POLITICAL 7

Senate convicts Chief Justice Corona

The Senate Court, voting by an unexpectedly high 20-3, has convicted Chief Justice Renato Corona. The senators believe that the Chief Magistrate is guilty of culpable violation of the Constitution and betrayal of public trust for his failure to truthfully and fully disclose his assets in his Statement of Assets, Liabilities and Net Worth (SALN). It found Mr. Corona unfi t to stay on as the Chief Justice of the Republic of the .

t is the first impeachment case in Philippine history to be successfully completed. I It was generally expected the vote would be close, it wasn’t. It was an overwhelming indictment of the Chief Justice. The character of the three that thought him innocent only further strengthened the indictment against him. What nailed him was his own admission of what was in his bank accounts. He argued the dollars were legitimately saved (using some strange fi nancial logic) but that wasn’t at issue. What was was that he hadn’t declared them. Claiming non-disclosure was allowed due to the confi dentiality of the Foreign Currency Deposit Act was a twisting of interpretation of a law unbecoming a lawyer, let alone the Chief Justice. Whist the “commingling” of peso deposits also defi ed that President Aquino’s fi xation on eradicating corruption reasonable belief. Even if true he should have declared as they could lead to some quite fundamental change in Philippine were listed in his assets (they were in bank accounts under his society as senior members of society realize they too may name) and then offset them with a debit item. He didn’t do so. be caught if they now don’t behave. It was a huge gamble of The Senate decision effectively removes Mr. Corona from his the president, one he has won. We can expect more to follow. position and bars him from assuming public offi ce for the rest of his life. It will be interesting to see the impact that Mr. Corona’s More than two-thirds of the Senate (only 16 votes were conviction will have on President Aquino’s popularity, an needed to convict the CJ) agree that the SALN law, which important political capital necessary to implement tough measures. requires FULL disclosure of assets including cash-in-bank, should Contrary to Mr. Corona’s claim that the impeachment override the Foreign Currency Deposits Act which, according trial was an attack on the judicial branch of government, the to Mr. Corona and his lawyers, grants absolute confi dentiality WBF believes that the impeachment was a required initial to all foreign currency deposits without qualification. step toward strengthening the integrity of the Supreme The Chief Justice’s impeachment trial is regarded as one Court, and of the country’s judiciary as a whole. The case of the current administration’s boldest moves to tackle graft has shown the dramatic decline of former president Arroyo and corruption in the Philippines. Ombudsman Gutierrez is who desperately needed to keep the fi ercely loyal Corona in out; ex-president Arroyo is under hospital arrest; and now position to protect her once her cases reach that court (as will Chief Justice Corona has just been expelled. Hopefully, these are only the beginning of a true clean-up. The WBF believes Philippine Alert May 2012 8 POLITICAL

HOW THE SENATOR-JUDGES VOTED

CONVICT ACQUIT

1. Juan Ponc 1. Joker Arroyo 2. 2. Miriam Defensor-Santiago 3. 3. Bongbong Marcos 4. 5. 6. 7. 8. Teofi sto Guingona lll 9. Gringo Honasan 10. Panfi lo Lacson 11. 12. 13. Serge Osmeña 14. 15. 16. 17. 18. 19. IV 20.

COMMON POINTS RAISED BY THE 20 SENATOR-JUDGES

The CJ violated the Constitution and the SALN Law by failing to truthfully and accurately disclose assets and properties in his SALN

Through his own admissions of non-disclosure before the SIC, Mr. Corona effectively admitted violating the Constitution and the SALN Law. It was his own testimony that was used against him. There is no exception to the requirement for full public disclosure; the law applies equally to all public offi cials (a comparison given was Delsa Flores, a court employee who was removed from offi ce for failure to declare ownership of a small market stall)

Sen. Legarda: Truthful declaration in a SALN is a key element of transparency; acquittal could cast widespread doubt on credibility and distrust in the institution of the SC Sen. Pangilinan: non-disclosures showed a pattern of dishonesty Senators Drilon and Escudero: FCDU confi dentiality provision prohibits banks from disclosing information, but not depositors Sen. Honasan: Even though the prosecution failed to prove bad faith in non-disclosure; doubts now raised on the character of the CJ render him unfi t to preside over the SC Sen. Lacson: The high standard of the post occupied rendered the CJ morally unfi t to hold that position due to inaccurate statements before the SIC Sen. Lapid: Public prosecutor Fariñas’ arguments more believable Sen. Recto: The issue boils down to the degree of miscalculation as minor discrepancies are acceptable, but the huge amount of the CJ’s undisclosed assets was not an “innocent exclusion”

happen). The other Arroyo–appointed justices will now be far the rushed vote of the lower House to impeach and, questioned more circumspect in their decision-making. As it is Justice if falsifi cation of a SALN (if it did occur) was suffi cient cause del Castillo has a petition for impeachment for plagiarism to remove a Chief Justice from offi ce. On this several senators hanging over him. It wouldn’t take much to make it active. quoted previous cases where lesser public servants had been With Mr. Corona removed from offi ce, now is the most terminated for much lesser amounts of discrepancy in their opportune time to introduce reforms to the judiciary (e.g. hire SALN. The 3 Senators cited technicalities which do not hold more judges and court personnel and increase their pay; and invite in a quasi-political, quasi-judicial impeachment process. experts or “friends of court” when deciding on business-related The WBF believes that an acquittal of CJ Corona would cases). It’s time for a complete shake-up of the Philippine court have set a very dangerous precedent as far as disclosing assets system in its entirety, not just removal of one man. CJ Corona’s is concerned. Corrupt offi cials, for instance, would have a conviction could be the catalyst for that much-needed reform. fi eld day concealing their wealth as all they need to do is to Only Senators Joker Arroyo, Miriam Defensor-Santiago, convert their peso accounts into foreign currency deposits. and Bongbong Marcos voted to acquit the Chief Justice. Mr. Corona’s credibility had been severely tarnished, even They failed to recognize the larger issue of what was best before the start of the proceedings. For him to be acquitted and to for society as they got tangled in details of legitimacy of the hold on to power would have greatly undermined the credibility sourcing of documents, whether due process was met given of the Senate, the Supreme Court and the entire judiciary.

Philippine Alert May 2012 POLITICAL 9

From the beginning we stressed that Mr. Corona’s acceptance Lead defense counsel Serafi n Cuevas said his team is of a midnight appointment with glaringly obvious political motives looking at elevating the results of the impeachment proceedings from a leader who will no longer be there was behavior unbecoming to the Supreme Court. The defense panel has argued that the the chief justice of a nation. An honorable man would have politely impeachment complaint should be considered invalid as it deprived declined and left it to the next president to make the choice. It the CJ of due process and that a mistrial must be declared. If the was that that (rightly) angered President Aquino and triggered the defense attempts that route it triggers a constitutional crisis that campaign to have him removed from offi ce. The SC decision on could have far-reaching affect on the roles of the three branches Hacienda Luisita was peripheral to that, if it was an issue at all. of government. There seems little doubt but that the Senate As we mentioned in our previous bulletin, he should’ve would reject any challenge to the legitimacy of the proceedings, resigned from the outset. He could’ve saved the country and ignore any Supreme Court decision made otherwise. from all this divisiveness and dissension. And he could The SC would lose, and lose much of its stature and power. have retained his reputation. Now he’s a finished man In our maiden bulletin we pointed out that the impeachment unable to hold any public offi ce ever again, and likely to of the Chief Justice will determine whether President Aquino fi nd diffi culty in moving successfully into the private sector. will be able to bring some societal change into the Philippines, or What the impeachment case uncovered now raises the not. That reform might just come now after Corona’s conviction. question of how did the Chief Justice amass so much wealth Chief Justice Renato Corona’s removal is a continuation - $2.4 million and P80 million on his salary of P70,000 per of the cleansing the Philippines so desperately needs. The month (lesser in earlier times). The BIR, the Commission larger issue of a Dysfunctional Court System (our Special on Audit and the Offi ce of the Ombudsman can be expected Report released in December last year) will now come now to investigate and pursue cases against Mr. Corona. With to the forefront. And a court system that is in substantial the damning pieces of evidence presented by the prosecution disarray may well begin to see more positive change. But (assuming they are reasonably correct), it is highly possible that it will be a slow, frustrating movement in that direction. Mr. Corona will next face a criminal court for ill-gotten wealth. Yesterday we saw the triumph of democratic processes. Pres. Aquino is okay sharing disputed waters, Malacañang was right; the impeachment process will strengthen the country’s democratic institutions. The recently-concluded resources with China trial showed that the system of checks and balances still works Finally realizing a grave mismatch in defense capabilities in this country (no need to stage street protests to oust an erring offi cial). A higher level of maturity has been attained. and even fi nding it extremely diffi cult for the Philippines The trial showed that documents that ensure transparency, to secure the West Philippine Sea from poachers, as well as such as the SALN forms, must be taken seriously. The in light of the “unoffi cial sanctions” China has imposed on impeachment trial has defi nitely raised public awareness tourism and trade against the Philippines, President Aquino on the importance of the SALN. And for government now appears to be open to a joint use of the area. officials to earn the respect of the public at all times. This highlights the need for Congress to immediately On May 16, Pres. Aquino admitted the urgent need to fi nd a pass the Freedom of Information (FOI) bill, something win-win solution to the territorial dispute with China if only to the President now needs to more firmly stand behind. end the standoff in Scarborough Shoal. He hinted at the possibility The impeachment proceedings have concluded after almost of the Philippine government opening up a proposal for joint 5 months and 44 trial days. It’s time for the Senate to resume its exploitation of resources in the disputed areas within the West legislative function and immediately approve key business and Philippine Sea (also known as the South China Sea) not just with economic bills that have stalled due to the impeachment trial. The China, but also with the other neighboring countries which have Congress still has 7 session days to tackle crucial measures. The claims over the disputed waters. Pres. Aquino, however, clarifi ed 2nd regular session of the 15th Congress will adjourn on June 8. that the act of opening up for a possible joint exploration of the It was clearly established yesterday that failure to disclose West Philippine Sea should not be construed as abandoning assets or undervaluation of declared properties is an offense assertions of sovereignty in an area that is well within the justifying termination from public service. An omission may Philippines’ 200-nautical mile exclusive economic zone (EEZ). not be accepted as an excuse, especially if discrepancies and China had earlier said that it was ready for “any escalation” the amounts involved are too gargantuan to be a mere oversight. of a tense maritime standoff with the Philippines over the A replacement for Corona now has to be chosen. Recall disputed Shoal. Unfortunately, Philippine defense capabilities that as early as December 26 last year (almost 2 weeks after do not match China’s military superiority. In fact, Foreign the House impeached CJ Corona), President Aquino already Affairs Secretary Albert del Rosario revealed that the Aquino asked his legal advisers to provide him a short list of people that government had to ask the United States to supply the Armed he can consider for the position. The process requires that the Forces of the Philippines with patrol boats and aircraft, as well Judicial and Bar Council (JBC) should submit a short list from as radar systems, in the face of the escalating territorial dispute. which the President can choose, and only from that list. But The already 2 month-long fl are-up is one of the most high-profi le it’s inevitable that he’ll be able to make his preferences known. incidents over the years between the 2 countries over their competing territorial claims to parts of the South China Sea, which is believed to sit atop vast oil and gas deposits. The 2 countries have been locked in the row since April 8, when Beijing’s Philippine Alert May 2012 10 POLITICAL

The possible joint exploration of the West Philippine Sea should not be construed as abandoning assertions of sovereignty.

vessels blocked a Philippine warship from arresting crews of consideration,” Mr. Bautisa said. The fi nal list will be released Chinese fi shing boats near the disputed Shoal — or Huangyan offi cially by the UNA secretariat, chaired by its secretary-general Island in Chinese. Both Beijing and have sent ships to Rep. Toby Tiangco. Mr. Binay had earlier said former Sen. Juan the area, racking up tensions in the region. Currently, 15 Chinese Miguel Zubiri, who has joined PMP, would be in its line-up, along vessels are anchored off the disputed Shoal, facing off against a with Rep. Mitos Magsaysay of Lakas. Also being considered Philippine Coast Guard ship and a Bureau of Fisheries vessel. are Senators Loren Legarda (Nationalist People’s Coalition), Lately, China has resorted to what is seen as economic Francis Escudero, Alan Peter Cayetano () and bullying. Amidst the standoff, Beijing imposed a heightened former Rep. Cynthia Villar (NP), wife of Sen. Manuel Villar. restriction on Philippine fruit exports to China, such as bananas, In other developments, while the ruling Liberal Party (LP) papayas, and pineapple, allegedly due to pest infestation. This has yet to convene an assembly where candidates for next has resulted in signifi cant losses especially for the local banana year’s mid-term elections are to be selected in accordance with industry, which exports 30% of its produce to China. Philippine the consensus of the majority, President Aquino managed to fruit shipments were held in Chinese ports and banned entry name four of the 12 sure LP senatorial candidates. The Chief into the mainland. The Pilipino Banana Growers and Exporters Executive announced the inclusion of 2 losing LP senatorial Association (PBGEA) claimed that this restriction is widely bets and sons of 2 allies from outside the LP fence. Claiming to linked to the territorial dispute between the Philippines and be swamped by a lot of aspirants, Mr. Aquino said: “We have China over the West Philippine Sea. PBGEA estimates that the 4 candidates already that have been decided on.” The LP’s fi rst loss incurred by the banana industry has amounted to P1.4 billion 4 Senate picks include Customs Commissioner Rufi no Biazon since the standoff over Scarborough Shoal started, with some and former Akbayan party-list Rep. Risa Hontiveros. Both Mr. 35,000 small banana growers affected. To add to this, Beijing Biazon and Ms. Hontiveros ran and lost in 2010 national election. has also issued a travel advisory on the Philippines that resulted The other 2 are Aurora Rep. Juan Edgardo Angara, one of the in the suspension of tour packages. In mid-May, China, which is spokesmen of the prosecution panel in the impeachment case 4th largest source of tourists for the Philippines, issued a travel against Chief Justice Renato Corona, and Technical Education and advisory telling its citizens to avoid “unnecessary travel” to Skills Development Authority (Tesda) chairman Joel Villanueva. the Philippines in view of the protests over the West Philippine Much as the Aquino camp makes light of the reported falling Sea. Following this, the Tourism department reported that about out between the nation’s top 2 leaders, there is no denying that 1,500 tourist have already cancelled trips to the Philippines. battle lines have been drawn between UNA and Mr. Aquino’s As these developed, China continued to reject proposals to Liberal Party for next year’s mid-term elections and the bring the dispute to the United Nations (UN) for resolution, saying presidential derby in 2016. UNA is shaping up to be a formidable it will agree only to bilateral negotiations. Foreign Affairs Sec. political force. Other parties are reportedly in talks to join UNA, del Rosario, meanwhile, met with UN Secretary-General Ban in particular Mr. Villar’s Nacionalista Party and industrialist Ki-Moon, where he reiterated that the Philippine government Eduardo Cojuangco’s Nationalist People’s Coalition. Even the remains committed to a peaceful solution based on the UN Charter, former ruling party, the Lakas-Christian Muslim Democrats, the UN Convention on the Law of the Sea and international has made overtures to this effect, with House Minority Leader law. “We believe that the unfolding events are of great interest Danilo Suarez saying the party would support UNA’s senatorial to all nations, as they have a stake in the peace and stability line-up. However, UNA’s most powerful asset is Vice President of this economically and politically strategic area,” he said. Binay himself, who is wily and wildly popular and consistently tops all satisfaction ratings of government offi cials, in contrast to Pres. Aquino, whose numbers have been on the decline. After UNA bares fi rst 5 senatorial bets May 2010, the landscape was wiped clean by Pres. Aquino’s electoral victory, with few daring to challenge the administration The United Nationalist Alliance (UNA), a newly formed on issues, as the opposition scrambled for political cover. UNA coalition of Vice President Jejomar Binay’s PDP-Laban has changed all of that. It has rebuilt the foundation of the and former President ’s Pwersa ng Masang opposition—a necessary ingredient in a healthy democracy. Pilipino (PMP), has named 5 candidates in its senatorial ticket.

Spokesman Jose Virgilio Bautista said the alliance named Sens. Aquilino Pimentel III (PDP-Laban) and (Independent), Reps. Jackie Enrile (PMP) and Joseph Victor Ejercito (PMP), and Mr. Jose de Venecia III (PDP-Laban) in its senatorial line-up. “There are 9 remaining slots and UNA is faced with a happy dilemma: we have more than 9 names under Philippine Alert May 2012 POLITICAL 111

Pres. Aquino, kin lose Hacienda Luisita

It’s fi nal. Hacienda Luisita’s close to 5,000 hectares are to be distributed to the farmer-workers while the Cojuangco- Aquino family ends up with a compensation of a little less than P200 million, as against the family seeking a compensation Mindanao peace accord ‘possible’ but more of P5 billion for the hacienda, in a landmark decision by hard work to be done the Supreme Court. The United Kingdom, a key player in the Mindanao peace President Aquino’s appointees to the SC, Associate Justice process, on April 27, welcomed the breakthrough in the Lourdes Sereno, Estela Bernabe and Bienvenido Reyes voted to negotiations between the Philippine government and allow an agency under the control of Malacañang to determine Muslim rebels as a sign that a fi nal peace agreement may the amount which the Hacienda Luisita Inc. (HLI) is to receive as be forged soon. compensation for placing the sugar estate under the government’s agrarian reform program. They were however, outvoted by the British Ambassador to the Philippines Stephen Lillie majority justices. It will be recalled that Ms. Sereno earlier sought admitted “there is still a lot of hard work to be done to reach a a compensation price based on land valuations of 2006, instead fi nal agreement in Mindanao,” but the leap forward in the talks of what the earlier majority wanted: Land valuation based on between the two sides indicates that the signing of a fi nal accord 1989 prices, when the Stock Distribution Option (was forged is “possible.” On April 24, the government and the Moro Islamic with the farmers during the term of the late President Cory Liberation Front, the country’s largest Muslim rebel group, Aquino. The SDO allowed the Cojuangco-Aquinos to have 66 signed a 10-point agreement, outlining key elements they have percent of the stocks, while the 6,000 or so farmers only held 33 agreed on, such as the creation of a political body in place of the percent, with no representation in the HLI board. In 2006, the existing ARMM. The latter was formed when the government SDO was declared illegal by the Department of Agrarian Reform and former secessionist group Moro National Liberation under the Arroyo administration, a move which the SC upheld. Front signed the 1996 Peace Agreement, allowing Muslims to The history of Hacienda Luisita goes back several decades. have their own government without breaking away from the Land distribution was among the conditions set in the loan Philippines, but since then it has been deemed unsuccessful in secured in 1957 by Mr. Jose Cojuangco Sr. from the Government uplifting the lives of many impoverished Muslims. Service Insurance System, guaranteed by the Central Bank, to Britain is a member of the International Contact Group along acquire the farm estate and the Central Azucarera de Tarlac from with the governments of Japan, Turkey and Saudi Arabia and the Spanish Tabacalera. Mr. Cojuangco and his family’s Tarlac international non-government organizations the Asia Foundation, Development Corp. held on to the estate, prompting the Marcos the Center for Humanitarian Dialog, Conciliation Resources and regime to go to court to compel land distribution in Hacienda Muhammadiyah. The ICG was created to complement the work Luisita, but the effort was overtaken by the 1986 people power of the Malaysian facilitator, particularly to aid in maintaining a revolt. Mr. Cojuangco’s daughter Corazon signed into law a level of comfort and mutual trust between the negotiating parties. measure, shepherded through Congress by landowners including The MILF, which used to be part of a larger secessionist her brother Jose, which gave owners of agricultural estates the group, had been waging rebellion in the Southern Philippines option to distribute corporate stocks rather than land to tenants. since 1969, in one of Asia’s longest-running insurgencies. With the SC ruling, the stock option has been scrapped. The Aquino administration has made peace with the MILF a HLI, where President Aquino says he holds a negligible share, top priority. Of course, nobody wants war. The pursuit of peace, also lost its bid to peg the value of the land for distribution prosperity and happiness is the advocacy of the entire Filipino at about P5 billion. The SC ruled that the compensation for nation and enshrined in the Constitution. However, while the HLI should be based on the much lower valuation in 1989. nation desires peace, prosperity and happiness, it is also the While this battle rages, the government should move to responsibility of that nation to protect itself from any and all threats, ensure that agrarian reform will work for the 6,296 benefi ciaries both from without and from within. For too long the government in the 4,915.75-hectare estate. The agrarian reform program is has bent backward to suffer the treachery of Muslim rebels. To supposed to be a centerpiece of poverty alleviation in a country attain peace, prosperity and happiness, it willingly parlayed the that is still largely agricultural. When it fails to live up to its lives of its soldiers. But based on recent attacks on government promise, it is because the benefi ciaries lack the necessary support forces and installations, it seems that the Muslim rebels view that services, from irrigation to fertilizer to roads and post-harvest willingness as a weakness to be exploited and taken advantage of. facilities. The government knows what farmers need; it must see to it that agrarian reform will work in Hacienda Luisita.

Government should move to ensure that agrarian reform will work for the 6,296 benefi ciaries in the 4,915.75-hectare estate.

Philippine Alert May 2012 12 POLITICAL

The state must regain primacy over treacherous troublemakers. The massacre will be remembered again year-after-year as It is an anomaly for a state to stay rooted in a policy of being the World Press Freedom Day is observed. As in previous years, one to constantly sue for peace, while the opposing side has so the land of people power will again be classifi ed as one of the far carried on assaults against government forces and continued most dangerous and “murderous” countries for journalists. to coddle Muslim extremists. Mr. Aquino is the president of the The Freedom of Information Act could make the work of entire nation and must realize that, for decades, the Muslim rebels journalists easier. But various versions of the measure have have resorted to the same tactics. If the Philippine government been tossed around in the legislature for a decade now, and still desires to bargain and negotiate with Muslim rebels, then it still the prospects for enactment remain dim. Lawmakers now should be from a position of strength. This approach, coupled with promise the passage of the proposed measure on the approval programs to develop socio-economic in the southern Philippines, of another that, as proponents envision it, contravenes the is the only way a true and lasting peace can be achieved. essence of press freedom: the right of reply bill. This privilege that lawmakers are demanding apparently has some support Philippines advances but remains ‘partly free’ from Malacañang. It will allow its proponents to dictate what newspapers can put in their pages and how mass media must in global press freedom rankings treat the news. The measure, if passed, will be on top of existing laws that allow anyone maligned by the press to sue for libel, Press freedom has improved in the Philippines over the a criminal offense that carries penalties of imprisonment up to course of the last year but the country is still rated as “partly several years as well as fi nes with no limits on the amounts. free” by a Washington-based non-government organization. Those who have no patience with the glacial pace of Philippine justice don’t bother with libel suits and simply silence In the Freedom House’s 2012 Freedom of the Press rankings, the bearer of bad news. This impunity in committing murder is 12 other countries were rated partly free, including Association best complemented by the right of reply bill, whose proponents of Southeast Asian Nations members Indonesia and Thailand. want freedom to control the press. It would be ironic if the This year alone, however, the Committee to Protect Journalists measure would be enacted under the watch of someone who rose identifi ed 2 Filipino journalists as victims of media killings. to power on a platform of transparency and good governance. Malacañang, for its part, welcomed the report released by the Washington-based advocacy organization Freedom House ranking the Philippines the highest in press freedom among its neighbors in Southeast Asia in 2012. “The improved rankings of the Philippines represents a recognition of the Philippine government’s initiatives to strengthen press freedom,” presidential spokesman Edwin Lacierda said in a statement. The Freedom House cited the reduction in violence against journalists, attempts by government to address impunity, and expanded diversity of media ownership as the reasons for our country’s gains. One of the key components of press freedom is transparency and increased access to information. Under this administration, which has made transparency accountability its twin mantras, the resistance to the enactment of the Freedom of Information Act is puzzling. Such a law could surely help get to the truth in the impeachment trial of Chief Justice Renato Corona. It could have helped bare the immense wealth accumulated by the Ampatuans, which was clearly not commensurate with the clan’s legitimate sources of income, when they had a stranglehold on the Autonomous Region in Muslim Mindanao. The enormous assets allowed the clan to maintain a private army and stockpile weapons. Public disclosure of those assets might have minimized the impunity that led to the 2009 massacre in Maguindanao, wherein more than half of the 57 confi rmed victims were media workers.

Resistance to the enactment of the Freedom of Information Act is puzzling.

Philippine Alert May 2012