GMA TO USE COCO PROFITS, BUT WHERE’S THE MONEY: Even before the courts could
determine the real owners of the multibillion-peso coco levy funds, President
Macapagal-Arroyo is going ahead with the use of the funds.
The President wants to use about 700 million pesos in dividends earned by the
27-percent stake in San Miguel Corp. of the coco levy funds as a price support
fund for coconut farmers starting January next year.
But there’s a hitch. The amount, which the Coconut Industry Investment Fund
(CIIF) earned for almost 20 years, is nowhere to be found, prompting the
President to order for the search for the funds. Another hitch: The coco levy
funds are all tied up in a knot of cases filed with the courts.
Coconut farmers have not been able to use the 9 billion pesos in coco levy
collected from them from 1973 to 1982 as the funds are under litigation before
the Sandiganbayan. The funds have since grown to an estimated 130 billion pesos.
"The President wants the price support fund to be in place by January which would
give a big boost to copra and farm coconut prices," presidential spokesperson
Rigoberto Tiglao said Tuesday.
Tiglao said prices of coconut products had been falling and Malacanang wanted
farmers to have "some cushion."
The Presidential Commission on Good Government (PCGG) claims that the funds are
public in nature because these were collected from farmers using the state’s
police powers. The Philippine Federation of Coconut Producers (Cocofed)
insists that the funds are private as these were paid by coconut producers.
In ordering the use of the 700 million pesos in SMC dividends, the President
was banking on the Supreme Court’s decision last week that the coco levy
funds were "apparently" public funds.
The Supreme Court said its ruling would enable the PCGG to vote the shares
that it sequestered in the United Coconut Planters Bank (UCPB). The ruling
is expected to allow the commission to oust five nominees of former President
Joseph Estrada to the SMC board. The 27-percent stake of the CIIF in San Miguel
is also sequestered.
The high court said its ruling referred only to the UCPB shares even as it
declared that the coco levy funds were apparently public in nature.
The Supreme Court gave the Sandiganbayan six months to decide on the real
owners of the coco levy funds.
Reacting to the observation that the coco levy funds could not be touched
just yet as these were under litigation, Tiglao said: "Most probably the
Sandiganbayan’s concurrence (on the use of the funds) will have to be
acquired."
He said the use of the 700 million pesos would also have to be cleared with
the PCGG.
Tiglao said presidential legal counsel Avelino "Nonong" Cruz had been ordered
to finish all the paperwork needed to unlock the CIIF dividends.
The Kilusang Magbubukid ng Pilipinas (KMP) said the money must be withdrawn
from UCPB and immediately returned to small coconut farmers.
Philippine Daily Inquirer, 19 December 2001
PCGG TO TAKE OVER UCPB: Pres. Macapagal-Arroyo may be reluctant to oust
Eduardo "Danding" Cojuangco Jr. as chair of San Miguel Corp., but his
people face expulsion from the 15-member board controlling the United
Coconut Planters Bank (UCPB).
Also facing ouster are five SMC board directors appointed by deposed
President Joseph Estrada for failing to notify the government of Japanese
brewery Kirin Co. Ltd.'s plan to take a 15-percent stake.
An official of the Presidential Commission on Good Government (PCGG)
said Sunday all the UCPB directors, including the appointees of Estrada
and representatives of Cojuangco would have to give way to the PCGG's
new nominees.
"No one among the current board members will remain," PCGG Commissioner
Ruben Carranza said. "We will have to come in and reacquire the board
of directors at the UCPB."
Carranza said this was the implication of the Supreme Court's ruling
recognizing the right of the PCGG to vote all sequestered UCPB shares.
The high court on Friday declared that the coco levy funds were "public
in character" as the levy was collected from 1973 to 1982 using the
police and taxing powers of the State. The ruling may restore the
government's control over SMC as UCPB administers a 27-percent stake
in SMC (equivalent to five seats on the board) acquired with coco
levy funds.
Carranza said UCPB shares were sequestered on the premise that the
entire bank was acquired using coco levy funds.
Aside from the 27 percent, the government has an 11-percent interest
in SMC (equivalent to two more seats) through the Social Security
System (SSS) and the Government Service Insurance System (GSIS).
The ruling has also rendered moot any possible compromise agreement
on the levy, which, according to critics, will only benefit Cojuangco
and his associates at the Coconut Producers Federation of the
Philippines (Cocofed), according to presidential spokesperson
Rigoberto Tiglao.
Carranza said the PCGG would also have the right to look into the
financial records of the UCPB, which may hold the key to the
principal of the 14 holding companies that were incorporated by the
Accra law firm.
He said it was important for the PCGG to look into the financial
status of the bank, administrator of the coco levy funds and all
assets acquired using the funds.
Philippine Daily Inquirer, 17 December 2001
COCO LEVY PUBLIC FUNDS, SC RULES: The Supreme Court, voting 10-5,
yesterday declared the Coconut Consumer Stabilization Fund (CCSF)
or the Coco Levy Fund as public monies.
The 47-page decision, on the heels of a controversial draft compromise
deal, gave the Presidential Commission on Good Government (PCGG)
the right to vote on United Coconut Planters Bank (UCPB) shares.
The decision has no bearing on the ownership issue of the disputed
shares or other pending civil cases involving the coconut levy.
But the High Court ordered the anti-graft court hearing the ownership
case to come up with a ruling within six months, and report progress
every three months, or face contempt raps.
The High Court decision prompted the PCGG to decide to try for a
temporary restraining order (TRO) on the sale of Eduardo "Danding"
Cojuangco's 15-percent stake in San Miguel Corporation (SMC) to the
Japanese firm, Kirin Co. Ltd. (See related story, 1B)
PCGG Chair Haydee Yorac announced the Supreme Court ruling to 200
cheering workers during the government agencys Christmas party.
Yorac, however, refused to comment on the planned TRO. A PCGG source
said agency executives held an emergency meeting yesterday afternoon
after learning of the deal between Cojuangco and Kirin.
In declaring the coco levy as public money, the 15-man Tribunal
overturned the Sandiganbayan decision, which gave tycoon Eduardo
"Danding" Cojuangco and other shareholders voting rights in the
bank's board.
Because the coco levy fund is "public in character," Cojuangco and
his nominees are not legitimate shareholders, the Tribunal said.
Manila Times, 15 December 2001
COCONUT FARMERS DEFY PCGG, HOLD OWN TALKS WITH COCOFED:
Defying the warning of both the Presidential Commission on Good
Government (PCGG) and civil society groups that holding talks
about the controversial coconut levy funds is "illegal and immoral,"
coconut farmers' groups yesterday disclosed that they're
conducting "exploratory talks" with Cocofed regarding the
"salient points" agreed during the Declaration of Unity held in
Davao last Oct. 28.
As this developed, the Philippine Coconut Authority (PCA) is
supporting the mounting clamor for an audit of the multibillion
coconut levy funds.
PCA administrator Danilo Coronacion said the issue of the audit
of the levy funds has been discussed with the Executive Secretary
and the Chief of the Presidential Legal Council.
Coronacion also favors a pending bill in the Lower House declaring
the coconut levy funds as public.
Buboy Bernadette, national coordinator of the Pambansang Koalisyon
ng mga Samahan ng Magsasaka at Manggagawa sa Niyugan (PKSMMN) it is
only now that theyre negotiating with Cocofed contrary to the
allegations of some groups that a negotiation had transpired in Davao
City.
During the talks, Bernadette said the coconut farmers have committed
to accomplish the following: Establish a perpetual and irrevocable
coconut trust fund from the CIIF shares and that only the trust fund
income earnings shall be utilized for projects that will benefit the
farmer-beneficiaries; create a coconut trust fund committee composed
of representatives from the farmers groups to manage the funds.
The farmers likewise agreed that there shall be a mutual sharing of
benefits among coconut farmers on the fund utilization and program
implementation.
They would also allow the President to decide on the creation of the
auditing group, which they expect to be under the supervision of the
Commission on Audit (COA).
The group has reiterated its appeal to the President to immediately
resolve the pending cases involving the CIIF shares to address the
"escalating poverty situation of the coconut farmers and farm workers
and the continued decline of coconut industry."
Also, they demanded the present CIIF-SMC Board of Directors nominated
by deposed president Estrada to immediately vacate their posts and give
way to the new set of nominees to be proposed by the coconut farmers and
farm workers.
Manila Times, 11 December 2001
PCGG WILLING TO TALK TO DANDING ON COCOFUND LEVY:
The Presidential Commission on Good Government (PCGG) is willing to
have a dialogue with business tycoon Eduardo "Danding" Cojuangco Jr.
concerning the P130-billion coconut levy funds.
But the initiative must come from Cojuangco, PCGG Chair Haydee Yorac
emphasized in a radio interview yesterday.
The PCGG had maintained that they are open to any compromise
regarding the coconut levy funds as long as the Sandiganbayan
declares the funds as public.
Cojuangco, the chairman of San Miguel Corp. (SMC), has issued a
statement denying the allegations that he would benefit from the
proposed compromise settlement of the coco levy funds.
Cojuangco said he was only a witness to the signing of the settlement
deal.
He also belied allegations that he or any person associated with
him had secretly met with other farmers' groups to come up with an
arrangement.
The proposed deal calls for the setting up of a perpetual trust fund
using P50 billion in Coconut Industry Investment Fund (CIIF) in 27
to 31 percent of SMC shares.
Under the deal, coconut farmers will get 40 percent of the interest
earnings of the perpetual fund while the government will obtain 25
percent and 20 percent for the Philippine Federation of Coconut
Farmers (Cocofed). Fifteen percent goes back to the trust fund.
Yorac, however, said that the levy would now be discussed on the
basis of an "interim formula" that was created during a meeting in
Malacanang Monday night.
Yorac believed that the interim formula is beneficial enough for the
coconut farmers.
The interim formula has two conditions: It "must be consistent with
the legal position of the PCGG that the funds are public funds, and
it will lead to the release of a portion of the funds under litigation
to small coconut farmers as a class of people rather than by organization."
"This formula is fair for all the coconut farmers," Yorac said.
Manila Times, 6 December 2001
FARMERS SPLIT OVER COCO LEVY SETTLEMENT: Two groups of coconut farmers
that worked together for the recovery of coconut levy funds during the
Estrada administration have been split over a proposed compromised
settlement brokered by the private publicist of President Gloria
Macapagal-Arroyo.
The 46-member Alyansa ng mga Kilusang Magsasaka (Kilos-Saka) led by the
Coconut Industry Reform Movement (COIR) is against any form of
settlement outside the courts while the Pambansang Koalisyon ng mga
Samahang Magsasaka (PKSMMN), made up of 37 coconut farmers groups,
supports the settlement.
Both camps held separate press conferences at the same time Tuesday
in adjoining restaurants at the Quezon Memorial Circle in Quezon City
and attacked each other.
Joey Faustino, COIR executive director, expressed concern that the
media would play up the division of coconut farmers instead of focusing
on the recovery of the 130 billion pesos in coco levy funds collected
from coconut farmers from 1971 to 1982.
"The real enemies are Cojuangco and Lobregat, who are the root cause
of this problem," he said. Faustino was referring to Eduardo "Danding"
Cojuangco Jr., chair of San Miguel Corp., and Ma. Clara Lobregat,
mayor of Zamboanga City and head of the Philippine Federation of
Coconut Producers (Cocofed).
Cojuangco and Lobregat pushed for the settlement that several farmers'
groups and Cocofed signed on Oct. 28 in Davao City. Villasenor, a
PKSMMN representative, said he was challenging those opposing the
compromise agreement to suggest alternative ways for the immediate
and just resolution of the coco levy issue.
"To die of hunger due to widespread poverty, (the) dislocation of
coconut farmers and workers and the collapse of the industry is
more illegal and immoral," Villasenor said.
"A court settlement is too costly, and is a slow and long process,"
he said. Villasenor, also a director of the Philippine Coconut Authority
(PCA), described the compromise deal as a "negotiated justice."
He said the compromise deal was not good as dead despite the
PCGG position against it, saying there are ways to resolve the
issue other than through the PCGG.
Philippine Daily Inquirer, 6 December 2001
PCGG: NO TO COCO LEVY AGREEMENT: "Illegal and immoral." This was
the declaration of chair Haydee Yorac of the Presidential Commission
on Good Government (PCGG) on the proposed compromise settlement of
the multibillion-peso coconut levy funds brokered by Dante Ang,
President Gloria Macapagal-Arroyos personal publicist.
In her first public statement since the controversy on the settlement
erupted last week, Yorac said the settlement would allow Marcos
cronies, who had benefited from the coco levy, particularly
businessman Eduardo "Danding" Cojuangco Jr., Zamboanga City Mayor
Maria Clara Lobregat and former Sen. Juan Ponce Enrile, to keep their
plundered loot.
"It appears contrary to the purported intent of the laws imposing the
coco levy. The declared intent was to create a public trust fund
for the farmers, not a private source of capital for Marcos and his
cronies," said Yorac, hours before she met with the President
Monday night.
After meeting with PCGG officials led by Yorac, the President
ordered Ang and presidential adviser on special concerns, Norberto
Gonzales Jr., to "desist from interfering" in compromise talks
over the coco levy funds.
President said in the meeting that all proposed settlement deals
"will have to go through the PCGG.
Yorac said she was "satisfied" with the outcome of the meeting.
Yorac said she did not have to ask the President to instruct Ang and
Gonzales to stay away from the talks as this would give the impression
that they had authority from Malacanang.
During the meeting, the PCGG and Malacanang agreed on two conditions
for any proposed deals. First, the deal should not prejudice the
government's stand to have the funds declared "public funds."
Second, the deal should benefit small coconut farmers and workers.
The proposed deal, brokered by Ang skirts the basic issue of the
nature of the coco levy funds, whether they are private or public
funds.
Presidential spokesperson Rigoberto Tiglao said that "if they can
amend (the agreement) to meet the two conditions, the PCGG is willing
to consider it."
Yorac said the PCGG would continue litigating the case even while it
was searching for an "interim settlement."
She expressed confidence that the PCGG under her leadership could get
a favorable ruling over the ownership of the funds "within two years.
Before the meeting, the President said that she had not yet made up
her mind on the proposed settlement. "Actually what I'm doing now is
listening to the debate. So there's nothing to restudy because I
haven't done an executive order," she said.
She had earlier said that she was looking for a formula to use the
funds to help impoverished coconut farmers while skirting the
legality of their ownership.
The settlement, signed on Oct. 28 by several farmers' groups, the
Philippine Federation of Coconut Producers (Cocofed) headed by
Lobregat and Cojuangco, calls for the setting up of a perpetual
trust fund using 50 billion pesos in Coconut Industry Investment
Fund invested in 27 to 31 percent of San Miguel Corp. shares.
The proposed settlement still needs the approval of the PCGG, the
President, the Sandiganbayan and the Supreme Court. But now, the
PCGG has spoken.
In her statement, Yorac said Ang's proposal appeared "contrary to
morals because it would allow those, who amassed ill-gotten wealth,
to effectively keep what they (had) plundered."
It also appeared contrary to the public policy that imposed the levy.
In her statement, Yorac explained that the PCGG was not against the
expeditious release of the coco levy funds "so that Filipino coconut
farmers may finally benefit from it." Neither is the PCGG against
any compromise per se.
"For as long as the settlement is just, legal and not contrary to
morals and public policy, the PCGG will support it and ask the
courts to approve it," the PCGG chair said.
She said that the courts, including the Sandiganbayan, would
reject any settlement contrary to law, public policy and morals.
Yorac said that based on the terms of the draft executive order that
Ang, Cojuangco, Lobregat and Philippine Coconut Authority director
Efren Villasenor had proposed as a settlement of the coco levy fund
case, the Sandiganbayan or the Supreme Court would reject the settlement.
Philippine Daily Inquirer, 4 December 2001
MALACANANG BLINKS ON COCO LEVY DEAL:
Pres. Gloria Macapagal-Arroyo may reject a compromise agreement on
the coconut levy funds, which her private publicist considers
an almost a done deal, because of growing objections.
Presidential spokesperson Rigoberto Tiglao said that while Ms Macapagal
was "still interested in having the funds mobilized, the problem
obviously now is that a lot of other groups are insistent on not
having a compromise deal."
The deal was agreed upon by farmers' groups, the Philippine Coconut
Producers Federation chaired by Zamboanga City Mayor Maria Clara
Lobregat and businessman Eduardo "Danding" Cojuangco Jr. in a meeting
in Davao City on Sept. 27. It was signed on Oct. 28.
Asked if the President would reject a compromise deal if protests
reached a certain level, Tiglao said: "It would depend."
Opposition to the compromise deal is growing.
Four members of the House of Representatives are expected to
file on Monday a bill seeking to block the agreement.
Representatives Loretta Ann Rosales (Akbayan partylist), Rafael
P. Nantes (Quezon, LP), Del R. de Guzman (Marikina City, Lakas) and
Ted Failon (Leyte, Ind.) said the bill would declare the coco levy
as public funds to be "used exclusively" for the rehabilitation of
the coconut industry.
Outside Congress, the country's largest militant peasant
organization said it would take to the streets to oppose the
compromise deal brokered by Dante Ang, the President's private
publicist.
"The President will surely celebrate Christmas with a headache,
we are set to bring this battle to the parliament of the streets,"
said Rafael Mariano, chair of the Kilusang Magbubukid ng
Pilipinas (KMP).
Ang said the proposed settlement "seeks to put at least 50 billion
pesos or 15 percent (of the coco levy funds) into a perpetual
trust fund with the interest earnings going to the farmers and
the coconut industry."
Under the deal, 20 percent of the interests will go to Cocofed,
15 percent to the trust fund, 40 percent to farmers groups, and
25 percent to the government.
The 50 billion pesos constitutes the Coconut Industry Investment
Fund invested in 27 percent of San Miguel Corp., the country's prime
food and beverage firm chaired by Cojuangco.
The levy, collected from coconut farmers from 1973 to 1982 during the
Marcos regime, totaled 9 billion pesos but has since grown to at
least 130 billion pesos.
The fisherfolk group Pamalakaya warned that Ms Macapagal might
soon find herself "on her own" if she did not return the coconut
levy fund to the farmers.
The militant group Sanlakas also demanded an explanation from
Macapagal on the role of Ang in the negotiations.
Philippine Daily Inquirer, 3 December 2001
PCGG HEAD ASKS CONGRESS: DECLARE COCO FUND PUBLIC:
The country's chief hidden-wealth hunter and the government's top
lawyer asked the Senate on Tuesday to pass a law confirming the
130-billion-peso coconut levy fund as public in character--on the
same day that a group accused the President's husband and her brother
of angling for a 20-billion-peso commission for settling the issue.
Haydee Yorac, chair of the Presidential Commission on Good Government,
and Solicitor General Simeon Marcelo told senators a legislative
confirmation would strengthen the government's case against Marcos
crony Eduardo Cojuangco Jr. and his business associates.
In 1996, the Supreme Court ruled that the funds were imbued with
public interest, but Yorac said on Tuesday the PCGG was now fighting
the battle on several fronts, including Congress, the Sandiganbayan,
the presidency and public opinion.
In a general meeting in San Juan, however, the People's Consultative
Assembly tagged First Gentleman Jose Miguel "Mike" Arroyo and the
President's brother Diosdado "Boboy" Macapagal Jr., together with
Presidential Assistant on Special Concerns Norberto Gonzales, as
the ones allegedly negotiating a sweetheart deal with Cojuangco,
in exchange for a 20-billion-peso commission.
"We will present our witness during a Senate inquiry on the matter,"
PCA secretary general Linda Montayre said in a news briefing.
This witness is likely to be retired Brig. Gen. Virgilio David,
who served as administrator of the Philippine Coconut Authority
during the Ramos administration.
In Malacanang, presidential spokesperson Rigoberto Tiglao took no
notice of Montayre's latest anti-Macapagal allegation against the
President.
Militant farmers warned President Macagapal-Arroyo against meddling
in the levy funds issue and urged coconut farmers to resist bribe
offers meant to buy their silence on the alleged sweetheart deal.
"Any kind of compromise with Cojuangco is highly unacceptable to
coconut farmers, because he does not have the right to negotiate
on the farmers' behalf. The 130-billion-peso fund was plundered
from the people behind the plow," said Rafael Mariano of the
Kilusang Magbubukid ng Pilipinas.
Rodolfo Sambajon, chair of the peasant group Pamalakaya, challenged
opposition Senators Panfilo Lacson, Luisa Ejercito Estrada, Tessie
Aquino-Oreta, Gregorio Honasan, Vicente Sotto III and Blas Ople to
investigate the alleged deal between Macapagal and Cojuangco, their
"political benefactor."
He added: "The pro-Erap senators' deafening silence on the alleged
deal between Ms Macapagal and their big boss is understandable since
they cannot go against Danding. Whether they admit it or not, this
is the gist of the story behind the scene."
At the Senate, Yorac said that Congress should enact a law
confirming the public character of the funds as collected
pursuant to a law and seven successive presidential decrees.
All the PDs were issued by the late dictator Ferdinand Marcos.
Yorac stressed that the levy was imposed pursuant to the state's
power of taxation and collected ostensibly for a public purpose-
-to support an industry vital to the national economy.
But in the 10 years that the levy was imposed, Yorac said, the
fund was not used primarily for the benefit of the millions of
small coconut farmers. Instead, this was used by some of those
assigned by Marcos to invest in their private businesses.
Solicitor General Marcelo disclosed that during the Estrada
administration, the government assigned only two lawyers to
prosecute the cases against Cojuangco and his men.
In the sweetheart deal, Montayre said, the balance of the funds would
go to Cojuangco, "with 20 billion pesos going to the President for
her use in (the) 2004 presidential elections."
At the joint hearing of the Senate blue ribbon committee and
the committee on food and agriculture, PCCG Associate Commissioner
Ruben Carranza emphasized that the funds were public in character-
-which was why it was called a levy.
Philippine Daily Inquirer, 28 November 2001
GROUP SAYS MACAPAGAL WILL GET P20-BILLION FROM COCO DEAL:
Once supportive of President Gloria Macapagal-Arroyo, the People's
Consultative Assembly (PCA) accused her on Friday of taking or
negotiating billions of pesos in commissions from businessmen
previously identified with the late president Ferdinand Marcos and
ousted president Joseph Estrada, and asked her to resign.
The President flatly rebuffed the PCA's call for her resignation.
"I told you already--they (PCA) don't mean anything to me,"
Ms Macapagal responded coldly when asked at a press conference about
the PCA's demand.
PCA secretary-general Maria Linda Olaguer-Montayre accused
Ms Macapagal of negotiating a "compromise agreement'' with
Eduardo "Danding" Cojuangco on the coconut levy fund of 130 billion
pesos, in which the President allegedly stands to earn 20 billion pesos.
A legal question remains on whether the levy fund is a public or
a private fund. A ruling that it is a private fund would favor
Cojuangco, who dominated the coconut industry during the time of
Ferdinand Marcos.
The PCA asked in a statement: "Should we not question the taking
over by the Office of the President of the Philippine Coconut
Authority so that it could directly oversee the compromise agreement
with Cojuangco in exchange for which the President will reportedly
get 20 billion pesos to use in 2004?"
Montayre added that part of the deal was to include the President's
"leaving Lakas-NUCD and joining the National People's Coalition-
-Cojuangco's political party--before the 2004 presidential election.
Montayre said a mutual friend of the Presidents and Cojuangco's who
was a witness to the alleged negotiations for the 20-billion-peso
bribe would be coming out to confirm the allegations during the PCA's
"National Summit on Corruption" on Nov. 27.
Montayre said one of the speakers at the summit will be retired
military general Virgilio David, PCA administrator during the
administration of former president Fidel Ramos. The PCA in its
statement also accused Ms Macapagal of receiving three billion
pesos from tycoon Lucio Tan for "non-pursuance of the 27-billion-
peso tax evasion case against him," and of taking 18 million
dollars in commissions from Industrias Metalurgicas Pescarmona
SA (Impsa), an Argentine firm engaged to construct a power plant,
"of which two million dollars reportedly went to Justice Secretary
Hernando Perez."
"What about the reported 20 million dollars given to the First Couple
by Manila Representative Mark Jimenez in exchange for his
non-extradition?'' the PCA said.
The PCA asked the President to resign in 60 days, lest she face the
danger of losing her post through another "people power" uprising.
Philippine Daily Inquirer, 24 November 2001
