Press Release
January 11, 2006
NO NEED FOR COMPROMISE DEAL ON COCONUT LEVY CASE -- PIMENTEL
Senate Minority Leader Aquilino Q. Pimentel, Jr. (PDP-Laban) today
branded as a backward and illogical step the move of the
Presidential Commission on Good Government to revive the negotiation
between coconut farmers and businessman Eduardo Danding Cojuangco,
Jr. for a compromise agreement on the 18-year old coconut levy case.
Pimentel pointed out that the Sandiganbayan, in a decision issued in
May, 2004, held that the 27 percent shareholding in the San Miguel
Corporation (SMC), originally acquired through the coconut levy
funds, was owned by coconut farmers, held in trust by the government
for the benefit of the farmers and the coconut industry.
He said the Sandiganbayan issued the decision after it was ordered
by the Supreme Court to resolve the issue. Subsequently, he said
there was a motion filed with the anti-graft court to execute the
decision.
However, he said the motion to execute has not yet been acted upon
by the Sandiganbayan.
There is no need for a compromise agreement on the disputed coconut
levy assets. Normally you enter into a compromise agreement before
or during the middle of the litigation, but not when a decision has
already been rendered by the court, Pimentel said.
He said he could not find any rhyme nor reason behind the stand of
the PCGG, as spelled out by Chairman Camilo Sabio, to seek an
out-of-court-settlement between the coconut farmers and Cojuangco on
the coconut levy case at this stage.
He said the PCGGs action reflects the Arroyo governments lack of
direction and resolve in settling the case and its indifference to
the plight of about 8 million, small coconut farmers and their
families whose economic condition continues to deteriorate due to
the governments failure to rehabilitate the ailing coconut industry
and rescue it from the brink of collapse.
According to Pimentel, the Sandiganbayan ruling on the ownership of
the 27 percent shareholding in the SMC applied to six coconut oil
mills and 14 companies.
The minority leader warned that a compromise agreement at this time
would only push back the governments prolonged efforts to recover
the coconut levy assets. He said this would also render meaningless
the hard-earned legal victory of the government and the PCGG during
the chairmanship of Haydee Yorac on the issue of ownership and
control of the 27 percent SMC shareholding.
The 27 percent is entirely different from the 20 percent
shareholding in the SMC which Cojuangco is claiming to have been
acquired through his personal funds and which the government is also
claiming.
Pimentel said the more the PCGGs move for a compromise settlement
becomes ridiculous in the light of Cojuangcos public statement
opposing it and maintaining that he would rather see the case
resolved by the courts.
Criticizing the Arroyo government for its confusing policy in
resolving the coconut levy controversy, Pimentel recalled that it
ruled out any out-of-court settlement on the case during the early
part of its term and instead followed Yoracs position to rely on
the courts to resolve the case.
Moreover, Pimentel recalled that the Arroyo government, upon its
inception in 2001, revoked an already-completed compromise agreement
between the farmers and Mr. Cojuangco on the coconut levy dispute.
The compromise agreement was negotiated by the government of
President Joseph Estrada with the help of Catholic bishops and
business leaders.
He said that had the November, 2000 compromise agreement not been
shelved by the Arroyo government, it would haven unfrozen billions
of pesos funds needed for the massive replanting of high-yielding
coconut varieties and for alternative livelihood projects for
marginalized farmers.
Under the compromise agreement, P50 billion from the proceeds of the
sale of the 27 percent of SMC shareholding would be set aside for
the establishment of a coconut industry trust fund to be
administered by coconut farmers themselves.
In my view, the Arroyo governments decision to revoke that
compromise agreement was a colossal mistake because it shut off the
release of much-needed funds to alleviate the plight of the
long-suffering coconut farmers, Pimentel said.
Pimentel said it is dismaying that five years after invalidating the
already-completed compromise agreement on the coconut levy case, the
Arroyo government will go through the rigmarole of striking a
similar agreement as if to admit that its earlier action was a
mistake. |