How to build a dynasty

IN 2007, political scientist Julio Tehankee wrote that the two houses of the Philippine Congress have practically been home for at least 160 families over the last century.

“These families have had two or more members who have served in Congress, and they account for nearly 424 of the 2,407 men and women who have been elected to the national legislature from 1907 to 2004,” Tehankee wrote in the article “And the clans play on.”

More than 20 years after the People Power Revolution that toppled a dictatorship in 1986, the clans persist in the Philippines. In fact, Tehankee observed:

“Political clans have been an enduring feature of Philippine politics. In the upcoming local and congressional contests, that will remain to be so. Majority of these families or clans, in fact, take their roots from local politics. Generally considered as a grouping within the elites of society, the political clan is basically composed of a family and its network of relations that actively pursues elective or appointive political office at the local and/or national level. In many cases, the clan has also managed to maintain power through generations.”

But how are clans built?

Jejomar Binay

IT’S ALL in the family for the Binays. Philippine Vice-President Jejomar Binay and three of his children are in government. Nancy is a senator, Mar-Len Abigail is a representative, and Junjun is a city mayor| HLURB Photo

PCIJ founding executive director Sheila S. Coronel explored this issue in 2007 and came up with a summary of seven factors upon which dynasties are built.

Money, machine, media and/or movies, marriage, murder and mayhem, myth, and mergers are the seven Ms, the required elements for a dynasty to endure.

1. MONEY

The families that endure and survive political upheaval are more likely to be those that have a sustainable economic base to finance their participation in electoral battles. Philippine elections are costly — a congressional campaign in 2004, according to campaign insiders, could have cost up to P30 million in Metro Manila. In rural areas, the price tag is much less: P10 million on average, although campaigns can be run for P3 million or less in smaller districts where the competition is not too intense.

The investment may be worth it, as the rates of return can be high, depending on how well congressional office is exploited. Historically, families have been able to use their positions to expand their landholdings or their business empires, using their preferential access to privileges from the state — loans, franchises, monopolies, tax exemptions, cheap foreign exchange, subsidies, etc. These privileges have made political families wealthy, in turn allowing them to assemble formidable election machines that guarantee victory at the polls. The most successful families are those able to establish business empires not solely dependent on government largesse. They must also be competent enough to run these businesses well, allowing their members to survive electoral defeat and political ignominy.

In Landlords and Capitalists, political scientist Temario Rivera found that 87 families controlled the top 120 manufacturing companies from 1964-1986. Sixteen of these families — about 20 percent of the total — were involved in politics. Most of them were members of the landowning elite that emerged during the 19th century, including the Aranetas, the Cojuangcos, the Jacintos, the Madrigals, and the Yulos. “Through government influence,” writes Rivera, “landed capitalists caused the diversion of state resources to traditional elite economic activities like sugar and coconut milling, limiting further industrial diversification.”

Click on the photo to continue reading the article.

FORMER FIRST LADY IMELDA R. MARCOS. More than 20 years after the EDSA People Power that toppled his husband's rule, the Marcoses are still in power | Photo by Lilen Uy

FORMER FIRST LADY IMELDA R. MARCOS. More than 20 years after the EDSA People Power that toppled his husband’s rule, the Marcoses are still in power | Photo by Lilen Uy

REBLOG: ‘Capture the popular imagination’

REPOSTED FROM THE INTERNATIONAL CONSORTIUM OF INVESTIGATIVE JOURNALISTS’ WEBSITE

Sheila Coronel is the director of the Stabile Center for Investigative Journalism at the Columbia Graduate School of Journalism. Last month, she was named as the next academic dean of the journalism school, a position she will assume in July. Prior to joining Columbia, Coronel founded the Phillippine Center for Investigative Journalism, where her reporting on corruption and graft by then-President Joseph Estrada helped bring about his impeachment and subsequent resignation. She recently spoke with ICIJ for its “Secrets of the Masters” series.

SHEILA CORONEL | Image from http://www.journalism.columbia.edu/

SHEILA CORONEL | Image from http://www.journalism.columbia.edu/

As the director of the Philippine Center for Investigative Journalism, your reporting revealed the massive personal fortune compiled by then-President Joseph Estrada. How did you report that story and what were your main findings?

That story was fundamentally a way of proving corruption – not by getting evidence of the actual corrupt acts, which was difficult, but by investigating where the proceeds of corruption went. We had heard rumors of large-scale bribery and commissions from government contracts and the sale of shares in state-owned companies. Because it was almost impossible to prove bribery, we decided to go after the fruits of bribery instead.

Estrada was a former movie star who had five mistresses and he was building fabulous mansions in the ritziest parts of Manila for them. None of these properties were in his or his family members’ names. They were registered in the names of shell companies and it was difficult to show real ownership. What we were able to do was establish a pattern in the acquisitions: the same law firms were used to incorporate the companies, the same nominees fronted for the purchases, the same architects were used, the same interior designers, landscape architects, etc. Even the design of the houses was the same because Estrada went home to a different house every night, frequently intoxicated, and so didn’t want to be stumbling in unfamiliar territory.

We also spoke to a number of people, including builders, neighbors, friends and associates who had interacted with Estrada in relation to those properties. We found that Estrada had bought 17 pieces of real estate in just the first two years of his presidency, and we said that based on his income tax return and his financial disclosures, he couldn’t have legitimately afforded them. We also found dozens of companies that had been formed by him and his families, and none of these were disclosed in his asset statement. We discovered thriving business enterprises set up by the more entrepreneurial mistresses and these businesses had assets that could not be explained by the president’s legitimate earnings.

READ MORE ON THE ICIJ WEBSITE

Leaks, Whistleblowers, and the Media’s Right to Report

By Sheila S. Coronel

[Reprinted article from Sheila S. Coronel's blogpage WatchDog Watcher]

THIS WEEK, I moderated a discussion that followed the screening of Silenced, a new documentary that tells the stories of three whistleblowers who exposed torture, mass surveillance and government waste. Directed by Jamies Spione, funded partly by a $40,000-Kickstarter fundraising campaign, and executive-produced by Susan Sarandon, it’s a powerful film that shows how these insiders in the U.S. national-security establishment were intimidated and penalized for exposing the abuse of government power.

Their stories are not new. What Spione brought to the screen was the humanity of the whistleblowers and the patriotic idealism that compelled them to work in government agencies like the NSA and the CIA and then to speak out against the excesses they saw there. If anything, Silenced dramatizes how the landscape of government secrecy has changed dramatically since 9/11 and the war on terror. It makes the argument that whistleblowers play an essential role: Leaks are a necessary prophylactic, especially when they reveal the abuse of public authority and the harm done to the rights of citizens.

IMAGE from silencedfilm.com

IMAGE from silencedfilm.com

Investigative journalism is all about uncovering secrets, but no journalist will dispute that governments have the right to keep things under wraps. Secrecy, however, is also prone to abuse. Not all secrecy is justified, and it can be argued that whistleblowers and leakers deserve protection if they disclose important, if secret, information that is in the public interest.

These questions have come to the fore as technology has made leaking easier — the estimated 1.7 million documents that NSA contractor Edward Snowden supposedly has in some hard drives is a good example. At the same time, more advanced tools of email and phone surveillance have enhanced the ability of governments to track the sources of leaks.

Until this month, I thought that the U.S. government’s aggressive pursuit of media leaks was confined to state secrets and national security. But as it turns out, it’s not just the CIA, the National Security Agency, or the Justice Department that has gone after unauthorized information disclosures.

One of my former students, Reuters reporter Sarah N. Lynch, was recently the subject of a six-month probe by the Securities and Exchange Commission. In September last year, she wrote two stories revealing what took place in an executive session of the SEC, when the commissioners were deciding on the agency’s settlement with JP Morgan over the “London Whale” trading charges. The sources of the stories were unnamed, and at the behest of the SEC chair, Mary Jo White, the SEC’s Office of the Inspector General launched an inquiry into what it says were unauthorized disclosures of information. Investigators checked the email and phone records of 39 employees, interviewed 53 staff members, including all five commissioners, and examined building access logs scanning for reporters’ names.

In an article published by the Columbia Journalism Review this week, I wrote about the probe and similar ones that the SEC has undertaken since the 2008 financial crisis. From semi-annual reports that the OIG has submitted to Congress, I found that in the course of eight investigations of media leaks in the past six years, the SEC had examined some one million emails sent by nearly 300 members of its staff, interviewed some 100 of its own employees and trolled the phone records of scores more. ( A table with details of those investigations is here.)

SHEILA CORONEL is the founding executive director of the Philippine Center for Investigative Journalism, which she co-founded. She is dean of academic affairs at the Columbia Journalism School, where she founded the Stabile Center for Investigative Journalism.

SHEILA CORONEL is the founding executive director of the Philippine Center for Investigative Journalism, which she co-founded. She is dean of academic affairs at the Columbia Journalism School, where she founded the Stabile Center for Investigative Journalism.

It’s difficult to figure out what was at stake in what the SEC says were unauthorized disclosures. Certainly not state security. Nor was it the leak of trade secrets or the untimely release of tradable information because the SEC itself has provided nonpublic information to the press in what appears to be an effort to show it was aggressively pursuing wrongdoers in the corporate and financial realms. This double standard – going after “inconvenient” leaks while tolerating or even encouraging beneficial ones – holds particularly true for the national security arena as well.

More perturbing, however, is that it’s often the whistleblowers who are punished, not those whose crimes they exposed. As national-security whistleblower Jesselyn Radack pointed out in yesterday’s panel, only one person has been convicted of torture in the U.S. post-9/11: John Kiriakou, a former CIA analyst who was the first to confirm the use of waterboarding on suspected Al- Qaeda members. Kiriakou went to prison last year for passing classified information to the media.

The SEC, however, operates in what ought to be a far less secretive realm than national security. Its thorough probing of media leaks is disturbing because now, more than ever, financial reporters need wider latitude to report on corporate excess and the government’s efforts to rein it in.

As I said in the piece:

The zealousness of these probes is worrisome. Leak investigations send a chilling message to both journalists and their sources. They can also impede legitimate newsgathering and curtail reporting that seeks to hold government to account.

The SEC is a powerful agency with a big mandate that dates back to the stock market crash of 1929: To protect investors and maintain fair and functioning markets. That role has become even more important since the 2008 financial crisis.

The SEC is the enforcer of the law for the financial sector. Its success or failure in regulating companies and reining in the excesses of financial institutions are matters that concern not just the U.S. public but, given the global contagion that followed the collapse of Lehman Brothers in 2008, also the world.

More, not less, media scrutiny of the SEC would do us all some good… The leaks provide public insight into how the SEC works, even if they do disclose information that may inconvenience the agency.

Last fall, the Committee to Protect Journalists (CPJ) issued a report authored by former Washington Post executive editor Leonard Downie, Jr. that looked into how the Obama Administration’s aggressive prosecution of leaked information was restraining reporting. “In the Obama administration’s Washington, government officials are increasingly afraid to talk to the press,” the CPJ report said. “Those suspected of discussing with reporters anything that the government has classified as secret are subject to investigation, including lie-detector tests and scrutiny of their telephone and e-mail records.”

Next month, the Committee to Protect Journalists is launching a Right to Report campaign asking the administration to prohibit “the hacking and surveillance of journalists and media organizations and to limit aggressive prosecutions that ensnare journalists and intimidate whistleblowers.”

It’s a good name to call a campaign because what’s at stake in these leak investigations is precisely that: The right to report.

(Disclosure: I am on the board of the Committee to Protect Journalists)

Leaks, Whistleblowers, and the Media’s Right to Report

By Sheila S. Coronel

[Reprinted article from Sheila S. Coronel's blogpage WatchDog Watcher]

THIS WEEK, I moderated a discussion that followed the screening of Silenced, a new documentary that tells the stories of three whistleblowers who exposed torture, mass surveillance and government waste. Directed by Jamies Spione, funded partly by a $40,000-Kickstarter fundraising campaign, and executive-produced by Susan Sarandon, it’s a powerful film that shows how these insiders in the U.S. national-security establishment were intimidated and penalized for exposing the abuse of government power.

Their stories are not new. What Spione brought to the screen was the humanity of the whistleblowers and the patriotic idealism that compelled them to work in government agencies like the NSA and the CIA and then to speak out against the excesses they saw there. If anything, Silenced dramatizes how the landscape of government secrecy has changed dramatically since 9/11 and the war on terror. It makes the argument that whistleblowers play an essential role: Leaks are a necessary prophylactic, especially when they reveal the abuse of public authority and the harm done to the rights of citizens.

IMAGE from silencedfilm.com

IMAGE from silencedfilm.com

Investigative journalism is all about uncovering secrets, but no journalist will dispute that governments have the right to keep things under wraps. Secrecy, however, is also prone to abuse. Not all secrecy is justified, and it can be argued that whistleblowers and leakers deserve protection if they disclose important, if secret, information that is in the public interest.

These questions have come to the fore as technology has made leaking easier — the estimated 1.7 million documents that NSA contractor Edward Snowden supposedly has in some hard drives is a good example. At the same time, more advanced tools of email and phone surveillance have enhanced the ability of governments to track the sources of leaks.

Until this month, I thought that the U.S. government’s aggressive pursuit of media leaks was confined to state secrets and national security. But as it turns out, it’s not just the CIA, the National Security Agency, or the Justice Department that has gone after unauthorized information disclosures.

One of my former students, Reuters reporter Sarah N. Lynch, was recently the subject of a six-month probe by the Securities and Exchange Commission. In September last year, she wrote two stories revealing what took place in an executive session of the SEC, when the commissioners were deciding on the agency’s settlement with JP Morgan over the “London Whale” trading charges. The sources of the stories were unnamed, and at the behest of the SEC chair, Mary Jo White, the SEC’s Office of the Inspector General launched an inquiry into what it says were unauthorized disclosures of information. Investigators checked the email and phone records of 39 employees, interviewed 53 staff members, including all five commissioners, and examined building access logs scanning for reporters’ names.

In an article published by the Columbia Journalism Review this week, I wrote about the probe and similar ones that the SEC has undertaken since the 2008 financial crisis. From semi-annual reports that the OIG has submitted to Congress, I found that in the course of eight investigations of media leaks in the past six years, the SEC had examined some one million emails sent by nearly 300 members of its staff, interviewed some 100 of its own employees and trolled the phone records of scores more. ( A table with details of those investigations is here.)

SHEILA CORONEL is the founding executive director of the Philippine Center for Investigative Journalism, which she co-founded. She is dean of academic affairs at the Columbia Journalism School, where she founded the Stabile Center for Investigative Journalism.

SHEILA CORONEL is the founding executive director of the Philippine Center for Investigative Journalism, which she co-founded. She is dean of academic affairs at the Columbia Journalism School, where she founded the Stabile Center for Investigative Journalism.

It’s difficult to figure out what was at stake in what the SEC says were unauthorized disclosures. Certainly not state security. Nor was it the leak of trade secrets or the untimely release of tradable information because the SEC itself has provided nonpublic information to the press in what appears to be an effort to show it was aggressively pursuing wrongdoers in the corporate and financial realms. This double standard – going after “inconvenient” leaks while tolerating or even encouraging beneficial ones – holds particularly true for the national security arena as well.

More perturbing, however, is that it’s often the whistleblowers who are punished, not those whose crimes they exposed. As national-security whistleblower Jesselyn Radack pointed out in yesterday’s panel, only one person has been convicted of torture in the U.S. post-9/11: John Kiriakou, a former CIA analyst who was the first to confirm the use of waterboarding on suspected Al- Qaeda members. Kiriakou went to prison last year for passing classified information to the media.

The SEC, however, operates in what ought to be a far less secretive realm than national security. Its thorough probing of media leaks is disturbing because now, more than ever, financial reporters need wider latitude to report on corporate excess and the government’s efforts to rein it in.

As I said in the piece:

The zealousness of these probes is worrisome. Leak investigations send a chilling message to both journalists and their sources. They can also impede legitimate newsgathering and curtail reporting that seeks to hold government to account.

The SEC is a powerful agency with a big mandate that dates back to the stock market crash of 1929: To protect investors and maintain fair and functioning markets. That role has become even more important since the 2008 financial crisis.

The SEC is the enforcer of the law for the financial sector. Its success or failure in regulating companies and reining in the excesses of financial institutions are matters that concern not just the U.S. public but, given the global contagion that followed the collapse of Lehman Brothers in 2008, also the world.

More, not less, media scrutiny of the SEC would do us all some good… The leaks provide public insight into how the SEC works, even if they do disclose information that may inconvenience the agency.

Last fall, the Committee to Protect Journalists (CPJ) issued a report authored by former Washington Post executive editor Leonard Downie, Jr. that looked into how the Obama Administration’s aggressive prosecution of leaked information was restraining reporting. “In the Obama administration’s Washington, government officials are increasingly afraid to talk to the press,” the CPJ report said. “Those suspected of discussing with reporters anything that the government has classified as secret are subject to investigation, including lie-detector tests and scrutiny of their telephone and e-mail records.”

Next month, the Committee to Protect Journalists is launching a Right to Report campaign asking the administration to prohibit “the hacking and surveillance of journalists and media organizations and to limit aggressive prosecutions that ensnare journalists and intimidate whistleblowers.”

It’s a good name to call a campaign because what’s at stake in these leak investigations is precisely that: The right to report.

(Disclosure: I am on the board of the Committee to Protect Journalists)

Leaks, Whistleblowers, and the Media’s Right to Report

By Sheila S. Coronel

[Reprinted article from Sheila S. Coronel's blogpage WatchDog Watcher]

THIS WEEK, I moderated a discussion that followed the screening of Silenced, a new documentary that tells the stories of three whistleblowers who exposed torture, mass surveillance and government waste. Directed by Jamies Spione, funded partly by a $40,000-Kickstarter fundraising campaign, and executive-produced by Susan Sarandon, it’s a powerful film that shows how these insiders in the U.S. national-security establishment were intimidated and penalized for exposing the abuse of government power.

Their stories are not new. What Spione brought to the screen was the humanity of the whistleblowers and the patriotic idealism that compelled them to work in government agencies like the NSA and the CIA and then to speak out against the excesses they saw there. If anything, Silenced dramatizes how the landscape of government secrecy has changed dramatically since 9/11 and the war on terror. It makes the argument that whistleblowers play an essential role: Leaks are a necessary prophylactic, especially when they reveal the abuse of public authority and the harm done to the rights of citizens.

IMAGE from silencedfilm.com

IMAGE from silencedfilm.com

Investigative journalism is all about uncovering secrets, but no journalist will dispute that governments have the right to keep things under wraps. Secrecy, however, is also prone to abuse. Not all secrecy is justified, and it can be argued that whistleblowers and leakers deserve protection if they disclose important, if secret, information that is in the public interest.

These questions have come to the fore as technology has made leaking easier — the estimated 1.7 million documents that NSA contractor Edward Snowden supposedly has in some hard drives is a good example. At the same time, more advanced tools of email and phone surveillance have enhanced the ability of governments to track the sources of leaks.

Until this month, I thought that the U.S. government’s aggressive pursuit of media leaks was confined to state secrets and national security. But as it turns out, it’s not just the CIA, the National Security Agency, or the Justice Department that has gone after unauthorized information disclosures.

One of my former students, Reuters reporter Sarah N. Lynch, was recently the subject of a six-month probe by the Securities and Exchange Commission. In September last year, she wrote two stories revealing what took place in an executive session of the SEC, when the commissioners were deciding on the agency’s settlement with JP Morgan over the “London Whale” trading charges. The sources of the stories were unnamed, and at the behest of the SEC chair, Mary Jo White, the SEC’s Office of the Inspector General launched an inquiry into what it says were unauthorized disclosures of information. Investigators checked the email and phone records of 39 employees, interviewed 53 staff members, including all five commissioners, and examined building access logs scanning for reporters’ names.

In an article published by the Columbia Journalism Review this week, I wrote about the probe and similar ones that the SEC has undertaken since the 2008 financial crisis. From semi-annual reports that the OIG has submitted to Congress, I found that in the course of eight investigations of media leaks in the past six years, the SEC had examined some one million emails sent by nearly 300 members of its staff, interviewed some 100 of its own employees and trolled the phone records of scores more. ( A table with details of those investigations is here.)

SHEILA CORONEL is the founding executive director of the Philippine Center for Investigative Journalism, which she co-founded. She is dean of academic affairs at the Columbia Journalism School, where she founded the Stabile Center for Investigative Journalism.

SHEILA CORONEL is the founding executive director of the Philippine Center for Investigative Journalism, which she co-founded. She is dean of academic affairs at the Columbia Journalism School, where she founded the Stabile Center for Investigative Journalism.

It’s difficult to figure out what was at stake in what the SEC says were unauthorized disclosures. Certainly not state security. Nor was it the leak of trade secrets or the untimely release of tradable information because the SEC itself has provided nonpublic information to the press in what appears to be an effort to show it was aggressively pursuing wrongdoers in the corporate and financial realms. This double standard – going after “inconvenient” leaks while tolerating or even encouraging beneficial ones – holds particularly true for the national security arena as well.

More perturbing, however, is that it’s often the whistleblowers who are punished, not those whose crimes they exposed. As national-security whistleblower Jesselyn Radack pointed out in yesterday’s panel, only one person has been convicted of torture in the U.S. post-9/11: John Kiriakou, a former CIA analyst who was the first to confirm the use of waterboarding on suspected Al- Qaeda members. Kiriakou went to prison last year for passing classified information to the media.

The SEC, however, operates in what ought to be a far less secretive realm than national security. Its thorough probing of media leaks is disturbing because now, more than ever, financial reporters need wider latitude to report on corporate excess and the government’s efforts to rein it in.

As I said in the piece:

The zealousness of these probes is worrisome. Leak investigations send a chilling message to both journalists and their sources. They can also impede legitimate newsgathering and curtail reporting that seeks to hold government to account.

The SEC is a powerful agency with a big mandate that dates back to the stock market crash of 1929: To protect investors and maintain fair and functioning markets. That role has become even more important since the 2008 financial crisis.

The SEC is the enforcer of the law for the financial sector. Its success or failure in regulating companies and reining in the excesses of financial institutions are matters that concern not just the U.S. public but, given the global contagion that followed the collapse of Lehman Brothers in 2008, also the world.

More, not less, media scrutiny of the SEC would do us all some good… The leaks provide public insight into how the SEC works, even if they do disclose information that may inconvenience the agency.

Last fall, the Committee to Protect Journalists (CPJ) issued a report authored by former Washington Post executive editor Leonard Downie, Jr. that looked into how the Obama Administration’s aggressive prosecution of leaked information was restraining reporting. “In the Obama administration’s Washington, government officials are increasingly afraid to talk to the press,” the CPJ report said. “Those suspected of discussing with reporters anything that the government has classified as secret are subject to investigation, including lie-detector tests and scrutiny of their telephone and e-mail records.”

Next month, the Committee to Protect Journalists is launching a Right to Report campaign asking the administration to prohibit “the hacking and surveillance of journalists and media organizations and to limit aggressive prosecutions that ensnare journalists and intimidate whistleblowers.”

It’s a good name to call a campaign because what’s at stake in these leak investigations is precisely that: The right to report.

(Disclosure: I am on the board of the Committee to Protect Journalists)