A ghost from the past – the Stonehill scandal

A month after the Janet Lim Napoles’ pork barrel scandal broke out, Stonehill’s name began to resurface. People started to recall the events that led to Stonehill’s deportation. We recalled this case and compared it to the present scandal of all seasons – the release of P428.5 million Priority Development Assistance Fund (PDAF) to bogus NGOs under President Aquino’s administration.

A quick review of history will tell us that Stonehill’s case which happened under the presidency of Diosdado Macapagal brought turbulence and embarassment to his presidency. The investigation of the case showed that Macapagal had some involvement with Stonehill. Now, doesn’t this sound familiar? Our President today and his men are also being accused of major corruption issues. This is why the public’s cry for justice is so strong many wanted him impeached!

PNoy and his chamber of men have been accused of having strong connections with Napoles. In other words, they allegedly benefitted from the PDAF thru the Napoles’ magic.  Right now the case seems to be dragging. I guess it’s a tactic to delay the case until they can find a good solution to save and protect this administration. There is actually a big dilemma once proven that his administration more importantly his ‘friends’ are heavily involved in this mess.

A few weeks ago a ‘Napoles list’ was said to be circulating around town. Everyone got a fancy over it but as the days passed more officials claimed to have their own ‘list’. It was quite obvious that those holding the list did not have their names nor their allies in the list – surmise to say, they made it up. Doubts on the credibility of Napoles pervaded the air as she continues to give contradicting versions of her purported affidavit where she identified 14 senators in one list but removed three in another. Susmariosep! Anyway, I hope indictments will happen soon for those who have been charged with graft and plunder in connection with this pork barrel scam.

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Macapagal was a very popular, articulate, and charismatic president. No one would have thought of his involvement in the Stonehill mess. One of his platforms of government was to fight graft and corruption. He promised to eliminate officials who stole money from government. He promised his own version of “matuwid na daan.”

By the way, Harry Stonehill was an ex-GI from World War II who stayed in the Philippines and became a very successful American businessman. In less than two decades of his stay in the Philippines, he was able to build a business empire reputedly valued at around $50 million US dollars. The 18 corporations he started in the country were pioneering and high earning business ventures: tobacco, glass manufacture, cement production and publishing. My father, the late Maximo V. Soliven wrote a four-part series on the tobacco industry for Kislap (changed later to Graphic) that laid bare the travails of an industry that had become the main economic pursuit of his native Ilocos region, but which was being strangulated by onerous bureaucratic and political problems, including widespread corruption. The series caught the attention of no less than Harry Stonehill, who was then the head of the US Tobacco Corporation, the biggest in the industry. So, Stonehill thru Lou Farb, associate publisher of the Evening News and Stonehill’s publicist offered my dad a job – a daily newspaper column called, “A Word Edgewise.”

Stonehill must have realized that my dad was a gutsy and then an established journalist who was at the same time very wired into the tobacco business. He wanted to keep him near because he knew he could be more dangerous if he was not working for a Stonehill corporation. My dad’s stint with Evening News was brief but colourful. He resigned before the Stonehill scandal broke out.

When Stonehill’s business turned sour in 1960, he became the subject of a congressional investigation led by then Justice Secretary Jose W. Diokno on alleged tax evasion charges. Reports say that the 200 agents of the National Bureau of Investigation seized 35 truckloads of documents in raids conducted on 27 offices and corporation in Manila controlled by Stonehill.

During the raid a Blue Book belonging to Stonehill was found. It contained a list of top government officials whom he had bribed. The list reportedly included President Macapagal, his predecessor President Garcia, and a lot from the ruling Liberal Party and the opposition members from the Nacionalista Party. The blue book showed that Stonehill operated a “network of corruption” that has penetrated all levels of government. Just like Napoles’ case.

President Macapagal saw what was forthcoming. If Stonehill was forced to testify on the scandal he would be implicated and it would result to his impeachment. So, faster than the speed of lightning, Macapagal had Stonehill deported on charges of tax evasion, economic sabotage, blackmail and corruption of public officials. He also fired Secretary Diokno. The Stonehill Scandal shattered Macapagal’s administration and up to this day, it has become a ghost of yesterday’s past.

PNoy’s administration is supposedly refomist in nature. But his decisions and programs give us a hint that his is a government of slimy worms working underground. When Napoles’ name thundered throughout media, PNoy was forced to make his move. He showed us how determined he is in fighting this corruption case. But from the start, his links to the person was already quite obvious. Today, I’m sure they still do not know how to solve the case to free themselves from the problem. They should remember that it is very difficult to hide the truth that lies within us.

The Napoles list that everyone has been so obsessed about lately is a hoax. Napoles has opened a pandora’s box of suspicion and recrimination. All the congressmen and senators including members of the Cabinet are worried sick about the revelations of their corrupt involvement. As the days continue to drag the case, the names in the list will soon evaporate into thin air. But even if they begin to sanitize the “list,” the public have already made their own judgement and conclusion.

The Stonehill scandal crippled Macapagal for the rest of his term. It is not far from happening again today if PNoy doesn’t make a heroic step or deed. Unfortunately, he is no different from the other presidents. He is not the knight on the white horse that I hope he would be. He has actually become a very lame president. I feel sorry for him. Let’s see how he will get his act together. Abangan!