Saturday, October 11, 2008

Asia Times The Chop Suey gang

Asia Times October 2, 2004
The Chop Suey Gang, excerpts from "The Philippines: Disgraceful state, part 2, Goodfellas with Tagalog sub-titles."

As for the ultra-wealthy - and very discreet - Chinese-Filipino tycoons, they have always preferred to remain in the shade and fund their own congressmen. But post-Marcos some taipans have sprung up, such as Sherwin Gatchalian, the son of the Filipino king of plastics, and stockbroker Harry Angping. But no Chinese-Filipino taipan comes close to matching Lucio Tan, the ultimate embodiment of the Filipino dream: from janitor to the nation's wealthiest man - and one of Asia's Top 50. He made his fortune with tobacco, built a diversified empire, merged from being the ultimate Marcos crony to a supreme in-the-shade arm-twister of the House and the Supreme Court, and practically made president Estrada. Tan, additionally, has excellent relations with Beijing - something that largely explains the $1 billion in investment and soft loans that Arroyo brought from her recent trip to China.

Another invaluable volume by the Philippine Center for Investigative Journalism, Investigating Estrada: Millions, Mansions and Mistresses, published in 2000, before Estrada was ousted from power, documents in minute detail the many facets of Estrada-Tan cronyism. Economist Solita Monsod paints Tan as "the role model for the worst kind of conduct as far as our national economic objectives are concerned. He signals that you can evade taxes and get away with it, pay the courts and get the judges to decide in your favor, get good lawyers and delay your cases. The messages that are given by the kind of treatment he gets from the government are the antithesis of what we need for sustainable development."

Martin Scorsese would have loved this larger-than-life version of Goodfellas with Tagalog subtitles. Lucio Tan bet heavily on Joseph Estrada in the 1998 presidential election: at least $37 million, plus total cooperation by his nationwide business network. And he won - big. With his pal Joey running the country, the biggest tax-evasion case in recent Philippine history, slapped on him by former president Fidel Ramos, simply disappeared. Tan's deep-in-trouble Philippine Airlines was protected from competition by Estrada. And on top of it, he was handed the Philippines National Bank by Estrada on a silver platter.

Manila's coterie of resident Sinologists cannot list enough reasons for a Filipino politician to seek a Chinese connection - as Estrada did. Chinese businessmen "swim between the rivers". They are not a political threat. They ask - or feign to ask - nothing in return for their largesse. They quickly share their fortunes with close friends and godfathers. They spend fortunes on the campaign trail. They keep their word - even when it's not on paper. And most of all they keep their mouths shut.

As to where the elites stand at the moment, analysts broadly agree they now are congregated into roughly four groups: 1) The traditional elite - the Ayalas, Aquinos, Lopezes, De Leons, Osmenas and a few other families that were snubbed by Marcos; 2) The "sons of Marcos" who blossomed handsomely during the dictatorship - tycoons Lucio Tan, Danding Cojuangco and former president Estrada, for instance; 3) The anti-Marcos camp, which includes former president Fidel Ramos and ultimately his protege Arroyo; and 4) A group of gung-ho parvenus that includes shady businessmen Dante Tan and Mark Jimenez. These are the people who actually rule the country.

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