Bautista attributes the improved performance of these companies to the alignment of the good management practices of their respective boards with the improved monitoring and reporting line (between the PCGG and these corporations).

“In line with best practices and corporate governance principles of fairness, accountability, and transparency, as we have done in the past, we will be making public our report on the performance of the surrendered and sequestered corporations for the year 2011,” Bautista added. “The public can visit our web site, so that they can read the report for themselves.”

The said report shows that United Coconut Planters Bank (UCPB) registered the biggest income of PhP3.048 billion. The other companies mentioned in the report (and their corresponding incomes) include: Cocolife, PhP241.761 million; CIIF-Oil Mills Group, PhP 149 million; IBC-13, PhP 55.92 million; Cocogen, PhP46.51 million; IRC Group of Companies, PhP39.256 million; BASECO, PhP17.129 million; Cocofinance, PhP14.167 million; and Chemfields, PhP1.1714 million.

(1)    Along Roxas Boulevard (Parañaque City)

• IRC Mapalad Property
• 4,038 sq.m.
• Minimum bid price :  P278,622,000.00

(2)    Near The Mansion (Baguio City)

• Hans Menzi Compound Property
• 3,875.57 sq.m.
• Minimum bid price :  P37,245,850.00

Availability of Bid Documents: 19 March to 04 April 2012,
IRC Building, 82 EDSA, Mandaluyong City

Date of Sealed Public Bidding: 24 April 2012

Bidding Time:  10:00 a.m. for Hans Menzi Compound
and 2:00 p.m. for Mapalad Property 

For particulars, call Ms. Alma M. Provido
at tel. nos. 9079127 or 7256958 

PCGG Bids and Awards Committee

Link to the Supreme Court decision http://sc.judiciary.gov.ph/jurisprudence/2011/august2011/185023.html

Surrendered company Independent Realty Corporation (IRC Group) today reported a 52.6% increase in net income of P47.6 million as compared to P31.19 million in 2010 income. Gross revenues increased as well from P71.84 million in 2010 to 79.4 million in 2011.

In its 2011 accomplishment report, General Manager Luis Quiogue said the positive results of operations of the corporation are products of administrative reform measures introduced by the new set of directors and officers of the IRC Group. The latter was able to cut administrative expenses by 40% from P19.65 million down to P11.97 million resulting in savings of over P7million from the previous year. He emphasized that notwithstanding the continuing challenge posed by non-paying tenants in the 18.5 hectare “Payanig sa Pasig” property, IRC group’s revenues grew by 10.5% from its 2010 operations.

For 2012, the IRC Group’s new management team will continue in its drive to sustain the growth trends in its current businesses and develop new income streams, thus ensuring its value is enhanced in preparation for its eventual privatization, the accomplishment cited.

The IRC Group was surrendered to the Philippine Government through the Presidential Commission on Good Government (PCGG) by Marcos business associate Mr. Jose Yao Campos on March 21, 1986.

The IRC Group has so far remitted to the PCGG a total amount of P531 million, the amount of which has been turn over by the Commission to the Bureau of Treasury.

The Presidential Commission on Good Government (PCGG) announced today that it has turned over to the Bureau of the Treasury the amount of PhP268.481 Million as part of recovered funds, surpassing the performance target set for the year 2011.

This performance was achieved notwithstanding the Commission’s relatively small 2011 budget of PhP93 Million.

As mandated by law, all funds recovered by the Commission shall be remitted to the Bureau of the Treasury to serve as additional funding for the implementation of the Comprehensive Agrarian Reform Program (CARP).

“The past year, our efforts were focused on trying to stem the tides of corruption, trim out the excesses, and revitalize the corporations under our Commission’s purview, so as to preserve and secure their long-term financial viability,” PCGG Chairman Andy Bautista said. “Our limited resources notwithstanding, the Commission has remained firmly in the black, with a cost to recovery ratio of nearly 1 is to 3, that is, for every peso we spend on our ill-gotten wealth recovery efforts, the approximate return to the National Treasury is three pesos.”

Chairman Bautista, likewise, bared the Commission’s 2012 target to generate PhP405.723 Million for turnover to the National Treasury, on a budget of PhP96 Million.

PRESS RELEASE; re: “PNB LITIGATION FUND” (5 December 2011)

Recent news reports have resurfaced regarding the US$40 Million fund that was set aside during the time of the late Chairperson Haydee Yorac in 2004, to cover and answer for legal fees and expenses relating to the ongoing litigation in New York and Singapore.

A close reading of these recent news reports would show that the “abuses” refer to the periods covered after the Yorac Commission and before this present PCGG came into being in October 2010. In fact, it is the new PCGG that first reported and made public (in its “100 Day Report and Plan of Action” ) the “abuses” relating to these funds. In addition, as these news reports indicate, it was the new PCGG’s “100 Day Report” that became the basis of the Commission on Audit’s observations with respect to these funds.

Time and again, the new PCGG has sought to clarify this matter in its prior statements, every single time this issue has resurfaced and been recycled and rehashed. These periodic clarifications were made, notwithstanding the fact that there have been no attempts to seek the PCGG’s comments on these matters, in the interest of fair reporting.

Contrary to previous reports, the new PCGG has always maintained open communication lines with the COA concerning these funds. In fact, in coordination with the COA, the PCGG has transmitted letters to the concerned public officials and persons who have undertaken travels or received disbursements from this fund, requesting them further to liquidate and/or explain the relevant circumstances relating to such disbursements. In addition, upon the prodding of the new PCGG, the COA has written the Philippine National Bank to obtain a complete list of transactions and disbursements made on this fund.   This is the most comprehensive effort to completely document all expenses relating to this fund.

The result of this ongoing effort will be endorsed to the Commission on Audit and the Office of the Ombudsman, for its appropriate action.

The Presidential Commission on Good Government (PCGG) welcomes the President’s announcement–in his second State of the Nation Address–of the administration’s “aim to give due compensation to the victims of Martial Law.”

“The inclusion of this important matter in the President’s legislative portfolio, hopefully, will go a long way in furthering our government’s human rights agenda,” said PCGG Commissioner Maita Chan-Gonzaga. “We trust that our lawmakers will take their cue from the President. This is a matter that transcends party lines. It’s simply about doing what’s right, because it’s about time.”

“From day one, this Commission has been clear in its support for the efforts to fully compensate the Martial Law victims—that is, through an act passed and approved by Congress,” she added.

Commissioner Gonzaga further indicated that the PCGG is looking to promote the full and adequate compensation of the Martial Law victims through a campaign targeted, primarily, at the youth “to encourage them to get informed and get involved” and to communicate to the public “the necessity of passing a law for this very urgent matter.”

“There’s no arguing that we need to do right by our people. We need to help ease the burden of those who suffered under the dictatorial regime,” said PCGG Chairman Andy Bautista. “It’s safe to say that we are all on that same page. Now, we just need to get behind our lawmakers and our President to assure them and let them hear that this, too, is what we—the Filipino people—want.”

The new Presidential Commission on Good Government (PCGG) through the Office of the Solicitor General (OSG) filed a motion with the Supreme Court on June 27, 2011, seeking to compel San Miguel Corporation (SMC) to deliver to the government PhP17.65 Billion worth of SMC shares pursuant to a final and executory Supreme Court Resolution.

PCGG contends in its motion that these sequestered shares, estimated to represent 4% of the outstanding capital stock of SMC, were unlawfully converted from common shares to treasury shares pursuant to an aborted sale in 1986.

These shares are separate and distinct from the 20% holdings being contested by the Republic and Ambassador Eduardo Cojuangco.

History

On March 26, 1986, one month after the EDSA People Power Revolution, the Coconut Industry Fund Holding Companies through the United Coconut Planters Bank (the “UCPB Group”) which owned 31% of the total stock of SMC, sought to sell 33,133,266 SMC shares to Andres Soriano III, Neptunia Corporation Limited, and Anscor-Hagedorn Securities, Inc. (the “SMC Group”) for a total purchase price of PhP3,313,326,600.00 (at PhP100 per share) payable in 4 installments.  These shares are generally referred to as the “CIIF Block.” (These shares, by 1989, had increased from 33,133,266 shares to 175, 274,960 shares owing to the declaration and issuance of stock dividends.)

Shortly after the first installment of PhP500 Million was paid by the SMC Group, the PCGG sequestered the CIIF Block of shares. As a consequence of the sequestration, the SMC Group withheld further payments and the shares went into litigation.

In 1990, the SMC and UCPB Groups entered into a compromise agreement where they agreed to treat the initial downpayment of PhP500 Million as full payment for a block of 5 million shares. The 5 million shares had, by then, increased to 26,450,000 shares as a result of the issuance of stock dividends.

The SMC and UCPB Groups filed a petition with the Sandiganbayan for the approval of their compromise agreement. The OSG opposed the compromise agreement on the ground that the compromise involved coconut levy funds—which are prima facie public funds in character, and therefore, beyond the disposition of private individuals. The Sandiganbayan did not approve the compromise agreement.

In a series of Resolutions dated July 23, 1991, October 25, 1991 and March 18, 1992, the Sandiganbayan ordered SMC to deliver to PCGG the 26,450,000 shares, including all cash and stock dividends which had accrued to said shares. These Sandiganbayan resolutions became final and executory after the Supreme Court dismissed the petition of SMC on September 14, 2000 and affirmed the said rulings.

In September 2003, the PCCG, through then Chairperson Haydee Yorac, sent a letter to SMC demanding compliance with the Supreme Court and Sandiganbayan resolutions directing the delivery of the shares to PCGG, as well as the cash and stock dividends that would have accrued had the shares not been converted to treasury shares. SMC refused to comply with the Yorac demand.

On the basis of SMC’s refusal to comply with a lawful, final and executory ruling of the court, the PCGG and OSG filed a motion with the Supreme Court to compel delivery of said shares to the government.

Taking into consideration stock and cash dividends issued on other shares, and at the present publicly traded rate of Php120 per share, the subject SMC shares is estimated to be worth PhP17.65 Billion. (This estimate does not factor in the cash dividends that would have been owing to the Republic, if the shares were not converted into treasury shares.)

“We are merely seeking to implement a final and executory Decision of the Supreme Court and the Sandiganbayan, thus we are confident of obtaining affirmative relief,” PCGG Chairman Andres Bautista said. “In doing so, we are upholding the rule of law and protecting the integrity of our court processes. The Court decided this matter a long time ago. It’s about time that the Republic gets back what rightfully belongs to it—in trust for the Filipino coconut farmer.”

[The following official statement is being issued, despite the non-receipt of the Supreme Court’s resolution dismissing the Presidential Commission on Good Government’s Motion for Reconsideration in the case of Republic of the Philippines v. Sandiganbayan, Eduardo M. Cojuangco, et al.]

The new PCGG learned from media reports that the Supreme Court has denied the motion for reconsideration filed by the Office of the Solicitor General. This is another setback for the Republic’s efforts to recover the coco levy funds and to restore them to the hands of the Filipino coconut farmers, from whose labors and toils these funds were taken.

As the Commission awaits the receipt of the official copy of the Supreme Court’s resolution, it will study the best possible course of action in order to secure for our coconut farmers the justice that they truly deserve.