Farmers groups today welcomed a Supreme Court ruling which said a government-run fund does own a 24 percent stake in San Miguel Corporation with shares bought from a coconut levy imposed on farmers 35 years ago.

The farmers called the ruling, which confirms the shares belong to the Coconut Industry Investment Fund “an initial victory for small coconut farmers” and “further strengthened accusations of plunder” leveled against President Aquino’s uncle, Eduardo “Danding” Cojuangco Jr and others who are holding on to the shares.

“The decision reaffirming small coconut farmers’ legitimate ownership of the shares is a welcome development and an initial victory for them,” says Randall Echanis of the Philippine Peasant Movement.

However, a senator who was a lawyer during the dictatorship of Ferdinand Marcos, said farmers should not celebrate just yet.

Calling the ruling “too obscure, too late and too little,” Senator Joker Arroyo said it is not even clear if the government will give the shares to the farmers.

“Why did it take such a long time? Where does this 24 percent go? To the government or to the farmers?” he said.

The coconut levy was a tax collected from coconut producers. The proceeds were used to set up a bank, which in turn was used to buy 14 coconut mills which then bought 47 percent of San Miguel shares, making it them the principal shareholders in the company.  All this took place during martial law, Arroyo said.

“Did the coco farmers benefit from the levy? Not at all… zero,” Arroyo said.

He said, first, the graft court ruled in 2007 that 20 percent of the disputed 47 percent of shares was owned by Cojuangco, leaving the coco farmers with 27 percent.

The 27 percent was reduced to 24 percent due to further investment. The 24 percent represents 753 million shares valued at between 50 billion and 100 billion pesos (US$1.2 billion and US$2.4 billion).

“People in the past and present administrations owe the coconut farmers – who have grown tired and weary, old and dead – an explanation,” Arroyo said.