Cojuangco objects to shortened coco levy trial

San Miguel Corp. chairman Eduardo "Danding" Cojuangco Jr. has objected to a motion asking the Sandiganbayan first division to shorten proceedings on a case involving a P653.37-million government claim on the coconut levy fund. Cojuangco on April 26 sought dismissal of the motion for lack of legal basis, existence of controverted issues, and questions on Sandiganbayan jurisdiction. Government lawyers said the state is entitled to recover P88.5 million, which the United Coconut Oil Mills (Unicom) paid on May 18, 1982 to settle an anti-trust lawsuit in the United States. They said the defendants admitted the Unicom paid the settlement cost using the Coconut Industry Rationalization Fund, at a time when the firm was under the control of Cojuangco. The government is also seeking P162.56 million refund from donations made by the PCA and UCPB to various projects of Mrs. Marcos from 1970 to 1986 and another P402.3 million allegedly representing unearned income of the Coconut Industry Development Fund which was deposited (interest-free) with the UCPB in accordance with Presidential Decree No. 755. Government lawyers cited a Supreme Court ruling saying that “coconut levy funds are prima facie public funds, having been raised through the police and taxing power of the State." Estelito Mendoza, Cojuangco’s counsel, however said that the government erred in its reliance on the Supreme Court ruling. “Contrary to plaintiff’s claims, the Supreme Court clarified that it did not rule that the coconut levy funds were public funds. It (SC ruling) was to determine who, between the stockholders and the Presidential Commission on Good Government, has the right to vote the UCPB shares of stock while the case is being heard," he said. Mendoza said that the question of whether the coconut levy funds are public of private remains to be decided by the Sandiganbayan First Division. He added that, contrary to government claims, Cojuangco denied there was misuse of the coconut levy funds because all disbursements ‘were done in accordance with law.’ Mendoza also questioned the Sandiganbayan jurisdiction of the case. He said that based on the definition of ‘ill gotten wealth’ laid down by the Supreme Court, “Cojuangco neither took over government assets and properties for him to own nor embezzled public funds to purchase property for himself." He said that since case no. 0033-E does not involve ill-gotten wealth, the graft court has no jurisdiction over it. –GMANews.TV