Government to boot out Estrada men in SMC

The Arroyo administration is set to launch tomorrow its bid to gain majority control of the board of directors of food and beverage giant San Miguel Corporation by booting out five directors nominated by ousted President Joseph Estrada.

Solicitor General Simeon Marcelo told newsmen yesterday that he and the Presidential Commission on Good Government (PCGG) would ask the Supreme Court to oust the five directors.

Marcelo identified the five directors as Estrada’s brother-in-law Raul de Guzman, movie producer Esperidion Laxa, Hermogenes Tantoco, Allan Lee and Ben Paulino.

The five directors were nominated through the Coconut Industry Investment Fund (CIIF) shares sequestered by the PCGG in 1986, Marcelo said.

But while the five were appointed as representatives of the government, they have refused to resign despite orders from the PCGG which is the rightful administrator of the CIIF shares.

The PCGG sequestered the shares, amounting to 47 percent, on charges that these were bought with some P9.6 billion in coconut levy funds that were collected from coconut farmers during the Marcos administration.

"These are shameless usurpers who continue to cling to their offices even as their terms have already been revoked by the PCGG," an angry Marcelo told a news conference which was attended by acting PCGG Chairman Jorge Sarmiento.

"Even while they are government appointees, they did not report to the PCGG, but they got their perks and other emoluments," he said. "Worse, they not only refused to resign but even want to be elected to another term."

Should these Estrada nominees be removed, Marcelo said they will be replaced by former Social Security System (SSS) president Renato Valencia, former Far East Bank head Octavio Espiritu, former Justice Hector Hofileña, Franklin Fuentabella and Leonardo Alvez.

Marcelo expressed hope the Supreme Court, which is now in Baguio City for its annual summer sessions, will resolve the petition before SMC’s regular stockholder’s meeting on May 3.

If the Supreme Court does not oust the Estrada appointees before the May 3 stockholder’s meeting, the government will seek a temporary restraining order to prevent their re-election to the board.

Marcelo said the move to oust the five Estrada appointees is the first step in the government’s "battle plan" in gaining majority control of the conglomerate.

"We’ll fight the battle and get these usurpers out of the SMC management. We’ll take this step by step. We’ll fight the battles one by one," Marcelo said.

After the five Estrada appointees are ousted, the government plans to get two more seats via the holdings of SSS and the Government Service Insurance System (GSIS) for a total of seven seats.

"The ultimate objective is to put competent management executives at the helm of SMC," Marcelo said. "We want to have a better representation in the board."