1 April 1999: According to a recent report, businessman Eduardo “Danding” Cojuangco, Jr. wants the Sandiganbayan to nullify the government sequestration orders on 44 companies which he claims to own.
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1 April 1999: According to a recent report, businessman Eduardo “Danding” Cojuangco, Jr. wants the Sandiganbayan to nullify the government sequestration orders on 44 companies which he claims to own. These firms allowed Mr. Cojuangco, who was a close friend of the late president Ferdinand Marcos, to gain a substantial stake in food and beverage giant San Miguel Corp. (SMC) in the early 1980s. The companies were taken over by the government between 1986 and 1987, after Mr. Marcos was ousted by a popular revolt, claiming these were put up using public funds. In a motion filed on 5 March, Mr. Cojuangco asks the anti-graft court to affirm the government“s admission that the firm“s freeze orders may be invalid. “All of the writs of sequestration authorized by the PCGG, acting as a commission, were unauthorized and had no validity whatsoever. They never became effective,” the motion states. PCGG, or the Presidential Commission on Good Government, is the government agency tasked to recover all ill-gotten wealth. Mr. Cojuangco also claims PCGG records do not reflect the commission“s approval of the sequestration orders on his firms, the report said. The lifting of the firms“ sequestration orders will allow their representatives – in this case, the Cojuangcos – to vote the firms“ SMC shares of stock. The Cojuangcos, plus the 44 firms, hold enough shares to vote three representatives to SMC“s 15-member board, the report said. The government used the firms“ SMC shares to vote board representatives during all company stockholders meeting from 1986 to 1997, except in 1991. Last year, the Sandiganbayan finally allowed the Cojuangcos to vote the firms“ SMC shares. The sequestered companies are engaged in various activities: realty, agriculture, trading and delivery service. Last January, the Supreme Court ordered the Sandiganbayan to determine the validity of the government“s control over these firms. The case is still pending.