Republic of the Philippines

COMMISSION ON ELECTIONS
Intramuros, Manila

IN THE MATTER OF DISQUALIFICATION

OF TEODORICO T. HARESCO AND
EUGENIO JOSE V. LACSON AS NOMINEES
OF ANG KASANGGA PARTY-LIST.

SPA 10-007 (DCN)

BAGONG ALYANSANG MAKABAYAN

(BAYAN) SECRETARY GENERAL RENATO
REYES JR., ALLIANCE OF CONCERNED
TEACHERS (ACT) VICE- CHAIR BENJAMIN
G. VALBUENA, MIGRANTE CHAIR GARY
MARTINEZ, CONFEDERATION FOR THE
UNITY, RECOGNITION AND
ADVANCEMENT OF GOVERNMENT
EMPLOYEES (COURAGE) CHAIR
FERDINAND GAITE, ANAKBAYAN CHAIR
KEN LEONARD RAMOS, AND STUDENT
CHRISTIAN MOVEMENT (SCM) CHAIR
MA.CRISTINA GUEVARRA,

Petitioners,
x-------------------------------------------------------------x

MEMORANDUM
PETITIONERS, by counsel, unto the Honorable Commission, most respectfully state
that:

PREFATORY STATEMENT
“In the end, the role of the Comelec is to see to it that only those Filipinos
who are “marginalized and underrepresented” become members of Congress
under the party-list system, Filipino-style.” [Ang Bagong Bayani-OFW Labor
Party v. Ang Bagong Bayani-OFW Labor Party Go! Go! Philippines, G.R. No.
147589, June 26, 2001] [Bayan Muna v. COMELEC, G.R. No. 147613, June
26, 2001]

xxx the nominee of the sectoral party/organization/coalition belongs to the

marginalized and underrepresented sectors, that is, if the nominee represents
the fisherfolk, he or she must be a fisherfolk, or if the nominee represents the
senior citizens, he or she must be a senior citizen.” [Barangay Association for
National Advancement and Transparency (BANAT) v. COMELEC, G.R. No.
179271, April 21, 2009] (Emphasis supplied)
 Page 2

STATEMENT OF THE CASE

(1) On March 31, 2010, this petition for disqualification is filed in accordance with the

Honorable Commission’s Resolution No. 8807 dated March 25, 2010 entitled “Rules on

Disqualification Cases Against Nominees of Party-List Groups/Organizations

Participating in the May 10, 2010 Automated National and Local Elections.”

(2) The grounds for disqualification of any nominee are prescribed under Section 2 of

Resolution No. 8807, thus:

“Section 2. Grounds for Disqualification. – Any nominee (a) who does

not possess all the qualifications of a nominee as provided for by the
Constitution, existing laws or (b) who commits any act declared by law
to be grounds for disqualification may be disqualified from continuing as a
nominee.” (Emphasis supplied)

(3) In filing the petition, petitioners are humbly asking the Honorable Commission to fulfill its

duty in ensuring that only those who are truly marginalized and underrepresented become

members of Congress under the party-list system.

(4) Respondents TEODORICO T. HARESCO and EUGENIO JOSE V. LACSON are the

first and second nominees, respectively, of Ang Kasangga Party-list which claims to

represent the sector of small entrepreneurs.

(5) Petitioners most humbly submit that respondents do not truly belong to the marginalized

and underrepresented sector of small entrepreneurs that respondents claim to represent.

Thus, respondents are not qualified and are ineligible to be nominees in the party-list

system.

STATEMENT OF FACTS
(6) In its official website1, Ang Kasangga itself states that it is “a non-stock, non-profit civic

and service oriented corporation that serves as vehicle for an advocacy to propagate,

develop and promote micro-entrepreneurship as the backbone of the economy.” Ang

1
http://www.kasangga.org.ph/index.php?option=com_content&view=article&id=67&Itemid=28
 Page 3

Kasangga “banners the need to provide proper representation to Filipino micro-

entrepreneurs – individuals generating small income by offering various goods and

services, and consequently taking a step forward towards decreasing the country’s

poverty rate.”

A print out of said web page is attached hereto as Annex “A”.

(7) Ang Kasangga defines its constituents as “micro-entrepreneurs – those whose

enterprises have an individual capital of three million pesos (Php3,000,000.00) and

below.” In the same website, Ang Kasangga describes micro-entrepreneurs as those “with

low productivity, insecure income, poverty, dismal working conditions and a lack of

social protection.”

(8) Ang Kasangga’s website further defines the scope of the micro-entrepreneurs as “small

income generating enterprises that produce and distribute goods and provide

services: jeepney drivers, tricycle drivers, food stall and/or sari-sari store owners,

market vendors, and blind masseurs, among others seen everywhere. Others include

the home workers in the garment industry, families producing shoes and leather

items, small producers of goods like handicraft, furniture, and candies.”2

A print out of said web page is attached hereto as Annex “B”.

(9) Ang Kasangga’s current representative in the House of representatives is MA. LOURDES

ARROYO, sister of First Gentleman Jose Miguel Arroyo. Her being a nominee of Ang

Kasangga has drawn criticisms from various sectors since she does not belong to a

marginalized and underrepresented sector she claims to represent.

(10) Respondent Haresco, Ang Kasangga’s first nominee in May 10, 2010 elections, is a big

businessman and former government appointee. Respondent Lacson, the second nominee,

is a three-term City mayor of San Carlos City, Negros Occidental and a major stockholder

of a big corporation. Neither can be considered micro-entrepreneurs “with low

2
http://www.kasangga.org.ph/index.php?option=com_content&view=article&id=75&Itemid=47
 Page 4

productivity, insecure income, poverty, dismal working conditions and a lack of social

protection.”

(11) Respondent Haresco is a big businessman primarily known for his involvement in the

Bridge Program of President Gloria Macapagal Arroyo. Said program is a sustained

infrastructure and fast-track rural development project spanning over 14 years. Respondent

Haresco has extensive dealings with big foreign firms. In December 2005, British

newspaper The Guardian ran an article3 about a British firm “accused of making

excessive profits in an aid project, by building what their critics call bridges to

nowhere”. The Guardian cited Haresco – of the President’s Bridge Program, as the

Philippine contact of the British firm. A copy of the article is attached hereto as Annex

“C”. The article says:

“In Manila, the company is even better connected politically. Mabey would
not name its agent, to whom it has passed millions of pounds in commission.
However, he is a businessman, Teodorico Haresco, who is close to President
Arroyo.” (Emphasis supplied)

(12) Respondent Haresco’s other business credentials include the following, thus:

(a) Member of the Board Directors of the Philippine National Oil Co. (PNOC);
(b) Vice president P.U.S.A.I. Inc., and Chairman of Winace Security Agency, also
affiliated with Winace Detective and Protective Agency Inc.;
(c) Chairman and CEO of Winace Holdings Philippines, which is involved in the
acquisition, holding, and sale of stocks, bonds, and securities of other companies
for investment purposes;
(d) Winace Holding Philippines serves as the mother company of the following:

(1) Winsource Solutions Inc., a business process outsourcing (BPO) firm;

(2) Technostrat Solutions, “an Anglo-Dutch joint venture company”;
(3) Chaikofi Brewmasters, “a Dutch joint venture company establishing, operating,
managing, and franchising the only Concept Cafe in the Philippines”; and
(4) Winserve Risk Management Consultants Inc., a consultancy based group;

(13) The same credentials can be found in respondent Haresco’s own website 4 itself which lists

his many business interests, many of which cannot be considered micro-enterprises. A

print out of Haresco’s official website is attached hereto as Annex “D” and “E”.

3
http://www.guardian.co.uk/politics/2005/dec/20/uk.freedomofinformation
4
http://www.haresco.com
 Page 5

(14) Respondent Haresco is clearly not in the same league as the balut vendors and other small

entrepreneurs whom Ang Kasangga claims to represent, especially if said respondent has

multi-million dollar partnerships with foreign firms. As Chairman and CEO of Winace

Holdings5, respondent Haresco has control of several big companies and thus cannot in any

way fit the description of a “micro-entrepreneur”.

(15) In its official website6, WinSource Solutions Inc. says it “is a premiere Business Process

Outsourcing (BPO) company providing innovative business solutions. WinSource is

owned by WinAce Holdings, a wholly Philippine-owned diversified multinational

conglomerate. Our 20 years of collective management service in contact center

services, BPO, and BOT assure our clients of services, performance, and quality that

exceed expectations.” The print out of the WinSource webpage is attached hereto as

Annex “F”.

(16) WinSource Solutions website7 also shows it can apparently employ up to 1,000 call center

agents at “above industry rates” with a signing bonus of P20,000 for top qualifiers,

along with other perks. Such hiring capacity and compensation for employees is not typical

of micro-entreprises. Print out of the hiring page of WinSource Solutions is attached hereto

as Annex “G”.

(17) No less than the website of the Office of the President, in a post 8 dated October 24, 2005,

describes respondent Haresco’s WinSource Solution as “the newest entrant to the

country’s call center industry, is part of the Mabey Group of Companies”. The British

Mabey Group of Companies is the same company being investigated in the controversial

Bridges Program which also involved respondent Haresco. A print out of the Office of the

President’s website is attached hereto as Annex “H”.

5
http://www.haresco.com/index.html
6
http://www.winsourcesolutions.com/index.php/page/who_we_are
7
http://www.winsourcesolutions.com/index.php/page/career
8
http://www.op.gov.ph/index.php?option=com_content&task=view&id=6111
 Page 6

(18) The mother company Winace Holdings Philippines, Inc. (WINACE) 9 of which respondent

Haresco is Chairman, describes itself as a diversified multinational conglomerate, and is

actively involved in the acquisition, holding, and sale of stocks, bonds, and securities

of other companies for investment purposes. Again, such activities are not typical of

micro-enterprises that are “small income generating enterprises that produce and

distribute goods and provide services”. A diversified multinational conglomerate is

nowhere near the description of a micro-enterprise. Attached hereto is a printout of the

homepage of Winace Holdings as Annex “I”.

(19) In its website, Winace Holdings claims 10 it has an “authorized capital stock of one hundred

million pesos (Php 100,000,000.00). Its business ventures include real estate development,

eco-tourism, business process outsourcing, food and beverage, trading and security and risk

management. Again, this is a far-cry from the supposed P3,000,000.00 individual

capitalization that Ang Kasangga says is typical of micro-enterprises. Attached is a printout

of said webpage as Annexes “J”, “K” and “L”.

(20) Respondent Lacson, on the other hand, is a three-time Mayor of San Carlos City, Negros

Occidental and a member of the Nationalist People’s Coalition (NPC) – United Negros

Alliance (UNA), a local chapter of NPC and Lakas-Kampi in Negros Occidental.

Respondent Lacson is part of the ruling coalition and dominant majority party.

(21) Respondent Lacson clearly has all the means to get elected into public office, being as

three-time mayor of a city. Thus, respondent Lacson also has all the means to run for a seat

in his congressional district but said respondent is arbitrarily using the party-list system of

representation to get himself elected to Congress.

(22) Respondent Lacson was being considered as a vice gubernatorial candidate in Negros

Occidental for the May 10, 2010 elections before deciding to run as a nominee under the

party-list system of representation.

9
http://www.winace.com.ph/
10
http://www.winace.biz/index.php?option=com_content&view=article&id=58:about-
us&catid=35:about&Itemid=41
 Page 7

(23) Moreover, Respondent Lacson is ranked 79 of the top 100 stockholders of the Fidelity

Stock Transfers, Inc. and ATR Kim Eng Financial Corp according to a March 31, 2007

stockholders report11 from the Philippine Stock Exchange. Others on the Top 100 list are

several members of the Ortigas, Rufino and Villonco families, all of whom could not be

considered micro- entrepreneurs. Attached hereto is a PDF file of the March 2007

stockholders report as Annex “M”.

(24) If we were to examine the rest of the nominees of Ang Kasangga, they will likewise not pass

the qualifications set forth laid down in Ang Bagong Bayani v. COMELEC, supra, and

Barangay Association for National Advancement and Transparency (BANAT) v.

COMELEC, (G.R. No. 179271, April 21, 2009). Its third nominee is Anna Maria Nava, the

wife of current Guimaras Governor Felipe Nava. Its fourth nominee is Enrique V. Martin, a

Board Member of the Capiz provincial government. Its fifth nominee Segundo M. Gaston is the

Senior Vice President for support and subsidiaries of the Philippine National Construction

Corp. (PNCC). All three certainly belong to positions of influence and power.

STATEMENT OF THE ISSUES

(25) Whether or not Respondents Haresco and Lacson truly belong to the marginalized and

underrepresented sector of micro-entrepreneurs that they claim to represent under the

party-list system of representation.

ARGUMENTS

(26) The following matters are settled with respect to the qualifications of nominees of a party-list

under the party-list system of representation, thus:

“xxx it is not enough for the candidate to claim representation of the

marginalized and underrepresented, because representation is easy to
claim and to feign.  The party-list organization or party must factually and
truly represent the marginalized and underrepresented constituencies
mentioned in Section 5. Concurrently, the persons nominated by the party-

11
http://www.pse.com.ph/html/ListedCompanies/pdf/2007/ATRK_Top100_Mar2007.pdf
 Page 8

list candidate-organization must be “Filipino citizens belonging to

marginalized and underrepresented sectors, organizations and parties.

xxx xxx xxx

In the end, the role of the Comelec is to see to it that only those
Filipinos who are “marginalized and underrepresented” become
members of Congress under the party-list system, Filipino-style.”
(Ang Bagong Bayani, supra) (Emphasis supplied)

(27) This doctrine has been further clarified in the landmark case of BANAT v. COMELEC, supra,

thus:

“xxx the nominee of the sectoral party/organization/coalition belongs to the

marginalized and underrepresented sectors, that is, if the nominee represents
the fisherfolk, he or she must be a fisherfolk, or if the nominee represents the
senior citizens, he or she must be a senior citizen.” (BANAT, supra) (Emphasis
supplied)

(28) Verily, by virtue of such clear and categorical pronouncements of the Honorable Supreme

Court, a nominee must not only be a member of the party-list, a nominee must also belong

to the sector of marginalized and the underrepresented sector. This is the spirit and wisdom

of the party-list system as it has been introduced in this jurisdiction as a social justice

vehicle by which the marginalized and the underrepresented will have representation in

Congress. This is rightfully reflected in the declaration of policy of The Party-List System

Act, thus:

“The State shall promote proportional representation in the election of

representatives to the House of Representatives through a party-list system
of registered national, regional and sectoral parties or organizations or
coalitions thereof, which will enable Filipino citizens belonging to
marginalized and underrepresented sectors, organizations and parties,
and who lack well-defined political constituencies but who could
contribute to the formulation and enactment of appropriate legislation
that will benefit the nation as a whole, to become members of the House
of Representatives.  Towards this end, the State shall develop and guarantee
a full, free and open party system in order to attain the broadest possible
representation of party, sectoral or group interests in the House of
Representatives by enhancing their chances to compete for and win seats in
the legislature, and shall provide the simplest scheme possible.” (Emphasis
supplied)

(29) There is no doubt that the intent of the party-list system of representation is for the

marginalized and underrepresented to become lawmakers themselves, thus:

 Page 9

“The Marginalized and Underrepresented to Become Lawmakers

Themselves

The foregoing provision mandates a state policy of promoting

proportional representation by means of the Filipino-style party-list
system, which will “enable” the election to the House of Representatives
of Filipino citizens,

1. who belong to marginalized and underrepresented sectors,

organizations and parties; and

2. who lack well-defined constituencies; but

3. who could contribute to the formulation and enactment of appropriate

legislation that will benefit the nation as a whole.

xxx xxx xxx

In the end, the role of the Comelec is to see to it that only those Filipinos
who are “marginalized and underrepresented” become members of
Congress under the party-list system, Filipino-style.

The intent of the Constitution is clear: to give genuine power to the

people, not only by giving more law to those who have less in life, but
more so by enabling them to become veritable lawmakers themselves.
Consistent with this intent, the policy of the implementing law, we repeat, is
likewise clear: "to enable Filipino citizens belonging to marginalized and
underrepresented sectors, organizations and parties, x x x, to become
members of the House of Representatives." Where the language of the law is
clear, it must be applied according to its express terms.

xxx xxx xxx We stress that the party-list system seeks to enable certain
Filipino citizens – specifically those belonging to marginalized and
underrepresented sectors, organizations and parties – to be elected to the
House of Representatives. The assertion of the OSG that the party-list
system is not exclusive to the marginalized and underrepresented
disregards the clear statutory policy. Its claim that even the super-rich
and overrepresented can participate desecrates the spirit of the party-list
system.

xxx xxx xxx

Indeed, the law crafted to address the peculiar disadvantages of Payatas

hovel dwellers cannot be appropriated by the mansion owners of Forbes
Park. The interests of these two sectors are manifestly disparate; hence,
the OSG's position to treat them similarly defies reason and common sense.

xxx xxx xxx

While the business moguls and the mega-rich are, numerically speaking,
a tiny minority, they are neither marginalized nor underrepresented, for
the stark reality is that their economic clout engenders political power
more awesome than their numerical limitation. Traditionally, political
power does not necessarily emanate from the size of one's constituency;
indeed, it is likely to arise more directly from the number and amount of one's
bank accounts.

It is ironic, therefore, that the marginalized and underrepresented in our

midst are the majority who wallow in poverty, destitution and infirmity.
 Page 10

It was for them that the party-list system was enacted -- to give them not
only genuine hope, but genuine power; to give them the opportunity to be
elected and to represent the specific concerns of their constituencies; and
simply to give them a direct voice in Congress and in the larger affairs of
the State. In its noblest sense, the party-list system truly empowers the
masses and ushers a new hope for genuine change. Verily, it invites those
marginalized and underrepresented in the past – the farm hands, the fisher
folk, the urban poor, even those in the underground movement – to come out
and participate, as indeed many of them came out and participated during the
last elections. The State cannot now disappoint and frustrate them by
disabling and desecrating this social justice vehicle.

Because the marginalized and underrepresented had not been able to win in
the congressional district elections normally dominated by traditional
politicians and vested groups, 20 percent of the seats in the House of
Representatives were set aside for the party-list system. In arguing that even
those sectors who normally controlled 80 percent of the seats in the
House could participate in the party-list elections for the remaining 20
percent, the OSG and the Comelec disregard the fundamental difference
between the congressional district elections and the party-list elections.

As earlier noted, the purpose of the party-list provision was to open up the
system, in order to enhance the chance of sectoral groups and organizations to
gain representation in the House of Representatives through the simplest
scheme possible. Logic shows that the system has been opened to those
who have never gotten a foothold within it -- those who cannot otherwise
win in regular elections and who therefore need the "simplest scheme
possible" to do so. Conversely, it would be illogical to open the system to
those who have long been within it -- those privileged sectors that have
long dominated the congressional district elections.

xxx xxx xxx

Verily, allowing the non-marginalized and overrepresented to vie for the

remaining seats under the party-list system would not only dilute, but
also prejudice the chance of the marginalized and underrepresented,
contrary to the intention of the law to enhance it. The party-list system is
a tool for the benefit of the underprivileged; the law could not have given
the same tool to others, to the prejudice of the intended beneficiaries.

This Court, therefore, cannot allow the party-list system to be sullied and
prostituted by those who are neither marginalized nor underrepresented.
It cannot let that flicker of hope be snuffed out. The clear state policy must
permeate every discussion of the qualification of political parties and other
organizations under the party-list system.” (Ang Bagong Bayani, supra)
(Emphasis supplied)

(30) Respondents’ arguments that they should be considered micro-entrepreneurs despite having

big business interests “allows the party-list system to be sullied and prostituted by those

who are neither marginalized nor underrepresented.”

(31) If the Honorable Commission would subscribe to that of respondents’ arguments that big

businessmen can be micro-entrepreneurs at the same time, then there is nothing to prevent
 Page 11

the likes of Henry Sy and Lucio Tan from representing micro-entrepreneurs as well – all

they have to do is establish a small business using a small capital.

That shall certainly render the party-list system meaningless, and it shall defeat the noble

purpose or purposes of the party-list system of representation – that is, it is created only

for the marginalized and underrepresented and for them to become lawmakers

themselves.

(32) Does mere involvement in a micro-enterprise, even by multi-millionaires, translate to the

belonging in that sector of small entrepreneurs? Surely, even for the sake of argument, a

multi-millionaire operating a small business does not face the same problems or limitations

that are encountered by those truly belonging to that sector.

(33) Indeed, respondents certainly possess economic and political clout, as both have large

business interests as well as connections with the ruling administration of President Gloria

Macapagal Arroyo. One is a government appointee, while the other is an elected local

official allied with the administration.

(34) It is precisely the foregoing circumstances which bar respondents from participating in the

party-list system which is reserved only for the marginalized and underrepresented – those

Filipinos who have neither economic nor political clout. As eloquently stated in Ang

Bagong Bayani, “While the business moguls and the mega-rich are, numerically

speaking, a tiny minority, they are neither marginalized nor underrepresented, for

the stark reality is that their economic clout engenders political power more awesome

than their numerical limitation”.

(35) The sources cited by petitioners in the petition and in this Memorandum are from the

websites of the respondents themselves, from Ang Kasangga party-list itself and from other

public domains. Respondents should not take refuge from the strict rules of evidence. The

Honorable Commission must note that respondents do not deny that they are big
 Page 12

businessmen, and respondents simply allege and take refuge from the strict rules of

evidence.

(36) The issue of qualifications of nominees under the party-list system of representation is a

matter of paramount importance. It is imbued of public interest. Thus, substantial justice

must take precedence over the rules of procedure.

(37) Besides, the Honorable Commission can verify for itself the petitioners’ allegations by

merely visiting the official websites of the respondents. The information contained therein

is public and can be easily accessed and verified. The Honorable Commission cannot

simply ignore the existence of such information vital to the determination of the

qualifications of respondents as nominees under the party-list system of representation.

(38) By having accepted the nomination of Ang Kasangga party-list, respondents have the

intention to gain seats in Congress through a system that is reserved only for the

marginalized and underrepresented. The routine abuse of the party-list system cannot

continue.

(39) Allowing the nominations of respondents will undermine and damage the party-list system

of representation almost beyond repair. It is bad enough that the party-list system was

already used and abused before by a member of the Arroyo family to get a seat in Congress

despite not being part of the marginalized and underrepresented.

(40) And to allow this abuse of the party-list system to continue unchecked is another tragedy in

this noble social justice vehicle. If the Honorable Commission would allow respondents to

continue as nominees of Ang Kasangga party-list, time will come when billionaires

claiming to represent sari-sari store owners can buy their way into Congress by becoming

party-list nominees.

The tedious process of cleaning up the party-list system must begin now.
 Page 13

RELIEF

WHEREFORE, premises considered, it is most respectfully prayed of the Honorable

Commission that respondents TEODORICO T. HARESCO and EUGENIO JOSE V. LACSON

be disqualified from being the first and second nominees, respectively, of ANG KASANGGA

party-list.

Other reliefs as are just and equitable are likewise prayed for.

RESPECTFULLY SUBMITTED. Quezon City for Manila, 21 April 2010.

3/F Erythrina Building

No. 1 Matatag cor. Maaralin Sts., Central District, Quezon City
Tel. No. (632) 920 6660, Telefax No. (632) 927 2812

JULIUS GARCIA MATIBAG

Roll of Attorneys No. 55254
IBP No. 822604, 03-30-10, Oriental Mindoro
PTR No.3258843, 03-17-30, Oriental Mindoro
MCLE units already earned
MCLE Compliance Number yet to be issued

Copy furnished: Through Registered Mail

Clerk of the Commission

Commission on Elections
Palacio del Gobernador
Intramuros, Manila

ATTY. NORMAN GERARDO O. TAYAG

Counsel for Respondents
Doña Enriqueta Bldg., No. 46-A Kamias Road, Quezon City

EXPLANATION OF SERVICE AND FILING THROUGH REGISTERED MAIL

The service and filing of copies of the foregoing Memorandum have been made through
registered mail due to distance and lack of personnel to personally serve and file the same. This
explanation is made pursuant to Section 11, Rule 13 of the Rules of Court.

JULIUS GARCIA MATIBAG