By Philip M. Lustre Jr.
RODOLFO
Cuenca’s authorized biography book "Builder of Bridges: The Rudy Cuenca
Story," which is reluctantly written by Jose "Butch" Dalisay Jr.
and Antonette Reyes, contains details, which were mostly unknown to the public
until it came out. These details were mostly on the dynamics of the
relationship among cronies of dictator Ferdinand Marcos at the height of the
infamous and detested martial law regime. Rudy Cuenca is best remembered as the
guy who led what could be perceived the meteroic rise of Construction
Development Corporation of the Philippines (CDCP), which became the country’s
biggest and leading construction firm in the 1970s and 1980s.
Let
us be forewarned that any authorized biography is no different from an
autobiography. It contains feats worthy of records, conversations and
associations with famous people, or some weird experiences that could be
humorous, poignant, or striking. Any authorized
biography could only contain what the subject of a biography wishes to divulge.
Omissions and commissions are the likely aftermath of the written works.
According
to Cuenca, CDCP was created in 1966 by an odd mixture of construction and
banking guys. It was their response to the call of Ferdinand Marcos in his
first year in office to strengthen the construction industry so that the
country could pursue an ambitious infrastructure program. CDCP rose to the
occasion, as it built over the succeeding years NLEX and SLEX, LRT-1, San
Juanico Bridge and the 3000-hectare reclamation of the Manila Bay. It also
diversified into other areas including construction projects in the Middle
East, mining (CDCP Mining which later became Basay Mines), shipping (Galleon
Shipping), labor subcontracting, among others. At its prime, CDCP had 38
subsidiaries. It was ranked as one of the biggest construction firms in the
world.
Nearly
20 years after it was formed, CDCP fell flat on the ground, a victim of its own
ambition and faulty finances. Rudy Cuenca, while busy to conclude contracts
with the foreign and the Marcos governments, failed to check its own finances.
Because of over-extension, it had failed to collect payments of its projects,
leading to severe liquidity issues. According to Cuenca, CDCP was busy pursuing
projects and spending for their completion, but could hardly collect payments so
that it did not have sufficient funds to finance its operations. The mismatch
was something it could not handle.
For
a while, CDCP resorted to short-term borrowings, or through issuance of
commercial papers, which was then a common practice during those days. They
were quite exorbitant because they carried short repayment periods and high
interest rates. CDCP kept on rolling those maturing commercial debts , but
there was a limit for those loan rollovers. In the end, it collapsed because of
its own weight. Its debts were so huge to the point it could not service them.
The
authors did not discuss the major financial antecedents that led to CDCP’s
liquidity issues. There was omission of the Dewey Dee affair. Dewey Dee was a
Chinoy businessmen, who absconded over P600 million in debts. The Dewey Dee caper
led to drastic reforms in the local financial system, including a tight squeeze
and control on the issuance of commercial papers. Hence, it came to the point
when CDCP could not issue new commercial papers. Hence, it could no longer roll
over its maturing debts.
Moreover,
the book did not discuss CDCP’s ownership – beneficial, or whatever. While the
authors named Rudy Cuenca and his business associates as among its owners, they
did not in any way indicate if Ferdinand Marcos was among the owners. Knowing
the insatiable greed of dictator Ferdinand Marcos, it is inconceivable that
Marcos did not own a big part of it. The manner how it cornered big ticket
projects during the days of the dictatorship showed Marcos somehow favored from
it. The authors did not discuss why Marcos did not help Rudy Cuenca to save
CDCP, but instead allow its corporate demise.
Also,
the book did not discuss Rudy Cuenca's failure at length. This is to be
expected. While the book was brutally frank, it was written to serve Rudy
Cuenca’s purpose and interest. Authorized biographies are essentially
self-serving. Re his debacle and downfall, Rudy Cuenca laid the blame squarely
on three major characters, whom he claimed to have ganged up on him. He did not
use the word "conspiracy," but Roberto Ongpin and siblings Imelda and
Kokoy Romualdez did everything that he would lose everything.
Roberto
Ongpin, the fourth most powerful man during those days after Ferdinand and
Imelda Marcos, and Cesar Virata, served as Marcos’s hatchet man. Roberto Ongpin
readily accepted Rudy Cuenca’s invitation to become chairman of the CDCP board.
Rudy Cuenca could not help but felt bitter because instead of helping CDCP in
his capacity as its board chairman, he led in CDCP’s slaughter. The government
took over CDCP as government debts were converted into equities. It has been
renamed the PNCC or Philippine National Construction Corporation.
The
authors did not mention any fallout between Ferdinand Marcos and Rodolfo
Cuenca. Why Ferdinand allowed its slaughter and used Ongpin as the hatchet man
of its financial demise is worthy of future investigation. But the CDCP affairs
also pointed to the dynamics among the people in power during those days.
Rudy
Cuenca claimed that Imelda Marcos was apparently envious or jealous of Rudy
Cuenca’s access to husband Ferdinand. Rudy Cuenca avoided to get closed to
Imelda during those days. He bypassed her. He did not see it fit to pay
obeisance to her. He felt he could go directly to Marcos. Rudy Cuenca
apparently misunderstood that Imelda was the other half of the conjugal
dictatorship during those days. Imelda resented his antics. He misread the
situation.
Rudy
Cuenca claimed he gained Kokoy Romauldez’s enmity after CDCP bagged the
contract to reclaim 3,000 hectares of sea in the Manila Bay area. Rudy Cuenca
claimed his firm bested Kokoy’s construction firm, which he did not identify,
in the bidding.
Rudy
Cuenca is still alive at 94. It’s interesting how those powerful guys slit each
other’s throat during the heady days of the Marcos dictatorship. #