Palace mediates between coco levy factions

Malacañang has been trying to arbitrate between the coconut farmers groups contesting seats in the planned 10-man board of trustees which will administer the projected P50-billion coco levy trust funds that the government will put up once the 27-percent coco levy shares at San Miguel Corp. (SMC) are sold and monetized.

As this developed, President Estrada disclosed that Timothy Dattels, Goldman Sachs, managing director is coming to Manila within this week to pursue their interest in the possible purchase of the 27- percent shares at SMC that the government will sell through public offering.

The President said Dattels, whom he met during his stop-over visit of Hong Kong two weeks ago, informed him of his company's interest to invest in the Philippines through this 27- percent shares in SMC, the country's biggest beer and food manufacturing firm.

Executive Secretary Ronaldo Zamora told The STAR yesterday that the proposed Executive Order (EO) to create the coco levy trust funds has been stalled because of the dispute among coconut farmers groups.

Zamora said the dispute involves the Coconut Confederation of the Philippines (Cocofed), headed by Zamboanga mayor and former congresswoman Ma. Clara Lobregat, and the coconut farmers group being represented by the Bishop-Businessmen Conference (BBC) led by Jose Concepcion.

Aside from the board seat being contested, Zamora said, the group of Concepcion is questioning the specific provision in the EO that allocates 20 percent share from the annual earnings of the coco trust fund that Cocofed will get as owners of these coco levy funds.

"The coconut farmers are the real owners. We never disputed this. But the next question is who are the coconut farmers? The coconut farmers are those from the Cocofed," Zamora pointed out.

Zamora, whose office is drafting the proposed EO on the coco trust fund, disclosed that the coconut farmers groups will get four seats in the 10-man board of trustees while the government will also get an equal number of seats.

Zamora said the remaining board seat will be for the representative of the United Coconut Planters Bank (UCPB) which invested the sequestered coco levies in SMC.

This consists of the 47-percent ownership shares of President Estrada's businessman friend and political patron, Eduardo "Danding" Cojuangco, who also owns the UCPB, who is the board chairman of SMC.

Out of the four seats reserved for the coconut farmers groups, Zamora said, one seat will be given to the representative of the Cocofed.

He said the four seats for government are still being discussed as to which specific government agencies will be represented.

Zamora clarified that the coconut landlords being referred to by President Estrada as the real contributors to the coco levy were actually the coco millers who were mandated during the previous Marcos administration to pay for the coco levies.

This was after President Estrada admitted earlier the issuance of the EO on the creation of the coco levy fund was being delayed by conflict of the competing coconut farmers groups, insisting they be made as the representatives and direct beneficiaries of this coco levy disposition by the government.