SolGen asks SC to lift TRO on release of SMC dividends

MANILA, Philippines - The Office of the Solicitor General has filed with the Supreme Court (SC) motion for the lifting of an order restraining the release of cash dividends to a block of San Miguel Corp. (SMC) shares held by the Coconut Industry Investment Fund (CIIF) Oil Mills Group.

The dividends are intended to fund various programs of the group for coconut farmers.

The SolGen said the use of funds should be allowed pending the final determination of the ownership issue, as this was the status quo prior to conversion.

The SolGen pointed out that the proper utilization of the cash dividends to fund certain coconut farmer programs and projects would be assured because funding proposals would still have to pass scrutiny by the PCGG, being the sequestrator of the assets funded by the coco levy funds including the SMC shares.

The government’s petition noted that the SMC has been remitting the cash dividends on a quarterly basis to an escrow account that was opened with the United Coconut Planters Bank.

However, UCPB is not releasing any of the cash dividends to the CIIF Oil Mills Group, a group of companies also funded by the coco levy funds, unless authorized to do so by the PCGG.

The SC issued a temporary restraining order (TRO) last Sept. 28 upon the petition of the Philippine Coconut Producers Federation (Cocofed), which is contesting the release of the SMC cash dividend funds to the CIIF OMG.

Cocofed is contesting a previous Sandiganbayan ruling that the SMC block of shares is owned by the government “in trust for coconut farmers.”

Cocofed is insisting that it is the only coconut farmers’ group that should be adjudged as the owner of the SMC shares.

Because of the continued delay in the release of the cash dividends from the SMC shares, the CIIF OMG has not been able to fund several programs for coconut farmers.

Three big coconut farmer groups have expressed disappointment over the issuance of the TRO by the SC.

Efren Villasenor, president of the Pambansang Koalisyong ng Mga Samahang Magsasaka at Manggagawa Sa Niyugan (PKSMMN) said they had agreed to the government’s proposal to convert 753,848,312 of SMC shares from common to preferred because of a promise that the dividends would be used to fund coconut farmer programs and projects.

“The coconut farmers now feel betrayed by government with this recent development,” Villasenor said.

“The coconut farmers agreed to the conversion because the cash dividends on the SMC shares would increase from P1 billion to P4.4 billion annually. Nawala na nga yung representation ng mga coconut farmers sa SMC board … nawala pa yung dibidendo na dapat gugulin para sa mga proyekto at programa para sa mga magsasaka sa niyugan,” Datu Mao Andong, Jr. president, Coconut Peasants Reform Alliance (COPRA), said.

Secretary-general Oscar Solidor of the Lakas ng Magsasakang Pilipino (LMP) also expressed disappointment over Cocofed’s SC petition, saying “thousands of coconut farmers are also members of Cocofed and they will be surely affected by the SC’s TRO.”