MANILA, Philippines—The Supreme Court affirmed the decision of the Sandiganbayan in 2004 that awarded the 24 percent block or 753,848,312 shares in San Miguel Corporation (SMC) registered in the name of the Coconut Industry Investment Fund (CIIF) to the government.
During today’s (Tuesday) deliberation, voting 11-0, the high court, through Associate Justice Presbitero Velasco Jr. said the Presidential Commission on Good Government (PCGG) has held it for more than 20 years and now is the right time to “relinquish its role in corporation in light of the claim that the sequestration of the CIIF SMC shares has frightened away investors and stunted growth of the company.”
The 24 percent shares with an estimated value between P50 to P100 billion has been converted from common shares into preferred shares in a Supreme Court ruling in 2009.
The 24 percent share forms part of the 47 percent share bloc of San Miguel shares sequestered by the PCGG in 1986 on suspicion that it was part of the ill-gotten wealth of the late President Ferdinand Marcos.
The said share is currently being held in escrow account by the PCGG at the Land Bank of the Philippines and the Development Bank of the Philippines.
The high court ordered the conversion of the shares to ensure stable share value and enhanced earnings of the shares.