October 10, 2003, The Philippine Star, Palace denies deal with Danding over SMC; appeal set, by Marichu Villanueva,

October 10, 2003, The Philippine Star, Palace denies deal with Danding over SMC; appeal set, by Marichu Villanueva,

MANILA, OCTOBER 10, 2003 (STAR) By Marichu Villanueva - Malacañang denied suspicions aired by a senator that a "secret" compromise deal between President Arroyo and Eduardo Cojuangco is behind the Sandiganbayan ruling which lifted the sequestration of the business tycoon’s shares in San Miguel Corp. (SMC).

And to completely belie the allegations, the Palace announced yesterday that the Presidential Commission on Good Government (PCGG) will file a motion for reconsideration before the Supreme Court.

"We’ll probably not take the decision sitting down. The PCGG will file a motion for reconsideration," Presidential Spokesman Ignacio Bunye said over dzRH radio.

Sen. Joker Arroyo alleged that Mrs. Arroyo might have entered into a compromise deal with Cojuangco, who is reportedly being wooed by the administration to be its vice presidential standard-bearer in next year’s elections.

Cojuangco’s Nationalist People’s Coalition (NPC) belongs to the pro-administration coalition in the House of Representatives.

Sen. Ramon Magsaysay Jr. agreed that the deal may result in a coalition between the Lakas-Christian Muslim Democrats and the NPC.

"There could be political color because of the timing... That is always a possibility... that is what we are asking. The timing is quite meaningful," Magsaysay said.

Senator Arroyo also questioned why it took the Sandiganbayan 17 years — from 1986 to 2003 — to decide that the sequestration order issued by the PCGG was defective in form, having been signed only by one commissioner, instead of two.

"Mr. Cojuangco is chairman emeritus of the NPC, an opposition party that coalesced with Lakas and... Speaker Jose de Venecia Jr. in the House. They want the Constitution amended through a (constituent) assembly. President Arroyo wants that, too — a confluence of interests," Senator Arroyo pointed out.

In his daily press briefing at the Palace, Bunye refuted the senator’s allegation and fended off suggestions that Mrs. Arroyo would let the court ruling stand in return for Cojuangco withdrawing from the presidential contest.

The President herself refused to talk about matters regarding her choice and selection of her vice presidential running mate when queried by the Cebu media on the issue.

"I’m not yet talking politics. I have to go back to my work," Mrs. Arroyo told reporters in Cebu City.

Bunye, however, could not say if Mrs. Arroyo, as co-chairman of the ruling administration Lakas-CMD, would maintain the coalition with the NPC.

"The President just announced that she is available as a candidate. But as to the particulars, let’s say, these are the political details," Bunye said. "These are things that still have to be worked out."

Bunye gave assurances, though, that Mrs. Arroyo would not use the coco levy case as a political chip to boost her candidacy at the expense of thousands of coconut farmers seeking their just share in the sequestered SMC shares.

"Definitely, it (coco levy case) will be decided on its merits," Bunye said.

For its part, the PCGG sought to downplay the lifting of its sequestration order on the disputed SMC shares.

"It doesn’t change anything. There are requirements before he can dispose of the shares and they are very strict," commissioner Vyva Victoria Aguirre told The STAR.

Aguirre said that among these conditions was that Cojuangco should inform the government, through the PCGG, of any moves to dispose the shares and that proceeds of their disposal should go to an escrow account with the Land Bank of the Philippines.

Aguirre stressed that the PCGG is more concerned with the Oct. 21 hearing on the PCGG motion for summary judgment on the civil case.

The PCGG has asked the Sandiganbayan to decide summarily on the real ownership of the 27 percent stake in SMC which belonged to the Coconut Industry Investment Fund (CIIF), administered by the United Coconut Planters Bank (UCPB).

This, plus Cojuangco’s claimed 20 percent stake, gave Cojuangco’s group three seats on SMC’s 15-man board.

Meanwhile, interest in SMC shares at the Philippine Stock Exchange was lukewarm after the news, with the A shares closing 50 centavos up at P54 and B shares, which are open to foreign investors, ending flat at P61.

Brokers said that while the ruling was a small victory for Cojuangco, wrangling over the legal ownership of the shares is far from over.

"The case has not been fully resolved. The recent order could still be reversed by a higher court. This could perhaps explain the difference between how San Miguel’s A and B shares are traded," Citiseconline.com analyst Mark Alan Canizares said.

San Miguel, which operates breweries across Asia, is one of the Philippines’ largest companies. It had an end-2002 market capitalization of P177.45 billion. – with reports from Jose Rodel Clapano, Rainier Allan Ronda, AP, AFP