The Return of Kamaganak Inc.

Coming from the presidencies of Corazon Aquino and Fidel Ramos, in his inaugural address Joseph Estrada declared neither relatives nor friends would receive favors under his watch. Alluding to his predecessors, Kamaganak Incorporated was coined to represent corruption under Aquino. Under Ramos it was reclaimed land deals and the Centennial Park project. Estrada was later deposed and the man responsible for his impeachment was then House Speaker Manuel Villar. When another Aquino tastelessly danced a jig on the Senate floor anti-corruption sentiments ignited an uprising within hours. Benefiting from Villar’s initiative, Estrada’s vice-president grabbed the presidential reins on expectations she would clean up after. Unfortunately, Gloria Arroyo outdid Kamaganak Inc. Where accusations surround her own, hers was an expanded conglomerate of family members, in-laws, official and unofficial extensions, province-mates, bodyguards, pedicurists and gardeners all caught in her controversies. It was moral ascendancy that ushered Aquino into Malacanang and its absence that prosecuted Estrada. It was corruption that helped Arroyo clamber up the presidential pedestal but it is also corruption elevated to commanding heights that serves as an underlying issue as she steps down. One candidate for the presidency has correctly made it a theme by cloaking himself with the mantle worn by his parents. Another, going beyond rhetoric, has chosen to focus on programs to alleviate the poverty cultural cacique-mentalities and long-standing societal injustice cause. One simply mounts a white steed. That may be enough given intellectual and experiential minimums. Lacking these, some substitute moral ascendancy praying that an impassioned electorate dismisses the shadows of puppeteers behind. Another offers both embodiment and inspiration that poverty can indeed be overcome. Both should inspire. Both cannot be hollow. Many fear corruption is endemic. Some resign it to the dark side of our national character. As we face more potent corruption given the perpetuation of the Arroyo model migrating to other arenas, plus the prospective return of Kamaganak Inc. hidden in saddlebags strapped to a proverbial white steed, because that is the brand’s distinctive competence, let us see if truly this Trojan horse at our doorstep hides nothing. Kamaganak Inc.’s complicity is addressed by R.A. 3019, The Anti-Graft and Corrupt Practices Act. Section 4 (a) states, “It shall be unlawful for any person having family or close personal relation with any public official to capitalize or exploit or take advantage of such family or close personal relation to directly or indirectly requesting or receiving any present, gift or material or pecuniary advantage from any other person having some business, transaction, application, request or contract with the government.” Documents at the Securities and Exchange Commission (SEC) show that a private business incorporated by the Benigno Aquino III on November 1986 barely 10 months after EDSA I was established “To conduct training programs for personnel and supervisors of government-owned or controlled corporations (GOCCs).” The given business address is the official residence of the President of the Republic. Conflicted principals say they divested prior to Aquino’s presidency. But note the incorporation dates and the business address. Here the SEC may be complicit in licensing an incorporation which purpose is inherently illegal and whose incorporator is conflicted. A “family” relation exists as defined by R.A. 3019, as does a capitalization for pecuniary gain via a government deal. Section 5 further states that: “It shall be unlawful for the spouse or for any relative, by consanguinity or affinity, within the third degree, of the President of the Philippines, the Vice President of the Philippines, the President of the Senate, or the Speaker of the House of Representatives, to intervene, directly or indirectly, in any business, transaction, contract or application with government”. In 1986, a boutique insurance company changed hands then forayed into the portfolios of moderately capitalized insurers then doing business with companies where government had investments or minimal equity. While insurers might be allowed reinsurance contracts with the Government Service Insurance System (GSIS), never mind prohibited ownership under R.A. 3019, conflicts of interest are raised when these directly contract, feed and forage from the portfolios of entities with government equity or investments. Appeals were made. None were heard. As in the Arlegui-domiciled private corporation, the abuse of influence, whether brazen or implicit as in the disingenuous use of the official address, contradicts any anti-corruption crusade that waylays competence, experience and even work ethic in place of epidermal morality. Because Kamaganak Inc. includes those angling for positions and contracts, a vote for a weak president is a vote for a strung-along Kamaganak Inc.