PCGG not bothered by San Miguel expansion

The Presidential Commission on Good Government has nothing but praises for the expansion binge of San Miguel Corp. saying it has improved the market value of one of the world’s biggest conglomerates controlled by controversial businessman Eduardo “Danding” Cojuangco Jr.

“I am happy that San Miguel is increasing its value through these expansion projects. And I pray for their continued success,” Ricardo Abcede, PCGG commissioner for legal affairs, told The STAR.

From its core brewery business, San Miguel has diversified into oil, power and mining.

The government, through the PCGG, controls 27 percent of San Miguel.

With its 27 percent stake in SMC, the government has five nominees to the SMC board of directors. They are Menardo Jimenez, businessman Egmidio Jose, former Presidential Security Group (PSG) head Leo Alvez, former Nueva Ecija congressman Pacifico Fajardo, and former justice secretary Silvestre Bello III.

Although it has five representatives in the board, Abcede said the government does not interfere in the management of San Miguel.

“Our policy is we never interfere with the operations and policies of sequestered corporations. It is a management decision. Unless there are very clear signs of fraud and dissipation,” Abcede said.

Earlier, San Miguel bought the 27 percent stake of the Government Service Insurance System (GSIS) in the Manila Electric Co. (Meralco) reportedly for P27 billion.

San Miguel had also bought a controlling stake in Petron Corp. from British investment firm Ashmore Group for some P33 billion or $660 million.

The PCGG, even during the chairmanship of Haydee Yorac, has never contested Cojuangco’s management of the company.

“When he took over from (Andres) ‘Andy’ Soriano (III), everyone was saying he did much better because he has expanded San Miguel. And we are part of San Miguel in the sense that we have shares,” Abcede said.

But he stressed that PCGG’s tacit support for Cojuangco has never lessened its determination to pursue with the Sandiganbayan its claim over another 20 percent in San Miguel that the tycoon was said to have acquired using coconut levy funds.

“Definitely, we’re still going after that. Or (we can) find a settlement,” Abcede said.