Cocolife proposes compromise deal in coco levy fund case

United Coconut Planters Life Assurance Corporation (Cocolife) is urging the Sandiganbayan to withhold an execution order regarding the distribution of the coconut levy funds until negotiations over the matter with the government is finished.

Cocolife asked the Second Division to calendar a case conference with the Presidential Commission on Good Government (PCGG) and other parties involved so they can come up with an “amicable solution” in the civil case that involves the coconut levy fund.

The fund is estimated at around P74 billion.

“The goal of the instant motion is to arrive at a compromise agreement, which when permitted, will facilitate the execution of the judgment while recognizing Cocolife’s property interests and its right to due process,” the company said.

On August 7, the Sandiganbayan ruled that the government owns assets representing shares of stock in San Miguel Corporation that were acquired using part of the coco levy fund collected from coconut farmers during the term of the late dictator Ferdinand Marcos.

The Sandiganbayan then ordered all income earned by the 20 Coconut Industry Investment Fund companies and the more than 753 million preferred shares in SMC be used to benefit the coconut industry.

Cocolife said it first wants to negotiate with the PCGG before the Sandiganbayan issues a writ of partial execution on the Supreme Court’s 2014 decision that affirmed the government’s ownership of the SMC shares.

Cocolife said a negotiated settlement would be a good opportunity to avoid "the complexities of litigation and, in all likelihood, could pave the way for the swift execution of the partial summary judgment.”

“It is thus clear that finality of judgment does not preclude a compromise agreement in the same case and for which reason this honorable court is implored to call the parties, specifically movant Cocolife and the PCGG, to a conference before the court to explore this option,” it said.

Cocolife is willing to put on hold its appeal covering the August 7 resolution for the case conference to push through.

The CIIF companies were the first to appeal the decision of the Sandiganbayan. It sought the court’s approval to use a portion of the coco levy fund to pay off debts before allotting them to coconut farmers and the industry. —VDS, GMA News