Asiaweek.com | 'The Problem Is Him'

NOVEMBER 17, 2000 VOL. 26 NO. 45 | SEARCH ASIAWEEK

Edwin Tuyay for Asiaweek.
"You know what is really coming out here? His lifestyle has ultimately defeated him."

'The Problem Is Him'
Business leader Romulo on the Estrada crisis

ALSO
Protest, Intrigue, Class Struggle
The inside story of the business elite's battle to oust Estrada
• The Poor: They were promised much, but now many of them are fed up with Estrada too

As chairman of the most influential business association in the Philippines, the Makati Business Club, Ricardo Romulo, 67, already has the respect of the country's elite. But he is also the son of the late Gen. Carlos P. Romulo, a giant among Philippine statesmen, and a corporate lawyer. During the administration of Corazon Aquino, Romulo helped draw up his country's new Constitution. Last week in his Manila law office, Romulo told Contributing Reporter Kristina Luz why his group has demanded President Estrada's resignation. Excerpts:

Is Estrada's resignation the only way to salvage the economy?
Yes. The stock exchange seems to have recovered, but it could not have gone any lower. Estrada will take that to mean it is a resurgence of confidence. So God help us. When he is in that mood, his advisers feed him with very simple ideas that he picks up.

Does that mean business believes the economy will not survive the impeachment process?
The economy may not hold. Moreover, the more the peso depreciates, the harder it will be to bounce back. And don't forget that in trying to protect the peso, interest rates will keep going up. That will be the end of small and medium-size enterprises. Any prolonged delays will exacerbate all of these factors. So what is the solution? For him to go as quickly as possible. That can only be done through resignation.

But the impeachment is already getting through the Lower House pretty quickly?
When it gets to the Senate — and he says, "I will defend myself" — that means an actual trial where witnesses will be presented, evidence gathered. Can you imagine just questioning the five girlfriends? That could be extensive. And then the five alleged owners of the houses? How about the children who are involved in all of these corporations? Imagine if you go through it one by one.

Have you heard rumblings from the foreign community?
Yes. You can see it with no foreign funds coming in. The present foreign investors who are here are not expanding their businesses. It is all a standstill.

Some critics and opinionmakers are saying the elite has done Estrada in. Is this a battle of the rich versus the poor?
As we said in our statement, it is a very cynical use of the poor to try and prop up this regime. The problem is not the rich and the poor. The problem lies with him and the lack of confidence.

Do you think Vice President Gloria Macapagal Arroyo is a good alternative to Estrada?
The charges against the president are very, very serious — not only in jueteng [an illegal gambling game] but actually getting government revenues. With that, Vice President Macapagal Arroyo cannot be but an improvement. Plus [there is] her recognized training and expertise in economics, which unfortunately the president doesn't have. Despite rumors here and there, she has a clean record. Of course the administration will try black propaganda against her, but today there is no convincing evidence that she has indulged in graft and corruption.

Will it be a letdown if the president does not step down?
Not just a letdown. It would be a disaster economically. It is one thing to have dalliances with this and that girl. To me that is already terrible. But to steal from the government? My God. You know what is really coming out here? It is his lifestyle that ultimately defeated him. When you keep a harem of women, it is expensive. And you want to feed them champagne and caviar and keep them in proper mansions — that is really expensive, that takes hundreds of millions of pesos. Where will you get that in legitimate business?

Would the business community be amenable to the president leaving office without being charged?
That is a very difficult question. It not only implies ignoring the law, which he has violated, but what example have we set? At least with Marcos, there are cases that have been filed. Do we for the sake of peace and the economy say to Estrada: "Okay. Go and we forget it"? There are moral and social values involved.

What if he says he will not go unless he is granted immunity? What would the business community do?
I'm caught between two horns. One is the lawyer in me, who wants to uphold the law and prosecute. The other is the businessman in me, who says: look, we can't stand the prolonged thing and he won't go if he is not assured of some kind of peace. I don't know which side of me will prevail.

Where does this leave the Philippines? Will this clean up patronage politics?
Let us not be naive. Our culture belittles transparency, good governance, accountability. One has to begin somewhere. We are now calling our president to account in the most public way. It is a sign that people are really getting impatient. It is obvious to me that there is anger, disgust, frustration. How long do you keep that bottled up? I have never seen a situation like this — except during the last days of Marcos.

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