US embassy cable - 05MANILA2142

C O N F I D E N T I A L SECTION 01 OF 02 MANILA 002142 
 
SIPDIS 
 
STATE FOR EAP/PMBS, INR/EAP, DRL/IRF, DRL/CRA 
 
E.O. 12958: DECL: 05/11/2015 
TAGS: PGOV, PINS, KCOR, PHUM, SOCI, RP 
SUBJECT: BISHOPS LASH OUT AT PRESIDENT ARROYO 
 
REF: A. MANILA 2103 
 
     B. MANILA 1988 
 
Classified By: Deputy Pol/C Joseph Novak for reasons 1.4 (b) and (d) 
 
1.  (C) Summary:  In a recent press conference, three 
left-leaning Catholic bishops accused President Arroyo of not 
doing enough to help the poor, and said they would 
participate in a "national day of mourning and protest" on 
June 12.  Separately, in public testimony in the House on May 
3, Archbishop Oscar Cruz claimed that many GRP officials were 
implicated in corruption related to "jueteng" (illegal 
gambling) and provided material that may implicate the 
president and her family.  In a May 6 meeting with poloffs, 
Monsignor Coronel of the Catholic Bishops Conference of the 
Philippines (CBCP) emphasized that the three bishops and 
Archbishop Cruz did not speak for the Church as a whole.  He 
insisted that most of the Philippines' 91 active bishops 
supported the president and her policies.  The Church remains 
a powerful force here, to which Malacanang pays attention, 
and further criticism from this quarter could prove 
unsettling to a GRP leadership already tense about recurrent 
destabilization plots and rumors.  As the House Speaker 
convenes an all-party conference May 12, soundings on the 
solidity of Church support -- or lack thereof -- behind the 
President may have an impact on their plans over the coming 
months. End Summary. 
 
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Hard-hitting Bishops 
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2.  (U) At a recent press conference, Roman Catholic bishops 
Deogracias Iniguez, Julio Xavier Labayen, and Antonio Tobias 
accused President Arroyo of pursuing economic policies that 
promote foreign economic interests at the expense of the 
country's poor.  Bishop Labayen warned the Arroyo 
administration that "time is running out and no force can 
stop the coming deluge as the pent-up emotions of our poor 
suffering people (are) about to explode."  The three bishops 
issued their statements in conjunction with Kilusang 
Makabansang Ekonomiya (KME), a left-leaning non-governmental 
organization that promotes economic reforms.  At the press 
conference, KME representatives also criticized the Arroyo 
administration for rising fuel prices, water and power rates, 
as well as tax increases aimed at reducing the Philippines' 
debt burden.  The three bishops threw their support behind 
the KME's call for a "national day of mourning and protest" 
on June 12 to galvanize opponents of the administration.  A 
KME representative subsequently claimed to the press that 
five other bishops supported the call for the president to 
change her policies, but did not want their names made public. 
 
3.  (C) In a May 6 meeting with poloff, Bishop Iniguez 
reiterated many of the same points.  Iniguez, who is also the 
press spokesman of the CBCP, noted that he had spoken on his 
own behalf and not as a representative of the CBCP.  He 
remarked, however, that bishops had "a right, even an 
obligation to speak out on moral issues."  He added that 
bishops had spoken out in opposition to then-president 
Estrada and would do so against Arroyo when they thought she 
was pursuing the wrong policies.  Poloff reiterated that the 
U.S. and the international community firmly supported 
democracy and stability in the Philippines, and would not 
accept any form of extra-constitutional action. 
 
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An Archbishop Joins the Fray 
---------------------------- 
 
4.  (U) Separately, President Arroyo and her administration 
came under fire from a well-known Catholic archbishop for not 
cracking down on "jueteng," a form of illegal gambling 
(septel).  On May 3, the Archbishop -- a long-standing 
crusader against jueteng -- testified before the House of 
Representatives' Committee on Public Order and Safety, and 
presented to the committee documents that he said contained 
information on his charges, including material that may 
implicate the president and members of her family. 
Archbishop Cruz testified that the jueteng problem had become 
considerably worse under the Arroyo administration, growing 
into a multi-billion peso industry that involved huge 
payoffs.  Cruz's appearance before Congress brought him face 
to face with Congressman Mikey Arroyo, the president's son. 
In a heated exchange, the younger Arroyo demanded that the 
Archbishop provide evidence to substantiate his charges. 
Archbishop Cruz responded that -- by coming forward -- he 
hoped that the committee would investigate his claims.  He 
did not repeat charges that he has made in public before that 
the First Gentleman as well Mikey Arroyo and GMA's 
brother-in-law, Congressman Ignacio "Iggy" Arroyo, were 
directly involved in jueteng-related corruption.  Archbishop 
Cruz reportedly called Mikey Arroyo "a good man" at the 
committee hearing. 
 
5.  (C)  In a May 4 meeting with poloff, however, Archbishop 
Cruz repeated the claim against the Arroyo trio, asserting 
that he had "multiple sources" that linked the first family 
to jueteng profits.  He also implicated others, including 
high-level officials in the Philippine National Police (PNP) 
hierarchy, General Hermogenes Ebdane (former PNP chief and 
the current Secretary of Public Works), retired police 
official Eduardo Martillano, and Senator Manuel "Lito" Lapid. 
 In addition, Archbishop Cruz provided poloff with two 
documents on jueteng (which he had provided to the House 
committee).  The first document listed provinces with monthly 
jueteng collection amounts and a list of "operators," 
including several provincial governors and local politicians 
(many of these officials were from Pampanga, the home 
province of the president).  The second document outlined the 
Arroyo family's alleged ties to central Luzon politicians and 
others allegedly involved in jueteng, estimates on the 
amounts of money collected, and who gets it.  The Archbishop 
said the information in the documents is based on information 
he collected from his network of clergymen in the region and 
from other sources. 
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Church not taking a stand 
------------------------- 
 
6.  (C) In a May 6 meeting with poloffs, Monsignor Hernando 
Coronel, the General Secretary of the CBCP, denied that the 
three bishops or Archbishop Cruz spoke for the Church as a 
whole.  He said most of the Philippines' 91 active bishops 
supported the president and her policies.  He said the three 
bishops were respected members of the hierarchy, but had 
always been among those who "leaned left" and considered 
themselves "pro-poor."  He said that, in upcoming meetings, 
the CBCP would discuss how to deal with the three bishops' 
statements, although he admitted that the CBCP had no ability 
to discipline its members, apart from advising them more 
closely to hew to CBCP policies, which generally take a 
nuanced approach to politics.  Msgr. Coronel said it was 
possible that Apostolic Nuncio to the Philippines Antonio 
Franco might take the matter of the bishops' statements up 
with the Vatican.  Msgr. Coronel added that the statements by 
the three bishops might be an effort to influence the 
upcoming election for CBCP chief.  (Note:  Incumbent 
president, Archbishop Fernando Capalla, is not running for 
re-election after serving one two-year term, which is 
scheduled to end in June.  end note) 
 
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Comment 
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7. (C) The Church remains a powerful force in this country, 
notably in its opposition to legalizing jueteng as well as to 
population control.  Many observers predict that other senior 
bishops may soon begin to voice public criticisms of the 
President, which they believe will further weaken her 
political standing.  In light of a recent "destabilization" 
effort (ref b), such a trend would be of special concern to 
the devout President and her advisers.  However, the 
opposition remains extremely divided, but a push from the 
Church to oppose Arroyo could change this dynamic.  House 
Speaker Jose De Venecia will convene a meeting of the 
secretaries general of all political parties on May 12, with 
 
SIPDIS 
a hope to organize a larger unity gathering soon.  Soundings 
of the Church's support for GMA -- or lack thereof -- will 
likely be a matter of serious corridor discussion as they 
plot their course over the months ahead. 
 
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Ricciardone