The Subic Freeport, the Aquino Administration: What’s in Store?

The developments of the Subic Bay Freeport Zone (SBFZ) and the Clark Special Economic Zone (CSEZ) are two prime achievements of the Philippine national government. Since their conversion from military bases to investment destinations, the two freeports were able to attract foreign and domestic investments and generated massive employment. The SBFZ, with its seaport infrastructure, and the CSEZ, with its airport infrastructure, are a perfect logistical and transshipment hub combination.

For all intents and purposes, the Philippine 2010 elections is over. As of this writing, with more than five million votes ahead of Erap Estrada, Senator Noynoy Aquino can now be presumed the next President of the Philippines. So what should we, residents, locators, employees, and other stakeholders of the Subic Freeport, expect from the incoming Aquino administration?

Hard to tell, unfortunately. But we can make assumptions.

We can try using his platform of government but I do not think that will help much. The platforms of all the candidates are basically the same anyway, just as the platforms of all other candidates, in all government positions, since time immemorial. Nothing enormously wrong with that—they are trying to win the election after all; and it is not as if they are lying intentionally, I don’t think. He has not held any executive position in the past so there is nothing there that we can unearth for our purpose either.

Sen. Aquino did serve nine years as congressman of Tarlac and three years as senator. Perhaps there is something there that we can use. Perhaps we can look at the senate bills he authored since those are national in scope.

Sen. Aquino was elected to the Senate in 2007. He authored nine bills and co-authored some 13 others. None of the bills he authored has passed yet but that’s beside the point; we are trying, after all, to determine what interests him and the issues close to his heart. So what are those bills? Two are about the labor workforce: SB2036 is an act increasing the penalties for non-compliance in the wage rates of workers, while SB1370 is an act granting an annual productivity incentive to all workers in the private sector.

Both are obviously pro labor—which is not a bad thing. The first one simply tries to increase penalty for non-compliance so there is nothing profound on that bill. The second one, however, will have a considerable impact on business. Businesses already have ways to provide incentives to its employees; there is no point in making that mandatory. What if business turns sour, can employers reduce the salaries of employees? Not so, says the Labor Code.

Two other bills are about appointments. Noynoy is not into re-appointments. Here are the bills: SB1710 bans the re-appointment of a regular member of the Judicial and Bar Council; SB1719, on the other hand, limits the re-appointment of presidential nominees. Does this mean that there is little chance current SBMA officials will be re-appointed?

A couple more tries to restrict the powers of the police and military to prevent human rights abuses: SB2978 is an act to further clarify the relationship between LGUs and their respective local police chiefs, while SB2159 is an act adopting the doctrine of superior responsibility to all actions involving military personnel and police.

The last three bills are about trying to prevent graft and corruption: SB2160 is an act to further restrict exemptions to the requirement of public bidding, SB2035 requires the regular maintenance of all public infrastructures, while SB3121 is the Budget Impoundment Control Act, an act that seeks to strengthen legislative oversight over executive spending.

The first one was obviously filed in light of the NBN-ZTE scandal where the Department of Justice declared the validity of the deal citing its international and executive agreement nature as reason for its exemption from the procurement process. The second one seeks to penalize defective infrastructures that are usually the result of cost undercutting by contractors (since a percentage of the budgeted cost goes “under the table”). The third one is not really Noynoy’s but was a bill originally authored by then Sen. Juan Flavier in 2004. This bill is not unique to the Philippines since the US already passed just about the same bill (and same title) in 1974.

Budget impoundment, to clarify, is the power of the President to refuse the release of funds appropriated by Congress. However, this power has been allegedly abused by presidents and in the process emasculating Congress’ authority to check the President’s authority to spend public funds.

Sen. Aquino filed the bill on March 4, 2009, at a time when he was not even entertaining thoughts of running for president. This might work against him now that he is the presumptive president-elect. This bill would constrain a president from influencing the crucial Senate and House leadership races, and ultimately his ability to advance his legislative agenda. Good if he is not concerned about it.

So there you are, looks like we have gathered and should expect that the Aquino administration is pro-labor, does not like re-appointing government officials, strict about human rights abuses by the police and military, and hates graft and corruption. You might want to add a few more items he frequently mentions during his sorties: he will lower taxes and would crack down on smuggling and tax evasion.

Will any of these translate to changes in the Subic Freeport? For the better?

We can hardly say that Noynoy is a man of action; there is nothing in his background and experience to demonstrate that. All we have are his words, but, acta non verba, is what we need. Right now, he is more of a symbol of the Filipino people—a symbol of change, much like his parents are symbols of freedom and democracy.

He is even initially reluctant to run for President. But history is not bereft of reluctant leaders: Moses, Gerald Ford, Colin Powell, among others. Perhaps Noynoy’s low profile and humble persona is what appealed to many of us.

We are a nation of hope and faith; we laugh when we are in despair; we aspire even in misery. Perhaps he is who we need after all. Shortly, we will see.