Former SolGen seeks SC reversal on Danding’s SMC shares

MANILA, Philippines—Former Solicitor-General Francisco Chavez today asked the Supreme Court to reverse its April 12, 2011 decision declaring that the 20 percent shareholdings of San Miguel Corporation (SMC) of businessman Eduardo “Danding” Cojuangco were not ill-gotten.

In a 77-page brief, Chavez, as citizen-intercessor, said there is enough evidence to show that government funds were actually used to buy the said shares.

Chavez said even Cojuangco himself had admitted that the money used to purchase the shares came from the United Coconut Planters Bank (UCPB), a public corporation.

UCPB was created by virtue of Presidential Decree 755. Issued in 1975, the decree saw to the acquisition by the Philippine Coconut Authority (PCA) of a commercial bank, the First United Bank, which would service the needs of coconut farmers all over the country. First United Bank would later transform itself to become UCPB.

Chavez said Cojuangco admitted in his pre-trial brief that the Cojuangco shares in SMC had been partly sourced from loans extended by UCPB, as well as advances made from the Coconut Industry Investment Fund (CIIF).

“By taking undue advantage of his office as President of UCPB, his authority and influence, coupled with his connections or relationship with the dictator Marcos and as a result of the improper use of coconut levy funds held in trust by UCPB, Cojuangco partly acquired the Cojuangco block of shares of SMC stocks,” Chavez said. He claimed that Cojuangco registered these shares under his name, as well as under the names of respondent corporations that had links to his burgeoning business empire.

“On the other hand, Cojuangco’s utilization of the CIIF funds to acquire the other part of the Cojuangco block of shares of SMC stocks is prima facie illegal and improper,” Chavez added.

Chavez quoted the Supreme Court decision in Republic v. Estate of Hans Menzi that the high court had affirmed a Sandiganbayan decision essentially declaring that Cojuangco held shares of stocks which were found to be ill-gotten wealth of the Marcos spouse.

At the same time, Chavez said he agreed with Associate Justice Conchita Carpio-Morales that the argument that Cojuangco was not a subordinate of the Marcoses is the “biggest joke to hit the century.”

He argued that Cojuangco held various positions during the Marcos era, was a godfather of the former President’s only son, Ferdinand Marcos Jr. and his companies enjoyed untrammelled privileges from the Marcos government.

“Mr Cojuangco was in an excellent position to accumulate funds to buy the SMC shares,” he said.