The corporate landscape in the Philippines is heavily influenced by a small number of powerful families, particularly at the highest levels of wealth and influence. Many of the country’s billionaires come from either political backgrounds or long-established dynasties that have played a major role in shaping both the economic and political spheres. For instance, the Forbes list of Philippine billionaires includes Manuel Villar, who, besides being a successful businessman, has also served as a senator and remains closely tied to the country’s political scene. The Ayala family, another prominent name, owns some of the oldest and largest conglomerates in the Philippines. Other notable figures include Iñigo Zobel and Ramon Ang, who are associated with San Miguel Corporation, the largest corporation in the Philippines by revenue. These billionaires are deeply intertwined with the nation’s top politics and economics. However, among these wealthy elites, there are some who have controversial backgrounds, with power that has kept them out of legal trouble.
One of the most controversial figures in this landscape is former President Ferdinand Marcos. His legacy is a mix of admiration and criticism, but what remains indisputable is his list of cronies—individuals who became wealthy under his regime. Among the most prominent of these figures were leaders of Philippine Airlines and San Miguel Corporation (SMC).
San Miguel Corporation, the Philippines’ most prominent business, has a complex and often dark history. Before Eduardo Cojuangco took control, the company was led by Andrés Soriano Jr., but Eduardo’s takeover was anything but smooth. In 1985, Corazon Aquino, who later became president, called for a boycott of San Miguel products because Eduardo had used his assets to support Marcos in the election, just before the People Power Revolution of 1986.
When the revolution succeeded, Eduardo fled the country, leaving a leadership vacuum at San Miguel. The new government, under President Aquino, sought to reclaim assets linked to Marcos and his cronies, including Eduardo’s shares in San Miguel. They argued that Eduardo had used funds from the controversial coconut levy, a tax imposed on coconut farmers during the Marcos era, to buy his stake in the company. This legal battle dragged on for years, despite the fact that Eduardo and Corazon were first cousins. Eventually, Eduardo won, returning as Chairman and CEO of SMC in 1998 after Andrés Soriano III resigned.
Eduardo remained at the helm of San Miguel until his death in 2020. He was one of the largest shareholders in Top Frontier Investment Holdings, which owns over 44 percent of San Miguel Corporation. The controversy around his ownership stemmed from the allegation that he used the coconut levy funds to acquire SMC. However, in 2021, the Philippine Supreme Court cleared Eduardo of six civil cases alleging ill-gotten wealth. These cases, filed on July 31, 1987, involved claims that he had created companies using funds from the coconut levy and engaged in corrupt business practices. Despite delays and criticisms from the court about the slow handling of these cases, Eduardo was ultimately exonerated.
This story highlights why San Miguel Corporation, and Eduardo Cojuangco, remain some of the most controversial names in the Philippine business world. At the time of his death, Eduardo was worth over $1.1 billion, making him the 16th richest person in the Philippines. Over the years, he had sold portions of his shares to allies, including a 15 percent stake in San Miguel in 2012 for over 37 billion pesos to Ramon S. Ang and his associates.
Another key figure is Lucio Tan, who leads Philippine Airlines. Tan, like Eduardo, was also a crony of Marcos. He quietly acquired a 27 percent stake in the airline when the government privatized it, and over the years, he became the face of the company, serving as Chairman and CEO. Tan has faced numerous legal battles, but like Eduardo, he has been cleared of charges. In a 2012 ruling, the Supreme Court dismissed a case filed by the Presidential Commission on Good Governance (PCGG) against the estate of Ferdinand Marcos and his alleged cronies, including Tan. The court found no evidence that Tan received special favors from Marcos or that his business ventures benefited from such favors.
Despite the court’s rulings, many Filipinos still believe that figures like Lucio Tan and Eduardo Cojuangco received special treatment during the Marcos era, leading to widespread skepticism about the fairness of the Philippine justice system, particularly in cases involving powerful individuals. The cases of Tan and Cojuangco illustrate how those with strong political or economic connections often avoid accountability, eroding trust in the judiciary.
These stories are not unique to Tan and Eduardo but are part of a broader pattern in the Philippines, where wealth and political power are closely linked. Successive presidents, including Rodrigo Duterte, have been accused of fostering their own cronies. Unfortunately, this intertwining of politics and wealth appears to be a persistent feature of the Philippine economy.
As for the current President Bongbong Marcos, son of Ferdinand Marcos, it remains to be seen whether he will address these issues or continue the status quo. Given his family history, many doubt that he will bring significant changes.