Sunday, November 11, 2018

THE POST-EDSA LIFE OF FERDINAND MARCOS


I’VE DECIDED TO PUT THE FOUR-PART SERIES OF FERDINAND MARCOS’S POST-EDSA LIFE IN A SINGLE WHOLE FOR EVERYBODY TO READ …

THE LIFE OF FERDINAND MARCOS AFTER HIS DICTATORSHIP
By Philip M. Lustre, Jr.
(First of four part series)

N.B. I was lucky to have borrowed a book authored by the late Col. Arturo Aruiza re the post-EDSA life of Ferdinand Marcos. Col. Aruiza was the dictator’s aide de camp for many years and saw many details in Marcos's colorful life. He detailed how a bunch of alleged supporters and con men badgered the fallen dictator on his possible return to the Philippines. His first-person account gives credence to assertion that Marcos had to deal with shady characters in his frustrated bid to return to the Philippines and recover his lost throne at Malacanang and power.

As told by people in the know, Col. Aruiza gathered every document and conceivable piece of information to back up his narratives. Readers could not agree on his impressions and conclusions, but his facts were straightforward and had a touch of scholarship. When I read his book, I am convinced that Marcos was amply punished by the kind of life he had as a political has-been. Where before he wielded power over the life and fate of many people - and the entire nation, Marcos, in his exile in Hawaii, was essentially a plaything of fate. He was not in control of his circumstances. Nothing could be worse than being regarded a political leper in the community of nations. That was Marcos.


Ferdinand E. Marcos
Malacanang to Makiki
By Arturo C. Aruiza
Published by ACAruisa Enterprises,
490 pages, 1991

FERDINAND Marcos’s fabled life as democratic president for seven years and dictator for thirteen years was a far cry from what he had after his downfall. As president and dictator, Marcos dealt with the best and brightest to exact favors, neutralize, or bring down his enemies, and maintain his grip on political power - come hell or high water.

In Makiki Heights in Hawaii, where he stayed as an exile – or a pathetic political has-been - until his death in 1989, Marcos had to deal with the following:

• first, unruly supporters and favor seekers, who hardly contributed for his much ballyhooed return to the Philippines;
• second, con men, mostly Americans and some Filipinos, who presented  him with impressive and elaborate but unrealistic plans for his return, but collected huge sums of money for plans that did not materialize;
• third, lawyers who represented him in cases in U.S. courts and collected handsome lawyers’ fees; and
• fourth, U.S. immigration and customs officials, who treated him and his family with sublime and unmitigated condescension.

It was a far cry from the life of pelf, power, and privilege which Marcos had at his prime. As a fallen dictator, he was at the mercy of the vagaries and vicissitudes of the political dynamics of his time, particularly his waning years when he was a political exile in the United States.

As his long-time military aide had admitted, Marcos never had it so bad until his largely unforeseen downfall. Forlorn and decrepit, Marcos was helpless, powerless, and witless to assert whatever legitimacy he was claiming to the presidency. He was never in his cunning and sharp element unlike when he was in power.

Either by omission or commission, Col. Arturo Aruiza, however, did not disclose how Marcos plotted his return to the Philippines, including how he spent tons of his loot to finance the reported acts of destabilization - or series of military coups and spate of protest demonstrations - against the Cory Aquino government. It was something understandable but not necessarily forgivable.

Col. Aruiza’s book took off on the high noon of February 22, 1986, when the dictator called him to his room in Malacanang. He hardly had any inkling that a momentous, historic political cataclysm was to start on that day, although he was surprised when Marcos had ordered the cancellation of their weekend day-off. 

He saw U.S. Ambassador to the Philippines Stephen Bosworth and Philip Habib, U.S. President Ronald Reagan’s “trouble shooter, being ushered to the Study Room to meet the dictator.

Then, he narrated major antecedents to the fateful four-day 1986 EDSA People Power Revolution that led to the downfall of his hero and their subsequent banishment from the Philippines to go on an exile in the U.S. state of Hawaii. His recollections reflected a heavy dosage of rancor and bitterness, as if the fallen dictator did not make mistakes to cause massive poverty for the Filipino people.

Showing tu quoque arguments (literally “you too”), Col. Aquiza said the massive electoral cheating and irregularities in the 1986 “snap” presidential polls could not be blamed on Marcos alone because even the camp of Corazon Aquino, the opposition candidate whom Marcos faced in the 1986 "snap" presidential elections, allegedly committed them. Moreover, watchdog Namfrel was not neutral and indeed partisan to Ms. Aquino. He did not present proofs of cheating by the Cory Aquino camp.

Col. Aruiza vented an unusual dosage of umbrage to Washington, which according to him openly sided with Mrs. Aquino, not Marcos. In his limited view, both Marcos and Cory Aquino's camps cheated in the elections. Hence, it could not be blamed solely on Marcos but Mrs. Aquino as well. Still, no proof of Cory Aquino's alleged cheating was presented.

Marcos, Habib, and Bosworth, in their fateful meeting at noon of Feb. 22, 1986, could not help but review the conduct and outcome of the Feb. 7, 1986 presidential elections, where Marcos was proclaimed “winner” by the Batasang Pambansa, the rubber stamp legislature during the latter part of the Marcos dictatorship.

They later discussed on the touchy subject of Gen. Fabian Ver, Armed Forces Chief of Staff and head of the dreaded nationwide intelligence network created by Marcos to neutralize his political enemies. As usual, Marcos resisted the pressures of the two U.S. officials, who expressed the desire of the Reagan administration to retire Ver and replace him with somebody else.

Col. Aruiza said: “We on the staff wondered why the president stubbornly retained, at such peril to him. Not only Ver was an overstaying general, but he was also an ineffectual one. He was spread too thin, burdened with too many responsibilities. He carried too many titles, ran too many offices, none of them well, and together with his sons, was the object of bitterness in some sectors of the Armed Forces.”

Ver appeared during their meeting, prompting Marcos to excuse himself to meet him. Upon return to the two officials, Marcos informed them of an impending coup, but Habib and Bosworth, according to Col. Aruiza, “hardly reacted." The two officials “remained impassive,” hinting that they knew beforehand the planned coup by a military faction reputedly loyal to defense minister Juan Ponce Enrile and the Reform the Armed Forces Movement of Col. Gregorio Honasan. The meeting with Habib ended without any conclusion.

Col. Aruiza discussed the coup plot, which Col. Irwin Ver, one of the three military sons of Gen. Ver, discovered sometime in December, 1985. The young Ver confided the coup plot to his father on Feb. 16, 1986, after which they saw Marcos to inform him. It forced Marcos to augment the Palace security by assigning units of the Philippine Army to its defense perimeter.

The issue of overstaying generals nagged the Marcos dictatorship. By extending the tenure of favored military generals every six months, the Reform the Armed Forces Movement (RAM) surfaced. Even Col. Aruiza did not agree to the unilateral extension of their military tenure because it showed that Marcos did not trust the younger guys to take their place. Marcos, in his interview with Honolulu Advertiser on July 29, 1986, expressed regret, saying he should have followed advice of the visiting U.S. officials.

Ver was not only perceived as favored but ineffective, according to the former military aide. Ver influenced greatly the promotions and assignments of officers, indicating Marcos’s loss of control over the military, he said. In brief, he was a major factor in determining whether the careers of military officers would prosper or stagnate. “Extension was the rule, not exemption,” he said.

Col. Aruiza said: “Martial law gave the military a taste of civilian power and they liked it. Marcos paid more attention to them than to the local officials. Most officers took to the good life quickly and naturally.”

Citing another antecedent to the 1986 EDSA People Power Revolution, Col. Aruiza cited the visit sometime in October, 1985 of Sen. Paul Laxalt, who succeeded to exact from Marcos a commitment to hold “snap” presidential elections mainly to defuse the growing tension in the Philippines because it was perceived to have a president without any mandate from the Filipino people.

Where stream of U.S. officials, including CIA chief William Casey, had earlier failed to convince Marcos to call for presidential elections, Laxalt successfully convinced Marcos to call one, not because he bargained hard, but because he entertained Marcos. He touched on the dictator’s weakness: war memories. Laxalt was a soldier, who saw action in southern Philippines in the last world war.

Col. Aruiza said: “Laxalt touched on the president’s own war record and his guerilla past, and I could see Marcos glow with Laxalt’s overtures. Laxalt ran down his own list of friends in Washington that he said the president could depend upon. I could tell the president was melting before Laxalt’s reassurances, his seeming frankness, and his sense of humor. By bringing up his war memories, Laxalt held the president’s attention.”

Incidentally, Paul Laxalt was the same senator, who advised Marcos by telephone on the early morning of February 25, 1986 “to cut and cut cleanly” to indicate the Reagan administration’s withdrawal of support to his dictatorship. 

Laxalt, in brief, functioned as the virtual pallbearer of gloom and doom. In his 1985 meeting with Marcos, Laxalt secured a letter from Marcos addressed to Reagan, assuring him he would call presidential elections.


(Second of a four-part series)

COL. Arturo Aruiza, the loyal, dependable, and honest military aide-de-camp of the fallen dictator Ferdinand Marcos could not contain bitterness in his memoirs. The explanation is simple: Marcos was a loser and Col. Aruiza belonged to the losing camp. 

Hence, his book contains details that justified the losses inflicted by the political enemies of Marcos and the Filipino people, who, in their exercise of their sovereign right, kicked Marcos and his ilk out of Malacanang and sent them to a political exile to some parts known and unknown.

Col. Aruiza’s political theory was Washington, particularly the people in the State Department, had conspired with the political opposition then led by Corazon Aquino, widow of the martyr Benigno Aquino Jr. The antecedents that led to the 1986 EDSA People Power Revolution saw the heavy hand of Washington, whose officials took turns to pressure Marcos to take the route to restore democracy.

He was bitter about Washington’s intervention, although he never took time to explain that Washington’s interventionist policy those days was largely a function of Marcos’s refusal to restore democracy. Marcos continued to rule with an iron hand without a mandate from the Filipino people. The February 7, 1986 “snap” presidential elections could have provided him the mandate to showcase to the entire world that he enjoyed the popular support of the Filipino people. As history showed, it did not happen though.

The Marcos legacy is comprised of three major issues: first, centralized corruption, where the dictator received fat, under-the-table commissions from foreign proponents of big state projects; second, crony capitalism, where a stable of friends and cronies cornered agricultural and service monopolies; and third, massive human rights violations, where tens of thousands of political activists, opposition leaders, religious and community workers, youth leaders, peasant and labor leaders, civil society workers, among others were arrested and detained without charges, tortured, and summarily executed. In a number of cases, they had disappeared without any trace and explanation until today.

Col. Aruiza hardly mentioned the Marcos legacy in his book. Neither did he ever say that Marcos had overstayed in power and the snap presidential electoral process was just another step to perpetuate himself in power. Neither did he ever put the blame on his boss, who virtually touched the nerve of history because he never wanted to leave Malacanang for the rest of his life.

Philip Habib, President Ronald Reagan “troubleshooter,” and U.S. Ambassador to the Philippines Stephen Bosworth reacted impassively in their meeting on the noon of Feb. 22, 1986 with Ferdinand Marcos, who dutifully informed them of an impending coup. 

Truth was, they knew of the coup by the group of defense minister Juan Ponce Enrile, Lt. Col. Gregorio Honasan, and a faction of the military. According to Col. Aruiza, no less than Honasan informed the U.S. Embassy officials of the planned military coup, which was to be initiated on Feb. 15, 1986, but had to be postponed to Feb. 22.

Honasan did it to obtain support of the U.S. government, according to the former military aide. Hence, U.S. officials even to the highest levels knew that a coup was brewing. 

In fact, Habib was quoted as saying: ”Something is going to happen.” That was after he finished his meeting with Marcos and was about to leave for Washington on the night of Feb. 22, 1986, Col. Aruiza said.

The truth, according to the military aide, was that Washington rejected “extraconstitutional means” to obtain power. Washington would only give its political support if the coup was an “enlightened self-defense.” No less than a key U.S. Embassy official stated Washington’s position in a talk with Honasan and two other RAM officials. Hence, the operative phrase was "enlightened self-defense."

The military aide gave credence that the Feb. 22, 1986 early morning arrest of the security men of then Industry Minister Roberto Ongpin was the single spark that prompted Enrile and the RAM-led military faction to retreat and hold out at the defense building in Camp Aguinaldo on the night of the same day. 

Enrile and RAM regarded the arrest of Ongpin’s security men, mostly RAM members, as a development that indicated the coup plan was compromised. According to Col. Aruiza the truth was the Ver faction knew of the coup plan as early as December, 1985, although it was only disclosed to Marcos on Feb. 15, 1986.

Ongpin and Ver never saw eye-to-eye. Those days, Ongpin was the most powerful economic manager. Marcos trusted him. Marcos recruited him from the private sector to comprise the technocratic team that ran the Philippine economy. The other technocrat was Prime Minister and concurrent Finance Minister Cesar Virata. 

Those days, Ongpin managed the so-called “Binondo Central Bank,” the parallel underground market that controlled foreign exchange trading. It was described as a “necessary evil,” as Chinese Filipino businessmen were allowed to trade dollar earnings at a higher rate.

Ongpin had a man arrested when he learned that the latter paid a “friendly fee” of P300,000 to Edna Camcam, Ver’s alleged "special friend." According to Col. Aruiza, Ver called Ongpin several times to facilitate his release, but Ongpin ignored his calls. Hence, Ongpin felt frantic when Ver ordered the arrest of his security men, who were doing early morning exercises. Despite Ongpin’s protest, Ver did not order their release.

According to Col. Aruiza, the Palace learned that Enrile and AFP vice chief of staff Lt. Gen. Fidel Ramos were holed up in Camp Aguinaldo only by 6:30 pm of Feb. 22, 1986. By all standards, Malacanang got it quite late. But he said the breakaway of the two officials was largely a function of the enmity between Enrile and Imelda and Ramos and Ver.

(Let me provide my own recollection because I was among the journalists, who covered the breakaway of Enrile and Ramos. It was quite unusual that Malacanang learned of this major development late in the day. Journalists – local and foreign – had the information as early as 2 pm. Upon learning it in mid-afternoon, we rushed to Camp Aguinaldo and waited there for three or four hours for developments. In a separate blog, I said that Ver’s men knew of the development in late afternoon, but withheld telling him because he and Imelda Marcos were attending as sponsors of the wedding of Philip Piccio, son of Major General Vicente Piccio, the Philippine Air Force chief, in Camp Villamor in Pasay City.)

Describing the coup plot that later became a mutiny, Col Aruiza said: “This was not a plot of short standing, recently hatched, born from impulse, but one of long and precipitate planning , carefully nurtured and perfected , springing from mixed motives, some noble, some dark. The plot failed, but promptly resurfaced as the unplanned mutiny, with the same cast, and this would entangle the lives of its principals, returning to haunt all of its conspirators, giving them no peace, and many of those who celebrated the fall of Marcos would end up embittered, regretting EDSA.”

At one point, Col. Aruiza discussed the dictator’s illness, which was then a tightly guarded secret. He had a long history of kidney failure, which started when Marcos contracted malaria, while allegedly doing guerilla works in 1944. According to him, Marcos treated himself with crude extract of cinchona bark and quinacrine (anti-malarial) tablets, which was a deadly combination. Marcos paid dearly with his damaged kidneys. 

Henceforth, Marcos, because of his failing kidneys, had problems with his blood pressure. He had to resort to dialysis treatment.

Col. Aruiza said Marcos was literally dying “bit by bit, day by day,” although he was indeed adroit to hide his real health condition. Twice in his foreign visits, he went on water skiing, projecting that he was not ill at all. 

He confirmed that Marcos had two kidney transplants. The first transplant took place on August 7, 1983 with Bongbong Marcos as donor. But his body rejected it and on Nov. 26, 1984, Marcos had the second kidney transplant with an unidentified relative as donor.

Fast track to Feb. 25, 1986: Ferdinand Marcos and his family, with their fate written on the palm of their hands, spent the day packing for a journey they had yet to know. They knew they were to leave Malacanang. They knew they were losing in the power game. But that was another story.


(Third of a four-part series)

IN the fog of any ongoing war, revolution, rebellion or any political cataclysm, fortunes could change abruptly. There is no definitive template to succeed or lose in the battle for the heart and mind of the people. Any momentous event just cascades to its rightful and sweeping conclusion. This happened in the four-day 1986 EDSA People Revolution.

Allies and friends, whom he nurtured during his ill-fated dictatorship, suddenly turned their backs on him. The mass exodus of military leaders, political allies, and other key people led to his downfall. Col. Aruiza did not blame Marcos; he was a loyal flunkey. 

He predictably, albeit bitterly, put the blame on the conspiracy of Washington, whose top officials worked furiously on his downfall, the political opposition led by Corazon Aquino, and disloyal allies.

When the clock struck midnight of Feb. 25, 1986, the political fate of Marcos was almost sealed. His grip to power was slipping fast. As the foregone loser, Marcos would have to leave Malacanang. No matter how he tried, Marcos could hardly salvage a last minute deal. All cards were stacked against him.

According to Col. Aruiza, Marcos at that time was no longer the same Marcos he knew before. He was no longer the aggressive, audacious, and cunning Marcos, who left nothing to chance. Sick and tired, Marcos lost his will to fight. 

The doctors, who later treated Marcos in his exile in Hawaii, attributed the loss of his will to fight to his consumption of Prednisone, a steroid that affected his brain functions, Col. Aquiza said.

Although Marcos still took his oath of office on the late morning of Feb. 25, 1986 (Cory Aquino took her oath an hour earlier), the post-Marcos era could be said to have started on that day. Col. Aruiza described the atmosphere of his oath-taking as sad, indicating a lost battle. It was the last time Marcos saw his ailing mother Josefa in life.

Soon after he oath-taking, the Marcoses started packing whatever they could to prepare for their exile. Sportsman Tomas Manotoc, Imee Marcos’s husband at that time (he's now an ex), coordinated with U.S. Embassy officials. Imelda Marcos gave envelopes containing cash to a number of Malacanang staff and soldiers, who were to be left behind.

Presidential Security Command officials, who were to go with the Marcoses, bade last minute goodbyes to their families. For his part, Col. Aruiza likewise talked to his wife and kids. He likewise collected various paper and documents he had kept for years, including Marcos’s speeches.

But he did not forget the poignant scene, when Marcos quietly took a last glance of his room and Malacanang hallway before he was about to board one of the four helicopters the U.S. Embassy had dispatched for them. Malacanang staff workers were weeping, while soldiers gave him salutes he could not return.

On Gen. Fabian Ver, Col. Aruiza said: “On the boat landing stood Gen. Ver and his favorite son. Col. Irwin Ver, both now in civilian clothes, I wondered briefly why they were in civvies when the rest of us were in crumpled fatigues and bush jackets. They stuck together, whispering. No one approached them. The elder Ver had not once issued a single command that would have benefited or relieved us during the crisis.

“Hovering nearby was Brig. Gen. Santiago Barangan, Ver’s durable deputy. From the very start, Barangan had not been much of help since he did not know what was really going on or what the plans were. His eyes were now glued to the boxes of money piled on the floor of Heroes Hall. He assured me that our guns and ammo were had already been sent to the North, following a previous plan.

“I asked him what he would do once we had crossed the river. His unperturbed reply was that he would not resist. He would soon turn over the responsibility of protecting the Palace and the compound to the rebel officers and men. In the absence of an order from Marcos and Ver, this was what Barangan thought the best course of action: survival.”

Col. Aruiza claimed Barangan was later hounded by his men, who asked for the part of the money he allegedly spirited away. Two boxes of money in the compartment of Barangan’s car used for transporting boxes from Malacanang to the waiting helicopters were not given despite Barangan’s denial.

A total of 55 people boarded the four helicopters and left on the night of Feb. 25, 1986. Hardly had they left, hordes of people entered Malacanang. The Marcos party went to Clark Air Base. Marcos took time to clarify with U.S officials their final destination the next morning. Until that evening, the official destination was Laoag City in Ilocos Norte.

According to Col. Aruiza, the Americans assured Marcos they would fly them to Laoag City using a “fixed wing” aircraft at around 8 am the following day. They told him to get a good rest. But they were soon roused from their sleep by U.S. officials, who told them that NPA rebels had surrounded Clark Air Base. They later learned that armed men led by Brig. Gen. Antonio Palafox wanted “to extricate” the Marcos party from Clark.

Travel plans changed on that night. Cory Aquino, the newly installed president, told U.S. Ambassador to the Philippines Stephen Bosworth she wanted the Marcoses out of the country. When Marcos learned they would be flown out of the country, he insisted to be flown to Laoag City so that he could form his “interim government.”

Col. Aruiza conceded this was an issue which the Cory Aquino government foresaw. It did not like the prospect of seeing the Marcoses regrouping in the country and posing a threat to the newly established government. Flying them out of the country was a controversy that later hounded the U.S. government because according to Col. Aruiza, Marcos never wanted to leave the Philippines. He just wanted to be flown to Laoag City.

A U.S. Air Force plane took the Marcos party to Guam. Then, it went to Hickam Base in Honolulu, the final destination. This was the time the Marcos party was in the words of Col. Aruiza “humiliated.” They were asked to surrender their weapons in what appeared to be an effort to disarm them. Later, they were asked to surrender their passports. Before, they traveled using their diplomatic passports, but they were all canceled by the new government.

The original party composed of 55 persons grew to 92 in Hickam Base, when the Ver family joined the trip to exile. Moreover, the family of crony Eduardo Cojuangco Jr. likewise joined. The former military aide could not help but marvel at the Ver family since they were the largest - 26 persons – to have joined the trip to Hickam Base.

Col. Aruiza did not forget to mince words about the key Marcos people, who had led to them to their despicable situation. Gen. Ver, for instance, was so used to receive orders from Marcos to the point he could not handle a crisis situation. Moreover, he handled many positions in the Marcos government, spreading him quite thinly.

He also took his ire on Conrado Benitez, nicknamed Jolly, Imelda Marcos’s controversial deputy at the human settlements ministry and favorite. Jolly Benitez joined the Marcos party in their exile in Honolulu. 

Col. Aruiza said: “People began to speculate on whether he was secretly employed by the CIA to destabilize the Marcos administration, since every project he proposed, which Mrs. Marcos promptly took up, almost always ended up a fiasco, in a blaze of publicity, the money is evaporating and nothing much to show for it, except reams of newspaper copy.

“But nothing could seem to dislodge Benitez from Mrs. Marcos’s where he was firmly implanted.

“They were so inseparable that gossip began to circulate about a possible romantic dalliance, but nothing could be farther from the truth and more absurd. What they shared was something deadlier than a dalliance, partnership that spelled disaster for the president and the country.

“A man who had made sycophancy an art, Benitez filled Mrs. Marcos’s head with all sorts of notions, including the one that compelled her to hold audiences in captive thrall while she discussed weighty subjects, drawing holds on a blackboard to explain the mysteries of the stratosphere.”

Inside the Palace, Col. Aruiza said Benitez was despised and called names, of which “Rasputin” and “panderer” stuck. The hatred stemmed mainly from the way Benitez openly bragged that he “controlled” Mrs. Marcos’s mind.

The Marcos party arrived in Honolulu on the late morning of February 26, 1986, Honolulu time. Reality soon dawned on the Marcos party when the U.S. customs authorities employed strict customs policies and practices on their luggage and other cargoes they brought with them. 

Col. Aruiza claimed that they had brought with them P61 million of unspent campaign funds, but only P25 million reached Hickam, as two duffel bags disappeared on U.S. Embassy, when the captain of the boat carrying luggage and money was asked to go to there.

In the dictator’s view, according to Col. Aruiza, the Americans hoodwinked Marcos by telling him they would take him to Ilocos but virtually “kidnapped” him when he was brought to Honolulu against his will. This was the particular line the Marcoses have been peddling until now.

Hardly the Marcoses had settled in Honolulu when the first case was filed by the Aquino government against them. It was about the recovery of the Philippine money which the Marcos party took with them to Honolulu. It did not take long for the Marcoses to hire the first lawyer. 

They have somewhat anticipated a flurry of court cases against them while in exile in Honolulu. Col. Aruiza could not forget Marcos paying $1 million to a law firm with a balance of $900,000 in 1986.


(Last of a four-part series)

FERDINAND Marcos, his family, and key lieutenants and cronies ran like a bunch of defeated dogs with their proverbial tails at their back. Had the Americans failed to help them to escape the people’s wrath on the balmy night of February 25, 1986, they would have been dead meat. But fate did not go to the extreme on that memorable night. They later escaped to go on exile in Hawaii.

The U.S. government immediately gave Ferdinand Marcos the “distinguished visitor” status upon his arrival in Honolulu. It was a title as hollow as one could imagine because it did not give him outright special privileges. It merely conferred legitimacy to his prolonged stay on the U.S. soil.

The Marcoses were first billeted in Hickam Base, the military camp ran by the U.S. Air Force. Col. Arturo Aruiza, the ex-dictator’s military camp, would not forget the stream of Filipino visitors, who, after passing the sniffing dogs, breached the barricade at Hickam Base so that they could pay a visit to the Marcoses.

These included Frankie Teodoro and son, Tomas; Remedios Ramos, wife of architect Jorge Ramos and daughter Georgina; radio host Rod Navarro; lawyer Juan T. David; youth leader Alex Villalon (quite old to qualify as youth leader); Capt. Adelio Cruz of the MIA Limousine Service; Cocoy Romualdez and family; Joan Benitez, Jolly Benitez’s second wife after Betty Bantug, who perished in a car accident in Tagaytay City; Ambassador J. V. Cruz; Marcos loyalist Jose Lazo, who formed a group called “Bolo Brigade” to support Marcos’s comeback to power; and journalist Sol Vanzi, who cooked food for the Marcoses.

Several curious things happened during their sojourn there. During their stay at Hickam Base, a certain Dr. Ross, a purported representative of Ghana, a country in western Africa, went to Marcos to offer him a sanctuary there. Gemmo Trinidad, who also doubled as spokesman, went to Ghana, but returned “downhearted” because Ghana had no modern telecommunications and medical facilities. “It would be dangerous for Marcos to be ill in Ghana,” Col. Aruiza wrote.

At the height of the EDSA People Power Revolution, Singapore, through its ambassador to the Philippines, offered political sanctuary to Marcos only to say a month later, i.e. after they landed in Honolulu, that the offer no longer stood. It was somewhat a slap on his face, although Col. Aruiza did not discuss their disappointment.

Col. Aruiza discussed their early days at Hickam Base as specific moments for reflection, as they tried to recall the circumstances and reasons for the downfall. There were many “buts” and “if only,” and of course, the barrendipitous “why not?” (Barrendity is the opposite of serendipity, which means a pleasant discovery.)

Imelda Marcos tried to look what could be the other side saying the people’s revolution was a “blessing in disguise” because they could concentrate on Marcos’s illness and that they were simply undergoing what she ridiculously referred as “period of purification.” But Col. Aruiza said their concern was not just the health of Marcos, but his legal problems as well, which were piling up one after the other.

In the end, Marcos decided to return to the Philippines. “He would negotiate for his return to the Philippines, either directly or through the intercession of another country. Already, he was uneasy about the American government’s plans for him. He distrusted the man around Reagan, principally those in the State Department,” Col. Aruiza said.

It was a plan that somehow backfired, as Marcos became a magnet for con men, who presented him with elaborate plans for his return to the Philippines. These con men, who presented impeccable – and impressive, but fake – credentials, somehow convinced Marcos that adopting their plans would enable him to get back to power. As con men, they just milked Marcos.

Col. Aruiza recalled how Marcos confided him many details, including the legal suits brought against him in the U.S. and his plan to leave Honolulu for another country. He said Marcos planned to leave to Panama, but then president Manuel Noriega wanted a weekly payment of P350,000 as surcharge “on top of an unspecified amount which could run to millions of dollars.”

They did not stay long as a group in Hickam Base, according to Col. Aruiza. That party that left Manila on the fateful night of Feb. 25, 1986 left Marcos to go their separate ways. Unaccustomed to the boredom of a political exile, they went and stay on various parts and places – known and unknown. Among them was Fe Roa Gimenez, Imelda’s confidante, who left without failing to steal a part of the Marcos loot.

After a month at Hickam Base, the Marcoses transferred to a three room apartment on the eastern edge of Honolulu, where hordes of Honolulu-based Marcos loyalists pestered them. Newly named Honolulu-based consul general Tomas “Buddy” Gomez III proved to a thorn on their necks, as he kept on tracking them there.

Col. Aruiza did not lose sight of the people, who took advantage of the Marcoses. He narrated how he saw Mrs. Nguyen Cao Ky, wife of the fallen vice president of South Vietnam, who hurriedly left the Marcoses’ apartment, bringing with her a black case that contained Imelda’s jewelry worth $2 million. Mr. Cao Ky disappeared and they never saw her again. She was said to have reached the mainland.

(It was not clear who was the Mrs. Cao Ky. The former vice president had two wives. – PL)

Because of the numerous law suits he had to face in the U.S., Marcos had considered several proposals for him to go elsewhere, some of which were ridiculous. The King of Tonga, a country in South Pacific, offered his country on the condition that Marcos would build the airport and new hotels. Paraguay, a country in South America, likewise offered on the condition that he would invest his loot there. Marcos did not bite, according to his military aide.

Marcos considered an offer from an agent of the Mexican government named Jesse Monroy, who negotiated with him for his transfer to Mexico. But Col. Aruiza said U.S officials bullied Monroy, forcing him to terminate talks for the transfer of the fallen dictator. Marcos tried to find out Spain as a destination, but it was no dice for him.

By mid-June 1986, Gen. Fabian Ver, the fallen AFP chief of staff who was largely blamed for the downfall, left for an unnamed Asian city (it was later identified as Singapore - PL). It was the first time that he had left Marcos. “A few of us nursed the romantic notion that Ver left to prepare for Marcos’s return and we believed this for a long time, until we realized that Ver had left to look out for himself,” Col. Aruiza said.

Orlando Dulay, a retired Phil Constabulary colonel, a former member of Batasang Pambansa and governor of Quirino, brought two American friends, who were working for the CIA. – Col. Roberto Steele and Gen. Lee Dicker. According to Col. Aruiza. Dulay was proposing that the purported CIA agents would work for his return to the Philippines for a fee of P180,000. No less than a State Department official confirmed to Col. Aruiza that the two American agents were con men.

Marcos later transferred to the house in the Makiki Heights, where he stayed until his death in 1989. 

Col. Aruiza said the con men were not limited to Americans. Even Filipinos exacted money from the fallen dictator. Two retired army colonels proposed to work for Marcos return to power in exchange for P400 million. He did not bite, Col. Aruiza said, adding that the two con men even sowed intrigues, when they told that Col. Aruiza was working for the CIA by informing Fidel Ramos of the goings on in Honolulu.

A con man named Richard Hirchfeld imitated the voice of Muhammad Ali, who was in Manila for the 1975 “Thrilla in Manila,” where he fought Jose Frazier. The con man claimed he was being instructed by Ali to work for his return to the Philippines. 

He and his associate Richard Chastain claimed they could work for the return of Marcos by working with AFP guys, buying firearms, and facilitating a loan of $25 million from a Saudi Arabian prince.

Col. Aruiza did not lose sight to name the actors and actresses who visited Marcos: Sharon Cuneta and her mother Elaine; Leroy Salvador and younger sister Alona; producer Vic del Rosario and wife Mina Aragon; Vivian Velez; and singers Becca Godinez, Cecilia Azarcon, Florante, and Hajji Alejandro. 

Chichay, Bert Marcelo, Herbert Bautista, and Lirio Vital likewise visited Marcos in 1987. Regular fixtures were Marichu Maceda, Imelda Papin, and also concert singer Ida Ong.

Monday, October 1, 2018

MUSEUM FOR CHINESE, AMERICAN ARTIFACTS

By Phil M. Lustre Jr.

ITS façade shows a typical public school. But P. Guevarra Elementary School in the Manila district of San Nicolas is unique because it houses a museum that shows a part of the Filipino heritage.

The present-day school stands on what used to be the “Alcaiceria,” the building complex the Spanish colonial rulers created at the mouth of the Pasig River to serve as a market place for ethnic Chinese merchants, who sold silk and clothes and fresh and dry goods to the local people.

Incidentally, the P. Guevarra Elementary School, formerly San Nicolas Primary School, is the first educational facility the newly arrived American colonial masters established in 1999. They put up the elementary school on a dumpsite, a big part of which was the Alcaceria.

The school was named after Pedro Guevarra, a soldier, writer, lawmakers and Philippine resident commissioner to the U.S. during the American colonial rule. He also served as one of the delegates that crafted the 1935 Constitution.

School officials gave a go-signal to the establishment of the museum a decade ago. “We discovered it quite accidentally,” museum curator Wilven Infante told a group of culture enthusiasts, who visited the museum as part of the Binondo-San Nicolas Walk, which Ma. Cecilia Sunico, a culture buff, had initiated. Then Manila Mayor Alfredo Lim gave his support to the museum project.

Because the school used to be a dumpsite, construction workers discovered many relics and pieces of art, when the school underwent massive expansion and renovation to accommodate the rising number of pupils. Unscrupulous workers spirited away some relics during night time, but the timely intervention of school authorities stop the pilferage, Infante said.

The museum is housed in one of the school’s bigger rooms, according to Infante, who also teaches there.

The Alcaeceria was part of the parian system, which the Spanish colonial rulers set up to allow ethnic Chinese to have their own enclaves where they observed their customs and traditions without imposing burden to the local population, which practiced Roman Catholicism.

Recognizing the contributions the ethnic Chinese to the vibrancy of the local economy during those days, the Spanish rulers set up economic enclaves like the Alcaceira to facilitate trade and commerce, although the Spanish government looked at them with distrust.

The Spanish monarch issued a royal decree in 1752 asking then Governor General Pedro Manuel de Arandia y Santisteban to built Chinese traders could stay and sell their goods. They built what was later known as Alcaceira along San Fernando street in San Nicolas, which was opposite Intramuros.

Alcaiceria means silk market, but it was like a customs house, where Chinese merchants paid tax payments in silk cloths. Transient Chinese merchants were allowed to stay there, enabling Spanish authorities to control and monitor their movements.

The old Alcaceria had a two-story octagonal building, where the lower floors were shop spaces, while the upper floors served as lodgings.  It lost its prominence when another customs house was built inside Intramuros in the 1800s.

The museum houses relics and artifacts from both the Spanish and American colonial rules. It enables visitors to catch a glimpse of the historical past.

Thursday, August 9, 2018

DUTERTE REVS UP ‘PLAN C’


By Philip M. Lustre Jr.

FEELING the public rejection of two political initiatives to install an authoritarian regime, the Duterte administration is revving up the third initiative to stay in power beyond 2022.

The plan calls for the strengthening of the regional political party Hugpong into a national political party and the launching of the candidacy for senator of Davao City Mayor Sara Duterte, who is being regarded as heir apparent of his father, Rodrigo Duterte.

The plan also calls for a strong finish for Sara in the senatorial race. If she lands on the first three slots, she could be expected to be the presidential candidate in 2022.

According to Sen. Antonio Trillanes IV, a bitter critic of the Duterte government, Dutete and his minions could hardly create a dent in the first two initiatives, prompting them to launch “Plan C” as the ultimate way to perpetuate the Dutertes in power beyond 2022.

“Plan A” called for what Duterte described as a “revolutionary government” that would supplant the 1987 Constitution and establish an authoritarian government led by no less than Duterte.

The Armed Forces flatly rejected it. Had Duterte resorted to it, Vice President could have been sworn as president.

Duterte, through his supporters, attempted to create a condition to actualize it. They held the Nov. 30, 2017 rallies in at least 12 cities nationwide to drumbeat public support. But only a handful showed up in each of the public rallies, creating the perception that it had no public support.

This year, Duterte has activated “Plan B,” when he had created a 22-man consultative constitutional committee to draft the proposed shift to a federal form of government.

The so-called “Digong Constitution” has been so scandalously drafted, as it contains transitory provisions where, after dividing the country into 18 federated states, Duterete would reign as dictator, who would enjoy executive, legislative, and judicial powers to keep the 18 states together.

It is not gaining ground. Actually, it is destined to the garbage bin of history. Even Duterte does not appear enthusiastic in a proposed constitution drafted by guys mostly from Mindanao. The Senate and his economic managers are among those opposing it.

The remaining political initiative is to have Sara Duterte elected as senator and finally, as the successor to his father. This is most apparent if she lands as one of the first three senators next year.

The father and daughter tandem has initiated it by replacing Leon Alvarez with Gloria Macapagal Arroyo as speaker. They have to firm up an alliance with Arroyo to generate strength in Luzon and the Visayas.

They appear bent to destroy PDP-Laban as the dominant political party and replace it with Hugpong, which is now derisively called "Hukbo ng mga Ulupong" by its critics. 

How they could achieve Plan C remains to be seen.

Sunday, July 15, 2018

CONFLICTING POLICIES ON ENERGY DEVELOPMENT

By Philip M. Lustre Jr.

HAD the government followed consistently its energy policies and programs, the Philippines would not have any looming energy crisis. It would secure its energy requirements. But it has been flip-flopping on its energy policies.
Overall, the state policy has been to develop as nontraditional sources the so-called “renewable” like sunlight, wind, rain, tides and geothermal heat. The intention is to wean the country away from the traditional sources, largely the fossil-based fuels.
But this is not done overnight. Less polluting fossil-based fuel like liquefied natural gas could be the bridge between traditional and nontraditional sources of energy. This is an area, where the government does not seem attuned.
Consider the following:
Recently, President Rodrigo Duterte inaugurated the 420-megawatt (MW) Pagbilao power plant, a coal-fired facility seeking to boost energy supply in the Luzon grid. Duterte lauded the $976-million power facility which, saying the steady power supply would enhance the country’s business climate. It would generate billions of pesos in revenues for the national and local governments.
The project proponent, Pagbilao Energy Corp. (PEC), is a joint venture between TPEC Holdings Corp. and Therma Power Inc., both subsidiaries of Team Energy and Aboitiz Power, respectively. Although the plant is fueled by coal, which environmentalists consider as harmful, it is nonetheless “cost effective and complies with environmental standards.” It is claimed the plant has a flue-gas desulfurizer to ensure compliance with environmental regulations.
The government has given the green light to the coal-based energy plant even though the global clamor is to develop environment-friendly energy sources that leave little or no carbon footprint. In fairness, the Duterte government has not turned its back on nontraditional sources such as wind, solar, and geothermal, among others.
In August last year, the President inaugurated the Solar Philippines factory in Santo Tomas, Batangas. This would ensure availability of affordable solar panels to average Filipino consumers. It would place the Philippines as a major player in the global renewable energy revolution.
Solar panels have been getting more competitive in recent years to the detriment of traditional sources of energy. The cost issue is getting resolved, as the solar panel costs have fallen 90 percent over the last decade, and 50 percent over the last three years alone. It encourages big countries like China and India to get the majority of their new power requirements from the renewables.
Because of the new economics of solar prices, a number of soon-to-be constructed coal plants worldwide faces cancellation. They are not just commercially viable; they are also causing pollution to the environment. The two faces of Philippine energy development policy appear obvious on the two projects.
These are not all.
The energy policy environment has become more complicated by the flip-flopping policy stance on liquefied natural gas (LNG). The Duterte administration does not seem to understand how it would take LNG as a fuel alternative, or bridge between the traditional and nontraditional energy sources.
Let’s discuss the issue. The Liquified Natural Gas (LNG) Hub Receiving Terminal, a 650MW combined cycle gas fired power plant, is another energy project, which is in the pipeline in Pagbilao, Quezon. Australian-based Energy World Corp. (EWC) said its liquefied natural gas terminal, now 90 percent complete, is to become a hub of LNG distribution nationwide once it becomes fully operational.
A disclosure report to the Australian Securities Exchange, EWC said the facility could handle yearly three million metric tons of LNG. Its first tank could support 3,000 megawatts of gas-fired power plants. “This will support our adjacent 650MW combined cycle gas fired power plant, and provide expansion options for both EWC and its third-party gas clients,” EWC said explained.
Natural gas is called “clean” because of its ability to emit 50 percent less carbon dioxide than coal when burning. It is seen as the bridge fuel until the zero-carbon-producing renewables can take over. Natural gas is also a fossil fuel, but cleaner and more efficient than other traditional fuels. It produces less pollution and greenhouse gases than its counterparts, according to the Center for Liquefied Natural Gas.
The terminal’s deep water jetty could handle all sizes of LNG vessels. EWC received an approval from the Energy Regulatory Commission (ERC) to develop a point-to-point transmission facility to connect its 650-MW combined cycle gas plant to the power grid. The ERC has allowed EWC to develop the P694-million transmission facility to connect its power plant to the New Pagbilao Station of the National Grid Corp. of the Philippines.
The LNG Hub Terminal and the Power Station have both reached advanced stage of construction. The LNG Hub Terminal, the first to be constructed here, can process three million tons of LNG every year to generate up to 3,000MW of power. The second tank, which is also under construction, could provide up to 6,000MW of power.
The project means over $750 million of direct investments; it has created over 800 direct jobs during the construction period. It signifies that the country will now be able to gain access to clean and affordable fuel for power generation and further develop its gas infrastructure.
It can commission the first 200MW unit of its gas-fired power station in six months after the drawdown of funds from the firm’s bank lenders - the Development Bank of the Philippines, Land Bank of the Philippines and Asia United Bank, with the 400MW and 650MW at three-month intervals thereafter.
But it appears the Australian-based Energy World Corp.’s (EWC) Liquefied Natural Gas (LNG) Hub Receiving Terminal project in Pagbilao, Quezon, has either been trapped in a bureaucratic quagmire, or stymied by a group that may be inimically affected by its implementation.
Although the project has been reported to have been 90 percent, it has grounded to a halt to the chagrin and disbelief of its stakeholders. But that is another story.
Next topic: The bureaucratic quagmire

Wednesday, July 11, 2018

LENI ROBREDO'S GAMBIT

By Philip M. Lustre Jr.

VICE President Leni Robredo's announcement that she would assume the mantle of leadership of the disparate opposition forces in the country was not a spur-of-the-moment initiative to project her relevance in the political spectrum.

It was part of a well- conceived, carefully laid down plan to present herself as the democratic alternative, even as President Rodrigo Duterte continues to take moves to plunge the nation into another political experiment in authoritarianism.

She has several audience on this initiative: first, the country's democratic forces, which continue to oppose Duterte's counterrevolution to the 1986 EDSA People Power Revolution; and second, the international community, which has been strongly opposing the spate of extrajudicial killings (EJKs) and other human rights violations under his government.

The men and women in uniform in the Armed Forces of the Philippines (AFP) and the Philippine National Police (PNP), constitute the third audience. They have the monopoly of arms and could be decisive to stem the tide of authoritarianism.

Although perceived as the laid back leader from the laid back Naga City, the Vice President was reluctant to lead the democratic forces, until it has become clear that Duterte would do every means - fair or foul - to install dictatorship in the country.

Moreover, it has been made clear that Duterte would continue his appeasement policy even to the point of surrendering the country's territories in the contested West Philippine Sea to China. The Vice President has been strongly against the pro-China stance of the Duterte government.

Two developments could have propelled the Vice President's decision to go all out against Duterte. The first is the multinational initiative to neutralize and stop finally China's inroads in the South China Sea.

The multinational forces led by the United States and composed of Japan, France, Great Britain, and South Korea, have assumed a more visible and tougher presence in South China, indicating they would enforce the 2012 decision of the United Nations Permanent Arbitral Commission rejecting China's claim over the contested waters. They have sent their naval warships to counter China's naval presence in the area.

The Vice President could have sense that the U.S.-led multinational forces are not abandoning South China Sea; they are willing to safeguard the vital sea lanes to ensure a free flow of commerce. About $5 trillion worth of commerce passes through the South China Sea. Hence, the country or group of nations that controls South China Sea controls world trade.

The Vice President has understood that Philippine politics could be somehow dovetailed to the strategic objectives of the U.S.-led multinational coalition in the South China Sea. When she sensed that the multinational coalition would not leave South China Sea, she knew that China would have very limited way to prop up the Duterte government. The Duterte government is lameduck to say the least.

The Vice President's decision to lead the opposition and present a democratic alternative is also an impetus for the AFP and PNP to ignore Duterte's overtures for the two institutions to join him in his anti-democratic initiatives. The 32 years of restored democracy could have injected democratic values and ideals into the two institutions.

Her move would allow the leaders of the two institutions to pause and take notice of the democatic alternative. In fact, several AFP leaders have been pushing her and the democratic forces to show a critical mass of adherents to strengthen opposition to the Duterte government. Any withdrawal of their support to the Duterte government is largely a function of a strong democratic alternative. 

Very recently, the AFP leadership has taken a strong position against the removal of the AFP as "protector of the people" provision in the new constitution, which Duterte's minions have conceived to replace the 1987 Constitution.

Of course, the democratic forces composed of the alphabet soup of civil society organizations that oppose the authoritarian tendencies of the current government have been asking the Vice President to lead them. She could not fail them.

Saturday, May 12, 2018

REGULATORY MAZE, BIG INVESTMENTS HAUNT 3RD TELCO PLAYER

By Philip M. Lustre Jr.

THEY are doing it the wrong way.

Because the Duterte administration has started on the wrong foot, it would be difficult for the government to select without hitches the third telecommunications player. It would also be difficult too for the third telco player to start operations within this year or even next year. The regulatory requirements are firmly in place.

Hence, the circumvention of the legal processes could only create future problems for the third telco firm, particularly when President Rodrigo Duterte is no longer in power. Cutting corners is the not the way to do it. It could lead to future disasters.

Consider the following:

First, the proposed creation of a consortium of foreign and local telecommunications to establish and operate the third telecommunications player to compete with the duopoly of PLDT Group and Globe Telecom is not the right approach. What the law says is that the telco player should be a joint venture firm, where the foreign firm owns at most 40 percent of the total equity.

The letter, spirit, and intent of the 1987 Constitution is specific. Foreign firms could only own up to 40 percent of the equity of a public utility, including telecommunications; the rest belongs to local firms. Besides, forming a joint venture firm would take at least six months. Prospective partners have to perform due diligence studies on the corporate fitness, financial muscle, technological and technical competence, and business standing and reputation of involved companies.

Second, the President cannot just issue an executive order to allow the third telco player to operate. It could later be questioned and declared inexistent from the start. Under the law, the telco player has to possess a congressional franchise and a certificate of public convenience and necessity (CPCN) from the National Telecommunications Commission (NTC), the quasi-judicial body that regulates the entry and operations of telecommunications firms in the country.

We can’t just rush it, if we want a strong telco that can compete with Globe and PLDT,” said Undersecretary Eliseo Rio Jr., the concurrent officer-in-charge of the Department of Information and Communications Technology (DICT). Based on estimates, the new telco player should have this minimum capital structure: authorized, P160 billion; subscribed, P40 billion; and paid-up, P10 billion.

Finance Secretary Carlos Dominguez III earlier said in his Twitter account that the entry of the third telco firm could not be rushed because the prospective firm would need at least P200 billion to start up and compete with PLDT and Globe Groups.

Independent analysts said the third telecom player would require at least P500 billion ($10 billion) for the first five years, but added the heavy financial outlay could be a disincentive for prospective foreign investors because of the uncertainty of recovering the amount within a reasonable period of time. Even China Telecom was reported to have second thoughts of entering the Philippine market.

Fast track entry

The President has directed state agencies to hasten and facilitate the entry of the third telco player, which, he said, should compete with the PLDT-Globe duopoly. In what could be perceived his unfamiliarity on the dynamics of the local telecommunications sector, he wanted the third telco player to start operations by March this year. This was something that would not happen as subsequent developments would show.

Duterte was partial to the state-owned China Telecom to be the foreign firm of the third telco player in joint venture – or consortium - with local firms. But forming a behemoth firm to compete with two conglomerates is not that easy. Involved parties have to engage in a maze of regulatory requirements.

These are not all. Certain regulatory issues have to be laid down even before the third telco player could be formed to enter the Philippine market. The DICT is currently working on the guidelines to use for the selection of the third telco player, although it has been widely perceived these guidelines are all pro forma to suit the entry of the favored China Telecom.

Even Rio would not readily talk on the guidelines, except to stress that the prospective third player should be totally a separate entity from both Globe and PLDT. According to Rio, the third telco firm would not be named before the July 24 State of the Nation Address (SONA) of the President.  Most likely, it would be done in August at the earliest. What the President would announce in his SONA are the potential bidders, but not necessarily the winning bidder.

Press reports said four local firms in “consortium with foreign telecommunications firms” have expressed interest to bid as the third telco player. Rio said the foreign firms are China Telecom, LGU+ of South Korea, KDDI Corp. of Japan, and certain unidentified firms from Vietnam and the United States.

“They are still waiting for the final terms of reference (TOR) before they really come out. We are getting interest from four serious interested consortia with foreign partners. Until we have them really confirm, we cannot discuss them,” said Rio, who was in Cebu said in a forum in Cebu City.

Consortium approach

The consortium approach Rio has been saying would not work as Philippine laws and implementing rules and guidelines do not allow consortia of whatever kind to enter into contracts with government. Under the law, only natural persons and “artificial persons” like partnerships and corporations could enter into contracts. A joint venture firm is regarded a partnership and, ergo, could enter into a contract with the government.

Why Rio was using the word consortium in his public pronouncements is not known. Consortium is too loose a word for big ticket projects like the third telco player. The looming project requires a firmer, solid word to describe. The law requires a joint venture between foreign and local partners so that a state contract in the form of a Certificate of Public Convenience and Necessity could be issued.

It would be wrong to say that a mere presidential approval, or the DICT’s, would be enough for the third telco project to operate. It has no legal power, according to legal pundits. Hence, a presidential directive through an executive order, or whatever piece of paper would be insufficient to satisfy the regulatory requirements.

The third telco firm would need a congressional franchise. Aside from the congressional franchise, it needs a CPCN. The NTC, as the quasi-judicial regulatory agency that deals with the telecommunications sector, would have to conduct public hearings to find out the fitness of the third telco player. By satisfying the requirements – legal, financial, technological, marketing, among other things – the NTC could issue the CPCN.

Two groups are being prominently mentioned as local partner of China Telecom: the Buddy Zamora group, which has acquired PT&T, a local firm; and NOW, the Manny Villar firm, which has acquired a congressional franchise. PT&T has a congressional franchise that dates back to RCPI, its old name. PT&T has experience in telecommunications business, but NOW has none.

Incidentally, forming a joint venture firm would take at least 6 months; it could go and drag for a year or two, as in most big firms. China Telecom and its local partner would have to conduct due diligence studies; each party has to determine the fitness of the other party as a joint venture partner.

Each party has to study their corporate and financial standing, prestige, technical and technological competence, and other legal, technical, and financial issues before any joint venture deal is sealed.  They have to look into each other’s financial statements and corporate history. They cannot afford to have a half-baked joint venture pact.

Overall, the third telco would need at least two years to operate fully. After satisfying the regulatory requirements in the next 12 months, it has to put the infrastructure in the next 12 months so that it could operate fully. The infrastructure issue is another matter to consider.