OSG to contest Sandigan decision on UCPB shares

The Office of the Solicitor General (OSG) will file today a petition with the Supreme Court (SC) seeking to overturn a decision of the Sandiganbayan that prevents nominees of the Philippine Commission on Good Government (PCGG) from exercising their right to vote on the sequestered shares of the bank.

Finance Secretary Alberto Romulo said the OSG will challenge the temporary restraining order (TRO) issued against the PCGG nominees which blocks their bid to acquire majority control of the 15-man UCPB board in its stockholders meeting on March 6.

The OSG will cite in its petition the 1992 decision of the SC which gave government the right to vote on the sequestered shares of UCPB.

"We will question the Sandiganbayan ruling. What is its basis for the TRO when there is already an existing ruling by the SC favoring the government?" Romulo asked.

Government wants to take control of UCPB which was funded largely by small coconut farmers, and subsequently, replace Eduardo "Danding" Cojuangco, Jr., chairman of food and beverage giant San Miguel Corp. (SMC), who is believed to have also bought shares in SMC using tax proceeds collected from coconut farmers.

Both the SMC and UCPB are controlled by Cojuangco after buying majority stakes in the two companies allegedly using coco levy funds collected from coconut farmers in the early 1980s.

The government nominees to the UCPB board are Ramon Valencia, former chairman of the Social Security System; banker Octavio Espiritu; Franklin Fuentebella, retired general Leo Alvaz who was head of the Presidential Security Group under former President Fidel Ramos; and former Justice Hector Hofilena.

Jose Faustino, executive director of the Coconut Industry Reform Movement, said the Multisectoral Task Force on Coconut Levy (MTFCL) is also filing a petition with the SC asking the High Court to declare with finality the nature of the coco levy funds. He added the coco farmers’ groups are now completing the paper work before filing their petition with the high court.

"We will be moving to push for coconut farmers’ representation in the boards of key institutions on which farmers have clear interests," Faustino said.

Earlier, government moved to press its bid to wrest control of SMC, starting with the shake-up of UCPB.

Romulo, last week, announced the appointment by Malacañang of Deogracias "Sonny" Vistan and Francisco del Rosario, as chairman and president, respectively of the UCPB, replacing Jeronimo Kilayco and Lorenzo Tan.

The other government nominees to the UCPB board are former Rep. Oscar Santos, who is head of the Coconut Industry Reform Movement; Efren Villasenor, chairman and president of the Pambansang Kilusang ng Maliliit na Magniniyug or PEKSMAN; Manuel Valdueza, Dodi Limcaoco, Helen Osias, Dunga Lim, a certain Mr. Lejano, Rolando Golez, Juan Carlos, columnist Alex Magno, Tess Baltazar, Bong Arceo Jr. and businessman Joey Rufino.

Earlier, President Arroyo declared that government does not have enough shares to takes control of SMC from Cojuangco.