It’s final! SC says gov’t owns Cojuangco UCPB shares

MANILA, Philippines - The Supreme Court (SC) has declared with finality the shares of business tycoon Eduardo “Danding” Cojuangco Jr. in the United Coconut Planters Bank (UCPB) as government-owned.

In a unanimous resolution promulgated Tuesday, the SC dismissed Cojuangco’s appeal of its decision last Nov. 27 that affirmed the Sandiganbayan decision in July 2003 that his UCPB shares were part of assets illegally acquired from coconut levy funds.

The SC held Cojuangco’s motion for reconsideration had no merit since it was “mere reiteration of the arguments that have already been previously pleaded, submitted and resolved by the Court in its (earlier decision).”

Cojuangco had insisted his constitutional right to due process and non-impairment of contract was violated by the assailed ruling. But the SC dismissed this as mere rehash.

“The arguments in the motion are too unsubstantial to warrant reconsideration or modification. We find no reason to modify or abandon the challenged decision,” the SC further explained in the ruling penned by Associate Justice Presbitero Velasco Jr.

The high court pointed out its new ruling is final. “No further pleadings shall be entertained. Let entry of judgment be made in due course.”

In its assailed ruling approved by eight justices, the SC held the Sandiganbayan was correct in nullifying the May 25, 1975 deal of the Philippine Coconut Administration (PCA), which transferred to Cojuangco by way of compensation 10 percent of the 72.2 percent First United Bank (now UCPB) shares of stocks that the PCA purchased from his uncle, Pedro Cojuangco, using the coconut levy funds.

The SC stressed Cojuangco in effect received public assets with a value then of P10.88 million, considering his admission that the PCA paid the entire acquisition price for the 72.2 percent shares out of the Coconut Consumers Stabilization Fund (CCSF).

The SC said Cojuangco therefore benefited himself by owning property acquired using public funds.

The SC stressed the Presidential Commission on Good Government (PCGG) had presented “conclusive” and “incontrovertible” evidence to prove this in the anti-graft court.

“Consequently, Cojuangco cannot stand to benefit by receiving, in his private capacity, 7.22 percent of the FUB shares without violating the constitutional caveat that public funds can only be used for public purpose. Accordingly, the 7.22 percent FUB (UCPB) shares that were given to Cojuangco shall be returned to the Government, to be used ‘only for the benefit of all coconut farmers and for the development of the coconut industry’,” the high court explained.

The SC also upheld the anti-graft court’s ruling declaring the government as owner of the 72.2 percent shares of UCBP paid by the PCA using coconut levy funds.

“The UCPB shares of stock of the alleged fronts, nominees and dummies of defendant Eduardo M. Cojuangco, Jr. which form part of the 72.2 percent shares of the FUB/UCPB paid for by the PCA with public funds later charged to the coconut levy funds, particularly the CCSF, belong to the plaintiff Republic of the Philippines as their true and beneficial owner,” it added.

In the 2003 ruling, the Sandiganbayan ruled the use by the PCA of coconut levy funds to purchase the 72.2 percent of UCPB in 1975 was illegal.