The vicious clash between the Executive and the Judiciary along with efforts to oust Chief Justice Renato Corona by President Aquino and his allies have the potential of rocking the markets which are already feeling the pinch of the European debt crisis, business executives said yesterday.
The head of the local stock exchange said while the friction between Aquino and Corona has not yet adversely affected the business sector, particularly the stock market, it is expected to have an impact if the issue lingers and worsens.
PSE president Hans Sicat said the move to oust the Chief Justice if it continues to “deteriorate,” may have an adverse effect on the business sector next to the Eurozone issue.
“We hope it does not affect the business sector because the problem with a deteriorating situation is that if investors feel that Philippines, Inc. is very unstable then it will have a negative effect
in the market, including the stock market,” Sicat said.
American Chamber of Commerce executive director Jeffrey Woodruff said rule of law and political stability in the Philippines are among the top concerns of the business community without mentioning particularly the current dispute between Aquino and Corona.
First Grade Holdings managing director Astro del Castillo seconded this as he noted that among the business sector’s considerations of the market is political stability.
“This is not really good for the investment community. We’re still in the dark, and it’s a touchy (situation),” Del Castillo said.
He said in a democracy, one of the pillars is the Judiciary alongside the Executive and the Legislative.
“With the executive trying to take out one of its co-equal body, the Judiciary, we don’t know. We will see more of this today,” he said.
Sicat expressed the hope of most in the business community that the issue does not deteriorate further saying that “it is never good for two pillars of a democracy to figure in a clash.”
“I don’t know what the answer really is, but it’s never good when the executive and the judiciary are at odds with one another, because the signal there is there are more issues perhaps at stake, not just the one particular issue which has triggered it,” he said.
For now, Sicat said the market’s reactions are more on the macroeconomic level and not yet on the political backlash of the move to oust the chief justice.
“What’s affecting business in the Philippines mainly is the Eurozone issues and the nervousness about whether the world would recover in an appropriate manner and there’s a macro sense affecting Philippine market. So far I don’t think the executive versus judicial issue is a driver yet,” he said.
However, he said if the conflict gets worse, it would probably affect the market adversely.
“I don’t think people are talking about it in that sense. But of course we’re worried,” Sicat said.
Aquino in a speech before the Makati Business Club (MBC) last week pointedly accused Corona of being the chief justice illegally after former President Arroyo gave his appointment a few days after the national elections in May, 2010.
Critics of Aquino including House Minority Leader and Albay Rep. Edcel Lagman had warned that Aquino’s attack against the high court might result in a constitutional crisis.
“The President again assaulted the SC… It is completely uncalled for, bashing the Supreme Court. It also affects our people, inciting popular disregard,” Lagman said.
Zambales Rep. Milagros Magsaysay also said Aquino was “conditioning” the minds of the people “to distrust the institution. I think Aquino should rather blame his legal team for always losing in critical issues… The SC cannot be partisan in politics,” she said. –Danessa O. Rivera, Daily Tribune
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