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Supreme Court upholds gov’t claim over Cojuangco shares in UCPB

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Eduardo “Danding” Cojuangco Jr. INQUIRER FILE PHOTO

MANILA, Philippines—The Supreme Court upheld the government’s claim over shares of businessman Eduardo “Danding” Cojuangco at the United Coconut Planters Bank (UCPB).

In a decision released Monday, the high court dismissed Cojuangco’s petition that questioned the July 2003 decision of the Sandiganbayan, declaring the assets as illegally acquired.

“The (UCPB shares) transferred to defendant Cojuangco are hereby declared conclusively owned by the Republic of the Philippines to be used only for the benefit of all coconut farmers and for the
development of the coconut industry, and ordered reconveyed to the government,” the decision penned by Associate Justice Presbitero Velasco Jr. stated.

The high court said the Presidential Commission on Good Government (PCGG) has presented sufficient evidence to prove its claim against the said shares.

The high court said the anti-graft court is correct when it nullified the May 25, 1975, deal of the Philippine Coconut Administration (PCA) that transferred to Cojuangco by way of compensation 10 percent of the 72.2 percent shares of First United Bank (now UCPB) that the PCA bought from his uncle Pedro Cojuangco. The court said the fund used to buy said shares was that from the coco levy.

The high court said Cojuangco in effect received public assets valued then at P10.88 million. It took note of Cojuangco’s admission that the PCA paid the entire acquisition price for the 72.2 percent shares out of the Coconut Consumers Stabilization Fund (CCSF).

“Consequently, Cojuangco cannot stand to benefit by receiving, in his private capacity, 7.22 percent of the FUB shares without violating the constitutional caveat that public funds can only be used for public purpose,” the high court said.

“Accordingly, the 7.22 percent FUB (UCPB) shares that were given to Cojuangco shall be returned to the Government, to be used ‘only for the benefit of all coconut farmers and for the development of the coconut industry’,” it added.

“The UCPB shares of stock of the alleged fronts, nominees and dummies of defendant Eduardo M. Cojuangco Jr., which form part of the 72.2 percent shares of the FUB/UCPB paid for by the PCA with public funds later charged to the coconut levy funds, particularly the CCSF, belong to the plaintiff Republic of the Philippines as their true and beneficial owner,” the high court said.

The anti-graft court in 2003 said that the use by the PCA of coconut levy funds to purchase the 72.2 percent of UCPB in 1975 was illegal.

Under Section 1 of Presidential Decree No. 755, which was cited by the PCA as authority for the use of the Coconut Consumers’ Stabilization Fund (CCSF), was never published and hence “did not
acquire binding force,” the Court added

The high court said, “We cannot, therefore, extend to the said agreement the status of a law. Consequently, we join the Sandiganbayan in its holding that the PCA-Cojuangco Agreement shall be treated as an ordinary transaction between agreeing minds to be governed by contract law under the Civil
Code.”

Eight other justices concurred in the ruling in full-court session while the six others did not participate in the voting.


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  • http://pulse.yahoo.com/_4R3GZTGML26TV2VGS6RVHP2THM Fred

    Baka sumulat ulit si Atty Estelito Mendoza sa Supreme Court? Mag flip-flop kaya?

  • magiting78

    Cno ba head ng PCGG? Yari ka ngaun ki Pnoy tanggal k s pwesto hehehehe….

  • UrHONOR

    ANOTHER EXCELLENT decision for the mamamayan ng bayan!  Sige, ipagpatuloy ang paglilipul ng mga TNL na mga MMM na yan….lalong-lalo na sa pamahalaan ni Makoy, Estrada, at Gloria.  Maraming-maraming malalaking isda at mga balyena dyan sa mga pamahalaang yan lalong-lalo na sa mga military officers na mga super rich na ngayon.

    • http://alasfilipinas.blogspot.com/ Pepe Alas

      Yeah, another excellent decision indeed. Something that you can never ever do in your pathetic lifetime.

      • UrHONOR

        No se importa, hijo de Damaso.

      • http://alasfilipinas.blogspot.com/ Pepe Alas

        The wonders of online translators. In addition, this jerk has no idea who the real villain in Noli Me Tangere is. To his pathetic mind, it’s Padre Dámaso, hahaha! Puro na lang Dámaso Dámaso Dámaso. Palibhasa hindí marunong mañgastila AT WALÁNG CAALÁM ALÁM sa tunay na casaysayan ng Filipinas cayá puro Dámaso lang ang bucám-bibíg, ¡hahaha! Mg̃a bopols talagá, oo…

  • palakasantayo

    Just about time the coco farmers benefit from this blatant crime. One win for the ‘masa’ against one person, cojuanco against million farmers. Yeah Pinoy… this act or judgement although not yours, reflects your course to ‘matuwid na daan’ kahit masagasaan ang tiyo mo’. Hopefully, whoever administers this coco fund will follow the ‘matuwid na daan’ also. This fund will be a big boost to improve our coco industry to satisfy global demand for coco products. 

  • Albert Einstien

    sino yung 6 JUSTICES na ayaw bumuto? …..gusto ko magtirik ng kandila….at ipagdasal sila….!

  • http://pulse.yahoo.com/_HAPQVQNMOOCNHB54ONDGD2KSRE esther

    SALAMAT PO

  • EdgarEdgar

    (+) Supreme court upholds gov’t claim over Cojuangco shares in UCPB.

    (–) Noynoy refuses to uphold 3.5 million coco farmers’ claim on coco levy fund after 26 long years of waiting and still counting.

    • EOJ

      Stupid comment. The govt is actually upholding the farmer’s rights to the coco levy. You just making misleading comments to discredit PNOy, and you do this all the time. You are a certified PNoy hater.

      This decision shows the SC is independent under the Presidency of PNoy.

      • EdgarEdgar

        I would like to agree with you, but there are 3.5 million coco farmers and their descendants who will call you a liar to your face. The money that rightfully belongs to them has not been returned to them after 26 years and counting. To pacify them, please feel free to address them directly. Just bring a couple of security aides, because the coco farmers hate to be given the runaround about some SC decision. And please tell Mr. and Mrs. Abad to stop using other people’s hardearned money for short-term quickie personal gains.

  • 12JEM

    Sinu-sino ang mga 6 justices na hindi bumoto for upholding the 1975 decision?

    • http://profile.yahoo.com/NDH6O6PNTAJ23SNYTA6LSYY47Q Butuan

      Sino pa yong mga kakampi ni GMA! 

  • w33k3nd3r

    Danding is a crook!

  • isalexus

    Paano yan?1 Danding bankrolled Wanwang campaign– anybody here really believe that Danding will not insist on his ROI!!

  • disqusted0fu

    Busted! one down! next up… hacienda luisita



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