MANILA, Philippines 鈥� The Sandiganbayan has ordered United Coconut Planters Life Assurance Corporation (Cocolife) to return 255.8 million United Coconut Planters Bank (UCPB) shares to the Philippine government in relation to the controversial coco levy funds.
In its decision dated February 24, the anti-graft court鈥檚 Second Division dismissed the petition for declaratory relief filed by Cocolife in July last year.
The Supreme Court (SC) defines declaratory relief as 鈥渁 special civil action filed by any person interested under a deed, will, contract or other written instrument, or whose rights are affected by a statute, executive order or regulation, ordinance, or any other governmental regulation.鈥�
READ: Sandigan junks 2 more Marcos, crony wealth cases
As stated in the decision, the Cocolife鈥檚 petition stemmed from Sandiganbayan Civil Case No. 0033-B, which sought the recovery of alleged ill-gotten wealth from companies created out of coconut levy funds in compliance with the Republic Act (RA) No. 11524 or the Coconut Farmers and Industry Fund (CFITF) Act.
Under Section 6 of RA No. 11524鈥攚hich was signed into law by former President Rodrigo Duterte in February 2021鈥攁ll government agencies and any person with coconut levy assets 鈥渟hall reconvey them to the Republic of the Philippines鈥� as declared by the SC.
The anti-graft court said the Presidential Commission for Good Government (PCGG) cited this law in the case, claiming that Cocolife was 鈥渃reated and/or funded鈥� using the coconut levy funds and that the UCBP shares in the said insurance company were 鈥減urportedly acquired using such funds.鈥�
But in its petition, Cocolife argued that shares are not covered by the CFITF Act and the SC has not yet released a decision declaring the stocks as 鈥渃oconut levy assets that belong to the Philippine government.鈥�
In response, the Sandiganbayan said that it found the petition 鈥渦nmeritorious鈥� or lacking in value or merit, as it agreed with the PCGG鈥檚 position that 鈥淯CPB鈥檚 shares of stock in Cocolife are reconveyable coconut levy assets within the purview of the CFITF Act.鈥�
鈥淲HEREFORE, in view of the foregoing, the instant Petition for Declaratory Relief filed by COCOLIFE on July 1, 2024, is hereby DISMISSED,鈥� the decision reads.
鈥淏eing duty bound to comply with the clear provisions of RA No. 11524, otherwise known as the Coconut Farmers and Industry Trust Fund (CFITF) Act, petitioner COCOLIFE is ordered to immediately issue certificates if stocks in the name of the Republic of the Philippines covering the 255,823,678 shares of stocks registered in the name of UCPB for the benefit of the coconut farmer,鈥� it adds.