Gov’t eyeing to sell over 70 percent of UCPB shares

MANILA, Philippines - The administration is eyeing to sell more than 70 percent of United Coconut Planters Bank (UCPB) shares that the Supreme Court (SC) has  declared as government-owned.

Speaking to reporters yesterday at a financial forum in Makati, National Treasurer Rosalia de Leon said the present value of the shares will be known soon after a state financial advisor finishes its “assessment.”

“That is being studied,” she said. “We will still have to value them.”

De Leon said the government’s share in UCPB, including those of the Philippine Deposit Insurance Corp. (PDIC), is “higher” than 70 percent.

The SC decision has paved the way for the government to determine what to do with the shares, which are currently in the custody of the Philippine Commission on Good Government (PCGG), she added.

Cristina Orbeta, PDIC executive vice president, said the government may decide to sell the shares, but that issues will still have to be addressed.

It will be up to the national government where will the proceeds of the planned share sale will go, she added.

“We defer to the national government for the process of handling all coco levy fund related assets,” she said.

The PDIC has infused a total of P12 billion in UCPB, which was placed under rehabilitation in 2009.

The amount represented the value raised through capital notes, which are convertible to preferred shares should the bank fail to settle them in 10 years.

Orbeta said the PDIC is concerned if UCPB will be able to pay its loan should the transfer of shares happen.

“Should it be pursued, all liabilities, including the PDIC loan, will be transferred to the new owner,” she said.

“Of course, the (national) government will have to talk to us once it decides to pursue the matter.

“But as of now... it is status quo for us.” 

Malacañang distanced itself yesterday from proposals to allocate the multibillion-peso coco levy funds for the benefit of coconut farmers. 

Speaking to reporters, deputy presidential spokesperson Abigail Valte said it’s up to the PCGG how to manage these funds.

“Let us leave that decision for the PCGG to make, on how they intend to push the position of the government.

“But again, the decision that was reported in the paper is an affirmation of an earlier decision that was handed down by the Supreme Court, and at least, there is now closure on this issue.”

Last Tuesday, the SC ruled with finality that the shares of businessman Eduardo Cojuangco Jr. in UCPB are government-owned.

The SC sustained the decision of the Sandiganbayan that Cojuangco’s UCPB shares were part of assets illegally acquired from coconut levy funds during the Marcos administration.

– With Delon Porcalla