Farmers to Supreme Court : Nullify Estrada coco levy orders

Several groups of coconut farmers accused deposed President Joseph Estrada yesterday of usurping the powers of Congress and the judiciary when he issued two controversial executive orders on the long-contested coconut levy funds.

Represented by lawyer Mario Ongkiko, the farmers asked the Supreme Court to nullify Executive Orders No. 312 and 313, issued in November last year, because the funds alluded to in the EOs are public and not private funds.

In a 31-page petition, the farmers argued Estrada "encroached" on the legislature’s power to allocate public funds and usurped the Sandiganbayan’s duty to settle the 14-year-old dispute.

"It is an unconstitutional curtailment of the appropriation, taxation and general legislation powers of Congress. In so doing, ex-President Estrada preempted judicial authority to decide whether the coco levy funds are public or private," they said.

EO 312 dealt with the so-called "Sagip Niyugan" Program which provides for supplemental income to farmers which will be financed through a P1-billion fund.

EO 313 created the coconut industry trust fund which would supposedly come from the interest income of the sale proceeds of the government’s 27 percent stake in San Miguel Corp., which used to be controlled by businessman and Estrada patron Eduardo "Danding" Cojuangco.

Ongkiko said that under the EO 313, its funds, to be kept at the United Coconut Planters Bank (UCPB), may be "augmented from time to time by grants, donations and other lawful transfers by public or private entities."

The coconut farmers likewise noted that the two EOs actually violate the mandate of the Commission on Audit (COA) to "audit and examine funds owned or held in trust by the government."

"The President has thus violated the Philippine Constitution by depriving COA of its power, authority and duty to examine and audit funds owned or held in trust by the government," the farmers said.

Aside from this, the trust fund committee created by EO 313, which was to be headed by an Estrada appointee, in effect "transferred control, management and disposition of public funds to the private sector."

In reiterating that the coco levy funds are public funds, the groups explained that it is a government tax which satisfies all the elements of such, because it is an "enforced contribution, levied by the law-making body and for a public purpose."

"The coconut levy funds satisfy all these elements. The levies were not a voluntary payment or donation. Levies were imposed by the law-making authority. Levies were imposed for a specific public purpose," the farmers said.

During the time of former President Corazon Aquino, the government accused Cojuangco, a known Marcos crony, of using coco levy funds to buy shares in SMC and UCPB.

The government then sequestered those shares and holds a 27 percent stake in SMC which entitles it to five seats in the SMC board of directors. Cojuangco also has a 20 percent stake in SMC.