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    Manuel L. Quezon III
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    Rep. Joker Arroyo privilege speech on Villar business deals and methods August 17, 1998

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    Rep. Joker Arroyo privilege speech on Villar business deals and methods August 17, 1998

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    6K views31 pages

    Joker Arroyo Privilege Speech

    Uploaded by

    Manuel L. Quezon III
    Rep. Joker Arroyo privilege speech on Villar business deals and methods August 17, 1998

    Copyright:

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    “Tabligan-2 August 17, 1998, sag PM, (PO- Deputy Speaker Abueg) RESUMPTION OF SE At 5:13 pm, the session was resumed, THE DEPUTY SPEAKER (Rep. Abveg). The session is resumed REP. PARAS. Mr. Speaker. THE DEPUTY SPEAKER (Rep. Abueg). The distinguished Gentleman ‘rom Negros Crier REP. PARAS. in view of my eater statement, and aso in view ofthe speech about to be devered and considering tat is of consequence tothe Husa, | would therfore waive my earlier manifestation or | would withdraw my ca maniestaton ‘THE DEPUTY SPEAKER (Rep. Abuog). The motions withdraum REP, ARROYO. Mr.Spoaker “THE DEPUTY SPEAKER (Rep. Abueg). The distinguished Gentian from the First Dist of Maka QUESTION OF PRIVILEGE OF REP. ARROYO REP. ARROYO, I rise on a quoston of collective privioge cn a conattional issue that affects the Integrity ofthe House andi fs very pe to continue exiting tn the course of the ght for the speakership, Rep. Aganito Aquin, chaitman of the reform bloe, raised questions regarding the fitness of Rep, | eo0ar “Tabligan -2 ‘August 17, 1988 s:10PM (PO - Deputy Speaker Abuea) Vilar to seekthe’ speakership. Rep. Vilor chose not fo answer the charges but hows overshelmingly elected. gh 05042 DOMINGO -2 ‘August 17, 1998 5:18pm (2.0. DEPUTY SPEAKER ABLES) REP. ARROYO... was oevelningy ete pene by his vows ecole hove, oe tare th qs oy te restchargs of wong, nina goermet Wie fad calnge, we al ave a eoenge Inthe person of Congressman Jae. He wes etd by is tit ut hat et ers is canton S, ving 2 paral lctn dot roti ct he tess The qu ase, ny, the cages age pela ir are cortionl chal. A ou ty 8 orb he lh perpen and cla. We lok an ah fo sig and dnd te Contents Taconite bw vt | ave bon broken ea conve inte spacy of pb cis, || ! this Chamber is to continue in its very character as legislature, an indispensable pillar in the systom of checks and balances, then we mus} come tothe Constiutlon's defense andthe vindeaton ofthe laws 1 hesitated tong and pondered hard whether to raise these questions for fear of being accused of sour-graping and being 2 po0r spor. But thie hae nething todo wth sperts. Our duty is ear, thare are charges of ilagalties tho charges must be heard and ansviered. 1am reminded of the case of Speaker Nowt Gingrich of the United States House of Representalves, He wae investigated by tho United Statos House of Dominco -2 August 17, 1998 pm, RRopresontatives for! think coating some fees of books ho wrote while ‘Speaker (1am net too sure ofthe fats). But one thing | am sure of i this, the House after hearing censured its own Sposker and penalized him with 1a penalty of think US$900,000. He remained as Speaker but the ponatty ‘was meted out. In other words, there are precedents and we must not estate to do our duty, ‘Adicle XI of the Constitution is tiled “Accountability of Public COficers"it proserbes in Section 16 that: “No loan, guaranty, or ther form of financial accommodation for any business purpose may be granted, directly orindirecty, by any government or controlled bank or financial institution to the President, the View President, the Members ofthe Cabinet, the Congress, the Supreme Cour, and the Constitutional Commission, the Ombudsman, or to any firm oF entity in which they have eortrolting itorest, during ther term" ‘Charge 1. Low cost housing Is totally dependent on government agoncies such as PAG-IBIG, National Home Mortgage Finance Corporation (NHMEC), SSS, GSIS, and other government financial institutions ‘Sposker Vilar and the companies of which he is President oF ‘Chairman, oF where he has a controling interes, are the biggest low-cost housing dewalopers in the county. To be more specifi, it is the Camella and Palmera Homes and its principal subsidiaries, the Household Development Corperation and Palmera and Communities Philipines: DOMINGO -2 August 17, 1998 5:15pm. In violation of the consttutinal injunction, these companies wore Given financial accommodations by govemment banks oF financial insttutions, among them, PAGABIG and the National Home Mortgago Finance Corporation among ethers, during Speaker Vilar's tm as Representative from 1982 to 1998 to finance thelr business purposes. Charge i. Representative Vilar, ftom 1962 to 1998 did not divest hhimsot of his inforests in, nor did he sever his connections with, the companies aforestated, They obtained financial accommodations... onose A craeular = 2 Auguet 17, 1998 5:20 p.m KEP. ARROYD, They obtained financial sccempodations irom the above sovernment financsal institwitone while wae a Member of Congress. Since he did not. therefore. such companies were forbidden fron entering into suen finsncs Because of our Constitution, Republic Act No. linown ag the “Cade of Conduct and Ethionl Standards for bublic Officisis” etates in Section 8: “Divestment. - & public official or employes should avoid conflicts of interest at all times. When 2 conflict of intorant ariges, he shal? resign from his poeition in ony private business enterprise within thirty (20) days fron his aecunption of office and/or divent hineelf of his shareholdings or interest within sixty (G0) days from such sovumption. : Charge TI, Nor hae Speaker Villar, up to now. I am eaving up to now, divested himself of his interests in, nor has he severed bis connections with. the companies atorestated. Speaker Villar is in no hurry to divest because he has declared that he is under no obligetion to do so. continuing violation. Charge 1V. Speaker Villar controls the Cspitel Bank hee. Villar ie the chief executive officer. The Capitol Bank received loans, financial accommodations and euuronteee 04048 ‘from the Bongko Sentral ng Pilipinas from 1882 to 19 niaguilar = 2 Auguet 17, 1098 su ym a Representative, “That is consettutions osbuden. to em’ 4% ups the constitutional prohteition te ~ einule, Tf a Representative has a controlling intere: firm or entity, that fiem or entity cannot be extended = joan, 9 guaranty, of @ financial accommodation for any buesness purpose from any governnent financial institution Te that firm or entity would Like to obtain a loan, @ mmaronty of a financial accommodation from = governsent fitanetal institution, that firm or entity must fret relieve itaelf of the controlling interest of the Reprevantative: Te te my humble submission that Spesker Villar did not do either. Republic Act No. 9018, otherwise known as the Ants Grett and Corrupt Practices Act, provides in Gection 6 thereof a2 follows: “Secs 6. Prohibition on Members of Congress. ~ It suetl be'unlawful hereafter for any Member of the fonersee loving the term for which he has been elected, te acaitre oF co teoeive any Paraonal or pecuniery interest in any epecifie business entarpriee which will be directiy ond particularly favored or benefited by any Law or resolution authored by him previously approved or ‘adopted by the Congres during the sane term. ‘he provision of this section abel apply to any other public officer who recommended that initiation in Consress Aguilar August 17. 1998 20 pom enactment © adebtion of any law or renclution. and Af he did ask or initiate the ment he Ss covered by the prohibition Simply put, during our term of office. each one of ur it shall be unlawful for us to author any law or resolution that would benefit or favor us. The sbove prohibition shall apply even to that representative who Just recommended. not even authored, the enactment of euch law that benefited him Charge VI. Reprecentative Villar, in his bid for the Speakerahip.. prepared a propaganda kit that he distributed to Congresenen and media, 1 think you ware given copies of tha is entitled, “Manny B. Villar, Jp.. Achiever and Wisionpry Leader.“ and fin] the “*Legieletive ‘formance of Congressman Manny f, Villar, Jr Hopresentative Villar unequivooally said that he “incorporated in the landmark Comprehensive and Integreted Shelter Finance Act. Republic Act No. 7835. tha, recapitalszation of the National ...°* seta vw 05048 Pose 6 ‘Aaa 2 ‘ug. 17,1988 5:25pm, (P0- REP, ABUEG) REP, ARROYO. the recaptalzaton of the National Home Mortgage and Finance Corporation and the amendiment to the AgriAgua Law to inchide ‘using nvesiment. * ‘Speaker Vila’s companies are engaged in housing. He thereby wolated the Ant Graf Law. ‘The aforementioned Act, which incorporates H.B. No. 6145, coauthored by then Representative Vilar mandates "banks to extend to housing loans not tiie for agricuture and agrarian reform credi.” In ether words, loanable funds for agricuture and agrarian cred ave to be re-channeled to housing, Speaker Vilar's business Representative Vat co-authored H.B. No. 11005 which “increased the captal of the Natlonal Home Mortgage and Finance Corporation” and fe the male sourée of funding of Speaker Via's companioe, President Estrada acmtted that tho National Home Mortgage and Fiance Corporation is presenily bankrupt. He said tht to the follwing: LAMP President Edgardo Angare, Congressman ‘Agapito Aquino, Presidential Lesslatne Lialton Orfcer Jimmy Polcarin, former Congressman Miguel Romero and nyse, The President no less sab tat nk, Increasing the cepiakzaticn of @ bankrupt GFI benefited Representative Vilas hosing compares Inthe same propaganda kit of Speaker Vilar, lt states that "also passed by the House were Vilar's measures o make Pag-big Fund contributions Anata 2 ‘Aug. 17,1998 5:25pm, compulsory and to increase housing investments with the SSS." Pag-ibig Ib a main source of funding of Speaker Vilar’s compares +s legislation from 1982 to 1988 wer In @ word, Represeniatie Vi designed to bent his business, eatin ofthe Ait-Gra Lew Now, the same provision of the AnlkGraf and Corrupt Practices Act, provides in he hire paragraph of Section 6 thereat, a olows - shel Rkewise be unlawfu for such member of Congress or ner pubis oficer, who, having suzh inferast prior tothe approval of ‘such aw of resoltlon authored of recommended by hin, continues for tity days ster such approval to ean suchinterst. charge Vil. When those bis that Repressntathe Vilar inroduced or coauthored wore enacted into law, he did not divest himssif of his interests on his conparies that benefited thereto. Now, Ropuble Act 6713, known 2 the Code of Conduct and Ethical ‘Standard for Pub Olas proves n Seton 3: Section 3()"Dhesiment Is the transfer of tear daposal of ingrest in property by voluntary, completely and actualy depriving 1 dispossessing oneself of his right or ttle to In Fvor ofa person or persons other than ie spouse an elatves as defiedin his Act Ccharge Vil, Manuela Corporation applied for end was granted 2 loan of 1 bilon by the $8, 8 government financial insttuton, Another P2 bllon Yan would be syndicated wih another government fiancalinsttutio, the GIS. Total syndicated lean from the two GFie: P3blion, 2 > a 3 ‘ug. 17,1998 525pm, Corporation, a housing and realy corporation, owned by the {amily of the wife of Speaker Vilar. An ndeect financial accommodation. Agein, the same Code of Conduct and Ethical Standards for Punle OMclas states in ‘Section 39 threo ‘section 3 (K) “Relates” refers 0 any and all persons related to a pubic official or employae witin the fourth chil degree of consanguinity or aint, incudng ies, so or bale. 886, historical and ee ¢ matter of puble poiey does not extend dect loans to any compeny. It extends loan fo banks or to pubic or private franc ‘natntions but not directly to business enierprises. The d¥ect loan to Manuela Corporation i fest n SSS history. Honguito 2 ‘Angus 17, 1998 3:90 pan (20. Deputy Speakor Abuoe) REP, ARROYO, sin $88 history Charge IX. Manuela Corporation owes the Capitol Bank, which is also owned by Speaker Villar, PISO million. ‘There may be nothing wrong with that because both azo private entitios, However, out of the F3 billion toan to bo ayndicatod by the S88 and GSIS, F150 milion was arnierked to liquidate the P150 milion Capitol Bank Joan to the failing Manusla Corporation. In other words, it is @ financial accommodation extended by GFIs to relieve Capitol Bank, owned by Speaker Villar, ofthe 150 milion loan. Another indirect financial accommodation ‘charge X. The Comprehensive Agrarian Reform Program (CARP) is boing undertaken in obedience to a constitutional mandate. All lands coverod by CARP cannot be used for residential, agrioultural, industrial or other uses unless a clearance, conversion, or exemption for a particular property is frst issued by DAR, Speaker Villa's companies are doveloping or havo developed 5.950 hhoctares or almost, 60,000,000 square meters of CARP lands into residential subdivisions without the, appropriate DAR issuances that would authorize such lends to be used for residential purposes, A tradhicement of the constinutionally directed CARP law. ‘Article XI1I of the Constitution, ia Soctions 4, 5, 6, 7 and & states with clarity what the agrarian reform progrem is all about, Bonguilto -2 August 17, 1998. 5:40 pm Jast to give you an idea about how big 60,000,000 square meters js my constituency of Maketi is only one-third of that size, Tt is onty roughly 21,000,000 square meters. Las Fines which s the constiene: af Speaker Vilar is roughly 41,000,000 squate meters. Ifyou add the cntre avon of Las Pinas and Makati, that isthe residential sbavisons coverod bythe companies of Speaker Vilar. ‘the House cannot reform tsl, much Tess oven operate ofectively if a cloud of doubt hangs over the Speaker of the House, It is to the Iiterost of the Speaker and the Members no less if those concerns are autroosed frontally and rosolved forthwith to cloer the path fr ‘meaningful reforms. : panic offce is @ public trust, We, the representatives ofthe people pay a pron forgetting elacted to public fice. The Constitation imposes on us cortain constraints which we must follow tothe lets. Lat mo allude to the Members of Congross who are barsstors he Consiation forbids us, lawyers; from appearing ia court, In my caso, far instance, Iwas a practitioner up to 1992, 1 got elected tothe House 201 stopped practicing, or in other words, Io longer eppeer in court, ‘That i the pre Ihave to pay. I think Iwas earning adequately in tho practice of aw, but I have to make choice, Do I want to be @ tnwyer, oF T want to be a Congressman? If want to continas being @ imwyor, then T amust not be a Congressman, if I have to bo a / fev Bongulto -2 August 17, 1998 5:30 pam. Congressman then I must stop lawyering, That is what the Constitution says. So in the case of Speaker Villar, it is simple, If he wants to go/continuo in business and deal with government finaiicial institutions, hie can do s0 but he cannot also be @ Congressinan. If he wants to be & Congressman, then he must not be in business which deals with the government We have to pay a pies. 50, this case is a Jearning experience for us all. Whatever the outcome, it wil show the things we can do, the things we cannot do, and tho things we must do, I would propose. BRACIA2 ‘August 17, 1996 595 pm. PO-The Deputy Speakor (Rep. Abueg) REP. ARROYO, ... 1 would propose thatthe House of Representatives ensue itself info a Commitee of the Whole to hear the charges and the SSpoaker's defense He wil havea ta that is more than aio him for he wil be Judged by the very peers ihe elevated him tebe theft among equas, ony tis te they wil jadge him according to the law | wit never seek the speakership again nor in any manner challenge the readership of Speaker Vilar except on tis speci issue of constutional breach that cas into question the rule of fav ‘This is how important it s. So I rest my cause. | am ready to be interpolated REP. BATERINA. Nr. Sposker THE DEPUTY SPEAKER (Rep. Abueg). What is the pleasure of the Genttoman from laces Sur? REP. BATERINA. May | atk, may this Representation, request the Gentleman rom the Fist Dist of Makatito please answer afew questions, “THE DEPUTY SPEAKER Rep. Abueg). He may, ithe so desires REP. ARROYO, Clady, Mr. Speaker. ‘THE DEPUTY SPEAKER (Rep. Abueg). The Gentleman from locos Sur ‘may proceed with his interpellation BRACIA2 August 17, 1998 535 pm. REP. BATERINA. Before proceeding, Mr. Speaker, may | also move that the time of the Gentleman from the First District of Makati be extended another ton minutes. THE DEPUTY SPEAKER (Rep. Abuog). Is there any objection? (Silence) No objection, motion Is granted. REP. BATERINA. Thank you, Mr. Speaker. | would tke to premise this request to ask several questions on the fact that at one time, Mr. Speaker, before the 14" of August, | was asked by some members of the media as to whether the speech that was circulated about by the ‘Gentleman from Makatl can hold water. And this is what | answered, and itis rightfully quoted in the media, Mr. Speaker. | said that Congressman Arroyo has not cited the cases by which the Speaker, Congressman Vilar, should be charged of, In other words, I was saying that even the constitutional provision was not very clear as to how it can be vielated and this is why I stand up today. | would have stood up on a question of personal privilege had not the Gentleman from Makati stood up to deliver his speech which was already entered into the records. And | found in another item of The Star, elther it was a press release or a colurnn or @ byline by Mr. Jess Diaz, and it says that apparently the Gentleman from the First Distiict of Makati called people who made comments as to the charges he sired against the Speaker as people who answered for the Speaker as toadies. And the frst thing thet comes to my mind today Is, did the Gentleman from Maka! ‘speak ofthe people who defended Speaker Villar as toadies? RACH ‘August 17, 1998 5:35pm. REP. ARROYO. Mr. Speaker, yes, bacause | had net delivered my pooch, | have net tered a word but many have said | have no poof. | have not even said a word and Ihave ne proof, that! wil be custed if eannet prove the charges. !am sourgraping. The spocch says that sourgraping and sports has rothing to do with this, Now, imagine fam being piloried as one who cannot ‘prove my charges. Iam offended by thet 0,057 CABANOS -2 ‘August 17, 1998 540 pm PO The Deputy Speaker (Rep. Abuog) REP, ARROYO. ... who cannet prove my charges. lam offended by that, Mr. Speaker, both as a Member ofthe House and as a barrister. Because, it ‘would appear asf fam bufing, and I don't blu REP. BATERINA, But the Gentleman ftom Makati made a general nd = very sweeping statement, and di not menton names, Mr. Speaker, and he just «alls the people whe made some comments, Yoadies’, stat coect, Sir? REP. ARROYO. Welt a porson isnt alluded to, why should he be hurt, “The ony ones who will be hurt wil be those who are alluded to REP. BATERINA Because, thre was a general statement, REP. ARROYO. But f the Congressman ffom loees Sur feels he was alluded to, mean, its no longer my fault REP. BATERINA, Thatis why I stood up and premised al these questions upon that fat ofthe statement fom the Gentleman from Makati because he calls the people who made the comments on the speech of the Congressman from kat and, thereafter, there was a general end a very swooping statement that all those who defended the Speaker are Yoadies’. | hope that we can clay thi, because | was speaking about the conatitutional provision and | would ike to goto that, Mr, Speaker. Me. Speaker, | would lke to ask the Gentleman from Makati, whether thero \was only one consttutonal provision he ced in his speech, and that is Section 16 ‘of Atclo XI fs that correct, Mr. Speaker? CABANOS -2 August 17, 1998 5:40 pm. PO- The Deputy Speaker (Rep, Abueg) REP, ARROYO. Yes and there's ancther one, Section 12 of Article VI of the Constitution which | failed to mention. And also ... | think that's i, Mr Speaker, REP. BATERINA, But his main thesis, Mr. Speaker, is that the Speaker Violated Section 16 of Article X, that's the main promise, REP. ARROYO. Yos. REP. BATERINA. And in the interview, the ambush interview that | gave, Mr. Spoakor, is that this particular provision is not very very specif, te0. And thats what's included in the news items wherein | may havo boon calod a “oad a toad REP. ARROYO. Mr. Spear, the Gentleman fom locos Sur keeps on referring to himself asa “toad, that’s no longor my problem, | have already said that, I donthinkofhim asa Yoady’, butif he insists, whet can do REP. BATERINA, | am notinsisting, Mr. Speaker. Infact, he now insists. REP. ARROYO, So, | already sai, he's not. There's nothing I can doit the shoe fs, So, | already sai thet lam nt refering REP. BATERINA, Well taken, Mr. Spear. REP. ARROYO. .. the Gentleman asa "oad REP. BATERINA. Wel akon, Mr. Speaker ‘Now, may I now continue wih my interpelation? THE DEPUTY SPEAKER (Rep. Abues). The Chair admonish the cerdonen natn see te het er CABANOS -2 ‘August 17,1988 5:40pm PO- The Deputy Speaker (Rep. Abueg) ‘Tho Gonttoman rom lseos Sur may proceed. REP. BATERINA, Mr. Speaker, | would lke to resd the constiutonal provision which the Gentleman from Makati based his accusation Itreads: "No lean, guoranty, of ether form of financial accommodation for any business purpose may be granted, dtely or ndrecty, by any goverment conned or controled bank or financial instituion to the President the Veo President, the Members ofthe Cabinet, te Congress, the Supremo Cou, and the Constituional Commissions, the Ombudsman, oo any fim or enfy in wich they have conrlng interest, during thor onuro” Now, I would like to ask the Gentloman tem Makati this constutonal provision pateularly applies to the stuaton which he says are the violations of Me. Vilar? REP. ARROYO. Mr. Speaker, yosftapplies as queried REP. BATERINA, And his REP. ARROYO. Plosse lt mé irish the explanation We. Speake, his provision is nat found in the 1935 Constitution nether ist found in the 1973 Consttution, this is an entiely new provision. And the ly because of tho experience os Constitutional Commission inserted this preci

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