Tobacco enriches, corrupts northern Philippines

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Updated 23 June 2013
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Tobacco enriches, corrupts northern Philippines

Tobacco enriches and corrupts in the dry, sun-drenched northern Philippines where family fortunes as well as political empires are built on the golden leaf.
For Eddie Habab and the rest of the country’s 65,000 tobacco farmers based in the north, the nicotine-rich plant is like an addictive drug that is difficult to kick.
“It takes months of back-breaking manual labor, but nothing comes close to tobacco in terms of returns,” said the 43-year-old farmer who has put two children through college with the earnings from his crops.
Habab sows the tobacco around November after the rice paddies dry up and harvests the leafs between February and May during the region’s long dry season.
They are cured in wood-fired barns that produce their golden-yellow tinge and, when he sells them to middlemen, he earns at least three times more than he would than if he had grown corn, peanuts or other alternative crops.
Despite higher government taxes on cigarettes imposed by the national government this year, the industry is expanding with 84,000 tons of tobacco expected to be grown across the country’s north this year.
This is about 13 percent higher than last year, according to the National Tobacco Administration, the chief industry regulator.
The tobacco feeds the habit of more than 17 million Filipino smokers, or roughly 20 percent of the population, yielding nearly $700 million in annual tax revenues.
Fifteen percent of the taxes on tobacco sales are by law returned to the areas that plant them, a bonanza worth $ 140 million each year, the regulatory agency said.
About 70 percent of that now goes to Ilocos Sur province, the country’s top tobacco-growing area, according to provincial governor Luis Singson.
The two-decades-old law states the money must be spent on improving the lives of the farmers, and Singson said the tobacco funds had proved a lifeline for the formerly cash-strapped province.
“It’s stirred our economy,” he said.
However, the tax funds are regarded by some critics as slush funds for the politicians who rule those areas, one element of entrenched corruption that has for decades been a trademark of Philippine politics.
Father Sammy Rosimo, a Catholic parish priest in Ilocos Sur, said the disposition of the levy funds was poorly regulated and thus a magnet for financial skulduggery.
“There are no checks and balances, so the officials entrusted with the money can spend them on pretty much anything,” Rosimo said.
In the most infamous case, Singson admitted he gave 130 million pesos ($ 3.1 million) in embezzled tobacco levy funds to then-president Joseph Estrada in 2000.
The admission, along with explosive evidence of other corrupt deals, led to Estrada’s impeachment in 2001 and subsequent conviction in 2007 of plunder, or illegally enriching himself.
Singson won immunity by testifying at Estrada’s trial.
Singson said in a lengthy interview the embezzlement was a one-off misuse of the tobacco revenues, done as a misguided favor for his then-friend.
“I agreed to be used by a corrupt president,” he said, while insisting he was not corrupt himself and that the tobacco levy funds had otherwise always been properly spent in his province.
“There’s no graft and corruption... I’m not greedy,” said Singson, who attributes his vast wealth to a successful business empire involved in many sectors including construction, transport and mining.
Ilocos Sur politics was shaped by a deadly fight for control of the province’s tobacco trade.
The Crisologo clan, whose patriarch was a congressman and matriarch the provincial governor, demanded that all tobacco grown in Ilocos Sur in the 1960s be sold to a processing firm controlled by the family, according to Singson.
But Singson, their nephew and protégé, began to sell tobacco elsewhere, claiming his uncle shortchanged farmers.
This angered the patriarch, Floro Crisologo, who sought to stamp out his new rival’s challenge with a team of gunmen who, according to historical accounts, murdered many of Singson’s allies.
Singson said he survived seven assassination attempts that claimed the lives of two bodyguards and 11 supporters.
“Everyday killings — night and day you could hear gunfire,” he said.
Politicians in the Philippines, then and now, often employ their own security forces and both sides in the family conflict were heavily armed.
In 1969, Singson defiantly but unsuccessfully ran against his uncle, who was an ally of then-president Ferdinand Marcos, for Crisologo’s House of Representatives seat.
One turning point for Singson occurred in 1970 when the Crisologo patriarch was assassinated inside a local church during an afternoon Catholic mass.
Singson then defeated the widow in elections a year later to become provincial governor.
He has ever since been in control of Ilocos Sur — either as governor or congressman, or with his allies in those posts.
When asked who he believed was responsible for Crisologo’s murder, Singson replied: “Well, it was never solved because the whole province was celebrating when he was killed.” Singson, 71, added later that his security forces during the tobacco wars were on the defensive, and he did not order any killings.
Father Danilo Laeda, a parish priest in neighboring Ilocos Norte province and another top tobacco-growing region, said that the golden leaf’s levy had been a double-edged sword.
“It can work both ways. If the local executive is honest and has a clear vision of his municipality it will really work well. But it can become a huge milking cow,” he said.
Ilocos Norte is currently ruled by the wife and children of Marcos, the dictator who died in exile in 1989 after being toppled by a revolution three years earlier.


Leaders of two Koreas hold surprise meeting as Trump revives summit hopes

Updated 27 May 2018
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Leaders of two Koreas hold surprise meeting as Trump revives summit hopes

SEOUL/WASHINGTON: South Korean President Moon Jae-in held a surprise meeting with North Korean leader Kim Jong Un on Saturday in an effort to ensure that a high-stakes summit between Kim and US President Donald Trump takes place successfully, South Korean officials said.
The meeting was the latest dramatic turn in a week of diplomatic flip-flops surrounding the prospects for an unprecedented summit between the United States and North Korea, and the strongest sign yet that the two Korean leaders are trying to keep the on-again off-again summit on track.
Their two hours of talks at the Panmunjom border village came a month after they held the first inter-Korean summit in more than a decade at the same venue. At that meeting, they declared they would work toward a nuclear-free Korean peninsula and a formal end to the 1950-53 Korean War.
“The two leaders candidly exchanged views about making the North Korea-US summit a successful one and about implementing the Panmunjom Declaration,” South Korea’s presidential spokesman said in a statement. He did not confirm how the meeting was arranged or which side asked for it.
The White House did not respond to a request for comment. But White House spokeswoman Sarah Sanders said an advance team of White House and US State Department officials would leave for Singapore on schedule this weekend to prepare for a possible summit there.
Reuters reported earlier this week that a US advance team was scheduled to discuss the agenda and logistics for the summit with North Korean officials.
“There is a very strong possibility a US-North Korea summit could be back on very soon,” said Harry Kazianis of the conservative Center for the National Interest think-tank in Washington.
Whether one takes place depends on Kim agreeing to some sort of a realistic and verifiable denuclearization plan, added Kazianis, citing his own Trump administration sources. “If not, no summit. That is what it hinges on,” he said.
TRUMP HAILS “PRODUCTIVE TALKS“
In a letter to Kim on Thursday, Trump had said he was canceling the summit planned for June 12 in Singapore, citing North Korea’s “open hostility.”
But on Friday he indicated the meeting could be salvaged after welcoming a conciliatory statement from Pyongyang.
“We’re talking to them now. They very much want to do it. We’d like to do it,” Trump told reporters at the White House.
In a tweet later, Trump cited “very productive talks” and said that if the summit were reinstated it would likely remain in Singapore on June 12, and that it could be extended if necessary.
A senior White House official told reporters on Thursday that organizing a summit by June 12 could be a challenge, given the amount of dialogue needed to ensure a clear agenda.
“And June 12 is in ... 10 minutes,” the official said.
If the summit is not held, some analysts warn that the prospect of a military confrontation between the two nations would rise, while a successful summit would mark Trump’s biggest foreign policy achievement.
The Trump administration is demanding that North Korea completely and irreversibly shutter its nuclear weapons program. Kim and Trump’s initial decision to meet followed months of war threats and insults between the leaders over the program.
Pyongyang has conducted six nuclear tests, and has developed a long-range missile that could theoretically hit anywhere in the United States. Experts, however, are doubtful that North Korea possesses a warhead capable of surviving the stresses of re-entering Earth’s atmosphere.
Video and a photo released by South Korea’s presidential Blue House on Saturday showed Kim hugging Moon and kissing him on the cheek three times as he saw Moon off after their meeting at Tongilgak, the North’s building in the truce village, which lies in the Demilitarized Zone (DMZ) — the 2.5-mile (4 km) wide buffer that runs along the heavily armed military border.
Video footage also showed Kim Jong Un’s sister, Kim Yo Jong, greeting Moon as he arrived at Tongilgak and shaking hands, before the South Korean leader entered the building flanked by North Korean military guards.
Moon is the only South Korean leader to have met a North Korean leader twice, both times in the DMZ, which is a symbol of the unending hostilities between the nations after the Korean War ended in 1953 in a truce, not a peace treaty.