Scandals During The Cory Administration

One of the biggest urban legends of recent times in the Philippines, is the story that the Cory Administration was supposedly the “cleanest” among the Administrations in the last three decades. Thanks to Nostalgia, and the fact that her Administration was at the dawn of the internet age, much of the negativities of that Administration has been largely forgotten, and people tend to remember only the “good” things about that Administration.

Well, thanks to Noynoy Aquino’s “holier-than-thou” campaign strategy, much of the “unpleasantries” during Cory’s time are being brought back to the surface slowly, but surely. Here are some that I have managed to dig out:

‘Philippine Air Lines Stocks to Nephews’
Cory approved in January 1992 the sale of 67% of the stocks of the Philippine Air Lines (PAL) to an investment group headed by her relatives, composed of one of her Tanjuatco nephews and three of her Cojuangco nephews. The sale resulted in a loss of USD 300-million plus for the Filipino people. The Philippine government, through the Government Service Insurance System (GSIS), owned the shares. And worse, her nephews did not even have the money to pay for the airline stocks. They borrowed the money that they used to pay the GSIS from three Philippine government-owned banks, even using the PAL stocks as collateral.

‘Philippine Air Lines Building Scandal’
“The PAL Scandal,” where Cory authorized in 1992 the sale of the PAL Building in San Francisco, California. It resulted, according to the column of the late journalist Louie Beltran, into a USD 6-million loss to the national airline. Cory did not charge Mr. Beltran with libel on this issue about the PAL Building. She, however, did file a libel case against Mr. Beltran and his publisher, Maximo V. Soliven on a separate issue, when Beltran wrote that Mrs. Aquino “hid under her bed during a coup d’etat attempt at the presidential palace in Manila.”

‘Bargain Sale of Companies to Lopa’
The assets of the Marcoses, the Romualdezes and their cronies were supposed to have been sequestered by the new Aquino administration, but Kokoy Romualdez’s (Ferdinand Marcos Sr.’s brother in law) 38 companies, which were worth billions of pesos, were not turned over to the Presidential Commission on Good Government. Cory instead during her first months in office, permitted the transfer of these 38 companies to her own brother-in-law, Ricardo “Baby” Lopa. What’s worst, was the fact that all 38 companies were bought back by Lopa during the transfer for the price of only USD 227,000.

‘Philippine Long Distance Company to Nephews’
The same case happened with the ownership of the Philippine Long Distance Company. Instead of sequestering the company for the Philippine government (as it was then controlled by the Marcos cronies), she returned the billion-dollar company to her Cojuangco nephews. She claimed that her nephews were illegally eased out by Mr. Marcos. The truth was that the Marcos cronies, whether their money were ill-gotten or not, paid the Cojuangcos the prevailing market-stock prices during the sale of equity that happened between them at the time when Marcos was still president.

‘Re-negotiation of Marcos’ Japanese Loans’
Cory approved the re-negotiation of the loans that Ferdinand Marcos Jr. obtained from Japan. The administration of Mrs. Aquino agreed that the loans would be paid in Japanese yen, rather than in U.S. currency that former Marcos negotiated. This simple change in currency resulted in a USD 5-billion increase in the loan principal.

‘Refusal to Give Hacienda Luisita to Farmers’
Cory publicly promised in 1986 that Hacienda Luisita will be distributed to the farmers. However, in 1987, she issued Presidential Proclamation 131 and Executive Order No. 229 just days before her legislative powers were going to revert back to Congress, to include a provision in the Land Reform program for a “Stock Distribution Option”, which allows landowners to comply with the Land Reform Law without actually giving land to the farmers. Hacienda Luisita of course took this new option, and thus was not redistributed to the farmers.

‘Double Cross of Doy Laurel’
Cory had promised to Doy Laurel that she would let him run the government as Prime Minister after Marcos was ousted, as Cory had no experience in politics. However, in March 1986 she issued Presidential Proclamation No. 3 declaring a revolutionary government, and dissolving the 1973 Constitution. This nullified Laurel’s position as Prime Minister as the Parliament was abolished. This prompted Laurel to break ties with the Aquino regime later.

‘Protecting Hacienda Luisita’s Interests’
Cory continued to protect Hacienda Luisita, even firing Miriam Defensor Santiago from her post at the Department of Agrarian Reform after she told the press her opinion that Cory should inhibit herself as chair of the Presidential Agrarian Reform Council (PARC), which was tasked to make the final decision on Hacienda Luisita’s application for the “Stock Distribution Option” (see section on ‘Refusal to Give Hacienda Luisita to Farmers’ above).

‘Garchitorena Land Scam’
In 1988, a foreclosed property of the United Coconut Planters Bank (UCPB) was sold to Sharp International Marketing for P3.8 million. Before the sale was closed, Sharp tried to sell the same property to the government for P56 million. The sale was eventually approved by the Department of Agrarian Reform (DAR), but only after the price was inflated further to P65 million. The financier of the scam was Romeo Santos, an associate of Cory’s brother, Peping Cojuangco. He was also Cory’s campaign manager in Bicol.


– “Not Getting Mad at, But Getting Even With, Tita Cory” by Bobby Reyes,

– “The Philippines Cory, Coups and Corruption” by John Greenwald, Jay Branegan and Nelly Sindayen,,9171,969186,00.html

– “Hacienda Luisita’s past haunts Noynoy’s future” by Stephanie Dychiu,

– “Cory’s land reform legacy to test Noynoy’s political will” by Stephanie Dychiu,

– “The Garchitorena land scam” by Stephanie Dychiu,


29 thoughts on “Scandals During The Cory Administration

  1. President Noy has done not much still for this nation. He ascended straight into a higher position primarily because people all over him are just using him for political motives. Noynoy isn’t an economist so please prevent passing the buck to the former govt of President Arroyo in connection with the economic troubles of the Philippines.

  2. All (as in ALL) politicians are dirty/corrupt. So stop these nonsense and go on with your lives. Just stop believing in the govt. You people will eventually blame them anyway. May nagawa ka ba (or kayo na bumabatikos sa lahat na yata ng klaseng administration na dumaan) to contribute to the well being of your countrymen? Ako wala, kaya tahimik lang ako.

  3. @draco1965, why so defensive, then? You sound so “hurt” by the article about the scandals during Cory’s time.

    I disagree about shutting up, and not talking about these irregularities …

  4. Yup, CORY AQUINO is a flawed person in more ways than one. This blog recounts only the most visible scandals that hounded her administration. The propagation of the myth of her saintliness and virtuous life has been going on since 1986, and is now being cultivated to the hilt by his son.

  5. My family were one of those people who supported Cory. We were full of hope. My family had experienced the horror of Martial Law too. We thought that everything would change for the better…and we were wrong. Oligarchy was further strengthened during her regime. She was as greedy as Marcos. What was not included in that article were: Mendiola Massacre, power outages, removal of the rice sufficiency program of her predecessor (masagana 99). I agree that at that time, we needed a popular leader to oppose Marcos but popularity alone should not be the only gauge in choosing a leader, competency must come into fore too. Competency and integrity should inherent a leader’s character- these are traits of a good leader. Integrity is useless if one has no wisdom; incompetency without integrity makes a man very dangerous. One lesson I learned from supporting Cory Aquino is this: popularity alone doesn’t make one person a good leader.

  6. evidently, the professed housewife who didn’t know much about politics and governance was shrewd in the ways of the world. getting the major Lopez broadcast network indebted to her, giving the pldt and “no lose” business interests to kamaganaks, was Ensured Benefit and Profit… her own and her family’s. forget the Philippines and the Filipinos. actually, what did we, the Filipinos, gain from the Cory governance… other than the fantasy-woven title– “icon of democracy”– sitting in malacanang?

  7. Bakit di kasama sa list yun “closed-door meetings nya w/ 1 of her male cabinet secretary that lasted for hours? Ano kaya topic ng meeting ng 2 tao sa loob ng isang kwarto na tumatagal ng ilang oras? Hmmmm…..!

  8. Pingback: UNTOLD STORY: Scandals During The Corazon Aquino Administration | Know-Information

  9. masyado kayong nagpapaniwala sa mga bagay bagay , mag research muna kayo mabuti at ang mga sumusunod ay nabibilang sa mga “urban legends” kaya hindi umuusad ang bansa natin dahil isang website na di naman ganon kakilala ang nag release naniniwala na agad tayo, research research din pag me time, and hindi ako Noytard, btw.

  10. How to Rob the People anew of the “ill-gotten” wealth of Marcos & associates? Use the Presidential Commission on Good Government (PCGG) recoveries supposedly intended for CARP to benefit their own cronies, of course!

    Twenty-eight years since its creation, Bautista cited the PCGG has so far recovered around P167 billion total worth of ill-gotten wealth, the bulk of which came from the Marcos assets here and abroad. Of this total recovered ill-gotten wealth, Bautista takes pride in the fact that P72 billion were recovered and delivered in the last three and a half years of the Noynoy administration.

    The 13th chairman since the creation of the PCGG, Bautista conceded much of the ill-gotten wealth criminal cases though remain pending for the past 28 years. Bautista laments that of those charged in 200 pending criminal cases on ill-gotten wealth filed before the Sandiganbayan, no one has yet been convicted.

    Cory Aquino’s legacy includes the centerpiece of her administration, namely CARP, which everyone acknowledges to be a sham and a massive failure. Cory Aquino’s other legacies are leaving the country with a power shortage, which continues to hound us to this day, and the reintroduction of the notorious pork barrel scheme, which had been abolished under Marcos. In other words, Cory Aquino’s legacy is one of incompetence, failure and corruption.

    Apparently, PNoy wants to continue that legacy!

  11. Pingback: Scandals During The Cory (Philippine’s Corazon Aquino) Administration – News-Recap

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