At long last, and seeing through

As soon as they heard the news they all jumped for joy, shouting and waving their arms in jubilation, as if they just collectively won the lotto jackpot. Not a few couldn’t help shedding tears — of joy, they would rush to explain to news reporters, who sought to interview them as soon as the  ‘historic’ decision was announced.

The Corona Supreme Court, in an en banc session in Baguio City on 24 April 2012, unanimously affirmed its 24 November 2011 ruling that the 4,915 hectares of Hacienda Luisita be distributed to some 6,200 farmer-beneficiaries under the Comprehensive Agrarian Reform Law (CARL).

It also ruled on the just compensation issue, with an 8-6 vote favouring the farmers. Instead of pegging the land valuation at 2006 rates (or at an estimated P5 billion), which was what the Cojuangco clan wanted, the Corona Supreme Court ruled that just compensation should be set at 1989 valuation rates, or at the time when farmers became ‘part-owners’ of the land under the stock distribution scheme implemented by the Cojuangcos. At 1989 land values each hectare would amount to about P40,000 per hectare, or a total of some P196 million.

The court’s decision was ‘final and executory’. No more appeals or any new motions to be entertained or reconsidered. No more reasons or legal impediments for the Executive, through the Department of Agrarian Reform, not to implement the ruling. No more ifs and buts. It is ‘execution’ time.

For the farmers of Hacienda Luisita, it is a huge victory indeed, albeit a bittersweet one. Many of them are already in their late 60s, 70s, and 80s. They have been waging their fight for half a century — more than half of their lives. Some have died already, due to old age and natural causes, while others were killed as a consequence of state violence aimed at ‘protecting’ not their rights, but those of the hacenderos.

In what is now known as the Hacienda Luisita massacre, seven farmers were killed on 16 November 2004 when government troops violently dispersed the protesting farmers at the hacienda. More than a hundred were injured, nearly a third of them from gunshot wounds. Another eight would be killed in the following month, all were known supporters of the farmers’ struggle for total land distribution at the hacienda. Among those killed in December was a farmer-leader who was about to testify at Senate and Congressional hearings on the trajectory of bullets that killed farmers in the massacre.

The Supreme Court’s final ruling on Hacienda Luisita occurs within, or intersects with, another intense political drama being played out by contending groups within the country’s political and economic elite — between the Noynoy Aquino-Cojuangco camp and the holdovers of the previous Macapagal-Arroyo regime. It would be folly to assume that the Corona Court has suddenly turned social justice crusader, just as it would be naive to think that the pursuit of social reforms and economic justice can now be hastened under a Noynoy Aquino presidency without persistent struggle by marginalised groups and social classes and ordinary citizens.

Sure, be gracious and thank Chief Justice Corona and his court for finally upholding the right of farmers to own their lands, long violated by generations of Cojuangcos and by past political and judicial regimes. But the credit must go to the farmers, who persisted for 50 long years and fought with blood, sweat, and tears, for this victory. Had they stopped or quit in their struggle for land distribution of Hacienda Luisita, they would not have been able to maximise the favourable political opportunities presented by the ongoing fierce political intramurals between contending factions of the country’s governing elite.

That particular hacienda has long played a historical role in the political infighting among the Philippines’ ruling elite. Then-president Ramon Magsaysay offered the Cojuangcos governmental loan support just so the hacienda would not fall in the hands of the Lopezes of Iloilo, who were then interested in acquiring it from the Spanish Lopez-owned Tabacalera. Benigno ‘Ninoy’ Aquino, married to Corazon Cojuangco, became the hacienda’s administrator. Ferdinand Marcos, during his reign, would try to seize it, through his land reform programme, from his arch-political enemy, Ninoy. And just as the Marcos government won the legal case for land distribution against the Cojuangco-Aquinos in December 1985, the first EDSA people power would intervene and once more secure the latter’s control of the hacienda through an extremely flawed agrarian reform programme under Corazon Aquino. The political fallout between EDSA Dos political allies Corazon Aquino and then-president Gloria Macapagal-Arroyo would put the hacienda at the centre of infighting once more in 2005. The Department of Agrarian Reform under Macapagal-Arroyo revoked the stock distribution scheme (SDO) prevailing in the hacienda. In 24 November 2011, a week after Gloria and her spouse, Mike Arroyo, were prevented from leaving the country and were put on hospital arrest, the Corona Supreme Court issued a landmark ruling that ordered total land distribution to farmers of Hacienda Luisita. A week later, the chief justice was impeached by a Congress dominated by Noynoy Aquino allies. The impeachment is still ongoing. Meanwhile, the Corona court issued a final decision favouring the farmers in the Luisita case. What more is to be yielded, both beneficial and destructive, by the political saga of intense elite infighting is yet to be seen. In other words, abangan ang susunod na kabanata.

The benefits of the ongoing political intramurals among the country’s elite have been significant. For farmers of Hacienda Luisita, their right to own the land they have been tilling for decades is finally recognised. For Filipinos, their right to make Gloria Macapagal-Arroyo accountable for her crimes against the nation is now being pursued.

But the damages, too, are not inconsequential — to the country’s fragile democratic institutions, to the rule of law, and the country’s governance in the face of pressing economic and social challenges. While Gloria, indeed, had been a scourge during her nine-year political reign, her self-interested political moves currently serve to foil similar moves by her now arch-political enemy. It is Philippine elite democracy at its finest, or at its worst, depending on where you’re at and how you look at it.

Ordinary citizens and progressive activists must strive to remain politically astute, critical in their thinking, and see the lie of the political landscape for what it is. While factions of the governing elite are busy at each other’s throats, citizens must be vigilant and be on the lookout for the right political opportunities that are bound to emerge and that could be seized in order to advance genuine social reforms and a truly popular, not just elite, democracy in this country.

 

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Another mess…

Prosecute and persecute are two very different terms with very different meanings. The first is about taking legal action against someone, who is justifiably accused of committing a crime, based on evidence at hand; the second is about harassment, ill-treatment, torment, oppression, victimisation, and yes, violation of certain fundamental constitutional rights as citizen of a country.

The inability of the Aquino III’s administration to prosecute Gloria, after one and half years in power, has led it to persecute her instead, and puts it in direct collision course not only with the Supreme Court but with the Philippine Constitution, the fundamental law of the land. A citizen’s right to travel cannot be suppressed when there is no legal impediment to the exercise of that right.

Laws are not always fair, and will never be as long as social and political inequality is a fundamental feature of a society, but they nevertheless constitute the current, and yes, imperfect, mechanism by which disputes can be settled in a non-violent way.

Had the airport scene I was seeing last night through my tellie (of government’s action to stop Gloria and Mike from leaving the country) happened during Gloria’s reign, I wouldn’t be surprised but nevertheless be just as disgusted. She had nine years to amply demonstrate how repressive and oppressive she can be.

Because PNoy’s government didn’t do its homework, it lost this particular battle to prosecute Gloria for her crimes. It is also losing the ‘perception battle’ with Gloria’s wily political tacticians and communicators. If you begin to act like your enemy, are you better than she?

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Goodbye, Gloria

Today the Supreme Court issues a temporary restraining order (TRO) on the Justice Department’s departure watchlist order on the two Arroyos, Gloria and Mike.

Today, at 7.35 PM, Gloria and Mike leave the country. Yes, that fast. Apparently to beat any charges that may soon be filed against them, particularly non-bailable crimes such as electoral sabotage. (Why it is taking so long to file them is the million-dollar question….)

Well, that’s it then. She won’t be prosecuted for her crimes against the Filipino people. Not under this administration anyway. After all the hype Gloria ends up escaping…. Jeez.

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A P5.4 billion twist…

Holders of the controversial PEACe Bonds can soon cash in on their loot, aka ‘investment’, as the zero coupon bonds reaches its 10-year maturity date tomorrow, 18 October 2011. What was worth P10.17 billion in 2001 is now worth P35 billion, or a whopping 250 percent return on investment, risk-free, and, supposedly, tax-free.

But a belated BIR ruling, dated 7 October, has imposed a 20 percent final witholding tax on the ‘interest income’ from the PEACe Bonds. The BIR also ruled that Code-NGO must pay the government P549 million worth of capital gains tax from the P1.83 billion profit it raked in from the deal in 2001.

Bond holders need not fret about a 20 percent reduction in income from the bonds, certainly a small price to pay since they still walk away with a 200 percent return on their investment, or some P20 billion. And Code-NGO still get to keep more than half a billion of the P1.4 profit it gained from the controversial deal.

Despite the last-minute ruling of the BIR to impose a 20 percent final witholding tax on interest income on the bonds and a 30 percent capital gains tax, bond holders and Code-NGO have nothing to fret about since they remain the gainers from this deal.

And the losers?

Well, the National Treasury must now scrounge for P30 billion (less witholding tax) to redeem the bonds from tomorrow. That’s a lot of taxpayer’s money just so an NGO can put up an endowment fund for its ‘poverty alleviation’ work. As to where and how the P10 billion raised in 2001 was spent by the Macapagal-Arroyo government is one of the many mysteries that needs to be unravelled by the current administration.

To use one of PNoy’s favourite phrases — at the end of the day — it is still the Filipino people who will pay, and dearly, for the mistakes, misguided decisions, and self-interested actions (as opposed to public interest) of their leaders, whether they are in government or in ‘civil society’.

Filipino citizens must continue to scrutinise and not uncritically accept grand or petite schemes concocted by their leaders in their name or in the name of fighting poverty. Talk and good intentions are cheap, but the road can be murky, as Prof. Liling Briones points out in VERA Files’ report on the PEACe Bonds.

Talk of good governance and accountability is also cheap. While the tax on the PEACe Bonds income provides some consolation to taxpayers, it still doesn’t address certain fundamentals on why such an irregular deal happened and was allowed to happen in the first place. Governance is not just about government, but involves the ‘rules’ governing the relationship between state, market, and civil society, in their diverse forms. A far more complex topic, but something that has to be kept in mind if citizens are to be vigilant so that no further ‘impermissible rent-seeking’ occurs and is allowed to occur under this and future administrations.

Go to this page for an updated compilation of reports on the PEACe Bonds debate.

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