The Wealthy and Popular are Above the Law
by Josef Yap
July 13, 2016
Two noteworthy events made the news today. The
first is the decision by PLDT and Globe to sue the Philippine Competition
Commission because of its decision to review the deal between the two
telecommunication companies and San Miguel Corporation. The second event is the
announcement by Bob Arum that Manny Pacquiao is going to return to the ring
later this year.
Both these events show how easy it is for the rich and
powerful (and popular) to show disdain for the laws of the country.
Rather than wait for the outcome of the review, the two
giant telcos decided to question the legitimacy of the PCC’s authority. There
is of course the issue of whether PCC’s legal mandate started before or after
its Implementing Rules and Regulations were approved and implemented. But given
this gray area, the telcos should have granted the institution proper respect
by waiting for the results of the review. After all, if they are confident the
deal is above board, they have no reason to be concerned. An imprimatur from
the PCC would have only provided more credibility to the transaction.
As it stands, the action of the telcos will cast doubt on
the validity of the deal. Even if the courts will side with them—and given the
reputation of our legal system, it is likely they will— the PCC will still have
the authority to evaluate the degree of competition in the market. If it is
deemed that the existing structure is detrimental to consumer welfare, the PCC
can impose appropriate measures to correct the situation. It is not farfetched
that one measure would be to invalidate the deal with San Miguel.
But what the telcos have done is set the stage for
transferring authority from the PCC to the courts. If the telcos prevail in
this particular issue, the PCC’s authority will likely be dissipated. This is an acid test for the future of
competition in the Philippine economy.
As for Manny Pacquiao, it was bad enough he neglected his
duties as Congressman. Taking a leave from the Senate in order to fight again
only makes the situation much worse. Many argue that he is entitled to this
privilege because he brings honor to the country. This makes one wonder if this
is a legitimate reason to commit a crime. “Your honor, Juan de la Cruz, did
murder his wife in cold blood but he should be exonerated because he won the
Philippines’ first gold medal at the 2016 Rio Olympics.” Can this really be a
valid line of defense? But this is not new in our country. The most recent
prominent example is granting bail to Juan Ponce Enrile because of humanitarian
reasons, which should not even be possible in the country’s legal framework.
We have argued before that it is not corruption that has
been the number one malady in the Philippines. It has always been injustice.
These two events show unjust our legal system and society has been.
But wait! There is good news! The Philippines just won
the arbitration case against China. Justice after all exists in the world. But
despite the cause for celebration, a thought keeps nagging at me. The Chinese
have a proverb: “We are a peaceful people, but if someone hits us, we will hit
back harder.” Could the massive reclamation projects have been triggered by the
filing of the arbitration case? If—and this is a big IF—this is the reality,
then the victory of the Philippines is a Pyrrhic one.
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See other papers by Jop here: Welfare Economics: Philippine Institutional Issues, November 14, 2011 Free Trade 33: ASEAN Economic Community 2016, February 16, 2014 Winners and losers in the 2016 elections, by Dr. Jop Yap, May 10, 2016
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