1987 coco levy case that involved Marcoses dismissed over gov’t delay

MANILA, Philippines – The anti-graft court on Tuesday, March 17, dismissed a 1987 coconut levy case that originally involved as defendants the late dictator Ferdinand E. Marcos, former first lady Imelda Marcos, and the late businessman Eduardo Cojuangco Jr., citing the government’s failure to actively pursue the case.

Other original defendants included the late senator Juan Ponce Enrile, the late former Zamboanga City mayor Maria Clara Lobregat, Enrique M. Cojuangco, Marcos O. Cojuangco, Rafael Abello, and Eduardo’s firm, Agricultural Investors Incorporated (AII). Enrile and Lobregat were named because they served on the board of the state-owned United Coconut Planters Bank (UCPB).

The Presidential Commission on Good Government (PCGG) had accused the defendants of conspiring to defraud the government of P426 million invested by AII in a 1974 project to produce hybrid coconut seedlings on Bugsuk Island, Palawan.

The 2nd Division of the Sandiganbayan dismissed the case against the remaining defendants – Enrique Cojuangco, Marcos O. Cojuangco, Abello, and AII. It stated that the long delay violated the their right to a speedy trial.

The court said Civil Case No. 0033-C, one of eight cases derived from the original complaint, had dragged on for more than 30 years, including a third amendment.

“Such a period is unreasonably excessive by any standard,” read part of the court’s ruling.

The Sandiganbayan also noted that the government “failed to prosecute this case within a reasonable timeframe” as lawyers repeatedly filed motions for extension.

“While the court recognizes the complexity of the issues and the voluminous records in this case, these factors do not sufficiently justify the 30-year long delay which prejudiced the defendants. During this period, the defendants have been put under a cloud of anxiety, suspicion, and often, hostility as the case loomed over them,” the court stated.

What was the case about?

The Presidential Commission on Good Government (PCGG) had accused the defendants of conspiracy to defraud the government of P426 million, which AII invested in the 1974 project to grow hybrid coconut seedlings on Bugsuk Island, Palawan.

The money came from coconut farmers’ contributions to the Coconut Industry Development Fund (CIDF). The fund, part of the coconut levy, was first managed by the National Investment Development Corporation (NIDC) until 1978, when it was transferred to the UCPB.

UCPB officials were accused of not contesting P532.4 million in liquidated damages against the CIDF. On September 14, 1980, the bank reserved P750 million to cover any damages AII might face from the project. The project ended when former president Marcos terminated the coconut levy on August 27, 1982. UCPB then ended its agreement with AII, prompting the company to go to arbitration.

Prosecutors said the case went to a board of arbitrators with lawyers Esteban Bautista for AII, Aniceto Dideles for UCPB, and UP Law Professor Bartolome Carale as chairman. The PCGG questioned this because Eduardo Cojuangco “was president and chairman of AII while also serving as president and CEO of UCPB.”

On March 29, 1983, the board awarded P532.39 million to AII as “liquidated damages” and forfeited P426.26 million already given by NIDC. UCPB was also charged P150,000 for arbitration. 

A regional court in Makati subsequently upheld the ruling, which PCGG said the bank allowed to lapse without appeal. – Rappler.com