Hacienda Luisita and agrarian reformBREAKTHROUGH By Elfren S. Cruz (The Philippine Star) | Updated October 3, 2013 12:00am Last Monday, the Department of Agrarian Reform (DAR) led by Secretary Virgilio de los Reyes started distributing true copies of their land to the farmworker-beneficiaries of Hacienda Luisita. Almost 600 farmworker-beneficiaries in Barangay Pando were awarded their Certificate of Land Ownership, the land title given to agrarian reform beneficiaries. All in all there will be a total of 6,212 beneficiaries. The Hacienda Luisita case was a major campaign issue in the 2010 presidential elections when Noynoy Aquino was running for president. Even after his election, the Luisita story was bannered as the final test of P-Noy’s sincerity and integrity. Perhaps because Hacienda Luisita has turned out to be another success story of the administration’s adherence to the rule of law, there has been very little media coverage, no fanfare, and hardly any credit given to the leadership of the President and the DAR in this issue. Media and certain sectors were even spreading many stories that were eventually proven to be false. There was the false story that the P-Noy administration vigorously opposed the application of the agrarian reform law to the hacienda owned primarily by his family, the descendants of Jose Pedro Cojuangco. Hacienda Luisita did not have tenants but paid agricultural workers. Originally, the workers were given the option of acquiring stocks in the corporation owning the hacienda. But in December 2005, the Presidential Agrarian Reform Council (PARC), composed of several cabinet members and chaired by then President Gloria Macapagal Arroyo, revoked the stock distribution option. From 2006-2010 the case was in the Supreme Court. In 2010, the new administration made its position clear. It did not propose a choice between share distribution or land distribution. It did not oppose the 2005 PARC decision to distribute the land. Opinion ( Article MRec ), pagematch: 1, sectionmatch: 1 Sometime in 2010, the Supreme Court came out with a decision that would in effect uphold the option of each beneficiary choosing between land or shares. But the P-Noy government said no and filed a motion for reconsideration. It was the Solicitor General and the DAR Secretary Virgilio de los Reyes, former Vice Dean of the De La Salle College of Law, who argued in the Supreme Court and won the argument that the option should be limited to land distribution. There was also another false story that under the Comprehensive Agrarian Reform Law, agrarian reform beneficiaries will have to pay for their CARP-awarded land within a period of 30 years at a rate of P70,000 a year. The total amount that the beneficiaries will pay for their land over a period of 30 years will be more or less P75,000. For the first three years, Hacienda Luisita beneficiaries will pay only P730 per year or about P61 per month. For the 4th and 5th year, they will pay more or less P1,410 per year or about P118 per month. And from the 6th to the 30th year, they will pay more or less P2,770 per year or P230 per month. The agrarian reform program is one of the major programs of this administration especially in its effort of achieving inclusive growth in the rural areas. After all, this is where 52% of the Philippine population still resides. There are only three pathways out of rural poverty. These are farming, labor and migration. Migration to the highly urbanized centers, especially to Metro Manila, is seen by rural people as the quickest solution. This may be true in the past, but this caused tremendous social and environmental problems. Almost half of the people in Metro Manila live in what used to be called squatter colonies and are now euphemistically called informal settlements. They lack proper housing, potable water, proper sanitation, electricity and minimal health care. Their living areas become the breeding ground for criminal gangs. Improper waste management contributes to the flooding in the streets of Metro Manila. The proper solution is to concentrate on the other two pathways out of rural poverty. One is to bring good, decent jobs in the rural areas. This can be done. Fortunately, tourism can provide rural jobs since our primary tourist destinations are the beaches and islands, all in the rural areas. Other possible sources of rural jobs are infrastructure construction outside the urban centers, reforestation projects, agribusiness, and small scale manufacturing. Agrarian reform is not only a pathway out of rural poverty but is extremely beneficial to the Philippine economy and the business sector. Unfortunately in this country the model we have for farming is that of an Iowa corn field or Kansas wheat field stretching for miles and miles. Our concept of agriculture is highly mechanized with very few people. But the factors of production in the United States is lots of land and very few people in rural areas, and so it makes sense for them to mechanize. Here it is the opposite — very many people and little arable land. We are an archipelago where coastal areas render large portions of land unsuitable for agriculture. World Bank studies have shown that smallholder agriculture can be productive and profitable. According to Secretary Gil de los Reyes, “Our foundation is really small holder agriculture. Our idea is not to have an agrarian society. As the economy progresses, more people will go into manufacturing and service, but for now 32% of our people are into agriculture. If we are able to take care of the poorest of the poor in agriculture, then demand for manufacturing goods and services will increase. But a stable agriculture basis requires equitable distribution of land.” This is the economic goal of agrarian reform — ensuring people can stay in the rural areas and live a life of human dignity. Holding on: A Hacienda Luisita timeline from the Spanish to the Noynoy eras August 18, 2010 11:19pm Spanish Period Hacienda Luisita was once owned by the “Compañía General de Tabacos de Filipinas," also known as "Tabacalera", founded in November 1881 by Don Antonio López y López, a Spaniard from Santander, in Cantabria, Spain. Lopez acquired the estate in 1882, a year before his death, and named it “Hacienda Luisita" after his wife, Luisa Bru y Lassús. Lopez was considered a financial genius and the “most influential Spanish businessman of his generation." He counted the King of Spain as a personal friend. Luisita was just one of his haciendas. Lopez also owned estates in other parts of the country: Hacienda Antonio (named after his eldest son), Hacienda San Fernando, and Hacienda Isabel (named after his eldest daughter). Tabacalera’s incorporators included the Sociedad General de Crédito Inmobiliario Español, Banque de Paris (now Paribas), and Bank of the Netherlands (now ABN-AMRO). Luisita was a sugar and tobacco plantation. American Period During the American Occupation (1898 to 1946), the Tabacalera experienced prosperous times because of the legendary sweet tooth of the Americans. As Cuba could not supply all of the sugar requirements of the United States, they turned to the Philippines. At one point, Hacienda Luisita supplied almost 20% of all sugar in the US. Japanese Regime During the Japanese occupation, Hacienda Luisita continued to operate, like all haciendas andtabacaleras in the Philippines, because the Japanese wanted to ensure that commodities such as sugar and rice were available to Filipinos. The CB's intervention was done under the condition that Cojuangco would also acquire Hacienda Luisita.9 million. Jr. Instead. Manila Chronicle. 1957 The GSIS approved the loan made by the Cojuangcos amounting to P5. Negros Navigation." (2) Granting the Cojuangcos a peso loan through the Government Service Insurance System (GSIS) to purchase the hacienda. November 25. The CB had to deposit part of the country’s dollar reserves with MTC for MTC to release Cojuangco’s loan. on the condition . Aquino's father-in-law..Pepe Cojuangco Period 1957 Problems with Huk rebels led the Spanish owners of Tabacalera to sell Hacienda Luisita and the sugar mill Central Azucarera de Tarlac. Magsaysay was a “ninong" (principal sponsor) at the wedding of Ninoy and Corazon Cojuangco Aquino. fearing that they might become too powerful as they already owned Meralco. "with a view to distributing the hacienda to small farmers. Then-Philippine President Ramon Magsaysay reportedly blocked the sale of the plantation to the wealthy Lópezes of Iloilo. ABS-CBN. August 1957 The Philippine government facilitated the Cojuangcos' takeover of Hacienda Luisita and Central Azucarera de Tarlac by: (1) Providing Central Bank (CB) support to help the Cojuangcos obtain a dollar loan from the Manufacturer's Trust Company (MTC) in New York for the purchase of the sugar mill (Central Azucarera de Tarlac). parents of the incumbent President Benigno Simeon "Noynoy" Aquino III. acquiring Hacienda Luisita and Central Azucarera de Tarlac from their Spanish owners. and various haciendas in Western Visayas. discussed the possibility of Jose Cojuangco Sr. Magsaysay and Benigno Simeon "Ninoy" Aquino. not just the sugar mill. Ninoy Aquino. 1972 Marcos declared Martial Law. May 7. was appointed the hacienda’s first administrator.. insisted that there were no tenants on the hacienda. 1967 The 10-year window given by the Philippine government for the Cojuangcos to distribute the land elapsed with no land distribution taking place.that Hacienda Luisita would be “subdivided among the tenants who shall pay the cost thereof under reasonable terms and conditions. hence no need to distribute land. The government sent three letters to the Cojuangcos between the 1960s to the 1970s to follow up the issue of land distribution. should there be any. The Cojuangcos. His most vocal critic. During this time.. asked the GSIS to change the phrase to ". 1980 The Marcos government filed a case before the Manila Regional Trial Court (MRTC) to prod the . September 21. Ninoy Aquino. the Tarlac Development Corporation (TADECO). four months later. was among the first to be arrested. Jose Cojuangco Sr. The Ferdinand Marcos presidency 1965 Ferdinand Edralin Marcos was elected president. became the new owner of Hacienda Luisita and Central Azucarera de Tarlac. President Cory’s husband and President Noynoy’s father.) This phrase would be cited later on as justification not to distribute the hacienda’s land." (itals by ed. 1958 Jose Cojuangco. farmers began to organize into groups to push for land distribution.’s company. April 8." However. however.shall be sold at cost to tenants. Sr. " a series of nonviolent and prayerful mass street demonstrations that toppled the dictatorship and installed Cory Aquino to the presidency. 13 protesters were killed in what has gone down in history as the “Mendiola . The case was filed as Ninoy Aquino and his family were leaving for exile in the US. 1985.Cojuangco-owned TADECO into surrendering Hacienda Luisita to the Ministry of Agrarian Reform so that the land could be distributed to the farmers at cost. 1985 On December 3. 1983 After living in exile for three years in Boston. Anti-Marcos groups claimed that the government’s case was an act of harassment against Ninoy Aquino’s family. Massachusetts. 1985 The MRTC ordered TADECO to surrender Hacienda Luisita to the Ministry of Agrarian Reform. December 3. 1987 Eleven months into the Cory Aquino presidency. They also argued that sugar lands were not covered by existing agrarian reform legislation. December 2. In a violent dispersal. The anti-Marcos sentiments led to the “People Power Revolution. Cory Aquino officially filed her certificate of candidacy for President. The Cojuangcos decried this as an act of harassment because Cory was set to run against Marcos in the February 1986 snap elections. The family later elevated the matter to the Court of Appeals. 1981 The Cojuangcos responded to the government complaint by arguing that the land could not be distributed because the hacienda did not have tenants. August 21. February 1986 The February 7 snap election was marred by allegations of widespread fraud against Marcos. January 10. He was assassinated on the tarmac of the Manila International Airport. thousands of frustrated farmers marched to Malacañang demanding land reform and the distribution of land at no cost to beneficiaries. Ninoy Aquino returned to Manila. Land reform was among the pillars of her campaign. Cory Aquino presidency January 22. She promised to give “land to the tiller" and to subject Hacienda Luisita to land reform. 229 outlining her agrarian reform program. 1987 Cory issues Presidential Proclamation 131 and Executive Order No. then headed by Aquino appointees Philip Juico and Feliciano “Sonny" Belmonte. (TADECO) established Hacienda Luisita Inc. June 10." July 22. filed a motion for the Court of Appeals to dismiss the civil case the Marcos government filed and won at the Manila Regional Trial Court against the Cojuangcos. 1989 The Cojuangcos justified Luisita’s SDO by saying it was impractical to divide the hacienda’s 4. which allows landowners to give farmers shares of stock in a corporation instead of land. The government itself.78 hectares of land per person). The Department of Agrarian Reform and the GSIS. did not object to the motion to dismiss the case. 1988 The Court of Appeals dismissed the case filed by the Marcos government against the Cojuangcoowned TADECO. August 23. 6657 or the Comprehensive Agrarian Reform Law. The outline also includes a provision for the Stock Distribution Option (SDO). respectively. 1988 President Aquino signed into law Republic Act No. The Central Bank also did not object to dismissal of case as it assumed that Luisita would be distributed anyway through the upcoming Comprehensive Agrarian Reform Program (CARP). May 18.75 hectares of land among 6. which covers sugar and coconut lands.Massacre. 1988 Tarlac Development Co. moved to withdraw the case that compelled TADECO to distribute land. March 17.296 farm workers because this would give farmers less than one hectare of land each (or 0. . under Cory. Solicitor General Frank Chavez.915. 1988 The government under Cory Aquino withdrew its case against the Cojuangcos. A clause in the agrarian reform program included SDO. a mode of complying with the land reform law that did not require actual transfer of the land to the tiller. Cory's appointee. (HLI) to implement the distribution of stocks to farmers in the hacienda. Luisita’s SDO agreement spelled out a 30-year schedule for transferring the stocks to the farm workers: “At the end of each fiscal year. Fidel Ramos presidency September 1.1989 When the CARP was implemented in Hacienda Luisita in 1989. said Cory allegedly removed her from the DAR because of a comment she made to the media—that Cory should inhibit herself from being the chairperson of the Presidential Agrarian Reform Council (PARC). The SDO won 92. However. the farm workers’ ownership of the plantation was pegged at 33 percent. while the Cojuangcos retained 67 percent.391.75% of the vote. a 1987 Constitutional Commission member. “The [SDO] is a loophole because it does not support the Constitution’s desire that the right of farmers to become owners of the land they till should be promoted by government.9% of the vote.85 shares of the capital stock of the SECOND PARTY (HLI) that are presently owned and held by the FIRST PARTY (TADECO). Santiago. 1989 Then-Agrarian Reform Secretary Miriam Defensor-Santiago approved the SDO agreement of Luisita.85 shares shall have been completely acquired and distributed to the THIRD PARTY (farm workers). already a senator. May 11. for a period of 30 years." November 21. 1989 Luisita’s farm workers were asked to choose between stocks or land in a referendum. 1989 column in the Manila Chronicle. Santiago's tenure at the DAR only lasted two months.976.976. 1995 The Sangguniang Bayan of Tarlac (Provincial Board of Tarlac) passed a resolution that reclassified . Father Joaquin Bernas.May 9. which approves SDO agreements. A second referendum and information campaign were held five months later and the SDO won again. In 2005." Bernas said in his June 27. until such time as the entire block of 118.391. getting 96. said Luisita’s SDO is inconsistent with the Constitution. the SECOND PARTY (HLI) shall arrange with the FIRST PARTY (TADECO) the acquisition and distribution to the THIRD PARTY (farm workers) on the basis of number of days worked and at no cost to them of one-thirtieth (1/30) of 118. a petition to revoke the SDO bearing more than 5. Gloria Arroyo presidency 2003 By this time.50 and work days were down to one per week.3. July 2004 The union tried to negotiate a wage increase to P225 per day. The hacienda workers then filed a petition with the DAR to have the SDO agreement revoked. 32 from gunshot wounds. industrial.915 hectares from agricultural to commercial. October 14. Jr." . saying they were not receiving the dividends and other benefits earlier promised to them. The governor of Tarlac province at that time was Margarita “Tingting" Cojuangco. 2004 Almost all 5. October 1. wife of Jose “Peping" Cojuangco.300 signatures was filed by union officers at the DAR to revoke the SDO and stop land conversion in Luisita. August 14.000 members of the United Luisita Workers Union (ULWU) and 700 members of Central Azucarera de Tarlac Labor Union (CATLU) staged a protest against the mass retrenchment. Workers also asked that the work days be increased to 2-3 days per week. 1996 The Department of Agrarian Reform approved for conversion 500 hectares of the Luisita land. November 6. At least seven people were killed and 121 were injured. 2003 Workers from the HLI supervisory group petitioned the DAR to revoke the SDO. the farm workers’ daily wage flattened at P194. claiming that the company was losing money.290 out of Luisita’s 4. the police and military forces. 2004 Luisita management retrenched 327 farm workers. 2004 Violence erupted between the protesters. including union officers. Two months later. This incident eventually became known as the “Luisita massacre.. brother of Cory Aquino. The management disagreed. and residential land. instead of just once a week. November 16. The original petition the farm workers submitted lay dormant at the DAR since it was filed in December 2003. February 1. Soon after. 2006 HLI asked the Supreme Court to prevent the PARC from enforcing the resolution. but began to move after the November 2004 massacre. 2005 Task Force Luisita recommended the revocation of the stock distribution agreement forged in May 1989. December 2004 A month after the Luisita massacre. September 22. 2005 PARC issued Resolution No. July 2005 The Arroyo-Aquino alliance broke up on the same month Task Force Luisita submitted the findings and recommendations from its investigation. ordering the revocation of Luisita’s SDO agreement and the distribution of the hacienda’s land to farmer beneficiaries. . 2004 with the death of Marcelino Beltran. November 25. The killings began on December 8. saying the SDO failed to fulfill the objectives of the Comprehensive Agrarian Reform Law about promoting social justice and improving the lives of the farmers. Beltran was assassinated in his house just before he was to testify about bullet trajectories at the Senate and Congress on December 13 and 14. 2005 The DAR's Task Force Luisita conducted an investigation and focus group discussions among the farm workers. 2004 to February 22. eight people who supported the farmers’ cause or had evidence supporting their case were murdered one by one. which became the government’s basis for revoking Luisita’s Stock Distribution Option (SDO) and ordering the distribution of the hacienda’s land to the farmers a few months later. a retired army officer turned peasant leader. picket lines were established around the hacienda. 2004. August 2005 A special legal team was formed by the DAR to review the report submitted by Task Force Luisita. 2005-32-01. December 22. then-Senator Noynoy Aquino said at the kick-off of his presidential campaign that Hacienda Luisita’s land would be distributed to farm workers by 2014. August 11. August 16. 2010 HLI and factions of farmers' groups signed a compromise agreement giving the farmers the chance to remain as HLI stockholders. preventing the PARC from canceling the SDO agreement. June 30. Many voted to retain their stocks and receive cash from HLI. only to complain later that they got minuscule amounts.June 2006 The Supreme Court granted HLI's petition and issued a temporary restraining order. August 6. 2010 A faction of the farmers’ groups asked the SC to junk the compromise deal because it was signed even before the high court could rule on the validity of the stock distribution option (SDO). 2010 HLI asked the Supreme Court to approve the compromise deal. 2010 For the first time since the land dispute was brought to its doors four years earlier. 2010 In Tarlac. The rival faction also questioned the authority of the signatories in the agreement to represent the plantation’s farmer-beneficiaries. Noynoy Aquino presidency February 9. August 18. June 2007 Negotiations between the HLI management and some farmers began after representatives of AMBALA and the Supervisory group wrote to DAR that they are amenable to an out-of-court settlement. 2010 Benigno Aquino III took his oath as the 15th Philippine president. one of the two choices offered by HLI to the farmers in the agreement (the other choice was land distribution). the SC heard oral . or receive their share of Hacienda Luisita land. the qualified farmer beneficiaries must still be given the option to choose if they want to remain as stockholders or not.'s stock distribution plan. Sophie Dedace.296 qualified farm-worker beneficiaries can vote whether they want to remain as HLI stockholders or receive actual land instead. by application of the operative fact principle. Under the plan is the stock distribution option agreement that allowed farmers to pick between shares of stock and land.arguments on the Hacienda Luisita case. Compiled by Andreo Calonzo. Veronica Pulumbarit.TV . The Court cannot turn a blind eye to the fact that in 1989. "While the assailed PARC resolutions effectively nullifying the Hacienda Luisita SDP are upheld. The SDO deal was forged between HLI and the farmers in 1989. GMANews. 2011 In a landmark decision. 93% of the FWBs agreed to the SDOA. Yasmin Arquiza. give way to the right of the original 6." the high court said. and Howie Severino. the revocation must. July 5.296 qualified FWBs to choose whether they want to remain as HLI stockholders or not. The SC said that while the stock distribution plan is nullified. The SC also ordered the DAR to administer the conduct of another referendum where the 6. which became the basis of the SDP approved by PARC. the Supreme Court held the PARC's order revoking Hacienda Luisita Inc. that appeared on the January 18. Along with the Hacienda Luisita massacre of November 16. Our research shows that the problem . whose family has owned the land since 1958. 2004. 2010 This week the country commemorates the tragic shooting of protesting farmers on January 22. 1987. and does not in any way attempts to infringe on the legal rights of Stephan Hacienda Luisita's past haunts Noynoy's future By STEPHANIE DYCHIU January 18. an inciden massacre. these two incidents represent the The struggle between farmers and landowners of Hacienda Luisita is now being seen as the first real test of cha Noynoy Cojuangco Aquino.HACIENDA LUISITA: A HISTORY OF GREED AND DECEPTION 08/06/2013 2 Comments (Important Notice: This reproduction of STEPHANIE DYCHIU'S article. 2010 issue of th being made for public information purpose only. A background on the troubled history of Hacienda Luisita is essential to understanding why the issue is forever and his family.TV a court defense and past media and legislative records on the Luisita issue. First of a series Senator Noynoy Cojuangco Aquino has said he only owns 1% of Hacienda Luisita. This is the story of the hacienda and its farmers. A s court documents was then conducted with the lawyers representing the workers’ union in court. GMANews. P Luisita since then reached a bloody head in 2004 when seven protesters were killed near the gate of the sugar m Luisita massacre. The investigation yielded illuminating insights into Senator Noynoy Aquino’s involvement in Hacienda Luisita tha discussed since his presidential bid.TV traveled to Tarlac and spoke to Luisita’s farm workers and union leaders. Below is part one. . Why is he being dragg ed int This is one of the most common questions asked in the 2010 elections. To find the answer. Details are gradually explored in this series of special reports. a deadline that came and went. GMANews.lenders obliged the Cojuangcos to distribute the land to small farmers by1967. an issue that is likely to haunt Aquino as he t May 2010 elections. Luisita was named after Luisa.. the Spaniards shifted to sugar. Jr. and Eduardo also put up a small s eldest brother. Antonio.Remnant of colonialism Before the Cojuangco family acquired Hacienda Luisita in the 1950s. Jose “Pepe" Cojuangco. was the father of former President Corazon “Cory" Cojuangco Aquin Senator Noynoy Aquino. Sugar pro profitable because demand was guaranteed by the US quota. it belonged to the Spanish-owned Compañ Filipinas (Tabacalera). Tobacco used to be the main crop planted in Luisita. the Spaniards built the sugar mill Centra accompany their sugarcane plantation. Sr. but in the 1920s. Juan. the wife of the top official of Tabacalera. with President Ramon Magsaysay as one of t . Corazon Cojuangco married Benigno “Ninoy" Aquino. Ninoy brokers purchase of Luisita In 1954. the wealthy Cojuangco brothers Jose. In 1927. Tabacalera acquired the land in 1882 from the Spanish crown. Around the same year. which had a self-appointe Philippines’ colonial master. wrote American development studies expert James Putzel in his 1992 book A Captive Land: The P Philippines. Jose Cojuan Azucarera de Tarlac and Hacienda Luisita from the Spaniards. James Putzel did extensive research on agrarian reform in the Philippines between the late 1980s to the ea Professor of Development Studies at the London School of Economics.wedding.. . this divide Aquino (grandson of Jose Sr. received significant preferential treatment and assistance from the government to facilitate and Central Azucarera de Tarlac in 1957. nephew of Dand the 2010 presidential elections. n Cojuangcos. The Spaniards wanted to sell because of the Hu problems.) The exclusion of Jose Cojuangco. nephew of Peping) and Gibo Teodoro (grandson of Eduardo Sr. In 1957. (Dr. Magsaysay talked to Ninoy Aquino about the possibility of Ninoy’s father-in-law.. (Click here to view the the Cojuangco family tree) Government loans given to Cojuangco Jose Cojuangco.’s brothers and their heirs from Luisita caused the first major rift in the Coju played out years later in the political rivalry of Jose’s son Peping and Eduardo’s son Danding. Sr. Ninoy Aquino wanted the azucarera and hacienda to stay only within the immediate family of his father-in-law. Today. Sr. To acquire a controlling interest in Central Azucarera de Tarlac." (Central Bank 1240.000 hectares of the hacienda would be made available to bonafide sugar planters. Trust Company in New York for a 10-year. . Dollars were tightly regulated in those times. the Central Bank of the Philippines deposited part of the country’s international reserves w Company in New York. while would be distributed to barrio residents who will pay for them on installment.443-hectare Ha distributing this hacienda to small farmers in line with the Administration’s social justice program. 1957). $2. Cojuangco had to pay the Spaniards in dollars.1 million loan. August 27. The Central Bank did this on the condition that Cojuangco would simultaneously purchase the 6. To finance the purchase of Hacienda Luisita. To ea for Cojuangco’s loan. Cojuangco turned to the GSIS (Government Service Insurance Sy million loan said that 4. 1957. b Cojuangco] ang utang nila sa gubyerno. GSIS Resolution No Later. Jose Cojuangco. requested that the phrase be amended to “. Land not distributed to farmers “Ang pagkakaintindi ng mga ninuno naming manggagawang-bukid ng Hacienda Luisita noon." says Lito Bais. Sr. became the and Central Azucarera de Tarlac. shoul Resolution No. 1958. the year before the Cojuangco family took over. one of the present-day leaders of the United Lu Bais was born on the hacienda in 1957. on the condition that Hacienda Luisita would be “subdivided among the thereof under reasonable terms and conditions". the Cojuangcos were going to pay back the money they By 1967. 1958). February 5. His mother was also bo . May 7. Pagdating ng 1967. understood things at that time. Putzel noted that the Central Bank Monetary Board resolution from 1957 required distribution of Ha farmers within 10 years.’s company. the Tarlac Development Corporation (TADECO). Ninoy Aquino was appointed the hacienda’s first administrator. In his book. the land would belong to the farmers). shall be sold at cost to tenants.The GSIS approved a P5. . ang lupa ay sa magsasaka na (The way our elders Luisita. within 10 years. (GSIS Resolution No. 356. The controversies that would hound the hacienda for decades can be traced to the Coj of the land long after the deadline for land distribution passed in 1967. 1085. Jose Cojuangco. Sr. within 10 years.9 million loan. This phrase would be cited later on as justification not to distribute the h On April 8. . so land could be dis in accordance with the terms of the government loans given in 1957-1958 to the late Jose Cojuangco. Sr. Civil Case No. Manila Regional Trial Court. Branch XLIII) The Marcos government filed this case after written follow-ups sent to the Cojuangcos over a period of eleven y distribution. TADECO. who was planning to run for Presiden arrested. the farmers thought the wheels of justice were finally turning and land distribution was coming .When 1967 came and went with no land distribution taking place. 1967. Cojuangcos The Cojuangcos’ disputed hold over Hacienda Luisita had been tolerated by Marcos even at the height of his dic Aquino and his family were leaving for exile in the US. his most voluble critic Aquino. who Philippines vs. Government files case vs. 1977. however. After Marcos declared Martial Law in 1972. the farm workers began to organize themselve year. Anot Bank Governor Gregorio Licaros on May 5. Another letter was written by Agrarian Reform Deputy Ministe 1978. a case was filed on May 7. Ninoy Aquino also became the Philippines’ youngest senator. His entry into national politics marked the st President Ferdinand Marcos. 1980 by the Marcos governm company TADECO for the surrender of Hacienda Luisita to the Ministry of Agrarian Reform.. 131654. The government’s lawsuit was portrayed by the anti-Marcos bloc as an act of harassment against Ninoy Aquino Luisita. (The Cojuangcos always replied that the loan terms were unenforceable because there were no ten government’s first follow-up letter was written by Conrado Estrella of the Land Authority on March 2. “Inilaban ni Doña Metring. vague rumors of a planned conversion of the hacienda into a residential subdivision or airport. Paano Paano makapag-tanim kung walang taong inabutan? (But look at this land. Land reform was one of the pillars of her A farmer GMANews. kaya wala ra lupang ito ay sa kanila (Doña Metring. (This was likely due to the decline of the Philippines after the US quota ended in the 1970s. . the Cojuangcos again said that the Central B unenforceable because there were no tenants on Hacienda Luisita. and by December 2. yung nanay nila Cory. Further. now a widow after the assassin was set to run for President against Marcos in the February 7. therefore the land belonged to them). “E. How else could this land have been cultivated if there were no people here when they took over?)" (The distinction between a tenant farmer and seasonal farmers hired from outside was key to the Cojuangcos’ d who is in possession of the land being tilled. In his book A Captive Land. 1985. they asserted that the government’s claim on Luisita had already exp undertaken since 1967. farm workers. 1986 snap elections. Cory promises to give “land to the tiller" Cory Aquino officially announced her candidacy on December 3. “We are deter land reform program ." .TV spoke to said they were told by Cojuangco family members managing the hacienda dur president.R. tignan mo naman ang lupang ito. Court orders Cojuangcos to surrender Luisita In the meantime. Conversion became a buzzword among big landowners all o formed Luisita Realty Corporation in 1977 as a first step to turning the hacienda into a residential and industrial The government pursued its case against the Cojuangcos. 1981 response that there was no agrarian unrest in Luisita. because Cory Aquino. and e legislation exempted sugar lands. Hacienda Luisita would once and for all be distributed to the farmers through her land reform program made to motivate them to vote for Cory and join the jeepney-loads of people being sent to Manila from Tarlac to On January 6. Aquino delivered the first policy speech of her campaign in Makati and said. causing anxiety that they would be left with no land to till. The Cojuangcos elevated th (Court of Appeals G.Cojuangcos claim hacienda has no tenants In their January 10. the mother of Cory. 1985." recalls Bais. this decision was rendered w decried by the Cojuangcos as another act of harassment. James Putzel noted that the Central Ba distribution not to tenants but to “small farmers. to enable [beneficiaries] to become self-reliant and prosperous farmers. the Manila Regional Trial surrender Hacienda Luisita to the Ministry of Agrarian Reform. . 08634). According to Putzel. 1986. na wala raw silang inabutan na tao [sa hacienda]. said there were no tenants in the hacienda when they no beneficiaries. 1981 response to the government’s complaint." Raising the issue of tenancy thus seemed ineffective in the def The Cojuangcos also said in their January 10. To critics. Aquino annou was going to be formed. 1986. “Land-to-th instead of an empty slogan." In the same speech. Aquino dissolves Constitution The snap elections took place on February 7. Marcos was declared winner. Aquino issued Presidential Proclamation No. it haunts her son. on January 16. but was ousted by the People was sworn in as President on February 25. and abolished the Batasang Pambansa (Parliament). “You will probably ask me: Will I also apply it to my family’s Hacienda Lui This campaign promise would haunt her for many years to come. 1. She named her running mate Salvador “Doy" Laurel Prime Mi Proclamation No. 1986. 3 declaring a revolutionary government and dissolvi nullified Laurel’s position as Prime Minister. Legislative powers were to reside with the President until elections were held. Aquino delivered her second major speech in Davao and said. Aquino also said.Ten days later. 1986. A month later. Marcos flees. To this day. Aquino’s abandonment of Laurel and her taking of legislative power were early signs that a web of ad decisions. The sway of these advisers would be felt later in the choices Aquino would make regarding Hacienda Juan Ponce Enrile’s link to Hacienda Luisita . Enrile also happened to be the lawyer of Tabacalera when Hacienda Luisita was taken over by the Cojuangcos Cojuangcos after the sale. Lau Laurel found an ally in Juan Ponce Enrile. Aquino fast-tracked the passage of the land reform law. She expanded its coverage to include sugar and coconut lands. The ne on February 11. Thousa marched to Malacañang demanding fulfillment of the promises made regarding land reform during the Aquino ca lands at no cost to beneficiaries. 1987. 1987.On September 16. Aquino just listened without response. Aquino issued Presidential Proclamation 131 and Executive Order reform program. Aquino. because she had no Laurel agreed to shelve his own plan to run for President and put his party’s resources behind Aquino during the you. Laurel formally broke ties with Aquino. and on July 22. a mode of complying with the land . eleven months into the Aquino administration. 1987. the Mendiola massacre happened. 13 protesters were killed near Malacañang in what has gone down in history as the administration of former President Corazon C. More were serio In a protest march for land reform in January 1987. 1987. Her outline also included a provision for the Stock Distribution Option (SDO)." the New York Times quoted Laurel saying he told Mrs. The New York Times reported that Laurel had c promise in 1985 to let him run the government as Prime Minister after Marcos was ousted. At least a dozen protesters were killed in the violent dispersal. a portent of the Luisita massacre On January 22. Aquino. Photo by Mon Acasio Under pressure after the bloodshed in Mendiola. another disenchanted EDSA veteran who now opposed Aquino. Enrile’s inside knowledge of the controversial transaction would be a big thorn in the Mendiola. actual transfer of land to the tiller. as Juan Ponce Enrile called it back then. The timing insured the passage of the SDO.) . 1987 “midnight decree". raised eyebrows because i legislative powers Aquino took in 1986 were going to revert back to Congress on July 28. (Aquino’s July 22. 1987. the first regular after the May 1987 elections. . Part one is here. an incident better known as the Mendiola massacre. Our research shows that the problem began when government lenders obliged the Cojuangcos to distribute the land to small farmers by1967. They won’t even leave his music video alone. these two incidents represent the darker side of the Aquino legacy. 2010 This week the country commemorates the tragic shooting of protesting farmers on January 22." sing the ghosts of Luisita to Senator Noynoy Aquino. is being made for public information purpose only. that appeared on the January 18. 2004. 2010 issue of the online edition of GMA News.) Picture By STEPHANIE DYCHIU January 22. Pressure for land reform on Luisita since then reached a bloody head in 2004 when seven protesters were killed near the gate of the sugar mill in what is now known as the Luisita massacre. and does not in any way attempts to infringe on the legal rights of Stephanie Dychiu and GMA News. This is the story of the hacienda and its farmers. Along with the Hacienda Luisita massacre of November 16. Second of a series “Hindi ka nag-iisa (You are not alone). Noynoy Aquino's Campaign Music Video (2009) . an issue that is likely to haunt Aquino as he travels the campaign trail for the May 2010 elections. a deadline that came and went.Cory's land reform legacy to test Noynoy's political will 08/06/20130 Comments (Important Notice: This reproduction of STEPHANIE DYCHIU'S article.part three is here and part four is here. 1987. The struggle between farmers and landowners of Hacienda Luisita is now being seen as the first real test of character of presidential candidate Noynoy Cojuangco Aquino. whose family has owned the land since 1958. " The dark side of the Aquino legacy Part Two of this series on Hacienda Luisita begins in 1989. Among those killed were one Senate witness. two Aglipayan priests. Sa Ngalan ng Tubo documentary about Hacienda Luisita (video recorded November 2004) (Torch scenes from 1:17 . or had evidence supporting their case. Picture . but in danger of being forgotten. What could be worth all the blood that has been spilled? And why is everyone looking at Senator Aquino? The answer lies in another little-known fact—a contentious 30-year stock distribution scheme that was implemented in lieu of land distribution on his family’s plantation that seriously complicates the campaign theme “good vs. a union president. a city councilor.A little-known fact about the Hacienda Luisita controversy is the haunting resemblance of Senator Aquino’s “Hindi Ka Nag-Iisa" music video to a real-life.1:29) Picture Picture Picture A better known fact. 2004 massacre. the year the Stock Distribution Option (SDO) was introduced at the hacienda after the Comprehensive Agrarian Reform Program (CARP) took effect in 1988. evil. and two peasant group leaders. is the series of salvagings that took place after the massacre to eliminate those who supported the workers’ cause. torch-lit march of Luisita’s workers amid the sugarcane fields at night days before the November 16. the Cojuangcos justified Luisita’s SDO by saying it was impractical to divide the hacienda’s 4.75 hectares of land among 6. She failed to institute effective land reform or to address the country’s fundamental structural ailment. The claim was contradicted by a study of the National Economic Development Authority (NEDA). the Department of Agrarian Reform (DAR) also debunked the claim that economies of scale justified Luisita’s SDO. the oligarchic control of power and politics. that was passed in August 2009. The PARC was chaired by President Cory Aquino. according to Eduardo Tadem. Aquino’s abrogation left such a deep scar that even the New York Times. was accused of including the SDO in her outline for CARP (Presidential Proclamation 131 and Executive Order No.296 farm workers.78 hectares of land each than stocks. 1987) so her family could once again avoid distributing Hacienda Luisita to farmers. the Cojuangcos of Tarlac. Mrs. July 22. in its announcement of her passing on August 1. a member of the technical working group of PARC who spoke out in an October 20.78). 1989 report of the Philippine Daily Inquirer. Aquino did not lead the social revolution that some had hoped for. In 2005. 229. did not let it slip: “Born into one of the country’s wealthy land-owning families. as this would result in less than one hectare each (0. which stated that the farm workers could still earn more with 0." Cojuangcos give stocks instead of land In 1989. It was abolished in the updated land reform law CARPER. whose votes had ironically been courted by President Aquino in 1986 by promising land reform. 2009.Senator Noynoy Aquino’s mother.915. The DAR said the issue of economies .) Picture The SDO gravely damaged the potential of land reform to deliver social justice to scores of rural poor. (The SDO was a clause in CARP that allowed landowners to give farmers shares of stock in a corporation instead of land. A study by the private group Center for Research & Communication (now University of Asia & the Pacific) was cited to support this claim. or CARP with Extensions and Revisions. after its investigation into the Luisita massacre. President Cory Cojuangco Aquino. But the NEDA study was ignored by the Presidential Agrarian Reform Council (PARC). Luisita. “This shows that mere land distribution is not beneficial to farmers. Father Joaquin Bernas.500 hectares.9% of the vote. the President of the Ateneo de Manila University and a member of the commission that drafted the 1987 Constitution. ‘I am done with you. this time by a 96. We cannot just transfer land to a farmer and say.’ We need to teach him until he becomes a manager. pointed out the ." Picture Farmers asked to vote on SDO On May 9. however. The SDO won 92. Luisita’s farm workers were asked to choose between stocks or land in a referendum. That is why Luisita today is only an approximate 5." he wrote." (Dr. it was rather that [they] were denied an environment that would allow them to identify what their choices were. 1989. natural fertilizers. 1989. London-based development studies expert James Putzel expressed doubt that the farmers understood the choice that was presented to them. which was then called Tabacalera Land. the cooperative member. James Putzel did extensive research on agrarian reform in the Philippines between the late 1980s to the early 1990s. Most of them returned to their lives as Luisita workers. We have seen in Hacienda Luisita that this does not work. and again the SDO won.75% vote. . However.000 hectares for the Land Tenure Act. We must help him find means to buy biological pest control. used to be 12. 19. which states that workers’ cooperatives should be created in cases where dividing land was not feasible. The company voluntarily gave half or 6. “The outcome of the vote was entirely predictable.) Picture Even before the second referendum was held. pesticides and farm implements.of scale could have been addressed under Section 29 of CARP.000 hectares. He is currently a Professor of Development Studies at the London School of Economics. becomes the agriculture business planner. . “The balance of power in the country favored families like the Cojuangcos. Noynoy declared: “Neither I nor the farmers are satisfied with the government’s land reform program. the people who were provided land ended up losing or selling their property. A second referendum and information campaign were held on October 14. In the column of Domini Torrevillas in the Philippine Star last Jan. The problem was not really that the farm workers were denied the right to choose . In his 1992 book A Captive Land: The Politics of Agrarian Reform in the Philippines. The paper questioned the morality." Bernas said. approved by the executive. whose standard-bearer is Senator Noynoy Aquino.inconsistency of Luisita’s SDO with the Constitution in his June 27. 1989 column in the Manila Chronicle. Corporation formed before vote . Jose “Peping" Cojuangco. the University of the Philippines Law Center also called Luisita’s SDO illegal in a paper it submitted to the Senate Committee on Agrarian Reform in June 1990. Nieva in the Philippine Daily Inquirer. the top decision-maker in Hacienda Luisita. the Secretary of Justice who issued the legal opinion saying Luisita’s SDO was constitutional was Aquino stalwart Franklin Drilon. President Cory Aquino replied that the paper was just the opinion of one professor. saying an act of the legislature. propriety. UP Center of Law calls Luisita SDO illegal A year after Father Bernas spoke out.. Jr. The legislature back then was dominated by landlords. But she said she would look into it. Drilon is currently chairman of the Liberal Party. “The *SDO+ is a loophole because it does not support the Constitution’s desire that the right of farmers to become owners of the land they till should be promoted by government. Meanwhile. Cojuangco was “at the head of the landlord juggernaut" in Congress. including President Aquino’s brother. The Department of Justice then issued a legal opinion affirming the constitutionality of the SDO. Tarlac Rep. according to a June 13. was presumed valid within the limits of the Constitution unless nullified in court. 1993 report of writer Antonio Ma. and constitutionality of a plan that allowed the landlord to retain controlling interest at the expense of farmer beneficiaries. the company formed by the Cojuangcos to operationalize Luisita’s SDO. In July 1989. a former judge. Picture In Santiago’s place. told the media that there were “serious flaws in the law against which I am powerless" (Philippine Daily Inquirer. July 21. . and the two rounds of voting with the farmers were only organized to give an appearance of transparency. Santiago. Aquino replaced Phillip Juico with “graft buster" Miriam Defensor-Santiago after Juico’s name was dragged into the Garchitorena land scam. Santiago said Aquino removed her because of something she said about Luisita. Two months later. The Garchitorena land scam The implementation of CARP during the term of President Cory Aquino was rocked by a number of scandals. Inc (HLI). Picture This bred suspicion that the SDO was considered a done deal early on. one of them the Garchitorena land scam. Aquino appointed Florencio “Butch" Abad. a close friend of President Aquino who also served as her Appointments Secretary. Putzel also noted that Hacienda Luisita. The Agrarian Reform Secretary who oversaw the farmers’ vote in Luisita in May 1989 was Philip Juico. Santiago ended up giving Luisita’s SDO the go-signal in November 1989. was incorporated in August 1988—nine months before the farm workers were first asked to choose between stocks or land in May 1989.In his book A Captive Land. Aquino replaced Santiago. Many years later. Very early into her role. the husband of Margie Juico. Aquino appointees in charge of DAR Adding to the cloud of doubt was President Aquino’s perceived influence over the Department of Agrarian Reform (DAR) because she had the power to appoint the department’s head. See how the land scam was linked to President Aquino. 1989). Abad lasted only three months because the Commission on Appointments repeatedly refused to confirm his appointment. until such time as the entire block of 118.976. Thus. for a period of 30 years. See how the Cojuangcos were able to gain control of the corporation.85 shares shall have been completely acquired and distributed to the THIRD PARTY (farm workers)." The impact of this provision was far-reaching. it would take until 2019 for the farm-worker beneficiaries to receive their complete set of stocks. because the full transfer of stocks did not happen in 1989. How the Cojuangcos got majority control of Hacienda Luisita When the Comprehensive Agrarian Reform Program was implemented in Luisita in 1989. Picture Stocks not transferred to farmers The stocks representing the farm workers’ full 33% share were not transferred to them in 1989. the SECOND PARTY (HLI) shall arrange with the FIRST PARTY (TADECO) the acquisition and distribution to the THIRD PARTY (farm workers) on the basis of number of days worked and at no cost to them of one-thirtieth (1/30) of 118. but were spread over “a period of 30 years" with only “one-thirtieth (1/30)" released every year. . While their shares remained undistributed. while 67% was retained by the Cojuangcos. the farm workers’ ownership of Hacienda Luisita was pegged at 33%.391. Cojuangcos assume majority control In 1989.Abad is currently the campaign manager of Senator Noynoy Aquino. these were “owned and held" by the Cojuangco company TADECO (Tarlac Development Corporation). while 67% was retained by the Cojuangcos.391.85 shares of the capital stock of the SECOND PARTY (HLI) that are presently owned and held by the FIRST PARTY (TADECO). At this rate. the farm workers’ ownership of the hacienda was pegged at 33%.976. Luisita’s SDO agreement spelled out a 30-year schedule for transferring stock to the farm workers: “At the end of each fiscal year. the common belief that 33% of Hacienda Luisita has been owned by farm workers since CARP was implemented in 1989 is not entirely accurate. Riedinger. HLI announced on June 9. If a worker quit or if management fired him. already said the 30-year distribution period seemed “without basis in the law" in his book Agrarian Reform in the Philippines: Democratic Transitions and Redistributive Reform. (Section 11 of DAR Administrative Order No. HLI had not yet been issued a Certificate of Compliance by the DAR since 1989 because the full transfer of stocks had not happened.955 names on the HLI stockholder list. 10.955 remained employed with HLI. Not all of the 11. 2005 that it had given out all undistributed stocks “in one supreme act of good faith." about 15 years ahead of the 30-year schedule. there were 6. the list of shareholders grew longer and longer. Dr. Picture Stock distribution suddenly accelerated After the November 2004 massacre and subsequent investigation by the DAR.Farmers asked to work for “free" stocks The farm workers also had to continuously render labor to receive shares.296 farm-worker beneficiaries in Luisita. Series of 1988 states that stocks should be transferred to beneficiaries within 60 days after the SDO is implemented. distribution of shares was also affected.) . It is believed this was done because the 30-year distribution period was a loophole. By 2005. because distribution was based “on the number of days worked". there were 11. In 1989. As names on the payroll changed every year when workers left or joined the company. Way back in 1995. Complicating things further was a separate provision that set the annual payroll as the basis for deciding who could get shares at the end of each year. or were part of the original 6. he no longer got the undistributed portion of his shares. diluting the entitlement of the original beneficiaries. If management cut work days.296 beneficiaries. currently Dean of International Studies at Michigan State University. Jeffrey M. and wages were practically frozen.290 reclassified hectares." 3% production share and home lots Under the SDO. management began to claim that HLI was losing money. Conversion—the real plan On September 1. Picture . however. industrial. The farm workers’ wages plateaued and their work days were cut. the Sangguniang Bayan of Tarlac passed a resolution reclassifying 3. wife of Jose “Peping" Cojuangco. that these were mandated by law under Section 30 and Section 32 of CARP. Riedinger also said the SDO “appears to violate the constitutional mandate that ownership of agricultural lands be redistributed to the regular farm workers cultivating them. 1995. Meanwhile. and residential. Mechanization also reduced the need for manual labor.Like Father Bernas in 1989 and the UP Center of Law in 1990.915 hectares from agricultural to commercial. Jr. The titles of the home lots also have problems. The governor of Tarlac province at that time was Margarita “Tingting" Cojuangco. the area left for farming grew smaller and smaller. and some were given home lots inside the plantation.120 per farm worker per year. Luisita’s farm workers were entitled to two new perks: they were allotted a 3% share in the gross production output of the hacienda. As land was being converted.290 out of Luisita’s 4. 500 were approved for conversion by the DAR. a mall and industrial park were sprouting on the portion of the hacienda closest to McArthur Highway. which this report will not get into now. The 3% production share never went beyond P1. not voluntary acts of generosity of the Cojuangcos. Out of the 3. More work days were cut. About 5 years after the SDO was implemented. The farm workers make clear. the farm workers’ daily wage was down to P194. They were always going to be outvoted. The SDO had to go.Then. and work days were down to 1 per week. A month later came the workers’ strike. the union tried to negotiate a wage increase to P225 per day. a subsidiary of Jose Cojuangco and Sons. They also asked for an increase in work days to 2-3 days per week. a master plan commissioned in 1998 by the Luisita Realty Corporation.) The farm workers began to fear for their jobs. 2004. with no areas left for agriculture. then the massacre. It showed the company’s long-term intention to convert the hacienda into a business and residential hub. instigated by his electoral rivals. saying the company was losing money. 2003. they concluded. It was signed by 5. without any assurances of receiving their 33% equity share in the sale of the converted land. Management then issued notices retrenching 327 farm workers effective October 1. The union leaders put together a petition to revoke the SDO and stop land conversion in Luisita. They finally saw the futility of having four board seats against management’s seven (the SDO agreement allotted 4 board seats to the farm workers ahead of the 30-year waiting period for their stocks). was unearthed.339 farm workers and filed at the Department of Agrarian Reform on December 4. . Mass retrenchment By 2003. which was completed in 2007. In July 2004. and is now the subject of allegations in Congress against Senator Noynoy Aquino and his family.50 (P9.50 after deductions for salary loans and other items). (That land use plan from 1998 already contained the Subic-Clark-Tarlac Expressway or SCTEx. Management said no.