Top presidential bets richer despite election expenses

A BILLIONAIRE and four other millionaires lead the pack of those who want to serve as the 15th president of the Philippines, all invariably swearing by an anti-poverty platform, and with some purposely harking on their poverty roots to spin and curry favor with majority of voters who are poor.

The costs and benefits of running and serving as president are a skewed equation. Various election and policy experts say that to run a decent campaign and win, a presidential candidate might have to fork out sums running from P2 billion to P6 billion. And yet the new president, if he keeps honest, would earn only P60,000 a month or at most P4.68 million in six years, before tax. The total six-year income for the new president would add up to just P3.18 million, after tax.

It is a big mystery why these candidates are committing financial suicide by deciding to spend so much money for so little in lawful income they could receive once in office.

But the Philippine Center for Investigative Journalism’s (PCIJ) database of the statements of assets and liabilities and net worth (SALN) filed by the five presidential candidates who have served in public office points to a bigger mystery: Rather than sliding to poverty because of fortunes they might have lost on elections, these candidates in fact managed to grow their wealth and net worth by small to phenomenal amounts over the years.

And the biggest mystery of all: The spike in these candidates’ declared net worth typically came after an election year—while they were serving in office and should not have benefited from other business or financial transactions. Too, the spike in their net worth even defied the slump in the local and global economy because of the financial crisis that visited in 1997 and again in 2008.

Indeed, the PCIJ’s extensive inquiry into the wealth of Benigno Simeon Cojuangco Aquino 3rd, Jose Marcelo Ejercito (Joseph Estrada), Richard Juico Gordon, Gilberto Cojuangco Teodoro Jr. and Manuel Bamba Villar Jr. yielded curious results.

By all indications, expensive election campaigns had not made a serious dent on the personal wealth of these candidates.

For sure, their declarations suggest a tendency by some for token compliance with the law on SALN, a serious obligation of good governance on those who will serve as president. They enrolled only minimal data on their assets and stocks, some reported the same amounts to the last centavo for years, or did not disclose other assets and business and financial interests in their name or that of their spouse and family members that are registered with the Securities and Exchange Commission (SEC).

A separate set of reports on campaign spending and contributions they filed with the Commission on Elections (Comelec) showed a consistent tendency by these candidates to understate their campaign expenses and shield the identities of their major campaign donors.

Net worth

According to their SALN, the five candidates for president all belong to the country’s affluent minority, and have built their wealth on real estate, stocks and inherited assets.

Aquino (member of House of Representatives, 1998 to 2005, and senator since 2007) started with a net worth of P8.42 million in 1998, grew his wealth to P11.98 million in 2002, raised it further to P13.47 million in 2005, and ended 2007 with P13.94 million.

Estrada (movie actor, mayor of what is now San Juan City in Metro Manila 1968 to 1988, vice president 1992 to 1998 and president 1998 to January 2001) reported a net worth of P1.18 million in 1985, grew this to P3.82 million in 1992, and filed his last SALN in 1999 before his ouster from Malacañang at P35.86 million.

A PCIJ investigation in 2000 showed that Estrada, his spouses and children were listed as board members and beneficial owners of 66 corporations, mostly formed after he became vice president, including a dozen established during his 18-month stint as president. The recorded assets of 14 companies alone totaled more than P600 million as of the year 2000.

As well, since 1998, individuals or companies appearing to be fronting for Estrada or his family members acquired 17 pieces of property in swanky subdivisions in Metro Manila, Tagaytay City and Baguio City.
According to official zonal values and PCIJ’s estimates, these properties added up to about P2 billion by 2000.

Gordon (mayor of Olongapo City 1992 to 1995, 1998 to 1999 and 2004 to 2007, Subic Bay Metropolitan Authority administrator 1995 to 1998, Tourism secretary 2001 to 2003 and senator since 2004) started with a net worth of P8.3 million in 1992, grew it to P11.87 million in 1995, P22.38 million in 2002, P24.92 million in 2005 and ended it at P26.52 million in 2007.

Teodoro (member of the House of Representatives 1998 to 2006, staff in the Office of the President in 2007 and Defense secretary from 2008 to 2009) started with a net worth of P80.17 million in 1998, slid to P75.54 million in 2002, did not file in 2003, grew it to P102.62 million in 2005 and closed it at P232.43 million in 2008 owing to a surge in the value of real-estate “inheritance” in Sampaloc, Manila. In 1998, Teodoro reported having “interest in 11 lots” in Sampaloc, Manila.

Villar (member of the House of Representatives 1992 to 1996 and 1998 to 2003 and senator since 2004) started with a net worth of P75.43 million in 1992, grew it to P310.92 million in 1996, P481.5 million in 2002, P750.82 million in 2005 and closed it at P1.05 billion in 2008.

Real assets

By the declarations in their SALN, all five candidates for president own several big pieces of real estate and landholdings.

Aquino reported owning shares of stocks in the Cojuangco family-owned Hacienda Luisita that he said were worth an unchanging P718,430 from June 1998 to June 2007, but which rose in value to P761,144 in December 2007.

While his son, reelectionist Senator Jose “Jinggoy” Estrada, reportedly owning 12 pieces of real property (a house and lot, four residential lots, a farmlot, a townhouse and five condominium units) over the years, Joseph Estrada had been consistently paltry with details of his real property assets. The vast real estate holdings of Estrada have had to be uncovered by the PCIJ in 2000.

Gordon was the most detailed about the type, value and nature of his real property holdings. In his SALN, he reported that these were worth P6.89 million in 1992, rose to P12.40 million in 1995, P34.2 million in 2002, P35.52 million in 2006 and ended at P45.43 million in 2007.

In 1998, Teodoro declared three pieces of real property: a condominium unit in Makati City that he said he purchased for P30 million, a residential house in Makati City that he said he built for P10 million and “interest in 11 lots” in Sampaloc, Manila, that he valued at P14 million. His total real assets as of 1998: P54 million.

Until 2004 or for six years’ running, Teodoro enrolled the same unchanged values for his real assets in his SALN. But in 2005, he upped the values of the same three pieces of real property: Makati condominium, P32.5 million; “interest in real estate” in Sampaloc, Manila, P26 million; and Makati City residential lot, P25 million, for a total of P83.5 million.

In 2007, his mathematics failed. Teodoro enrolled a wrong total for the value of the same real assets at P100.97 million, even as he reported only the following details: Makati City condominium, P32.5 million; interest in real estate in Sampaloc, Manila, P26 million; and Makati City residential lot, P25 million. Based on only these assets, the correct total should have been just P83.5 million still.

A big surprise came in 2008, when Teodoro suddenly racked up the values of the same three pieces of real property, albeit with still an erroneous total value. He reported this time that his Makati City condominium unit was worth P39.98 million; interest in real estate in Sampaloc, Manila, P125.74 million; and the Makati City residential lot, still P25 million. His SALN in 2008 reported a total value of the assets at P205.04 million, when the right sum should have been only P190.72 million.

Villar disclosed the following real assets in his SALN from 1992 to 1995: residential property in BFRV Las Piñas City (Metro Manila) that he said he “purchased” for P2.8 million, residential property in BF Vista Grande purchased for P115,000; residential property in BF International, Las Piñas City , purchased for P65,000; residential property in Putatan, Muntinlupa City (also in Metro Manila), purchased for P521,370; residential property in San Nicolas, Cavite, purchased for P412,360; and residential property on Naga Road in Las Pinas City purchased for P800,000.

The total value of these six declared real assets of Villar as of December 1995 added up to just P4,713,730. In 1996, however, he stopped listing his pieces of property and instead reported that these were worth only P4.09 million.

From June 1998 to December 2001, Villar enrolled the same unchanged value for his pieces of real property, minus the details: P4.59 million.

From June 2004 to June 2007, Villar did not report any amount for the real assets he owned. In December 2007, he resumed reporting his real assets, this time with a bigger value of P19.52 million. He reported the same unchanged amount as the value of his real assets in December 2008.

Villar did not list among his real assets the vast residential estate on Shaw Boulevard in Mandaluyong City (also in Metro Manila) of the late senator Salvador “Doy” Laurel, the last of the Laurels to preside over the Nacionalista Party.

According to Villar’s staff themselves, the house, which now serves as NP headquarters, was acquired by Villar at about the same time that he inherited the mantle of the NP from Laurel in 2003.

Cars, cash, stocks

In terms of other assets, stocks top the list for most of the five candidates. In addition, they reported variably small to fabulous pieces of cars, jewelry, books and art works that they own.

Aquino reported only in December 2007 that he had jewelry worth P300,000. It was only in 2001 that he declared owning a car worth P850,000. In 2004, his motor vehicles assets grew to P2.05 million, rose to P.5.05 million in June 2007 and slid to P3.95 million in December 2007 because he said he “acquired (a) 650I Coupe for P4.8 million” but sold his Isuzu Trooper for P850,000.

He reported that his stock investments’ value was static at P5.05 million from June 1998 to December 2002, slid to P4.96 million the next year and grew again in June 2007 when he reported “money market placements” of P2 million, on top of his stock portfolio of P4.75 million.

Aquino’s “cash on hand and in bank” declarations showed very little progress. In June 1998, he declared having cash on hand worth P523,918 and cash in bank of P1,838,150. Six months later, he grew these amounts to P823,918 and P2,147.996, respectively.

Curiously, his cash on hand stood at the same amount of P823,918 until June 2007, even as his cash in bank peaked at P6,149,408 in December 2004, before dipping again to P2,910,827 in June 2007. Aquino reported in December 2007 that he had “receivables” of P323,918, cash on hand and in bank of P2,910,163, including P400,000 worth of “firearms.”

Gordon reported owning jewelry worth P200,000 in 1998, and grew this to P500,000 by December 2007, apart from P555,000 more in appliances and home furnishings. Like Aquino, he did not report any value for his books.

The various motor vehicles that Gordon declared he owned from 1992 to 2007 fluctuated in value from P2.38 million at the start, rose to P4.35 million in 1997, slid to P1.77 million in 2001, and further down to P839,000, and finally P120,000 in 2007, apparently because of imputed depreciation costs.

In 2007, he said that his motor vehicles’ value had risen to P1.32 million, the combined value of a 1987 Mustang that he bought in 1992 and a 2005 Fortuner.

The same roller-coaster swing marked Gordon’s cash on hand values: From P1.02 million in 1992, these dipped to P655,000 in 1994, climbed to P1.8 million in 1995, dipped again to P725,000 in 1997, soared again to P4.9 million in 2000, slipped again to P1.02 million in 2003 and closed 2007 at P1.32 million.

The stock investments Gordon declared tracked an up-down movement. He began with only P52,768 in 1992 (he said these were stocks in Philex Mining, First Philippine Holdings, Atlas and San Miguel Corp.).
This swelled to P2.65 million in December 1995 and jumped to P5.77 million in December 1999. He reported the unchanged value for his stocks portfolio in the next six years or until December 2005. In 2006 and 2007, Gordon said his stocks had thinned slightly to P5.77 million.

Most transparent

Of the five candidates, Gordon is the most detailed and forthcoming in his SALN declarations.
He has disclosed over the years that his stock investments included the following:

STOCKS    YEAR ACQUIRED  PESO VALUE

Philex Mining Corp    1973    P 36,652
First Phil Holdings, Inc   1973    8, 778
Atlas Consolidated Mining Co. 1973    3, 543
San Miguel Corp.    1973 to 1999   910,139
Lepanto Consolidated      (P34.00 per share)
Central Azucarera de Don Pedro    P405, 000
Jollibee Foods Corp.      2, 659, 604
Aboitiz Equity Ventures     31, 200
Pilipino Telephone Corp.      1, 014, 000
Petron Corp         23, 000
Meralco          116, 250
Filinvest          371, 250
C&P Homes         111, 250
Kepphil Shipyard Inc.       75, 978

Teodoro, meanwhile, owned the biggest amount of jewelry, starting with P10 million in 1992 and closing at P11.9 million in 2008.

The value of motor vehicles he owned charted a rise-fall path: From P3 million (same amount from 1992 to 2003), it tripled to P10.35 million in 2003, dipped by half to P4.3 million in 2005, quadrupled to P17.47 million in 2007 and rose further to P19.55 million in 2008.

As strange is the sudden surge in Teodoro’s stocks portfolio since 2007. In 1998, he first declared owning stocks valued at P5.20 million. He enrolled the same amount, to the last centavo, in the next seven years, or until 2005. He did not submit his SALN in 2003, however.

In 2007, though, Teodoro’s SALN enrolled a bigger entry for “stocks [equity paid]” of P11.85 million. The next year, 2008, this grew further to P11.93 million.

Teodoro’s SALN seem to repeat the same values year after year. His “cash on hand and in bank” stood at the same amount of P7,961,731.82 in 1998 and 1999; and P8,946,268 in 2000 and July 2001.

The amount increased slightly to P9.9 million in 2002, but dipped sharply to P5.76 million in 2004, and on to P5.36 million in 2005. Curiously, again in 2007, Teodoro’s cash pile doubled to P10.06 million, before sliding back to P8.5 million in 2008.

Stingy with data

Villar, the wealthiest of the five candidates, is the stingiest with details offered in his SALN.

For instance, in June 1992, he offered a general entry of P200.8 million to represent the value of his stocks, and P715.9 million, “other assets.”

In 1993, Villar reported having “cash on hand and in bank” of P134 million, and in 1994, P153.8 million.

The Villars are known to have a number of family-owned corporations in the real estate sector, including Vista Land and Lifescapes Inc. that raised several billion pesos at its initial public offering in 2007.

Villar, however, does not list Vista Land in his SALN among his business and financial interests. What he had disclosed are shares in companies with controlling interests in Vista Land, notably Fine Properties Inc. (since 1982) and Adelfa Properties (since 1986).

He has also declared his interests in M.B.Villar Co. Inc. (since 1989), Macys Inc. (since 1989), Mooncrest Property Development Inc. (since 1991) and C&P Homes (since 1994).

Fine Properties and Adelfa Properties are majority shareholders of Vista Land that counts Villar’s sons Manuel Paolo Aguilar Villar, 34, and Mark Aguilar Villar, 32, among seven board directors. Manuel Paolo is also treasurer of Vista Land.

A huge, publicly listed homebuilder, Vista Land had posted a core net income of P3.015 billion for 2008, up by 42 percent from previous year’s P2.123 billion. In disclosure reports to the stock exchange, Vista Land reported revenues from real estate sales of P10.436 billion in 2008 or 27 percent more than the P8.224 billion it earned in 2007.

By 2008, the firm’s total consolidated assets stood at P52.252 billion, up from P44.44 billion in 2007.

Peso values only

All that Villar offered in his SALN over the years are the peso values of his stocks. For instance, he reported stocks worth P189.57 million in 1995 and P190.3 million in 1996.

For five years from 1998 to 2003, he declared the same amount, to the last centavo, of the stocks he said he owned: P200,837,890. Again in 2007 and 2008, Villar reported the same amount, to the last centavo, of his stocks: P208,684,740.

What has fattened enormously is Villar’s cash pile. The “cash on hand and in bank” of Villar tripled from P33.6 million in 1995 to P125.5 million the next year. The 1996 total doubled to P274.9 million in 2002.

Villar gave no details of his cash on hand and in bank from 2003 to June 2007.

Six months later in December 2008, he reported a new amount that was four times more than his 2002 disclosure: P818.45 million, or about 80 percent of his total net worth of P1.05 billion in 2008.

The big strides in Villar’s net worth occurred even as he said he did not incur a single centavo of liabilities or loans from 1995 to 2008.

Liabilities

Unlike Villar, the four other candidates for president reported liabilities.

Aquino listed his income tax payments as his liabilities starting 1998, and in 2005 incurred a loan of P5.1 million from an unnamed agency. His liabilities increased to P2.37 million in 2007.

Estrada reported zero liabilities in 1987 but every year thereafter increased it from P5.95 million in 1987 to a peak of P22.07 million in 1993, and in his last SALN in 1999 reported it at P12.95 million.

Gordon disclosed his liabilities at P2.46 million in 1992, soared to P23.10 million in 2002, dipped to P19.20 million in 2006 and peaked at P29.29 million in 2007.

Teodoro reported no liabilities in 1998 to 1999 but from 2000 to 2002, placed his liabilities at the same amount of P7 million. In 2003, his liabilities rose to P9.4 million, dipped to P6.1 million in 2004, peaked to P24 million in 2007 and declined to P17 million in 208.

He did not file his SALN in 2003 and 2006.

BASED ON PCIJ ELECTIONS 2010 DATABASE COMPILED BY TITA VALDERAMA, KAROL ANNE ILAGAN, AURA MARIE DAGCUTAN AND ROWENA C. PARAAN –MALOU MANGAHAS Philippine Center for Investigative Journalism