Last May 10, 2007, the Sandiganbayan came out with a ruling that allowed Danding to sell P6B worth of disputed SMC shares.

This Sandiganbayan ruling is not only questionable, it is also tantamount to an injustice to the coconut farmers who shouldered the coco levy funds which, in turn, were used to buy these contested SMC shares.

The public is very much aware that 47 percent of SMC Shares were acquired using coco levy funds or public funds. The ownership of these SMC shares is still
being contested because Mr. Eduardo “Danding” Cojuangco is laying claim to 20 percent. And yet, even before the courts have ruled on the ownership issue, here comes the Sandiganbayan allowing Danding to sell the disputed SMC shares so he can pay his debt to UCPB amounting to P6B. Is the court now saying that the 20 percent SMC shares are owned by Cojuangco?

In incurring the aforementioned loans, Danding used as collateral SMC shares. He incurred the loans from UCPB, a sequestered bank that was also put up using coco
levy funds. By allowing the sale, the Sandiganbayan is practically permitting Danding to pay off his loans without using his own money. In effect, government would be practically paying for the loans incurred by Danding. How fortunate for Danding and very unfortunate for the government and the coconut farmers. 'Parang ginigisa tayo sa sariling mantika.'

The timing of the ruling is also very suspect as it was carried out on the eve of the national elections. With people's attention focused on the elections, this questionable ruling would not receive as much public scrutiny. And this seems to be the case, because, so far, only the Office of the Solicitor General (OSG) and coconut farmer organizations are raising a howl.

Then again, the Sandiganbayan ruling might also have something to do with Malacañang's plan to enter into a compromise agreement with Danding. Malacañang's efforts to recover the coco levy has leaned towards arranging a compromise agreement with Danding practically after Presidential Commission on Good Government Commissioner Haydee Yorac's demise. Yorac vigorously pursued the cases filed against Cojuangco. But the Arroyo administration has practically reversed course after her demise.

Instead of ruling on the petition of Danding, the Sandiganbayan should have ruled on the writ of execution filed in pursuance of the rulings on the ownership of the UCPB and the 27 SMC shares, which have been declared as owned by the government and held in trust for the small coconut farmers. By acting on the writ, the Sandiganbayan would have freed much-needed funds for the rehabilitation and development of the coconut industry, which continues to contribute to the export earnings of the country.

We are hoping that the OSG will immediately file an opposition to this questionable Sandiganbayan ruling.

Omi C. Royandoyan
Centro Saka, Inc.