Change of Engagement

by Dyes

just re-posting an article culled from the philippine star at this site: http://www.philstar.com/philstar/news200601316601.htm

This is how politics works in da beloved country.

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SMC deal costs PCGG ’06 budget
By Marvin Sy
The Philippine Star 01/31/2006

For refusing to answer questions on the reported "compromise agreement" with San Miguel Corp. chairman Eduardo Cojuangco on contested SMC shares, the Presidential Commission on Good Government (PCGG) will get a zero budget for this year.

Senators denied the PCGG any allocation this year after the agency’s chairman Camilo Sabio cited an Aquino administration executive order in declining to reveal any deal with the former Marcos crony and whether or not it had the blessing of President Arroyo.

According to Sabio, the position of the PCGG was consistent with the decisions issued by the Supreme Court on the issue of the coco levy funds, which were used to buy shares in food and beverage conglomerate SMC.

During the hearing on the budget of the PCGG at the Senate yesterday, Sen. Joker Arroyo asked Sabio if his position in favor of a compromise agreement with Cojuangco on the SMC shares had the approval of the President.

Arroyo was referring to the statement issued by Sabio last year that the PCGG was open to compromise with Cojuangco.

Sabio had vowed to quit his post if there was no resolution on the claims of the various farmer groups over the estimated P130-billion coco levy funds by the end of the year.

"Pursuant to decisions of the Supreme Court, the PCGG is open to a compromise with respect to the parties in the cases involved," Sabio had said.

Arroyo argued that the PCGG had no authority to make such a decision on the coco levy funds, particularly in a case of this magnitude.

He emphasized that the "parties involved" in the cases are the Republic of the Philippines and Cojuangco, and considering the amount involved, it is the President who should be making the decisions.

"An agreement of this size cannot be made by the chairman of the PCGG. It has to be the President because that’s a policy decision," Arroyo said.

In response to the query of Arroyo and apparently anticipating the line of questioning, Sabio read a prepared statement citing Section 4-b of Executive Order No. 1 issued by former President Corazon Aquino creating the PCGG.

Section 4b of EO No. 1 states: "No member or staff of the commission shall be required to testify or produce in any judicial, legislative or administrative proceeding concerning matters within its official cognizance."

Sen. Juan Ponce Enrile also asked Sabio about the status of the documents he asked for during the PCGG’s previous hearing including the listing of all companies taken over by the PCGG; their condition at the time of the takeover; and their condition now.

In addition, Senate President Franklin Drilon asked the PCGG to submit a breakdown of all bonuses, per diems and all other benefits received by the PCGG officials from the corporations they are handling.

Sabio also invoked the same EO in refusing to answer Enrile.

Enrile scolded Sabio for his unwillingness to recognize the authority of Congress to review the budget of the PCGG and moved to deny the agency any funding for 2006.

"We are not investigating you. We are asking information about your performance. It’s germane to the budget. Now I do not give a damn if you are PCGG. You are in fact a creation of our effort. Who are you to defy the powers of Congress?" Enrile asked.

Speaking before reporters at the end of the hearing, Sabio said that it was not necessary for him to answer the question of Arroyo in the first place.

"There were several compromise agreements which have not been expressly authorized by the President," Sabio said.

"Whatever is necessary to protect the office," he said when asked how far he would keep his silence before the Senate — even at the risk of losing the PCGG’s budget.

According to Sabio, the PCGG is not involved in the negotiations for the compromise agreement as it is up to the parties involved to do this.

"If a compromise agreement is presented to the PCGG and it is not grossly disadvantageous to the government and it is not contrary to law, morals, public order, public policy then we might approve it," he said.

"Anyway, that compromise agreement, if ever something would come up, would not only be presented to the PCGG but to the Sandiganbayan and also to the Supreme Court. There should be no fears about that," he added.

Arroyo said that Sabio appears to be hiding something in his silence on the issue.

He pointed out that several groups were interested in the coco levy funds so judging by Sabio’s statements, there seems to be one group being favored.

Arroyo said it was unclear whether the SMC shares being discussed under the compromise agreement refer to the 27 percent held by the government or the 20 percent of Cojuangco.

The control of the shares is still under litigation as both the government and Cojuangco claim ownership.

A Supreme Court ruling in 2001 stated that the coconut levy funds were prima facie public funds and that the government, through PCGG, should continue to vote in representation of the coco funds.

The high court clarified in a later opinion that the 2001 ruling was only a preliminary finding for the purpose of allowing the government to vote in favor of the shares.

Sabio said that the High Tribunal called on the Sandiganbayan to try the case and determine the owners of the enterprises funded by the coco levy funds.