Arroyo-Cojuangco conflict intensifies
This July, the Sandiganbayan declared that the coco levy funds, most of which are deposited at the United Coconut Planters Bank (UPCB), are public in nature. It is these funds that were used by Eduardo �Danding� Cojuangco to purchase 27% of shares in San Miguel Corporation (SMC) under UCPB�s name and were also likely used to purchase an additional 20% directly in his name. The court�s decision renders illegal Cojuangco�s basis for controlling the UCPB shares, which are the biggest in SMC.
If the decision were to be enforced, representatives of the Arroyo government would replace Cojuangco�s representatives in the SMC�s Board of Directors. The government would then have the right to appoint a new SMC chairman and Arroyo�s camp would then control the Philippines� largest and most profitable enterprise.
Cojuangco, however, retains his chairmanship and decisive control over SMC up to February 2004 according to a �temporary agreement� between himself and the Presidential Commission on Good Government. Thus, his control over SMC and other companies acquired through the coco levy funds will be put on the auction block in the forthcoming presidential elections. It is these companies that will serve as the top prize, together with the coco levy funds and Cojuangco�s other ill-gotten wealth, for whoever wins in 2004.
Consequently, the forthcoming election is sure to be violent and fraud-ridden. This early, Cojuangco has warned that he will go all-out in opposing any attempt to deprive him of control over SMC and his other ill-gotten wealth.
The early exposure of the collusion between Arroyo and Cojuangco and the severe criticism and strong opposition this has reaped from militant forces, other critics and the people have led to the collapse of a series of negotiations between them regarding the coco levy. One by one, their secret agreements to keep the coco levy funds private and their collusion to divide among themselves the UCPB, SMC and other big businesses affililiated with the latter have failed.
Arroyo had pinned her hopes on forming a coalition with Cojuangco and receiving financial support from him as well as on his decision not to run himself or to support any other candidate. But with the breakup of their opportunist coalition, Arroyo�s already feeble election machinery will further weaken and her already slim chances of winning in the coming election will further diminish.
We can expect Cojuangco to take steps to unify and strengthen the opposition to support his own candidacy or that of anyone else he chooses to support in the coming polls. Cojuangco, however, eagerly wants Arroyo to be the ruling faction�s bet because she would be the easiest to beat by any opposition candidate. In the face of all this, events will push Arroyo to resort to even more desperate measures consequent to her determined ambition to remain in power.
The intensified struggle for the coco levy is the culmination of years of contention among principal bureaucrat capitalists over funds they do not even own. In this contest�s many twists and turns, not once did these greedy bureaucrats salivating over the coco levy have as their principal agenda the interests and welfare of those who rightfully own the funds�namely, the millions of coconut farmers who, for more than 17 years, were forced to pay these taxes.
This is a reflection of the further corruption of the reactionary ruling classes. It highlights the bureaucrat-capitalist character of both the biggest assets and the source of the biggest comprador properties in the Philippines. So evident is the very crucial role played by bureauratic control and the consequent ability to commit large-scale plunder of public funds in the efforts by any ruling clique from the ruling classes to further enrich itself and enhance its business interests. There is intense collusion and struggle among big bureaucrat capitalists to wrest control of the bureaucracy and public funds, scramble avariciously over the spoils, and above all, seize resources from the people and deprive those who are most impoverished and in dire need of livelihood and social services. The ruling factions� mad, greedy scramble is sure to further intensify as the available wealth they can divide among themselves further diminishes.
| 
