Press Release
December 5, 2007

PALACE, PCGG ASKED IF THEY WILL PURSUE COMPROMISE
DEAL IN VIEW OF COURT RULING FAVORABLE TO COJUANGCO

Senate Minority Leader Aquilino Pimentel, Jr. (PDP-Laban) today asked Malacañang and Presidential Commission on Good Government whether they will still pursue an out-of-court settlement on the multi-billion peso coconut levy cases in view of last week's decision of the Sandiganbayan that upheld businessman Eduardo "Danding" Cojuangco's claim of ownership over the 20 percent shareholding in the Sandiganbayan which was believed to have been purchased with levy funds.

Pimentel said the Sandiganbayan ruling, disappointing as it was, seemed inconsistent with the Supreme Court decision, rendered in the late 1990s, which held that the coconut levy assets invested in the SMC, were imbued with public interest, which means these are not privately owned.

Later, the Sandiganbayan, in a verdict issued May, 2004 held that the 27 percent shareholding in the SMC should be considered public funds and held in trust by the government for the benefit of the coconut farmers.

Pimentel said latest anti-graft court's ruling recognizing Cojuangco's ownership of 20 percent of the SMC shareholding that is tied up in the coconut levy cases is prejudicial to the interest of some 18 million coconut farmers and workers who should benefit from the levy funds in the form of programs to rehabilitate the ailing coconut industry and to ameliorate their economic and social conditions.

However, he said it is consoling to note that the Presidential Commission on Good Government will file a motion for reconsideration of the Sandiganbayan decision or if necessary bring the case to the Supreme Court.

The senator from Mindanao said it was puzzling why despite the earlier court victories that the government scored in the coconut levy cases, Malacañang and the PCGG revived the effort to enter into a compromise settlement with Cojuangco and other big-time stakeholders in the coconut industry.

"I was wondering if the government had the upperhand in the cases, why should it be the one seeking a compromise?" he asked.

Reacting to PCGG Chairman Camilo Sabio's argument that it was the coconut farmers themselves who were for an out-of-court settlement to avoid prolonged litigation, Pimentel said the fact is that big groups of coconut farmers, such as those headed by former Sen. Wigberto Tanada and former Quezon Rep. Oscar Santos were strongly against such course of action.

Pimentel said he agrees with the position of the Tanada and Santos that it would be to the interest of the government and the farmers to instead pursue the coconut levy cases, involving about P130 billion in sequestered shareholdings in the SMC, with the courts.

He said that there are better prospects of finally resolving the 20-year old coconut levy cases if the government will focus its efforts on these cases.

The senator said there should no further delay in terminating these cases for the sake of the marginalized small coconut farmers whose economic condition continues to deteriorate due to the government's failure to rehabilitate the moribund coconut industry.

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