Gov't Owns SMC Shares Bought From Coco Levy Funds

Supreme Court of the Philippines

See - http://sc.judiciary.gov.ph/pio/news/2012/09/09281201.php


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It’s final. The Government owns the San Miguel Corporation (SMC) shares bought from the coconut levy funds.
 
The Supreme Court En Banc has denied with finality for lack of merit the motion for reconsideration of the Philippine Coconut Producers Federation, Inc. (COCOFED), et al. of its January 24, 2012 decision which affirmed the Sandiganbayan ruling that re-conveyed to the government shares in San Miguel Corporation (SMC) in the aggregate amount of P1.656 billion bought using coconut levy funds and registered in the names of the Coconut Industry Investment Fund (CIIF) and its holding companies.

The Court declared that no further pleadings shall be entertained and ordered that an entry of judgment on the case be made.

In a nine-page signed resolution penned by Justice Presbitero J. Velasco, Jr., the Court ruled that the said motion for reconsideration was but a mere reiteration or rehash of the arguments that had already been previously pleaded, discussed, and resolved by the Court in its January 24, 2012 Decision. “[C]onsidering that the motion’s arguments are unsubstantial to warrant a reconsideration or at least a modification, this Court finds no reason to modify or let alone reverse the challenged Decision,” held the Court.

The Court also clarified that the 753,848,312 SMC Series 1 preferred shares of the CIIF companies converted from the CIIF block of SMC common shares subject of its September 17, 2009 Resolution in GR Nos. 177857-78, GR No. 1781933, and GR No. 180705, shall now be the subject matter of the aforesaid January 24, 2012 decision and shall be declared owned by the Government and be used only for the benefit of all coconut farmers and for the development of the coconut industry.

In its January 24, 2012 decision, the Court also had held that since the CIIF companies and the CIIF block of SMC shares were acquired using coconut levy funds – funds, which have been established to be public in character – it goes without saying that the concerned acquired corporations and assets ought to be regarded and treated as government assets. Thus, being government properties, they are accordingly owned by the Government, for the coconut industry pursuant to currently existing laws, the Court ruled.

The six CIIF Oil Mills were acquired by United Coconut Planters Bank (UCPB) using coconut levy funds. On the other hand, the 14 CIIF holding companies are wholly owned subsidiaries of the CIIF Oil Mills. These 14 CIIF holding companies used borrowed funds from the UCPB to acquire the SMC shares in the aggregate amount of P1.656 billion. (GR Nos. 177857-58, COCOFED v. Tañada; GR No. 178193, Ursua v. Republic, September 4, 2012)

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