PCGG: SC ruling on coco levy fund moot and academic

The Supreme Court order for the Sandiganbayan to settle the ownership of some 33 million San Miguel Corp. (SMC) shares acquired through the coco levy fund is "moot and academic," according to the Presidential Commission on Good Government (PCGG).

PCGG commissioner for legal affairs Narciso Nario said this was so because the supposed stock purchase agreement between the PCGG and the Government Service Insurance System or GSIS was never consummated in the first place.

"There is already nothing there. The settlement or the compromise with the Government Service Insurance System, PCGG and the United Coconut Planters Bank was already withdrawn," Nario said. He said it was way back in 1994 when the agreement was withdrawn. The disputed shares were worth P9 billion in 2000.

"The SC nevertheless decided on it, even if the agreement was withdrawn. Now all these issues and events occurred in 1994," Nario said, "So this is already moot and academic. The court made a decision on it and there was nothing." he said. Nario was a Sandiganbayan justice.

The PCGG and the GSIS arranged a P1.45-billion stock purchase agreement involving SMC shares. Under the agreement, the PCGG would sell the shares to the GSIS which in turn would sell them to members.

Businessman Eduardo Cojuangco Jr. now the majority owner of SMC, opposed the plan, along with the Philippine Coconut Producers Federation (COCOFED) Inc., and the late Zamboanga City mayor Maria Clara Lobregat.

Cojuangco is claiming ownership of 54 million shares in UCPB and 26,448 in SMC.

COCOFED said coconut farmers are the "ultimate beneficial owners" of the disputed SMC shares. — Sandy Araneta