CIIF group welcomes SC ruling

MANILA, Philippines - The CIIF Oil Mills Group (OMG) yesterday welcomed the Supreme Court’s ruling sustaining its earlier decision declaring the government the owner of the CIIF OMG, the 14 Holding Companies and roughly 750 million preferred shares of stocks in San Miguel Corporation (SMC).

“This ruling now allows the government to finally plan and decide on how to utilize these assets for the benefit of our coconut farmers and the development of the coconut industry,” CIIF OMG president & CEO Jesus L. Arranza said.

Last Jan. 24, 2012, the high tribunal affirmed a 2004 decision of the Sandiganbayan naming the government the owner of said assets. Records show that the CIIF OMG companies are the parent companies of the 14 holding companies that are the registered owners of the SMC shares.

The six CIIF OMG companies are Legaspi Oil Company Inc., San Pablo Manufacturing Corporation, Cagayan de Oro Oil Co. Inc., Southern Luzon Coconut Oil Mill Inc., Granexport Manufacturing Corp. and Iligan Coconut Industries, Inc.

Earlier, SMC officially advised the CIIF OMG that SMC would redeem all of the SMC shares owned by the CIIF OMG on Oct. 5, 2012. At the agreed redemption price of P75/share, SMC will be paying about P56.0 Billion for these shares.

“I respectfully appeal to President Benigno Aquino III and the leaders of Congress to immediately convene the Legislative & Executive Advisory Council (LEADAC) to met and discuss the government’s road map to alleviate the plight of our coconut farmers as well as develop the coconut industry,” Arranza said.

Arranza explained that some bills now pending in both the Senate and House of Representatives seek to privatize all the companies or assets organized, acquired or funded using the coco levies collected during the time of President Marcos.

He adds that there is also a proposal from the Cabinet for the President to issue an executive order directing the proceeds of CIIF OMG’s SMC preferred shares to be deposited in a trust fund.

“But what is important is that these pending bills in Congress and the executive order being proposed both authorize a new trust fund to be created, which fund shall finance the implementation of projects beneficial to the coconut farmers and the coconut industry,” Arranza added.

“Since both executive and legislative branches have the same basic objective, our leaders should sit down together to agree on a common and concrete plan and whether this plan should be implemented through the passage of a new law or through an executive issuance,” Arranza said.

Arranza added that in any case, he is supporting the recommendation of Senate President Juan Ponce Enrile that the proceeds of the privatization and the redemption of the SMC shares be utilized to purchase treasury bonds or other government securities.