GMA: No deal with Danding

Malacañang vehemently denied yesterday speculations that President Arroyo had struck a deal with businessman Eduardo "Danding" Cojuangco Jr. in his re-election as chairman and chief executive officer of San Miguel Corp.

"There’s no such deal. He (Cojuangco) was selected on the regular course of business. They had the numbers and he was re-elected as chairman," Presidential Spokesman Ignacio Bunye said, dismissing rumors of a secret deal between Mrs. Arroyo and Cojuangco purportedly to ensure the President’s victory at the polls.

"The President wants politics out of it. There’s no politics involved and I think the outcome clearly shows the intent of all parties to do what is beneficial for the country," Bunye added.

Speculations about a possible deal started circulating last year when the President and Cojuangco met secretly before announcing their respective political plans.

The suspicions were stirred anew after Cojuangco, chairman emeritus of the Nationalist People’s Coalition, left it to individual NPC members to decide whom to support in the presidential race. He himself has not publicly declared his own choice.

Cojuangco successfully repelled the government’s bid to wrest control of the food and beverage giant during the annual stockholders’ meeting and election of new board directors on Tuesday.

The Presidential Commission on Good Government (PCGG) said it was satisfied that its five nominees to the board were accepted. The government has seven seats in the 15-member SMC board. Aside from the five nominees, two other positions are occupied by representatives from the state’s two pension funds — the Government Service Insurance System and Social Security System.

In his daily press briefing at the Palace yesterday, Bunye asked the media not to inject politics into a purely corporate election.

"I think it’s best if we leave politics out of the situation. We know that the PCGG is out to protect the interest of the government. They did what they believed was necessary," Bunye told Palace reporters.

He said the government has no complaints about the results of the elections considering the fact that the conglomerate has been well managed as exhibited by its record growth and profits.

"I think we have to deal with a business reality. If you think you can get the majority or get the majority control, then you go for it. If not, you become satisfied with the status quo. But really the bottom line is whether or not the company is well run, well managed, and whether it’s beneficial to stockholders," Bunye pointed out.

One of the PCGG’s nominees to the board, Light Rail Transit Authority (LRTA) administrator Pacifico Fajardo, admitted that he himself voted for Cojuangco.

"As a former businessman myself, I believe Danding is running the corporation very well as we can see from the recent growth of SMC," he said.

With Cojuangco staying as chairman and chief executive officer and Ramon Ang as president, there will be no changes in the corporation’s top structure, he added.

PCGG Chairwoman Haydee Yorac earlier said that while they have no complaints over the way Cojuangco was managing SMC, the government still wanted to seize control of the conglomerate as it believes that the government has a majority share in the company.

It had difficulty, however, getting allies from independent stockholders.

The PCGG controls 27 percent of SMC shares, which was purportedly acquired through the controversial coco levy funds, which the Supreme Court has ruled as public funds.

In her speech yesterday in San Pablo City, Mrs. Arroyo cited the accomplishments of her administration in making use of the earnings of coco levy fund for the benefit of coconut farmers.

"Remember that after 30 years, it was only me who was able to win that case," she said, referring to the Supreme Court ruling.

"The funds we pay for insurance for coconut farmers, the construction of new oil mills and rehabilitation of old ones and many other projects are being funded from the coconut industry fund," Mrs. Arroyo said.

Meanwhile, some stalwarts of the NPC in Isabela reportedly had ill-feelings about the government’s attempt to wrest the SMC chairmanship from Cojuangco.

Isabela Gov. Faustino Dy Jr., national chairman and chief executive officer of NPC, said that some of his party mates interpreted the PCGG’s failed move as a way to pressure the NPC to endorse Mrs. Arroyo’s bid for a full six-year term in the upcoming elections.

Isabela’s fourth district Rep. Giorgidi Aggabao, another NPC stalwart, said that some segments of their party construed the PCGG’s attempt as politically motivated.

"The PCGG owes an explanation to the members of the NPC," said Aggabao, whose wife, Netty, is a Cojuangco scion. He added that the PCGG should prove that the failed attempt against Cojuangco was "a pure business call" and not a political maneuver. — With Rainier Allan Ronda, Lito Salatan