MORAL HIGH GROUND

By Philip M. Lustre Jr.

CHOOSING the moral high ground instead of yielding to the lawmakers’ insatiable greed is proving to be the right course of action for the Lopez family. Their policy of complete reticence and total avoidance of any conversation, negotiation, and bargaining is reaping largely unseen but tangible dividends for the Lopezes.

When the government through Rodrigo Duterte, Alan Peter Cayetano, and the screaming trio of Rodante Marcoleta, Michael Defensor, and Crispin Remulla had applied pressures to negate efforts to enact the proposed franchise extension of ABS-CBN, the Lopezes had simply clamped down and avoided any talk or negotiation for a quid pro quo.

The lawmakers had salivated for grease money from the Lopezes, expecting they would earn a windfall from the franchise extension and ensure reelection in 2022. Bribery is their language in extending legislative favors to some vested interest. Until the last minute, they were hoping cash would freely flow from the Lopezes. But this family know their lessons – past and present, as they opted to exercise moral scruples instead.

While they are admittedly ruthless in the conduct of their businesses, they are not wild and careless. Although they are astute and could be compromising at times, they stick to fundamentals – which is doing business with a modicum of ethical standards.

Meanwhile, the lawmakers would have to wait for the promised “projects” by their captain – Polong Duterte. Will Polong deliver those projects, where they could skim millions of pesos to fund their reelection bids in 2022? That is everybody’s guess.

The government is definitely bankrupt. It has incurred enormous debts because of the ill-fated 100-day lockdown. It has to resort to deficit spending. The national government has incurred outstanding debts of P1.509 trillion for the first five months of 2020, data from the Bureau of Treasury show.

This amount is larger than the programmed borrowings of P1.4 trillion for the entire 2020. Taxes and other revenues are insufficient to support the 2020 national budget of P4.2 trillion. Hence, the national government has to resort to deficit spending, where a big part of the national budget has to be supported by domestic and foreign borrowings.

The overall debt of the national government has reached P8.9 trillion by end-May. This is projected to reach P9.7 trillion by end-2020, the economic managers have earlier indicated. Who knows it could reach P12 trillion by the end of Duterte’s term of office on June 30, 2022? This P12 trillion benchmark is double the almost P6.0 trillion, the amount when the Duterte took office on June 30, 2016. 

Obviously, the current leadership, or ruling clique, which is disparagingly referred as the “Inferior Davao,” does not understand fiscal discipline. It has spent without much accomplishments to show for the P275 billion, which Congress has allocated under the newly expired BAHO Law to meet the pandemic caused by the China-Duterte Virus.

It did not resort to mass testing and contact tracing. It did not have programs, plans, targets, and objectives. The number of infected persons continues to rise after the 100-day lockdown.

Incidentally, the P1.509 trillion in borrowings from local and foreign sources the Duterte administration has incurred for the first five months of 2020 is much bigger than the overall borrowings of the Noynoy Aquino administration for the period 2010-2016.

Noynoy Aquino, during his entire six-year term, had contracted a total of P1.366 trillion, data of the Bureau of Treasury show. His tenure of office could be heralded as an era of fiscal discipline. He left office in 2016 with the national government in sound financial position because of its enormous savings.

Duterte has the reason to justify the huge borrowing for the first five months, citing the pandemic. But the difference remains mind-boggling by all standards because Duterte does not have much to show achievements for the heavy borrowings. He could not even explain how the resources were spent. His once a week public appearance does not lead to any clear-cut explanation of whatever expenditures his administration did.

Going back to the Lopez family, this economic family does not have to close shop for the next two years. Its game plan is to wait for a new government, possibly a friendlier one, to seek a new franchise in 2022.

Still, the Lopezes have the elbow room – or ultimate flexibility – to reinvent and reengineer the TV giant to new directions. The franchise expiration could be the legitimate reason to shed excess fat like the expensive contract stars and unwanted pro-Duterte commentators.

Also, the Lopezes could use ABS-CBN for the mass migration of Filipino audience to the digital platform. As the TV giant exploits the use of digital technology for its programming, the Lopezes could discover new but untapped income streams to make its digital operations viable – or even profitable ultimately.

Meanwhile, Duterte would be reduced to a fumbling clown, who would keep parroting used and worn-out lines straight from the Ferdinand Marcos playbook. The Lopezes are oligarchs... yak... yak... yak... Who would believe him? Who’s the loser?