Danding and the coco levy funds: Cojuangco shows he is still the master under the Macapagal-Arroyo regime
Eduardo "Danding" Cojuangco Jr., Marcos' most powerful crony and Estrada's patron, is relentless in his maneuverings and continues to lord it over the present regime. Arrangements between the Macapagal-Arroyo government and the Cojuangco camp are being orchestrated that would ensure Cojuangco's continued possession of the coco levy funds, his control over San Miguel Corporation and government support for Danding's landgrabbing schemes involving hundreds of thousands of hectares from Isabela to Negros and Mindanao.
As before, Cojuangco maintains and expands his economic empire by conspiring with the regime in power, making sly and shrewd maneuvers, committing bureaucratic anomalies and perpetrating fascist violence. Desperate to win over Cojuangco's financial and political support for the 2004 elections, the regime has been shamelessly conniving with Danding.
Secret pro-Cojuangco agreement. On October 28, the Macapagal-Arroyo regime secretly made a deal with the Cojuangco camp supposedly to reconcile the interests of the opposing parties regarding the ownership of the coco levy funds. The fund has since grown to P130 billion. Cojuangco continues to monopolize and use these funds. Coconut farmers have been trying to reclaim the entire fund since it was accumulated through the levies extracted from them from 1973 to 1982. The regime planned to make the secret agreement official through an Executive Order.
Under the agreement, P50 billion from the coco levy fund (27% of SMC shares) would be sold and converted into a trust fund purportedly for the rehabilitation of the coconut industry. The Philippine Coconut Producers' Federation (COCOFED) would manage the trust fund, supposedly in the name of the farmers. COCOFED is not an organization of farmers but of big landlords and big comprador bourgeoisie who have business interests in the coconut industry. It is led by one of Cojuangco's co-conspirators in the secret deal, Maria Clara Lobregat. Thus, Cojuangco retains the privilege of using the funds and the benefits thereof.
The anomalous arrangement has since been exposed and roundly condemned by farmers' organizations, democratic mass organizations and the people. Even the Presidential Commission on Good Government has asserted that the coco levy funds are not private but public funds. In connection with the deal, the People's Consultative Assembly (Macapagal-Arroyo's erstwhile ally in EDSA 2) has exposed that Cojuangco would make a huge payment for Macapagal-Arroyo's use in 2004 and other purposes. Pelted with even more criticism, Macapagal-Arroyo has been forced to back down from the deal.
Public funds. Macapagal-Arroyo and Cojuangco's secret deal has been stripped of legal basis since the Supreme Court declared on December 14 that the coco levy funds were public in nature. In this regard, all enterprises funded from the coco levy will henceforth be held by government, including the UCPB and the 27% sequestered shares of SMC. Thus, the government will regain full ownership and control over UCPB and the five seats at SMC still held by Estrada's people. (See related article)
Still coconut farmers will not benefit from all this. They will neither be given direct control nor will they have a voice in deciding the use of the funds. Instead, the funds will be controlled by big bureaucrats and big comprador bourgeoisie close to the regime. The funds will be used to further bureaucratic corruption as well as bogus and antipeasant projects purporting to assist coconut farmers.
SMC still in Danding's hands. With the coco levy funds being declared public funds, Cojuangco will supposedly retain only the 20% SMC shares that he has been claiming, and which, in fact, still comprise ill-gotten wealth. Thus, a few hours before the Supreme Court declaration, Cojuangco maneuvered to ensure his continued control over SMC.
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