Estrada gives up on coco levy fund

A compromise settlement on the P50-billion coco levy funds which were meant to rehabilitate the country's coconut industry will have to be resolved by the next administration.

President Estrada disclosed Friday night that he has decided to leave the matter to his successor after contending parties to the coco levy funds issue refused to accept the government-drafted settlement.

The President rued that his efforts to convince his businessman-friend and political ally Eduardo Cojuangco Jr. to accept the proposed resolution have come to naught.

Coconut farmers identified with Quezon province Rep. Wigberto Tañada have threatened to resort to legal action to stop the government-brokered compromise.

"Bahala na ang next president (It's up to the next president). At least I tried my best," Mr. Estrada said.

The President had earlier asked Executive Secretary Ronaldo Zamora to negotiate with Cojuangco's lawyers the mechanics of the proposed coco levy trust fund, built around the 47 percent of the sequestered shares at San Miguel Corp. (SMC), which have an estimated value of P50 billion, but will not include Cojuangco's own shares.

As approved in principle, the fund will include only 20 percent of the shares at SMC which Cojuangco has agreed not to contest anymore, but the remaining 27 percent will continue to be litigated in court.

Cojuangco's shares in the food and beverage conglomerate were sequestered during the Aquino administration by the Presidential Commission on Good Government (PCGG), for allegedly being bought out of the coco levy funds collected from coconut millers and farmers.

The PCGG has been trying to recover the levy funds at the Sandiganbayan as part of the ill-gotten wealth case against the alleged Marcos crony, who supported Mr. Estrada's presidential bid in 1998.

The President said Cojuangco, who met with him during his state visit to China, reiterated to him his willingness to part with the 20 percent ownership shares of the Coconut Federation of the Philippines (Cocofed) at SMC.

"He (Cojuangco) gave up everything. He will not get a single cent. The 20 percent will be for the Cocofed farmers because this belongs to (them)," he stressed.

Cojuangco flew to Beijing Wednesday night to lead top executives who hosted a luncheon meeting with the President on the third day of his state visit.

"It's okay with him (Cojuangco), but it's not okay with the other side, Congressman Tañada's," Mr. Estrada said. "All he is asking for is that the 20 percent should go, should be allocated to the coconut farmers. Is that unreasonable?"

The President has repeatedly postponed signing an executive order (EO) that would settle the coco levy issue.

But certain provisions of the draft EO were being questioned by contending parties from Cocofed led by Zamboanga City Mayor Ma. Clara Lobregat, on one hand, and also by the coconut farmers' groups represented by the Bishops-Businessmen Conference (BBC) led by businessman Jose Concepcion.

The BBC is blocking efforts of the Lobregat camp, an ally of Cojuangco, to retain 20 percent and a board seat in the proposed trust fund board for the coco levy.

"What's the use if I sign the EO? And then, the group of Bobby Tañada will just go to court and the court will issue a TRO (temporary restraining order)? It will take years again," the President said.

As agreed earlier with Cojuangco, the equivalent of P5 billion out of interest earnings from these 20 percent shares in SMC will be used by the government for rehabilitating the coconut industry, including providing livelihood assistance and scholarships for coco farmers and their dependents.

Cojuangco has insisted that he would continue to contest before the courts the Aquino administration's sequestration of his shares at the SMC and at the United Coconut Planters Bank which were taken over by the PCGG.

"As far as I'm concerned, I bought these out of my own money," Cojuangco said.