Noynoy gives rural banks to foreigners

An ‘unlawful law’ on a silver platter

By Bernie V. Lopez

(File Photo)

President Aquino recently signed still another “unlawful law,” meaning unconstitutional and/or contrary to other laws. Just like the Cyber Law, and EO79 which contradicts the Mining Act of 1975 and the Indigenous People’s Rights Act (IPRA), he signed RA 10574, allowing foreigners to own up to 60% of rural banks.

This penchant for brazen ‘unlawful laws’ is becoming a habit for Noynoy for some reason. Is it vested interests around him which have him under their thumbs? Who authored the law, a foreign firm, a rural banker who had friends upstairs? RA 10574 had the gall to include CARP lands for foreclosure, contradicting the CARP law, and the National Patrimony provision of the 1987 Constitution, which was affirmed by the Supreme Court in 1997.

The ramifications of this new law is mind-boggling. Foreclosed agricultural lands can now be controlled by foreigners. They can landgrab on the pretext of technicality on defaults on loan payments, using seasoned lawyers, which is becoming a trend. They can acquire contiguous lands on a large scale, to convert precious farmlands that give subsistence to marginals into tax-exempt industrial zones that give minimum labor wages. Conversion of agricultural lands into other uses will diminish agricultural productivity and affect our food security. This law can easily marginalize our already-marginalized farmers on a vast scale. Sharp lawyers can easily skirt around zoning laws limiting land conversions and uses.

Our national economy is 70% agricultural. Foreigners can either control that or worsen it by converting these into industrial zones. There is also a blatant conflict of interest if these foreign rural bank owners also own big multinationals coming in, to the detriment of Filipino and agricultural interests.

Rural Bank Association of the Philippines (RBAP) President Leandro Garcia Jr. lauded the passing of RA 10574 as it will bring ‘economic growth’. It may bring the exact opposite. Growth for whom – rural bank owners and their foreign allies? The rural banks need capital leverage to grow so they embrace the lions, not realizing the lions may devour them in the end.

Industrialization is a welcome development as long as it is truly developmental, not just a haven for tax shelter and cheap labor for foreign firms, then a trickle down for government5 and local investors. If it displaces agriculture on a large scale, on which 70% of the population depends on, then the benefit shifts from the majority poor to the minority rich and the foreigners. Industrialization must not dislodge agriculture but complement it. Otherwise it will enhance the rich-poor gap.

Remember that the empire that grew under Manny Pangilinan is not his but belongs to an Indonesian magnate. He is a mere CEO except for some equity. This vast empire in tele-communications, media, mining, expressways, fruit plantations, hospitals, utilities, etc., is tantamount to the control by a foreigner through a Filipino vassal of socio-politically sensitive businesses, especially media and utilities, which is against the law, and very dangerous. But no one dares question the ownership of this monstrous empire with complex interlocking companies. In the same way, the control of agricultural lands by foreigners have dangerous implications. (The source for this article is a Philippine Star Business Section article, whose date or link was not available. More on the reasons why RA 10574 was promulgated in Part 2, separate article, to be sent later.)

Quo vadis, Mr. President? Are you not betraying the Filipino people you serve in favor of powerful foreigners and your fellow rich Filipino peers?

(eastwindreplyctr@gmail.com)