THE Supreme Court (SC) issued on Tuesday a temporary restraining order (TRO) enjoining the implementation of two executive orders issued by President Aquino that require the sale and reconveyance of coconut-levy funds, amounting to at least P73.4 billion, to the government.
In a news briefing on Tuesday SC Spokesman Theodore O. Te said the magistrates granted the plea of the Confederation of Coconut Farmers Organizations of the Philippines Inc. (CCFOP) for the issuance of a TRO against the implementation of Executive Orders 179 and 180.
EO 179 requires the inventory and privatization, as well as reconveyance, in favor of the government of all coconut-levy assets—including, but not limited to, the shares of stock in the United Coconut Planters Bank (UCPB), Coconut Industry Investment Fund (CIIF) companies and CIIF holding companies and the 5.5 million San Miguel Corp. (SMC) shares registered in the name of the Presidential Commission on Good Government (PCGG) as arbitration fee—within 60 days from its effectivity.
It also directed that all money and funds constituting the coconut levy or accruing from the coco-levy assets should be deposited to a special account in the General Fund for Coco Levies.
EO 180, on the other hand, mandated the immediate transfer and reconveyance of coco-levy assets to the government and their utilization after the approval by President Aquino of the Integrated Coconut Industry Roadmap and the Coconut Roadmap for Coco Levy.
Aside from the TRO, the Court directed Mr. Aquino and PCGG Acting Commissioner Richard Roger Amurao to comment within 10 days on the petition filed by CCFOP.
In its petition, the CCFOP said the implementation of the two EOs would result to renewed plunder of the coco-levy funds.
The group claimed that the EOs violate the SC ruling issued in January 2012, which held that the said funds are “owned by the government [and] to be used only for the benefit of all coconut farmers and for the development of the coconut industry.”
While it does not object to the inventory of all coco-levy assets and investments, the group said the government should not be in a hurry to privatize them, considering that it only acts as the trust owner of the assets.
The privatization of the coco-levy assets, according to the petitioner, is a complete abandonment of the government’s duties as trustee of the coco-levy assets, and is “completely contrary to the SC ruling and the moral philosophy of trust ownership.”
“The President cannot just arrogate unto himself, without legislative authority, the power to allocate, use and administer the billions of pesos of coconut funds and assets. The two chambers of Congress are doing this right now as it is their right and duty, but the President would preempt them with these assailed EOs, for how many billions of reasons and for what urgent purposes only his ruling party knows—although the farmers have their ‘2016’ suspicions,” the group argued.
The petitioner added that the government failed to consult the coconut farmers before coming out with the said EOs.
The coco-levy funds are valued at P73.4 billion, which are currently held in trust with the Bureau of the Treasury and various other companies, plus billions more in noncash assets, which are now also held in different companies such as the UCPB, CIIF Oil Mills Group, Coco Life, UCPB-Gen and CocoChem.
Last year the SC granted the bid of the government to get hold of the proceeds from the 24-percent block of shares, or 753,848,312, in SMC that the SC earlier forfeited in favor of the government.
The Court affirmed with finality the decision issued by the Sandiganbayan in May 2004 that awarded the subject shares in SMC, registered in the names of CIIF and its holding companies to the government, which holds them in trust for the country’s coconut farmers.
The said 24-percent SMC shares, which are estimated to value between P50 billion and P100 billion, have earlier been ordered by the Court, through its ruling on September 17, 2009, to be converted from common shares into preferred shares.