`Landlords, not farmers, put up coco levy fund'

Who really owns the coconut levy fund?

While there is no definite answer yet to this P50-billion question, President Estrada indicated yesterday that the government will recognize landlords, or the owners of coconut plantations, as the ones who put up the levy fund.

And as such, landlords will largely represent their interest in the soon-to-be-created body that will oversee the use of the fund.

"Actually, the coconut planters are the ones who set up the fund, not the farmers. The farmers did not have the money. The ones who made investments were planters who owned the plantations, they gave the levies," the President said.

He gave his assurance, however, that the funds will benefit thousands of coconut farmers, dismissing charges that the money will be given back to businessman Eduardo "Danding" Cojuangco, who supported him during the May 1998 presidential elections.

Mr. Estrada has already announced that he will chair the 10-member body that will supervise the use of an initial P5 billion to P6 billion of the fund.

The creation of the coco trust fund body will be contained in a proposed executive order which the President will soon sign as part of the implementation of an agreement between the principal parties involved.

Mr. Estrada, however, said the executive order is still being reviewed by his office.

"I was able to raise the fund to P50 billion. My general vision here is that we should not touch the principal, only the interest. This will be used for the rehabilitation of the coconut industry," the President said.

The P6 billion constitutes the interest earnings from the frozen coconut levy fund.

The President admitted the issuance of the EO was being delayed by certain court claims being pursued by various coconut farmers' groups.

The farmers want that they be made direct beneficiaries of the coco levy fund.

Earlier, the President said the money will not be used as a doleout to farmers and that it cannot be considered as a public fund yet.

"These are sequestered funds and will remain so until ownership is established by the courts," the President said. "We still do not know who owns them, but this is now being studied very carefully."

"The funds will be used for our poverty allocation program intended for the people," he said.

Mr. Estrada told Palace reporters Friday that he was able to convince Cojuangco to give up the 27 percent of his total 47 percent ownership shares in San Miguel Corp. (SMC).

The shares, which were invested by the businessman's United Coconut Planters Bank in the food and beverage conglomerate, consist of the P50 billion that will converted into a trust fund for the rehabilitation of the coconut industry.

Cojuangco, however, said he will battle it out in courts to prove that the other 20 percent ownership shares in SMC were his own investment, and that it did not come from the coconut levy funds.

"What Ambassador Cojuangco wants is to simply clear his name and make it known that he did not steal the 20 percent from the coco levy funds," Mr. Estrada said.