This refers to the article entitled “Privatizing the United Coconut Planters Bank”, published in the October 10, 2017 issue of the BusinessWorld and authored by Dr. Amelia H.C. Ylagan.
We would like to take this opportunity to call to your attention to certain erroneous statements which are reflected in the aforementioned article.
At the outset, kindly note that Mr. Eduardo M. Cojuangco, Jr. was not the Chairman of the Board of, nor connected with, the Philippine Coconut Authority (PCA) at any point in time. Neither was he appointed to any position in the PCA.
There is a need to distinguish the amounts collected from the coconut farmers under Republic Act No. 6260 (RA 6260) and, on the other hand, the oil millers, processors, exporters and end-users of coconut oil, desiccated coconut and other by-products pursuant to Presidential Decrees and other related issuances. The amounts collected are separate and distinct, inclusive of their use and disposition.
Under RA 6260 (the Coconut Investment Act), authored by Sen. Aytona/Cong. Escueta and passed on June 17, 1971, a levy equivalent to fifty five centavos (P0.55) was imposed on the first domestic sale for every one hundred kilograms of copra, or its equivalent in terms of other coconut products, and collected from coconut farmer-members of the Philippine Coconut Producers, Inc. (“Cocofed”).
The total amount collected and deposited with Development Bank of the Philippines (“DBP”), inclusive of interest, reached P158,337,748.00 and was used as payment for subscriptions to shares of stock of:
Coconut Investment Company
SEC Registration No. 109115
December 23,1982
A private entity incorporated by Cocofed, pursuant to Executive Order No. 825 and implemented by PCA Resolution No. 96-82.
The summary report of the Philippine Coconut Authority dated July 2, 1999 confirmed that the total amount of P9,695,439,749.67 (for the period August 10, 1973 to August 20, 1982) was collected under the relevant provisions of PD No. 276 – Coconut Consumer Stabilization Fund, PD No. 961, PD No. 1468, LOI 857, respectively. Payments were made by oil millers, processors, exporters, and end-users upon the export of coconut oil, desiccated coconut, and other coconut by-products. The Commission on Audit (COA) Report, dated July 2, 1986 confirmed the collection of P9.69 billion.
Both the PCA Report and the COA Report confirmed P2.57 billion out of the P9.69 Billion was used for: (i) investments in shares of stock of six (6) operating coconut oil mills, a coconut chemical company, copra trading companies, a cocoa plantation, an insurance company and (ii) the acquisition of “non-operating” oil mills which had outstanding obligations due to governmental financial institutions. No portion of the amount collected was used to purchase shares of stock of San Miguel Corporation. Such shares of stock were acquired through borrowings from the United Coconut Planters Bank.
Very truly yours,
Virgilio S. Jacinto
Counsel of Eduardo M. Cojuangco, Jr.
Valle Verde 5, Pasig City
