Danding Cojuangco and the coco levy funds

Coco levy is a tax exacted from coconut farmers from 1973 to 1982. Eduardo "Danding" Cojuangco--a close associate of the late dictator Ferdinand Marcos--and some Marcos-time officials bought the United Coconut Planters Bank (UCPB) using coco levy funds. In 1983, the Cojuangco-controlled UCPB acquired shares in San Miguel Corporation (SMC). UCPB was the administrator of a block that has a 27% share in SMC. This block is composed of several companies formed using the coco levy tax. Apart from UCPB's block of shares, Cojuangco also controls another 20% of the shares. The government also claimed these shares, saying it was acquired using coco levy fund. In November 2007, the Sandiganbayan dismissed government's claim to the shares. On December 14, 2001, the Supreme Court ruled that coco levy funds are public funds, and that the sequestered UCPB-administered shares were acquired using these funds. On July 11, 2003, the Sandiganbayan ruled that Cojuangco and company illegally acquired UCPB during the Marcos years using coco levy funds, and thus forfeited all these shares in favor of the government. The court said Cojuangco did not control UCPB, which in turn holds a stake in SMC. Cojuangco's camp questioned the timing of the July 2003 Sandiganbayan ruling-- it was handed down after he had expressed his intention to run for President in the May 2004 elections. On May 7, 2004, the Sandiganbayan awarded the 27% block of shares of UCPB in SMC to the government. Sources: Newsbreak, Inquirer, Business World, op.gov.ph, Philippine Peasant Institute