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The Case of Hacienda Luisita, Tarlac Province, Philippines

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The Case of Hacienda Luisita, Tarlac Province, Philippines CONTROVERY, COMPROMISE, and RECONCENTRATION in AGRARIAN REFORM IMPLEMENTATION: The Case of Hacienda Luisita, Tarlac Province, Philippines A Field Studies Paper Submitted to The Graduate School of University of the Philippines Los Banos In Partial Fulfillment Of the Requirements for the Degree of MASTER IN PUBLIC AFFAIRS AND DEVELOPMENT Major in Agrarian and Rurban Studies by GIL I. ESPENIDO May 2016 Page 1 of 83 APPROVAL SHEET This Field Study entitled the CONTROVERSY, COMPROMISE, and RECONCENTRATION in Agrarian Reform Implementation: The Case of Hacienda Luisita, Tarlac Province, Philippines prepared and submitted by Gil I. Espenido as partial fulfillment of the requirements for the Degree of Masters in Public Affairs and Development major in Agrarian and Rurban Development Studies. Accepted as partial fulfillment of the requirements of the Degree of Masters in Public Affairs and Development major in Agrarian and Rurban Development Studies. ___________________________ Prof. Rolando T. Bello Chair _________________________ ________________________ Dr. Merlyne M. Paunlagui Dr. Bing C. Brillo Member Member ___________ Date Page 2 of 83 ABSTRACT The farmworkers were short-changed three times. The peso loan for the acquisition of Hacienda Luisita in 1957 (completed in 1958) from Don Antonio Lopez Y Lopez by the CoJuanco’s was financed by the Government Service Insurance System(GSIS) on condition that Jose CoJuanco (Pnoy’s grandfather) will distribute the whole hacienda to the tenants after ten years, or in 1967. The Central Bank also facilitated a dollar loan through the Manufactuers Trust Company in New York for the purchase of the sugar mill on a similar condition. 1967 came and passed but the hacienda was never distributed to the farmers. During the campaign for the snap election in 1985, then presidential candidate Corazon “Cory” Aquino, promised to make land reform as the center-piece of her administration. After she assumed the presidency, Cory also promised to subJect Hacienda Luisita under agrarian reform. After the enactment of RA 6657 in 1988, a new mode surfaced which helped corporate farm owners evade actual land distribution through the onerous Stock Distribution Option (SDO). This new scheme designated the possession and control of agricultural land to corporations while depriving the farmworkers ownership over the land. This scheme was vigorously implemented by the Cory administration in Hacienda Luisita, breaking Cory’s promises. The final and executory resolution of the Supreme Court on the Hacienda Luisita, Inc. case in 2011 instructed the Department of Agrarian Reform (DAR) to facilitate the transfer of land ownership of agricultural lands in Hacienda Luisita to qualified farmworkers all within a period of one year. The DAR land distribution scheme in Hacienda Luisita is a typical program of a state-led land reform within a highly stratified society like the Philippines. Its implementation is marred with dubious irregularities that rendered the supposed beneficiaries disenfranchised and swindled through: (a) inserting questionable names into the masterlist of beneficiaries; (b) procuring a dubious and overpriced land survey; (c) exclusion of hundreds of hectares of agricultural land from distribution; (d) imposition of compulsory signing of promissory notes to ensure amortization payments; (e) grant of overpriced landlord compensation to the HLI / CoJuangco- Aquinos; (f) inept facilitation of the audit of HLI and CHI assets; and (g) passionate Justification of CoJuangco-Aquino claims over agricultural lands in Tarlac City; (h) inaction on farmworkers’ appeal for revocation of conversion order on 500 hectares (RCBC/LIPCO); and (i) imposition and promotion of block farming scheme “as support service” to serve landlord interest. Page 3 of 83 All these happened while majority of these contested lands were already pawned to the middlemen since 2002. This has created a tragic situation wherein the lands distributed are now effectively in the hands of the middlemen. Effectively, the system of arriendo has institutionalized a subtle way of dislodging the farmworker from his awarded land. Private security forces and state military and police personnel are no longer needed to evict farmworkers from the land. Since the illegal transaction is consciously entered into by the farmworker, his dislocation from his means of production is easily consummated. Page 4 of 83 Table of Contents Page Abstract Chapter I Introduction 7 Statement of the Problem 8 Objectives of the Study 9 Significance of the Study 9 Chapter II Methodology and Data Sources 9 Locale of the Study 9 Data Sources 10 Instruments Used 10 Definition of Terms 11 Limitation of the study 12 Chapter III Background of the Study (Historical Context 13 Of Hacienda Luisita) Chapter IV CARP (The Stock Distribution Option) 16 Chapter V The Journey From SDO to Land Reform Distribution 18 and the 2013- 2014 Land Distribution Implementation The Struggle to Nullify the Stock Distribution Option 19 The 2013-2014 Land Distribution Implementation 25 The Fluidity of the Masterlist 25 The Irregularity of the Land Survey 29 The Contentious 500-hectare “converted land” 34 TADECO’s Resurrected Claim 36 Lot Allocation Through Raffle 38 Certificate of Land Ownership Award (CLOA) Distribution 43 Cojuangco’s Milking the Government by Being Paid in 46 Millions Page 5 of 83 Chapter VI Land Reconcentration 49 State-led Reconcentration 49 Block Farming and the Passage of Sugarcane Industry Development Act of 2015 Private-led Reconcentration 53 Two types of Arrienda System 55 Increasing Transactions of Outright Sale of Lots Awarded 57 Creeping Ejections of Individual Beneficiaries from the 58 Land Chapter VII Conclusions and Recommendations 59 References 61 Appendices 64 Page 6 of 83 I. Introduction The huge size of Hacienda Luisita together with the landed estates in Negros as well as in other provinces are living testimonies of how ruling families in the past were able to accumulate large tracts of land. But through the decades, large and old provinces had been subdivided into new provinces to become fiefdoms of landlords and/or warlords, and cities had to accommodate geographical changes in their boundaries. Yet, Hacienda Luisita is among of those estates that were able to retain its large expanse of land. In fact, the hacienda is bigger than some cities in Metro Manila that are densely populated. Source: 2013 HL National Fact Finding Mission These vestiges of feudalism graphically show how skewed land ownership is in our country. Researches using the political economy framework have empirically established the various feudal and semi-feudal relations and operations of such estates. Former Chief Justice Corona puts it sharply that “Hacienda Luisita has always been viewed as a litmus test of genuine reform program.” This is especially true since two presidents (the so-called icon of democracy, Cory Aquino and the current president, Noynoy (who claims that the masses are his bosses) come from the family that owned Hacienda Luisita. Page 7 of 83 Hacienda Luisita symbolizes the hacienda system that ties the country and the rural population to underdevelopment and perennial crisis. The CoJuangcos have been relentless in their maneuvers and schemes to retain its monopoly over the hacienda and prevent its distribution to the farmworkers. On the 24th of April, 2012, as the impeachment trial of SC Chief Justice Renato Corona was taking place in the Senate, the Supreme Court “ruled in finality” through its resolution no. 171101, confirming their November 24 ,2011, decision that the land be distributed to the farmers with compensation at November 21, 1989, prices (OFW Blogger, 2013). Agrarian reform is popularly defined as “the distribution of public and private agricultural lands, regardless of produce and tenurial arrangement, to landless farmers and regular farm workers, to include support services” (AFA & AsiaDHRRA, 2005). But in a society like the Philippines where class stratification is highly pronounced, agrarian reform is an attempt to change class relations within the confinement of a system dominated by the ruling class. That is why it is called an agrarian reform program. Statement of the Problem On April 23, 2012, a day before the Supreme Court released its landmark decision, former University of the Philippines School of Labor and Industrial Relations (SOLAIR) Dean Rene E. Ofreneo said that addressing the system of arriendo was one of the many hurdles that the government could face in implementing the Court’s decision (PCIJ, 2012). This paper aims to help in the discourse on agrarian reform implementation by studying and analyzing the position and the roles played by arriendadors in the agrarian reform implementation in Hacienda Luisita. Objectives of the Study This paper aims to do the following: 1. outline the saga of land reform, the maze of tales and yarns, laws and deception, legal, extra-legal, meta-legal and illegal maneuvering in Hacienda Luisita; 2. uncover the arriendo system and how the government has significantly failed to address this system inside Hacienda Luisita; 3. present the processes where the agrarian reform beneficiaries are driven from their awarded land; and 4. make some recommendations to avert the seemingly inevitable failure of agrarian reform in Hacieda Luisita. Page 8 of 83 Significance of the Study The centrality of land to man’s life like a typical farmworker in Hacienda Luisista is a historical fact. Land supports all forms of lives and other factors of production (Kiita, 2010). An American economist and philosopher, emphasized the importance of land and remarked “so man not only lives off land, levying on it for its materials and forces, but he also lives on land. His very life depends on land. Land is the habitation of man, the store-house upon which he must draw for all his needs, the material to which his labour must be applied for the supply of all his desires; for even the products of the sea cannot be taken, the light of the sun enJoyed, or any of the forces of nature utilized, without the use of land or its products.
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