Supreme Court junks government motion seeking reversal of ruling on SMC stakes

MANILA, Philippines - The Supreme Court (SC) has junked the second motion for reconsideration filed by the government seeking a reversal of its decision awarding to tycoon and political kingpin Eduardo Cojuangco the 20-percent stake in San Miguel Corp.

In a notice issued by SC Clerk of Court Enriqueta Vidal last week, the SC “resolved to expunge from the records” the omnibus motion filed by the Presidential Commission on Good Government (PCGG), through the Office of the Solicitor General.

The PCGG asked the High Tribunal to reconsider its decision dated April 12, 2011 granting Cojuangco ownership of the big block of SMC shares originally equivalent to 20 percent of SMC amounting to P84.56 billion.

In rejecting the second MR, the high court brushed off a bid by the OSG to set the case for oral arguments before the SC justices.

Lawyer Gerard Mosquera, PCGG commissioner in charge of litigation, shrugged off the SC snub of its second MR saying they will explore other options to get a reversal of the award of the SMC stake to Cojuangco.

Mosquera said that there may still be hope, but admitted chances for a reversal were slim.

The SC ruling upheld Cojuangco’s ownership on the disputed 20 percent of the food and beverage conglomerate.

Records of the case showed that Cojuangco bought shares equivalent to 20 percent of SMC from the money he loaned from the United Coconut Planters Bank (UCPB), which he himself headed as president and member of the board of directors.

The UCPB was established mainly from funds of the Philippine Coconut Authority (PCA) raised from the coconut levy that was ordered collected from coconut farmers during martial law.

The government currently holds 91 percent of UCPB that was earlier sequestered by the PCGG.