he proves to be deft enough to exploit the expression of support of political, business and Catholic religious leaders and organizations and permanently put a lid on efforts to try him in an impeachment court, Davide may help institutionalize the rule of "people power" in resolving conflicts that could otherwise be addressed by Philippine laws and democratic institutions.
Since the constitutionally questionable ouster of president Joseph Estrada in 2001, foreigners had observed in many published articles that mob rule - or the gathering of an angry crowd of several thousands in the streets - had become the norm in Philippine society every time events were unfavorable to a certain clique (read: the Makati Business Club, the Catholic Church, and the political camp of former president Corazon Aquino).
So the story was: Three months before Estrada was forced out of office in January 2001 by some 300,000 people mobilized primarily by Manila's elite, the actor-turned-politician had a falling-out with his crony, Lucio Tan.
Before that, Tan had already been amply rewarded for being the biggest contributor in Estrada's campaign in 1998: the government dropped the P26 billion (US$472.7 million) tax-evasion case filed against him by the previous administration, and government had intervened to ensure his takeover of the national flag carrier, Philippine Airlines (PAL), and to help his efforts to gain control of the state-owned Philippine National Bank.
However, on October 30, 2000, with cronyism being proclaimed in protest rallies as one of Estrada's sins, the president made a promise of advancing the date of the opening of Philippine skies to foreign carriers. It was a turnaround from a previous act of suspending the air pact between Taiwan and the Philippines to favor Tan's PAL, because Taiwanese carriers, by their passenger capacities and the frequency of their stopovers in the Philippines on their way to North American destinations, were expectedly eating away a huge part of PAL's potential earnings.
In no time, Tan was reported to be bankrolling the anti-Estrada movement, even communicating directly with the husband of then vice president Gloria Macapagal-Arroyo, who would automatically take over once Estrada was out.
The 1987 constitution provides three clear bases for the vice president to succeed the president before the latter's six-year term ends: that the president has resigned, expressed in a letter to Congress; that Congress has declared, in writing, the president to be permanently incapacitated; or that the president has died. None of these had happened, but Justice Davide, who was a member of the commission that drafted the constitution, nevertheless swore in Arroyo as president.
Anti-Estrada forces hailed Davide for putting the national interest over the debt of gratitude he owed Estrada, who appointed him to the highest judicial post in 1998.
The credentials that Davide brought with him to the Supreme Court included the many important positions he held in government: his membership in the Constitutional Commission in 1986; his chairmanship of the Commission on Elections in 1988; his chairmanship of the fact-finding commission that investigated the series of coup attempts against the government in 1989. To these positions, he was appointed by president Corazon Aquino. It was Aquino who eventually named him as Supreme Court justice in 1991. In 2001, Aquino was one of the leaders of the oust-Estrada movement.
In 1998, the one who recommended to Estrada that Davide be named the chief justice was Lucio Tan. In 2001, because of the "open skies" policy that Estrada adopted against Tan's airline interests, Tan had turned his back on Estrada.
Simply put, there was a possibility that Davide could have acted unfavorably against Estrada, even if that meant going against the constitution, to side in that political battle with the people to whom he owed his position in the tribunal. Yet the connection seemed to have escaped political observers.
And so Davide's name remained untarnished by suspicious dealings, and his perceived integrity remained intact - until his impeachment by congressmen who belonged mostly to the Nationalist People's Coalition (NPC), a political party formed by Eduardo Cojuangco Jr who, like Tan, was an Estrada crony.
On October 23, the resolution to impeach Davide was signed by 94 members of the House of Representatives, more than the one-third vote they were required to muster from the chamber of around 220 members. Davide was being charged for misusing a total of P825.84 million ($15 million) of the Judicial Development Fund (JDF) from 2000-02.
The JDF is a fund established by the late dictator Ferdinand Marcos' Presidential Decree 1949. It consists of fees collected by the courts throughout the country, but whose disposition rests solely on the chief justice. The decree is clear that 80 percent of the fund should be allocated as employee benefits, paid directly to them. Twenty percent "shall be used for office equipment and facilities of the courts located where the legal fees are collected".
Documents obtained by NPC lawmakers from the Commission on Audit (COA) showed that every year, from 2000 to 2001, employee benefits in the form of cost-of-living allowance (COLA) that Davide approved and released were less than 80 percent of the JDF. On the average, the shortage was 18 percent of the mandatory annual releases; last year, the discrepancy reached 35 percent.
While incomplete benefits were given to court employees, Davide allegedly exceeded the 20 percent limit on expenditures on equipment and facilities, which included the purchase of luxury vehicles for the justices and the construction of their vacation houses in Baguio City in the north.
However, their basis of computation is debatable. They computed the 80 percent COLA based on the balance of the JDF each year, which ranged from P1.74 billion to P1.86 billion. But in computing the disbursements for the equipment and facilities, which allegedly exceeded the 20 percent limit, they based it on the collection in those three years - meaning, in addition to the balance of the fund - which totaled only P200 million.
With a different basis for the composition of the JDF, which will derive a 20 percent equivalent to only P40 million, it would appear that the total disbursements for equipment and facilities of P229.68 million was much more than the P40 million allowed.
If the 20 percent is computed based on the JDF balance amounting to P5.4 billion in those three years, the P229.68 million actually disbursed for equipment and facilities would be less than 20 percent cap.
Still, it appears that improprieties have been committed in relation to the Judicial Development Fund. For one, Davide's son sits on the committee that decides which construction companies and suppliers should get the contracts for the projects funded by the JDF - then the payment for such contracts will be approved and released by Davide, the father, alone. This son, Joseph Bryan Hilary, is also director of the Philippine Judicial Academy Development Center Inc, a private entity that does business with the Supreme Court.
Even granting that Davide didn't allow disbursements of the JDF in excess of the 20 percent allowed for equipment, there is the question of why the disbursements were not made for court equipment and facilities in the localities where the funds were collected - they were instead spent, in violation of the presidential decree, almost entirely on the requirements of the justices and the facilities of the Supreme Court in Manila.
As congressional rule goes, the articles of impeachment should be transmitted immediately to the Senate, which will turned into an impeachment court. Before the articles of impeachment could be transmitted, however, pro-Davide camps joined in by former president Aquino and current President Arroyo - the same groups that worked for Estrada's ouster in 2001 - held rallies in the congressional compound and initiated backroom negotiations with leaders of the House of Representatives.
As the congressmen-proponents of the impeachment were being promised that Congress would be allowed to exercise oversight powers over the highly discretionary judicial funds if they dropped the impeachment, the 15-member Supreme Court this Tuesday issued an en banc resolution calling on Congress "to maintain the status quo" - in other words, instructing the House of Representatives not to transmit the articles of impeachment to the Senate, and the Senate not to accept the transmittal. In the resolution, the Supreme Court ordered lawmakers to defend their actions before the tribunal next Wednesday against petitions filed by Davide's sympathizers to stop the impeachment trial.
Although the House leadership feared that the Supreme Court's action "could usher in a constitutional crisis", they nevertheless adjourned Congress's session until November 10, an act that enraged the Senate leadership.
These events unravel a chief justice who will stubbornly refuse to submit himself to a trial. Based on his pronouncements, too, he can be a person who, because of stature, will be slighted if anybody dared question the wisdom of his actions.
Lawyers are questioning the constitutionality of the NPC-initiated impeachment against Davide. The constitution prohibits the initiation of impeachment proceedings against the same official within a year - a provision that this impeachment case clearly violated. This is because the NPC-initiated complaint was filed before the House threw out the first impeachment complaint against Davide, the one filed by former Estrada against Davide and 11 other justices for swearing in Arroyo as president.
If Davide's camp focuses on this point, they will defeat the impeachment proceedings - in any forum. However, focusing on this technicality to have the complaint thrown out will leave allegations of his alleged corruption like an ax hanging over his head - the complaint, after all, can be filed again after the one-year prohibition. Some lawyers' organizations, in fact, have harped on this constitutional prohibition, but remained silent on allegations of fund misuse against Davide.
So for starters, Davide's Supreme Court shed off proprieties and entertained petitions by his sympathizers questioning the constitutionality of his impeachment, and consequently issuing a diplomatically worded temporary restraining order on Congress. The Supreme Court in effect seized the authority of the Senate, as an impeachment court, to determine whether the impeachment done by the House was unconstitutional.
Davide has also invoked the doctrine of separation of powers between the three co-equal branches of government: the executive, the legislature, and the judiciary. In a letter to Speaker Jose de Venecia Jr on September 30, when he sensed that an impeachment complaint against him was being readied, Davide said that by asking the Supreme Court to submit documents pertinent to judicial fund, and asking knowledgeable court personnel to submit data under oath, Congress was committing "an open breach of the doctrine of separation of powers".
Davide was mum about the separation of powers when the Supreme Court instructed Congress to halt the impeachment proceedings.
In refusing to open the JDF to congressional inquiry then, the chief justice also invoked a constitutional provision that guarantees the fiscal autonomy of the judiciary to ensure its independence. His explanation on this provision gave the impression that what he does with the judicial fund cannot be questioned by anybody - even by Congress, which makes the appropriations.
What the constitution actually means by financial autonomy of the judiciary is for that branch of government to be ensured that its budget every year will not be lower that the previous one. Ironically, Davide should have been the one to know that it was the intent of the constitution because he, in 1986, was the chair of the constitutional commission's committee on legislative power, and a member of the committees on the executive power and on the judiciary.
Davide, in his letter, also seemed to equate the judiciary with democracy. He told the Speaker: "This unprecedented inquiry may be the beginning of the destruction of our democratic institutions especially the judiciary, which is the last bulwark of democracy and the sentinel of the rule of law." Until now, however, Davide has yet to call as democratic and lawful his act of swearing in Arroyo as president due to political pressure.
Caught on television cameras on his way to the shrine where an anti-Estrada crowd had amassed for three days in 2001, Davide told reporters that he was going to swear in Arroyo as "acting president". He was then acting on a request by Arroyo, and the resolution giving him the authority to do so was made by the Supreme Court justices two days after the swearing-in. When the Arroyo camp published an edited oath that removed the word "acting", thus making Arroyo president permanently, Davide didn't go out of his way to correct this.
Davide, in fact, has a record of changing his interpretation of the law when political expediency has dictated it. In 1986, for instance, he was one of those in the Constitutional Commission who voted that the party-list system of electing some members of the House of Representatives would be open to all kinds of political parties and organizations, and that it wouldn't be a reserved-seat system for representatives of so-called marginalized sectors of society.
In 2001, groups involved in the anti-Estrada movement went to the Supreme Court to ask for the disqualification of party-list winners that didn't represent nor belong to the marginalized sectors like them. The tribunal ordered the disqualification, even listing requirements for party-list participants that were not in the law. Davide approved the decision, which completely contradicted the intent of the provision that he voted for in 1986.
Interestingly, one of the winning parties disqualified from the party list as a result of the Supreme Court's decision was the Nationalist People's Coalition, where most of the congressmen who impeached him belong.
Although party-list nominees of the NPC who were affected by the decision had been threatening in private gatherings to impeach Davide, the chief justice's supporters are convinced that the NPC action against Davide was spurred by the Supreme Court's decision last December 14 that said the coconut-levy funds that NPC founder Cojuangco had been using as his private money was "prima facie public funds".
The coco-levy fund, which now amounts to P100 billion, was collected from coconut farmers throughout the country during the time of Marcos to establish a common fund for the development of the industry - something that resembles the nature of the Judicial Development Fund.
Through political and business maneuverings, the coconut fund ended up being used to buy Cojuangco's personal shares in big businesses, such as San Miguel Corp and the United Coconut Planters Bank. To a much lesser scale, but improper nevertheless, the JDF has been used, with Davide's approval, to ensure the personal comfort and convenience of the justices.
Except in a few publications, Davide's version of the impeachment story has dominated news in Manila. His sympathizers' preventive strike is that journalists who will come up with anti-Davide or anti-Supreme Court stories have most likely been bribed by Cojuangco's or the NPC's camp.
Two major television stations, however, on Tuesday braved the odds and aired a story that some congressmen allegedly received P2 million each in exchange for withdrawing their signatures from the impeachment complaint against Davide. Who was the source of the alleged bribe money, according to human-rights advocate and now Estrada lawyer Rene Saguisag? Why, businessman Lucio Tan.
(Copyright 2003 Asia Times Online Co, Ltd. All rights reserved.
Asia Times October 6, Excerpts from 2004 “Will the last one leaving please turn off the lights?”
In Manila, Bragas-Regalado lays down the line: “GMA [Gloria Macapagal-Arroyo] is pushing OFWs to pay taxes, despite the absence of adequate government services and protection here and abroad. This administration is propagating a big lie by indirectly blaming us for the fiscal crisis and poor tax collection.” And this is happening while “big-time tax evaders like [Chinese-Filipino tycoon] Lucio Tan go unscathed”. Migrante stresses that the US$7.6 billion in remittances by OFWs in 2003 “is almost 100 times the figures of foreign direct investments.
(Now, what is that “Run After Tax Evaders” is she yelling about? Dung!!)
Dam’s rehab meant to protect Fortune
Philippine Daily Inquirer
First Posted 02:41:00 10/07/2008
This is a reaction to the article titled, “Citizen Lucio Tan focuses on irrigation.” (Philippine Daily Inquirer, 8/19/08)
On the surface, the efforts of Lucio Tan appear to be laudable: P4 million for the rehabilitation of the Silag-Pacang diversion dam, which can irrigate tobacco fields in Ilocos Sur province. But when one looks past the rosy picture, things start to smell fishy.
Tan put money into the dam’s rehabilitation not because he sympathized with the plight of hundreds of tobacco farmers in the area but because he was protecting the interest of his Fortune Tobacco Corp., Ilocos Sur being a source of raw material for his cigarette manufacturing business.
If Tan’s heart is pure, why would his company — as reported by former Ilocos Sur Provincial Board member Elpidio Que — buy Virginia tobacco leaves from farmers in Ilocos for only P40 a kilo but pay the equivalent of P200 per kilo to growers in Yunnan, China for the same type of tobacco?
If Tan is truly benevolent to the tobacco farmers, and considering his massive wealth, has he done anything to eliminate, if not address, the various health problems that tobacco farmers — some of whom are children — suffer? A study in 2002 revealed that several children working in tobacco farms in the Ilocos area suffered various diseases—among them, dermatitis, melanoma, nicotine poisoning, asthma, rhinitis, acute pulmonary responses and burns (from contact with fertilizers and pesticides) — from exposure to too much sunlight and chemical fertilizers.
If he is truly compassionate, Tan should use his riches to help tobacco farmers find better alternative livelihood and income-generating activities that do not put them at risk. (Frustrated by the oppressive pricing and trading practices of buyers, many tobacco farmers have converted to other cash crops.)
The World Health Organization pinpointed tobacco smoking as the leading preventable cause of death worldwide, with about five million people dying each year, or an average of one death every six seconds.
In the Philippines, 87,600 Filipinos — about 8 to 10 every hour — die every year due to just four of tobacco-related diseases: lung cancer, stroke, heart disease and chronic obstructive lung disease. A 2005-2006 study showed that public health spending on the four diseases alone amount to P276 billion. In the same period, the Bureau of Internal Revenue had P92 billion in revenues from the tobacco industry. It doesn’t take a genius to figure out whether or not the country is benefiting from Tan’s tobacco business.
Tan may have shelled out P4 million to rehabilitate a dam, but he knows very well that his company can recover the same amount from the millions of smokers.
Tobacco farmers cannot — and should not — be deprived of livelihood, but this is one situation where we cannot afford to have trade-offs, where there shouldn’t be any losers because the consequences are a matter of life and death.
ANDREA TRINIDAD-ECHAVEZ, program manager, media advocacy, Framework Convention on Tobacco Control Alliance Philippines (FCAP), www.tobaccocontrol.ph
gloriaechibay (posted on Dec 07, 2008 01:31 AM)
Member since Sep 11, 2008
“ The Way I see It
In a broadsheet column of Mareng Winnie that I belatedly read last night titled “The Que Stories: Who’s listening?”, is that subject, Elpidio Que of Ilocos Sur, the same as our Inbox World’s Elpidio Que of Vigan? It must be so since Vigan is in Ilocos Sur, hindi ba? Elpidio-san, even if your name is not a household word as Lozada’s or Bolante’s, it is a known word of our Inbox World. You must be a rare breed of a man, worthy to be a shogun of Japan, or at least Vigan, neh? Keep it up! We pray for you in your crusade, or whistleblowing if that is what you really are irregardless of your motive. Our country needs someone like you with that kind of guts. Fear not what evil men can do unto you. God protects those whom He uses for the goodness of our in-pain nation. How I wish I can meet you in person, handsome or not, Shogun.
Gloria Echibay, Makati
kamagong (posted on Dec 07, 2008 04:21 AM)
Member since Dec 03, 2008
gloriaechibay wrote:
The Way I see It
In a broadsheet column of Mareng Winnie that I belatedly read last night titled “The Que Stories: Who’s listening?”, is that subject, Elpidio Que of Ilocos Sur, the same as our Inbox World’s Elpidio Que of Vigan? It must be so since Vigan is in Ilocos Sur, hindi ba? Elpidio-san, even if your name is not a household word as Lozada’s or Bolante’s, it is a known word of our Inbox World. You must be a rare breed of a man, worthy to be a shogun of Japan, or at least Vigan, neh? Keep it up! We pray for you in your crusade, or whistleblowing if that is what you really are irregardless of your motive. Our country needs someone like you with that kind of guts. Fear not what evil men can do unto you. God protects those whom He uses for goodness of our in-pain nation. How I wish I can meet you in person, handsome or not, Shogun.
Gloria Echibay, Makati
“ gloriaechibay:
You are not alone, Elpidio Que. It appears that Vigan City Council and the Bureau of Internal Revenue (BIR) are not doing enough to dig deeper into the alleged Lucio Tan’s tax evasion. They become impotent when influential big businessmen are involved in tax manipulation. The city council has no yagballs? Corrupted so soon? They only used you to personally gain corruption money from beho Lucio? Ranches, where are you? Hello? Tax collection drive under morally bankrupt Arroyo government is just for propaganda.
Marc Avisa
Vigan City, Ilocos Sur 2700
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