Washington Sycip: Mike Arroyo is heavily involved in jueteng networks

I was browsing ABS-CBNNews.com when I chanced upon a story that grabbed my attention at once.

It was about a classified cable from the US Embassy in Manila released by none other than WikiLeaks. The cable talked about how the corruption in the Philippines was worsening and that then First Family was involved. The First Gentleman Mike Arroyo being personally connected to illegal activities and his wife former president (now Pampanga representative) Gloria Macapagal-Arroyo knew about it.

But of course, the way the cable was written didn’t prove that the two infamous personalities were in fact involved in corruption. It only showed the opinions of the businessmen in the Philippines about the political condition of the country as it relates to the economy and the business community.

But the most intriguing portions of the cable are those statements that came from Washington Sycip, founder of the largest professional firm in the Philippines – SGV & Co. Sycip has always been regarded as everyone’s consultant. He happens to have very strong and wisdom-filled opinions on anything, including corruption.

The way the cable has been written seems to show that Sycip has first hand knowledge of the widespread corruption in the country.

Here are some of the excerpts from “the partial extract of the original cable,” which according to WikiLeaks is not available.

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Summary
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WikiLeaks

¶1. (C) Influential members of the Manila business community increasingly express concerns about how corruption is undermining the RP’s economic outlook. According to long-time Embassy contact Washington Sycip, who is widely respected as among the top economic observers in the country, corruption is at its worst ever and is making it impossible for democracy to work in the Philippines. President Arroyo’s husband, he claimed, is one of the worst offenders, with a reputation for corruption seeping down to all levels of society and eroding PGMA’s political standing. Francis Chua, president of the Federation of Filipino-Chinese Chambers of Commerce, claimed that almost all business people perceive worsening problems with corruption. He echoed Sycip’s assessment that the First Gentleman is a major problem with respect to corruption. X X X End Summary.

Mike and Gloria

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Corruption and Democracy
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¶2. (C) Manila business leaders have increasingly expressed serious concern about how corruption is hindering their ability to conduct legitimate business. Washington Sycip, a founding partner of SGV (the country’s most prominent accounting firm and an affiliate of U.S. firm Ernst and Young) has become increasingly pessimistic, claiming privately that corruption nowadays is at its worst, surpassing even the Marcos era. He has expressed doubt about democracy’s suitability for the RP. Emboffs strongly objected to Sycip’s assertion that the RP should reconsider democracy, underscoring that the U.S. would not support any move to non-democratic leadership. Sycip has responded by pointing to countries in the region with stronger leadership, such as Singapore, Malaysia, and China, claiming they have made more progress in improving their citizens’ well-being through non-democratic systems. Sycip has further argued that, in countries with per capita GDP under $3000, Western-style democracy leads to cronyism and corruption. He pointed out that two out of the last five presidents elected here have been removed from office by non-democratic means, leading him to conclude that the Philippine democratic process is choosing the “wrong” leaders. Of special concern was corruption in the judiciary up to and including the Supreme Court, which has destroyed the constitutional system of checks and balances.

¶3. (C) According to Sycip, First Gentleman Jose Miguel “Mike” Arroyo’s behavior, in particular, is damaging the credibility of the government and hinders President Arroyo’s ability to implement anti-corruption measures. Sycip claimed that Mike Arroyo is heavily involved in the illegal gambling or “jueteng” networks and closely connected with major smuggling syndicates (ref B). President Arroyo, according to Sycip, is aware of her husband’s misdeeds, but she is unwilling to do anything to curb his activities because he was instrumental in marshaling campaign donations and is now keeping those supporters in line to help her maintain her grip on power. X X X

¶4. (C) In response to complaints about corruption, President Arroyo agreed to form an advisory group, of which Sycip is a member. The group has advised the GRP (Government of the Republic of the Philippines) to abandon taxes on earnings and shift to taxing evidences of wealth because taxing expenditures “better suits” the Filipino character and will ensure better collection. It has advised the DOF (Department of Finance) to publicize the amount of VAT retailers collect and turn over to the government to dissuade underreporting. Sycip nonetheless has lamented that the GRP and PGMA, in particular, seem rarely to follow the advice of the group. X X X.

Click here to read the entire cable.

Too young to judge, too slow to expect Tuwid na Landas?

On the first year anniversary of President Noynoy’s promises of Tuwid na Landas (Straight Path) and Kung Walang Kurap, Walang Mahirap (No Corruption, No Poverty), several personalities have shared their sentiments over his one year performance (syndicated without permission from Manong Ernie Maceda’s column in Philippine Star).

1. Archbishop Oscar Cruz – no achievement except for wang-wang;

Me – A good start in creating the perception of discipline, but a better act is to quit smoking.

2. President Gloria Macapagal-Arroyo – nobody home, the economy decelerating;

Me – Last year, it was “Everyone’s home (in the palace), wreaking havoc.”</

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3. Sergio Ortiz Luis, PCCI president – there is still corruption;

Me – I agree; and it looks like PNoy, like Gloria, seems to be protecting some of them despite Justice Secretary Leila de Lima’s recommendation of dismissal and prosecution.”

4. Senator Chiz Escudero – not slow but deliberate;

Me – Here’s the dilemma of efficiency over effectiveness. I say, achieving the ideal outcome without any regard of time is not good. Time is of the essence. It’s better to manage the reduction of corruption within a year than to attain zero corruption as soon as they can. And don’t pursue Kris.

5. Senate President Juan Ponce Enrile – only one year, give him more time;

Me – Agree, but I hope PNoy gives a timeline.

6. Sen. Alan Peter Cayetano – low grade in curbing corruption;

Me – Ahuh.

7. Sen. Manuel Villar – the economic growth did not improve the lot of the poor;

Me – Ikaw na ang para sa mahirap.

8. Migrante (International) – 65 percent, failed to protect OFWs in the Middle East;

Me – 65% is not bad for a first year. Let’s see how PNoy will act on Saudi’s Saudization policy. There are more than one million OFWs in Saudi Arabia.

9. Harvey Keh, Kaya Natin president – 85 percent grade;

Me – Not bad.

10. Rigoberto Tiglao – the Porsche presidency, idiosyncratically, sybaritic image;

Me – Nasenbluten! What can you say about a Le Cirque presidency, which had a more peculiar and distinct image of lavishly having sumptuous dinners and a habit of giving gifts (in the form of cash, pork barrel, mouth-watering government positions, and Pajeros) to friends and potential foes alike?

11. Katrina Legarda – law professor, not just well intentioned, capable. I am not unhappy;

Me – Yeah. Remember, it had all been unplanned. Yet, there had been marked stability in the country.

12. Solita Monsod – out of 10 point agenda, passing grade is only in 3 promises. At a scale of 1-10, 10 for zero based budgeting, 0 for failure to submit the Freedom of Information bill, 4 for the administration of justice, among others.

Me – True, but I’d give a lower grade in the administration of justice. He’s too lax in admonishing his friends who clearly made a mistake.

13. Alex Magno, UP professor – the President is unduly defensive;

Me – Hi Ino! (Wala akong ma-comment e.)

14. Nines Cacho Olivarez, Tribune editor – he is really a do-nothing President;

Me – Ouch.

15. Ernesto Hilario, Business Mirror columnist – Mr. Aquino is fast emerging as a traditional politician who doesn’t think twice about rewarding his allies and supporters with the spoils of victory;

Me – He was a trapo in the Senate, then became a hero in the presidential elections. His father used to be a trapo, too, who became a hero during his war against corruption and human rights violation. The difference: Ninoy’s heroism was immortalized by his death. Noynoy’s heroism is slowly becoming a mere public perception. He must act immediately.

16. (Quezon) Congressman Danny Suarez – expect the worst;

Me – Trust me, we have seen the worst of this country (disregarding the Martial Law era). The worst of Noynoy may only be a dirt under the nails of GMA.

17. Gabriela Party List Rep. Luz Ilagan – stop being emotional and onion skinned. He should be open to criticisms;

Me – I think he’s fairly open to criticisms. It’s just that he shows a lot of concern in very irrelevant issues (like his lovelife).

18. Emil Jurado, Standard Today columnist – there is disenchantment and frustration in the air.

Me – That’s always the case a year after any presidential elections.

19. Felino Palafox Jr., MAP president – barely passing mark of 75 percent.

Me – At least! But I’d give PNoy 75%.

To be generous, it was an uninspiring performance. – Ernesto Maceda

Me – PNoy did a nice job, not a source of national pride. Disheartening, but at least not appalling.

I’m sorry for flooding my face.

I hope they were just misquoted

It is just a coincidence that all three issues here involve PNoy.

Former president, now Pampanga representative Gloria Macapagal-Arroyo on PNoy’s leadership

CGMA

“I left the economy with sustainable growth. That’s the problem. That’s the problem because if there is no more spending, that contributes to deceleration… During my time, inflation rate was slowest among administration. Now all prices going up sharply… Even the score of the Philippines in corruption is going up.“

Weh?

* IMPSA (Industrias Metalurgicas Pescarmona Sociedad Anonima) Hydro-electric Power Plant $14 M kickback, divulged by Mark Jimenez
* Jose Pidal Bank Account P321 M election money laundering

Impostor.

* Hidden Wealth in San Francisco worth $7.1 M
* Mikey Arroyo’s imported horses worth millions
* President Diosdado Macapagal Boulevard P536M overpricing
* NAIA 3/PIATCo contract anomaly worth $100M in kickbacks
* PAGCOR cash cow expose
* Jancom Encironment Contract anomaly and overpricing
* Agri Fund worth P728 M in Ginintuang Masaganang Ani used for election campaign funds
* PHILHEALTH cards used for campaign
* Manny Pacquiao Las Vegas Suite worth $20,000 per night used by Mike Arroyo
* Jueteng operations via Bong Pineda
* Venable Contract Norberto Gonzales
* JocJoc Bolante fertilizer scam
* Comelec Automated Counting Machine scandal
* Rigging of elections 2004 and 2006 Maguindanao Hello Garci
* Extrajudicial Killings
(from Symbianize)

May I add the Dioscopo Napacamahal! Boulevard (officially known as Diosdado Macapagal Boulevard, named after her father), which was built at a cost of around half a billion pesos per kilometer.

Yeah, probably she’s right in saying that these allegations have not yet been proven. But they have not been cleared, as well.

President Noynoy Aquino on his official family

They were this big, man! *weet whew*

“Sa totoo lang ho, mayroon kasing mga ibang miyembro ng Gabinete—mga dalawa, tatlo—kada makita ko, kaagad iniisip ko, ‘Ano kayang bad news ang dala-dala nito?’ Pero si Secretary Babes Singson, si [DOST] Secretary Mario Montejo, at marami pang iba; pati na si [Budget] Secretary [Butch] Abad: pag nakikita ko, kadalasan, solusyon ang tangan-tangan.”

(“To be honest, there are several members of my Cabinet—two or three of them—that everytime I see them, I would think, ‘What bad news could he be bringing?’ But Secretary Babes Singson, Secretary Mario Montejo, and other (Cabinet secretaries); even Secretary Abad: everytime we meet, they always have solutions with them.”)

I think he just sent a wrong signal here to the entire nation. A very dangerous signal at that.

Is he saying that he’s trying to avoid bad news?

The role of the president, in the mind of a poor Filipino, is to solve problems, to address bad news. If he is avoiding bad news, then he is delaying the solutions to problems.

But let me play Presidential Spokesperson Edwin Lacierda’s advocate here. Probably, what the President meant is that when a Cabinet member (CM) approaches him, he doesn’t want to hear just the bad news. He wants to hear that the CM has a solution to a problem. Read the sample lines below:

CM1: Mr. President, we have a problem.
CM2: Mr. President, I have a solution.

Both members tell the president that there is a problem. But CM1 delivered it in the negative, and CM2 in the positive. If this scenario is what the President meant, then I have to agree with PNoy. If I am the president, I want to hear that before you raise an issue to me, you have already made your own analysis of it and devised your own way to solve it.

But then this (a continuation of his speech):

Kaya naman pag humingi ng appointment, mabilis pa sa alas-kuwatro natin ina-approve iyan… Iyong iba ho, ipinipilit ko na lang po na harapin, dahil talagang, kako itong taong ito, talagang penitensya ko na yata sa mundong ito, kaya OK na lang.

(That’s why when they (the bringers of good news) ask for an appointment (with me), I immediately approve it. With some Cabinet members, I find it hard to meet with them, because, in my opinion, this person may just be my penitence, which makes it OK.)

Is he saying that he’s very reluctant to meet his men who uncovered a bad news and hesitant to hear them? That sounded favoritism. What’s worse is that he considers these bringers of bad news as his personal punishment. This renders the result of my earlier Lacierda’s advocate role-play irrelevant.

Why, because what PNoy just said has implications in the performance of some of his men. It’s not that these Cabinet members don’t have solutions with them. They are the problems of PNoy.

What’s even worse is that, according to Ted Failon, a radio commentator, the President just put his Cabinet members to shame. It’s like a father telling his visitors that “Here are my good children. The bad ones are in their rooms.”

Cotabato City Mayor Japal Guiani on PNoy’s empty hand

Hmm...

“I think he just came to visit. There was no immediate answer dun sa mga pinresent na problema. The problem was only noted.”

Ang japal ng fez mo te!

Relief goods stocked in the warehouse of the Department of Social Welfare and Development (DSWD) could not be immediately distributed to the people due to lack of personnel. Now, dear Japal, why don’t you, instead of opening your palms up waiting for the president to give you lollipops, help the DSWD in distributing the relief goods. OK?