SC paves way for release of P60B in coco levy funds
MANILA, Philippines–The Supreme Court has paved the way for the execution of its judgment on one of the coco levy cases, a move that would funnel P60 billion in funds for the benefit of an estimated 3.5 million coconut farmers.
In its last en banc session for the year, the court granted the Philippine government’s motion for partial entry of judgment on 753,848,312 shares in the San Miguel Corp. (SMC), a 31-percent Series 1 block purchased through taxes levied on coco farmers during martial law.
The Supreme Court. INQUIRER.net FILE PHOTO
Seven justices unanimously voted for the immediate issuance of the judgment concerning the court’s Sept. 4, 2012, resolution, in which it ruled that the SMC shares had been purchased using coco levy funds, and thus constitute public money. Partial judgment was sought because 4 percent of the stocks remained under court litigation.
The seven were Chief Justice Lourdes Sereno and Associate Justices Presbitero Velasco Jr., Mariano del Castillo, Martin Villarama Jr., Jose Mendoza, Bienvenido Reyes and Marvic Leonen.
Five magistrates chose not to take part in the vote: Associate Justices Antonio Carpio, Justice Teresita Leonardo-de Castro, Diosdado Peralta, Estela Perlas-Bernabe and Francis Jardeleza. Three others were on leave during Wednesday’s session: Associate Justices Arturo Brion, Lucas Bersamin and Jose Perez.
The full ruling has yet to be released, but with Wednesday’s resolution, the court formally ordered that its 2012 decision be recorded, causing its execution.
In the 2012 decision, the Supreme Court upheld the Sandiganbayan’s ruling declaring the SMC shares public funds, as they were acquired through coco levy funds. The shares were registered under the Coconut Industry Investment Fund and its holding companies.
Wednesday’s resolution was issued in response to a motion the Office of the Solicitor General filed on Oct. 14, and a supplemental motion on Oct. 20 seeking entry of judgment in the case.
The motions said a favorable ruling would end decades of litigation and provide P60 billion in proceeds for the benefit of coco farmers.
The controversial coco levy funds came from taxes that alleged cronies of the late strongman Ferdinand Marcos collected from coconut farmers during martial law, using the public money for their personal profit through the purchase of United Coconut Planters Bank and a majority stake in SMC.
The government sequestered the fund after Marcos’ ouster in 1986 and a lengthy court battle ensued.
Pambansang Kilusan ng mga Samahang Magsasaka (Pakisama) welcomed ruling.
“We thank God for giving guidance to the Supreme Court justices in making a decision, because after two years of waiting, the coco levy case was issued an entry of judgment so that coco farmers across the Philippines could use [the funds],” Pakisama president Ireneo Cerilla said in a statement.
He expressed gratitude to groups that have helped the coco farmers’ cause over the years and called for support in continuing the push for farmers’ welfare.
“May we all come together and plan for rural development and the progress of the coconut industry. Let us develop the rural coconut industry and coco farmers and enable them to help in improving our economy in the future,” Cerilla said.
