Irony of ironies is how a mad rush to scratch a vindictive itch from the bite of the previous administration of former Philippine President Gloria Macapagal-Arroyo has backfired badly against the the government of current President Benigno “Noynoy” Aquino III. A bomb dropped by the Supreme Court on the long-festering row between the Aquino-Cojuangco feudal clan and the farmer-tenants who toil within its family crown jewel, the vast Hacienda Luisita domain in Tarlac, cut short a long effort (including an anticipated three more years before a 2014 deadline) to pull the family estate off the brink of catastrophic insolvency.
Following a spectacular display of bald disrespect for the Judiciary by Aquino henchman Justice Secretary Leila De Lima who defied a Supreme Court order to suspend a travel ban she slapped on former President Gloria Macapagal-Arroyo, the SC finalised an order to immediately subject the Hacienda Luisita Inc (HLI) to the Comprehensive Agrarian Reform Program. The order, in effect, will require almost 5,000 hectares of the estate to be sold to the government at below market prices and the government to distribute the land to farmers.
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Finally coming under the harsh light of scrutiny is the financial position of family crown jewel Hacienda Luisita which according to a 2010 report on Newsbreak.ph is in a Php 2 billion hole; i.e. HLI’s capital is deficient by that amount to cover its liabilities. This means that the amount that the owners of Hacienda Luisita will be able to sell their land to the government will spell the difference between a future of continued access to wealth and power and a future of relative poverty.
According to Cavite Rep. Jesus Crispin “Boying” Remulla, who headed an inquiry into the pricing of the SCTEX project right-of-way payment made by the government to Hacienda Luisita a few years back…
“The Cojuangcos are asking for P100 per square meter when the highest rate paid by DAR for irrigated sugar land is P40 per square meter (in Negros Occidental),” Remulla said.
There are only about 4,000 hectares of agricultural area left with Hacienda Luisita—not discounting the undisclosed parcels that have been mortgaged with creditor banks. If the land will be bought under the government’s CARP at P40 per square meter, the Cojuangcos will get only P1.6 billion—not enough to cover HLI’s P2-billion liabilities and capital deficiency.
But since Hacienda Luisita is not irrigated, Remulla pointed out, it could fall under the P12-20 per square meter price range under the CARP. The Cojuangcos will therefore get only P480 million to P800 million.
If those assessments are still valid today, then even a best-case scenario of a P40/sq-m sale will see the Aquino-Cojuangco clan still Php400 million in the red after they are divested of the property and, at worst, a P12-20/sq-m sale will put the clan Php800 million to Php1.1 billion short of cash to fund their liabilities.
The Aquino-Cojuangco clan will be asset-less and in debt to the tune of hundreds of millions.
It seems that Noynoy’s presidential pitch to voters on the back of “good intentions”, as it turns out, masked a more practical agenda. A temporary restraining order (TRO) on the application of the CARP on HLI has been in effect since 2005 when tenant farmers mounted an almost successful bid to overturn a failed stock distribution scheme initiated by then President Corazon “Cory” Aquino.
Thus a Noynoy presidency was apparently deemed critical to ensure that the “right” people were in the Supreme Court over the 2010-2016 presidential term, most likely to ensure that the SC in that period dished out rulings favourable to the presidential Kamaganak Inc which, of course, includes the owners of HLI. This likely inlcudes keeping the TRO in effect and buying enough time for HLI to get its sorry financial position back in the black.
It’s no wonder then that Noynoy threw a monumental fit when he first faced the prospect of a presidency under a Supreme Court led by Arroyo appointee Renato Corona. To Noynoy, Corona represented an absolute roadblock to the whole point — his mission to his family while President of the Philippines.
Indeed, this goes beyond Hacienda Lusita and further to its creditors which includes other businesses within Aquino-Cojuangco Inc and the banks who had likely had their arms twisted into lending money to the spiralling enterprise.
If HLI descends into insolvency oblivion, it is bound to drag down all the poor sods it owes money to and could even precipitate a mini financial crisis on its own if the web of financial exposure to the doomed enterprise unravels beyond what is known today. Is HLI too big to fail? Are the Cojuangcos too wealthy to fail?
Abangan ang susunod na kabanata…
benign0 is the Webmaster of GetRealPhilippines.com.
Der Fuhrer knows der farm ist not funny anymore! In a different time it was a happy/funny farm! Der Fuhrer missed out in forcing the issue by way of not replacing the present pro-democracy magistrates! And so they lost the happy/funny farm! But wait! It was revealed in the pro-democratic youtube that they have also vast lands in pro-democracy pangasinan!
Der Fuhrer is too focused on his fixated and obsessive hatred of the yellow star of David frau Arroyo and family! He lost it many times. Lost opportunities for greatness! His focus is still on his very genius strategy against the perceived corrupt enemies of the state!
He also has to deal with the maoist threat on the farm. His dream is still there and one day it will be as he knew it!The return to the happy/funny farm! Sieg heil!
Der Fuhrer has old psychiatrists/psychologists reports. These are his records evaluating his mental/emotional states. This was revealed by a pro-democracy newspaper, the Daily Tribune. The column is entitled “In Deep Trouble” Frontline.
The tragic revelations bodes ill for the reich! It includes the study made by Father Jaime Bulatao. A salient portion stated that Der Fuhrer,”believes that only with political power can he PUNISH those who had brought harm to his parents, himself and his relatives!”
Truly, the reich is in deep trouble! Gott mitt uns!
Kind of explains why he was pretty quick with that “the landowners need to be fairly compensated” comment of his.
Hindi makikialam si Tito Noy sa desisyon ng Korte Suprema kaya hayaan na natin sila magtrabaho
@Vincenzo…we will be watching Noynoy Aquino. If he decides to go down with his Hacienda Luisita…so be it…Maburak of Egypt…Khadafy of Libya…Assad of Syria…, then, the Aquinos and the Cojuangcos, with his Oligarchs buddies of the Philippines…maybe next…
@Vincenzo
Well it looks like nakikialam si Tito Noy mo sa presyo ng Hacienda Luisita. Are you ok with using your tax to pay for what does not belong to them anyway? A sucker is born every minute.
Heil der Fuhrer Vincenzo! What are you talking about? He is not your tito noy! Der Fuhrer has a supreme and brilliant nutzie mind! You are just a nutzie underling! He dictated his will to defy the Supreme Court and railroad the GMA case many times to equally brilliant Gestapo Chief Delima! That is why frau Delima has a pro-democracy disbarment case pending! Heil der Fuhrer and frau Delima! Both are brilliant leaders in planning the prosecution of the perceived enemies of the nutzie state! Both have a supreme nutzie mind!
@Vincenzo
What makes you so sure that your beloved idiot of a president won’t meddle with the supreme court?
He has already defiled the SC with his decision to stop his scapegoat from leaving the country.
GIVE UP IDI0T
YOUR ARGUMENT IS INVALID.
The ownership of the Hacienda Luisita, is in question. These lands were acquired by the Cojuangco family under questionable circumstances. If there is an Ultimate Greed: this is the One…Imagine one family owning 80% of the agricultural lands in Tarlac. Making most of the Tarlac farmers, their tenants/serfs…
The Huk Rebellion was the cause of this land. Benigno Aquino, Sr. , collaborated with the Japanese Militarist, to save this land. Ninoy Aquino, Jr. and Cory Aquino, collaborated and supported the NPA, to save this land. Ninoy Aquino, Jr., and , Gen. Antonio Luna were murdered, because of this land. Marcos was deposed, because of this land. Hacienda Luisita farmers were murdered, for complaining of their U.S. 25 cents a day pay…this land is the source of tears of many people…Just because of the GREED of the Aquinos and Cojuancos. They Swindled us…they Swindled the Philippine government…
i suspect p-noy who has been missing the last few days is getting his marching orders as we speak.
after all the blood they have spilt they will not simply give up now.
this remains their future power base as they convert the land once clark, now bought by cojuangco becomes the main airport
all part of the master plan
Beware of der Fuhrer when he is mad! For he perceives himself as the law of the land! Der Fuhrer issued secret instructions to the reich PNP to allow rowdy and noisy members of the master yellow race to do their thing! Making loud noises adjacent to the portals of the pro-democracy supreme court! The move is intended to cow, influence and insult the integrity of the court!
Beware of der Fuhrer as he schemes and plans total war against the pro-democracy supreme court! He is truly the great nutzie dictator of the master yellow race!
I am not a nutzie. But I fear the rising dark fog of madness that is slowly enveloping the land. Beware der Fuhrer should he assault with blitzkrieg the pro-democracy supreme court!
For der Fuhrer is truly the greatest nutzie dictator when he is mad!
He is not that fearful, as he shows himself…he has Psychiatric problems…anxiety and panic attacks…he has no military experiences…he can order people…but cannot formulate military strategies. People will do it for him. Does he has guarantee that the whole military and the Americans, and the world community will support him? He must not over estimate his power and himself…we will be watching his every move and those around him…
Yes, we will watch him and when he falls,
Vincenzo will cry like a baby because his idiot of a president got ousted because of his incompetency.
I could not help but think that Noynoy belongs to a family that took advantage of holding on to a piece of real estate that does not belong to them and enriching themselves at the expense of the majority in Tarlac. And so, how can he claim to pursue the straight path? Is it correct to assume that the path his ancestors took was too crooked?
does he has aspergers syndrome ?
The pro-democracy news revealed the recent circulars of the reich bureau of tax collection. Der Fuhrer’s reich tax chief said that all Income Tax Returns(ITR)should contain pertinent information of bank accounts! Der Fuhrer must know that this will affect the working man as well as the rich relatives of his feudal clan! Perhaps the reich tax chief wants to perform a fishing expedition and violate the secrecy of bank accounts in order to blitz brillantly perceived nutzie speculations of reich tax fraud!
Another brilliant perception of the nutzie mind of the Fuhrer’s tax chief is to enforce a policy on private citizens to attach a Statement of Assets and Liabilities to the ITR! This is also a nutzie shortcut to a perceived fishing expedition!
Der Fuhrer’s tax Chief Kim Henares is also going to tax proceeds from pro-democracy Philhealth, GSIS, SSS, etc. The puny pro-democracy constitution is under blitzkrieg attack from perceived brilliant nutzie tax policies!
Heil Der Fuhrer!
for real? where the f**ck is the democracy?
What democracy?
Erratum on last paragraph. Correction: Der Fuhrer’s tax Chief Henares is also going to tax voluntary contributions to the SSS, GSIS, Pag-Ibig fund and Philhealth!