Estrada says Danding to defend 20% stake in SMC

Businessman Eduardo "Danding" Cojuangco, President Estrada's political patron, will battle it out in court to prove that 20 percent of the sequestered ownership shares in San Miguel Corp. (SMC) was his own investment and not sourced from the coconut levy funds.

The President told Palace reporters Friday that he was able to convince Cojuangco to give up the other 27 percent of the total 47 percent shares, consisting of the P50 billion that will be converted into a trust fund for the rehabilitation of the coconut industry.

Although the businessman has agreed to give up the 27 percent invested by his United Coconut Planters Bank in the food and beverage conglomerate, his lawyers, led by former Solicitor General Estelito Mendoza, are ready to fight it out in the courts for his 20 percent claim.

"What Ambassador Cojuangco wants is to simply clear his name and make it known that he did not steal the 20 percent from the coco levy funds," Mr. Estrada said.

The President pointed out that if it were not for Cojuangco, the funds would not have been properly invested in the first place.

Mr. Estrada also disclosed that he will soon sign an executive order that will create a 10-man body to oversee the use of the funds.

He said the money will not be used as a dole-out to farmers and that it cannot be considered as a public fund yet.

"These are sequestered funds and will remain so until ownership is established by the courts," the President said. "We still do not know who owns them, but this is now being studied very carefully."

He emphasized the funds will benefit thousands of coconut farmers, dismissing charges that the money will be given back to Cojuangco.

"The funds will be used for our poverty alleviation program," he said.

The President likewise dismissed charges of cronyism hurled against him by critics, saying it was mere coincidence that Cojuangco was re-installed as SMC board chairman after the national elections.

"The SMC board of directors and the representatives from the Presidential Commission on Good Government, they were the ones who elected Ambassador Cojuangco," he said.