A Philippine government agency was planning to start a court action in mid December to install its representatives on the board of San Miguel Corp. and oust directors appointed by former president Jos…
A Philippine government agency was planning to start a court action in mid December to install its representatives on the board of San Miguel Corp. and oust directors appointed by former president Joseph Estrada. If successful, the move would give the government control of San Miguel“s 15-member board and may lead to a fresh attempt to remove chairman Eduardo Cojuangco, a close friend of the former leader, from the food and beverage group. Presidential Commission on Good Government (PCGG) chairwoman Haydee Yorac said charges would be filed in the anti-graft court against the five nominees, who include Estrada“s brother-in-law, Raul de Guzman, for refusing to relinquish their directorships after being ordered to do so by the PCGG. The five Estrada nominees helped Cojuangco parry an effort by the administration of president Gloria Macapagal Arroyo to remove him at the company“s annual meeting in May. The PCCG was formed in 1986 to recover alleged ill-gotten wealth of former president Ferdinand Marcos and his associates, including Cojuangco. The PCGG seized a 47% stake in San Miguel in the late 1980s on suspicion that it was acquired by Cojuangco“s group using funds intended for the development of the coconut industry. Cojuangco has vigorously disputed that and said the funds came from private sources. “The objective is for the five PCGG nominees to be able to sit on San Miguel“s board to protect the 47% (stake),” said Yorac.