Source: Malaya
THE Supreme Court (SC) has affirmed a Sandiganbayan 2004 ruling that the 7.2 percent shares of Eduardo Cojuangco Jr. at the United Coconut Planters Bank (UCPB) belong to the government.
The High Court en banc, in its decision promulgated Nov. 27, denied the petition filed by Cojuangco to nullify the decision of the anti-graft court.
The decision effectively voided the May 25, 1975 agreement between Philippine Coconut Administration (PCA) and Cojuangco, which provides for the transfer, by way of compensation, to Cojuangco of 10 percent (7.2 percent out of the 72.2 percent) of First United Bank (now UCPB) shares of stocks that he purchased using the coconut levy funds.
The Court noted that Cojuangco, in effect, had received public assets with a value then of P10.88 million, after taking notice of his admission that the PCA had paid the whole 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, 7.2 percent of the FUB shares without violating the constitutional caveat that public funds can only be used for public purpose. Accordingly, the 7.2 percent FUB (UCPB) shares 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’,” the ruling penned by Associate Justice Presbitero Velasco Jr. said.
In the same ruling, the High Court upheld the anti-graft court’s decision declaring the government as owner of the 72.2 percent shares of UCBP paid by the PCA using coconut levy funds.
“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 Court added.
Back in 2004, the Sandiganbayan resolved its partial summary judgment issued in July 2003, which said that the use by the PCA of coconut levy funds to purchase 72.2 percent of UCPB in 1975 was illegal.
It noted that Section 1 of Presidential Decree No. 755, which was cited by the PCA as authority for the use of the Coconut Consumers’ Stabilization Fund was never published and therefore “had no binding force.”
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