Beware of ‘cronyism’, Madam President – and conflict of interest - BY THE WAY By Max V. Soliven

Since deposed President Estrada fell on such fatal issues as corruption, graft, cronyism and favoritism, it goes without saying that President Gloria Macapagal-Arroyo should scrupulously strive to be cleaner than clean: Have no cronies, give no "favors" to friends and relatives, and keep her skirts clear of any taint of graft or greed.

This is why I find it passing strange that she is recklessly announcing, even without a stockholders’ meeting, that she intends to name one of her closest personal and political friends, and longtime supporters, the Chairman of the multibillion-peso PETRON oil giant, which, in partnership with Saudi Aramco, the mammoth oil and energy conglomerate of the kingdom of Saudi Arabia, imports, refines and supplies much if not most of the country’s fuel.

President GMA told reporters the other day (as published, I notice, in the business section of Malaya daily) that she was going to appoint Nicasio I. Alcantara, elder brother of former Department of Trade Undersecretary and Board of Investments Chairman Tomas I. Alcantara, the new PETRON Chairman. Come again, Madam President? To begin with, there’s obvious "conflict of interest" here. Nick and the wealthy Alcantara clan of Davao (the in-laws, by the way, of another GMA appointee, Paul Dominguez, her "man in Mindanao") are the representatives in the Philippines of PETRONAS corporation of Malaysia, the bitter arch-rivals of PETRON and Saudi Aramco. The Saudis – who own about 40 percent of PETRON, and under the deal hatched during the Ramos Administration share management of PETRON (and alternate as company Chairmen with the Filipino management – the present Chairman is ex-Ambassador Jose Syjuco, Jr.) – originally won their bid to buy into PETRON against the tough opposition of Malaysia’s PETRONAS.

Indeed, when this writer and some other journalists reproached ex-President Fidel V. Ramos for having "sold" near-control of our one and only Filipino oil enterprise (which was designed to be our only bargaining chip in our dealings with the foreign oil giants, in the old days referred to by a oil-price-shocked world as The Naughty Seven Sisters) – FVR explained that he needed to appease the Saudis so as to assure the Philippines of a steady oil supply during those years of shocking oil price fluctuations and oil shortages.

Why President Arroyo should now irritate the Saudis, who employ half a million Filipinos in the Middle East (7,000 Filipino technicians and specialists work in Saudi Aramco itself in their homeland, and keep the oil flowing) by foisting Alcantara, who is buddy-buddy with their Malaysian rivals (PETRONAS), on their local establishment as the "incoming" PETRON "chairman" is incredible.

Now, I personally like Nick Alcantara as an individual, as I do Tom and the Alcantara family, but that’s neither here nor there.

The fact is that President GMA appears to be paying her political debts ("to the victors belong the spoils"?) by gifting the patriarch of the Alcantara family with the Chairmanship of such a rich plum. It’s not secret, and Presidentissima La Gloria never tried to keep it a secret, that she is sentimentally and politically beholden to Nick and the Alcantaras. From the very beginning of her political career (and I got this years ago from GMA’s own lips), the Alcantaras provided the nationwide "network" that was the basis of her political machine.

As she freely admitted on several occasions when we were together in the past, everytime she arrived to campaign in any province of the archipelago, she was met at each local airport by either relatives, or friends of the Alcantaras, their local distributors and retailers (they have a nationwide chain of cement, refractory material, building and construction material outlets). The Alcantaras’ distributors, retailers and employees were her campaigners, dikit-personnel, vote-recruiters and precinct-watchers. How much closer can a leader get to any group of supporters who have tirelessly worked for her in her ascent to the Senate, to the Vice Presidency, then, finally, to the Presidency itself than GMA to the Alcantara family?

And so, by gifting Nick Alcantara suddenly with the Chairmanship of PETRON, isn’t she saying "thank you"? How does one define a "crony"? As a drinking buddy? Or as a buddy, whether one drinks or not?

Just asking.

* * *

Another infirmity in the President’s announcement of Nick Alcantara assuming the PETRON Chairmanship out of the blue – without his having owned a single share of PETRON stock (but, obviously, slated to be put there by the power of the Philippine government's controlling shares) – is the fact that a Chairman must be elected at an annual stockholders’ meeting. The next stockholders’ meeting, however, doesn’t take place until next July.

The PETRON Chairmanship, therefore, cannot be handed over like a lollipop to somebody the Chief Executive of the country happens to like or to whom the President feels she owes a debt of gratitude. This is a serious matter, not a lottery or bingo prize.

Moreover, Nick heads or is a director of the Alcantara Group of Companies which are deeply in debt. This group of companies, controlled by the clan, are involved in cement, refractories, land development, power, wood processing, chemicals, and food processing. These firms, unless I’m mistaken, owe about P5 billion or more (the exact figures I think I can extract tomorrow) to several banks. Perhaps this huge indebtedness does not reflect on Nick’s management skills or debt repayment record – but doesn’t this give you pause?

Just asking, again.

* * *

Another "excellent" manager kuno was recently named by President Arroyo to the Chairmanship of the government’s premier corporation, indeed, the extremely rich, desirable, and powerful National Power Corporation (NAPOCOR). Again, might I ask, what constitutes "conflict of interest"? This "lucky" gentleman, Mr. Jesus Alcordo, by Malacañang’s own admission, was originally considered for appointment as Secretary of Energy but was not so designated owing to potential "conflict of interest."

The fact that Alcordo was given the fantastically more important, lucrative, and influential Chairmanship of the NAPOCOR (the Cabinet post of Energy Secretary, in contrast, is just a joke) cannot by any stretch of the imagination be described as a consolation prize. It is THE PRIZE.

What makes the National Power Corporation Chairmanship so juicy? The NAPOCOR is a mega-multibillion-peso and dollar corporation, providing the country with all its energy needs, with the residual might to make or break every energy-supplying firm in the archipelago, and the deep pocket to sign and finance mega contractors here and abroad. Moreover, with the "privatization" of this super-company in the works, pending Congressional approval, a NAPOCOR Chairman will help rewrite, shape, and push through the long-stalled energy bill. He will be able to "divvy up" the huge conglomerate into packages, so parts of it can be bidded and sold both in the Philippines and overseas. Sanamagan! The NAPOCOR Chairman ab initio and without any sweat or effort on his part, is a Titan in the business and financial world. The man who, literally, can throw the switch.

Yet, who is the now "worshipped" Mr. Alcordo? His previous job was that of President of a relatively small energy firm in Cebu named the East Asia Power Company. What makes Alcordo’s "connect" so strong? The firm is owned by the Aboitiz clan (remember the shipping lines, etc.?), which is, aside from their being among Cebu’s first families, are in-laws of former Cebu Governor and FVR-time Flagship Projects Secretary Emilio "Lito" Osmeña, GMA’s well-publicized "point man" in Cebu and, indeed, in all East Visayas.

What’s very, very interesting is that East Asia Power owes and has been unable to pay more than P3 billion to the Philippine National Bank (PNB). I wonder whether this huge indebtedness was racked up during the administration of the company by now NAPOCOR Chairman Alcordo? Gee whiz.

What’s even more interesting is that, since Alcordo was elevated to head of the National Power Corporation, his former East Asia Power company has been making noises about declaring a "moratorium" on the payment of its PNB debt. Whaaat? Poor PNB. Why is it that those with perceived "ties" to top people in the Palace suddenly feel their oats, and begin threatening not to pay their obligations? Tell me this isn’t true.

Otherwise, we’ll be classified as a nation in which only smalltime estafadores and bank welshers get the shaft, while the powerful can sneer at the banks and tell them: "Get off my back!" I must be stupid and old-fashioned. I was brought up to believe that financial debts, loans, and obligations must be paid. That a man’s word of honor should be his bond. That palabra de honor and delicadeza should never be regarded as dead terms in one’s personal or the national vocabulary.