THE Sandiganbayan has dismissed a petition filed last year by the United Coconut Planters Life Assurance Corp. (Cocolife) against the Presidential Commission on Good Government (PCGG) seeking to block the transfer to the government of over 255 million shares in the insurance firm.
In its 27-page decision penned by Associate Justice Edgardo M. Caldona, the Sandiganbayan Second Division ordered Cocolife to transfer those shares as a mandatory obligation in compliance with Republic Act No. 11524 that created the Coconut Farmers and Industry Trust Fund (CFITF) in March 2021.
The shares, held in the name of the sequestered United Coconut Planters Bank (UCPB), represent 46.51 percent of Cocolife.
“All things considered, COCOLIFE must immediately comply with its ministerial duty to cause the reconveyance of UCPB’s shares of stocks in COCOLIFE to the Republic of the Philippines without any more delay,” the Sandiganbayan said.
“Petitioner COCOLIFE is ordered to immediately issue certificates of stocks in the name of the Republic of the Philippines covering the 255,823,678 shares of stocks registered in the name of UCPB for the benefit of the coconut farmers,” the court added.
Presiding Justice Geraldine Faith A. Econg and Associate Justice Arthur O. Malabaguio concurred.
While agreeing that the issue of ownership of the shares has not been resolved with finality after the Supreme Court halted further hearings in Civil Case No. 0033-B and effectively preventing the government from pursuing its claims, the Sandiganbayan nonetheless held that the block of shares is covered by RA 11524 requiring reconveyance of all coconut levy assets to the trust fund.
The Sandiganbayan overruled Cocolife’s argument that there should first be a final declaration by the Supreme Court that the disputed assets should be reconveyed before it can transfer the shares to the government.
COCONUT LEVY ASSETS
“The law is clear: any and all assets acquired through coconut levy funds are deemed coconut levy assets, regardless of whether they have been finally declared by the Supreme Court as belonging to the government. The aforesaid definition even includes those assets which may be recovered in favor of the government,” the court pointed out.
It said Cocolife is in no position to refuse the instruction of the UCPB because the Philippine Government, as transferee, has inherent rights based on its ownership of the stocks.
“A corporation either by its board or the act of its officers cannot create restrictions in stock transfers because restrictions in the traffic of stock must have their source in legislative enactments, as the corporation itself cannot create such impediment,” the Sandiganbayan added.
From 1971 to 1982, then-dictator Ferdinand E. Marcos’ administration collected money from coconut farmers by imposing levies, taxes and other fees for selling copra. The collected money was supposed to go to a fund to finance coconut research, credit services and other programs to boost the coconut industry.
However, lawsuits filed by coconut farmers with the help of the PCGG after Marcos fled in 1986 alleged that Marcos’ cronies diverted the funds to their business interests instead of benefiting millions of coconut tillers.
