UNO: Crony capitalism back

MANILA, Philippines – Accusing former environment secretary Michael Defensor of using his closeness to President Arroyo to corner a nickel exploration deal with two state-owned Chinese firms, the United Opposition (UNO) yesterday said that it is reminded of the days of “crony capitalism” in the country during the Marcos years.

“The closeness of Mike Defensor to Mrs. Arroyo clinched the deal. It was clearly an advantage he enjoyed over other Filipino businessmen,” said Makati City Mayor Jejomar Binay, UNO president.

According to him, during the martial law years, close associates of deposed President Ferdinand Marcos were able to corner juicy business contracts because of their closeness to the latter who also had interests in most of the corporations.

“There is no level playing field here. We might say that cronyism is alive and well under the Arroyo administration. Crony capitalism is back,” said Binay.

Binay described Defensor, who was among the losing administration candidates in the 2007 senatorial elections, as someone known to be a close confidante of Mrs. Arroyo.

He cited reports that Arroyo allies or their relatives are listed as officers of Geograce Philippines, the company chaired by Defensor which signed a deal in China last week with Nihao Mineral Resources Inc. and Jiangxi Rare Earth and Rare Metals Tungsten Group on exploring nickel mining in Zamboanga. 

“I have no objection to bringing in investments to the country. But did Defensor’s company get the deal because of his company’s track record, or simply because the Chinese companies know that he and the other officers of the firm are very close to Mrs. Arroyo and could get things done faster?” Binay asked.

On the other hand, Reps. Milagros Magsaysay of Zambales, Emmylou Taliño-Mendoza of North Cotabato, Paul Daza of northern Samar, Antonio Alvarez of Palawan and Marcelino Teodoro of Marikina, said the President “should not be dissuaded from attracting foreign investments” and should ignore criticisms hurled by critics on her presence in the signing of the mining deal between the Chinese firm and Defensor.

Senators Aquilino Pimentel, Panfilo Lacson and Francis Pangilinan said Mrs. Arroyo should have at the very least shown delicadeza by avoiding the event, especially because it involves the company owned by Defensor, who used to be a member of her Cabinet. – Michael Punongbayan, Delon Porcalla, Jose Rodel Clapano