Filtered By: Money
Money

SC awards govt San Miguel stocks in final ruling on coco levy mess


The Supreme Court (SC) has ruled with finality that a 24-percent bloc of San Miguel Corp. (SMC) shares was bought with coconut levy funds – which constitute public money – awarding it to government with a caveat that it should be used only for the benefit of coconut farmers and the industry.   Its latest ruling – a unanimous decision during its regular en banc session last September 4 – denied with finality a motion for reconsideration filed by the Philippine Coconut Producers Federation (COCOFED), Maria Clara Lobregat, and others last February 14.   "The instant motion is but a mere reiteration or rehash of the arguments that have already been previously pleaded, discussed, and resolved by this Court in its January 24, 2012 Decision," the SC said.   "And considering that the motion's arguments are unsubstantial to warrant a reconsideration or at least a modification, this Court finds no reason to modify or let alone reverse the challenged Decision," the decision penned by Associate Justice Presbitero Velasco Jr. read.   As one of the petitioners before he became a member of the Supreme Court, Senior Associate Justice Antonio Carpio inhibited from the case. The petitioners wanted the funds declared as public.   Associate Justice Teresita Leonardo-De Castro and Diosdado Peralta also inhibited and steered clear of the proceedings. They were members of the Sandiganbayan when the case was decided by the anti-graft court.   The high court's January ruling upheld but modified a decision by the anti-graft court declaring San Miguel shares, having been bought with coco levy money, as public funds. The shares were registered under the names of Coconut Industry Investment Fund (CIIF) and its holding companies.   The Sandiganbayan prompted COCOFED, which claimed the portfolio on behalf of some 1 million unnamed coconut farmers, to elevate the matter to the Supreme Court.   The controversial fund came from taxes imposed on coconut farmers during the martial law years by alleged cronies of then President Ferdinand Marcos, including Eduardo "Danding" Cojuangco, with the promise of sharing investments and development of the coconut industry.   The collections were allegedly used to fund the personal concerns of the Marcos cronies, including the purchase of the Coconut Planters Bank and a majority stake in food and beverage giant San Miguel – now a diversified conglomerate.   The fund was sequestered after Marcos was ousted in the February 1986 People Power revolution.   The January ruling written by Associate Justice Presbitero Velasco Jr. ruled that the 753,848,312 shares in San Miguel be used by government to help the 3.5 million underprivileged farmers and their families.   The shares were officially valued at P84.3 billion in January, with quarterly dividends over the last two years estimated at P8.8 billion.   The funds are now in escrow in United Coconut Planters Bank (UCPB), where Cojuangco served as president and director through most of the Marcos years.   “We sustain the ruling of the Sandiganbayan… that the CIIF companies and the CIIF block of SMC shares are public funds… owned by the Government. We, however, modify the same in the following wise: These shares shall belong to the Government, which shall be used only for the benefit of the coconut farmers and for the development of the coconut industry,” the high court noted in its January ruling.   In the same ruling, the high court reiterated the levy funds are in the nature of taxes and can only be used for public purposes – they cannot be used to buy shares of stocks to be given for free to private individuals.   The Sandiganbayan has jurisdiction over the case, since the sequestered shares have already been established as "prima facie ill-gotten," the high tribunal said.   "The SMC shares... with all the dividend earnings as well as all increments arising from, but not limited to, the exercise of pre-emptive rights subject of the September 17, 2009 Resolution, shall now be the subject matter of the January 24, 2012 Decision and shall be declared owned by the Government and be used only for the benefit of all coconut farmers and for the development of the coconut industry," the high court said.   "No further pleadings shall be entertained. Let entry of judgment be made in due course," the SC added. — VS, GMA News

LOADING CONTENT