No compromise on SMC - Cojuangco

There would be no compromise with the government to keep businessman Eduardo "Danding" Cojuangco in the chairmanship of San Miguel Corp. (SMC), his lawyer said yesterday.

Former justice minister and solicitor general Estelito Mendoza said Cojuangco had precisely pointed out his "honor" is at stake in the case involving his alleged purchase of shares in SMC using the Coconut Consumer Stabilization Fund (CCSF), or the coco levy funds.

"Let me make this clear, from the time I became the lawyer of Mr. Cojuangco in 1987, he made it clear to me that there will be no compromise in these cases. The courts must be the one to make the judgment because what’s at stake here is not just money but his honor," Mendoza said during an interview with ANC’s "Strictly Politics" Tuesday night.

He said any settlement with the government would only lead to ugly "speculations" and thus, it is only up to the courts to decide on the matter.

Reeling from a court ruling that could imperil his stock holdings in SMC, Cojuangco vowed to "exhaust all means" to keep his shares and fight any government move to oust him from the SMC chairmanship.

Cojuangco, who was reinstated as SMC chairman during the Estrada administration, sustained a setback after the Sandiganbayan ruled Friday that his controlling stake in United Coconut Planters Bank (UCPB) was forfeited in favor of the government.

The anti-graft court said UCPB was acquired illegally using levies imposed on coconut farmers during the regime of late strongman Ferdinand Marcos.

The UCPB shares were bought with some P85.8 million from the coconut levy fund. The shares represented a 72.2 percent stake in the bank.

Malacañang, through Presidential Spokesman Ignacio Bunye, had pointed out the government should have majority control of SMC since the UCPB has 27 percent of SMC shares while Cojuangco only controls 20 percent.

On the SMC’s 15-man board of directors, the government — through nominees from the Presidential Commission on Good Government (PCGG)— has seven members to Cojuangco’s eight.

PCGG Commissioner Ruben Carranza said the government should control Cojuangco’s shares at SMC since they were bought using the coco levy deposits at UCPB, which the PCGG sequestered in 1986.

Cojuangco has two weeks to appeal the ruling before the Supreme Court, which on Dec. 14, 2001 declared the levy funds as "prima facie public funds."

Mendoza, meanwhile, belied speculations that the deal with the government involves Cojuangco keeping his SMC chairmanship with UCPB ending up with the government even as the court process would be allowed to continue.

Mendoza said Cojuangco would immediately inform him if there was such a compromise agreement made. "It’s not even being talked about," he said.

Malacañang had said it does not have any immediate plans of wresting control of SMC from Cojuangco.

Bunye said earlier the government will wait for the final ruling of the Sandiganbayan on the issue of the ownership of the coconut levy shares before making any moves on the reported plans by the PCGG to wrest control of SMC from Cojuangco.

On Cojuangco’s possible presidential bid, Mendoza said he believes his client’s political decision would have no relation to his precarious hold on the SMC chairmanship.

He said the Sandiganbayan ruling neither "dissuaded nor brought about a decision for him to run."

"He (Cojuangco) will not run for President if only to find solution to his problems because the solution lies with the courts," he said.