PCGG wants Estrada boys out of SMC

The Presidential Commission on Good Government (PCGG) asked the Supreme Court yesterday to oust five appointees of disgraced President Joseph Estrada from the board of directors of food and beverage giant San Miguel Corp. (SMC).

Solicitor General Simeon Marcelo described as "usurpers" Estrada’s bro-ther-in-law Raul de Guzman, Hermogenes Tantoco, Allan Lee, Ben Paulino and movie producer Esperidion Laxa.

Marcelo said these five directors continue to enjoy perks from SMC although their authority as government representatives had been withdrawn by the PCGG.

The government also included SMC corporate secretary Jose Feria in the petition because of his refusal to recognize the government’s new nominees to the board.

Marcelo and PCGG Chairman Jorge Sarmiento identified the new appointees as former SSS president Renato Valencia, noted banker Octavio Espiritu, former Justice Hector Hofileña, Franklin Fuentabella and Leonardo Alvez.

In his pleading, the chief government lawyer said Estrada’s appointees no longer have the right to remain in the board because the PCGG has withdrawn its authorization.

"They no longer have the personality and authority to continue to hold the office of SMC director. It is the basic law that the principal has the absolute right to revoke the agency at will," he said.

"The PCGG nominees to the SMC Board are vested with a sovereign function of the government. They are agents of the PCGG in the performance of the function and duty to recover and preserve ill-gotten wealth," the 34-page petition read.

Sarmiento and Marcelo maintained the government has been voting through the 27 percent SMC stake, owned by the Coconut Industry Investment Fund (CIIF), which was sequestered by the government in 1986.

"The CIIF block of sequestered SMC shares are assets of the CIIF, which was funded with a levy imposed by virtue of the State’s taxing powers. The preservation of these assets are clearly a public function," the pleading added.

Worse, the two added, the Estrada appointees "kept silent" on vital corporate decisions that affected the assets of the conglomerate. "Without representatives trusted by the new government, there will be no directors of SMC who can and will check against any misuse of SMC funds and assets," the pleading said.

The government also noted the urgency of the matter since the conglomerate is set to hold its annual stockholders meeting on May 3. — Delon Porcalla