Senate panel OKs creation of coconut levy trust fund

A Senate panel has approved the consolidated bill seeking to create a coconut levy trust fund ensuring that programs are implemented for the benefit of 3.5 million coconut farmers.

 

Sen. Cynthia Villar, chairperson of the Senate committee on agriculture and food, sponsored and presented to the plenary Monday the committee report on the Coconut Farmers and Industry Development Act of 2015 which aims to create the Coconut Farmers and Industry Trust Fund.

 

The trust fund will comprise all coconut levy assets, including those declared by the Supreme Court as special public funds.

 

"We are confident that this law will finally resolve the decades-old issue surrounding the coco levy fund and will carry out its two-pronged goal – to help coconut farmers and develop the coconut industry," Villar said.

 

After the committee report, the senators will deliberate on the measure and introduce amendments if necessary.

 

The proposed measure requires an joint audit and inventory of all coconut levy assets by the Commission on Audit, together with the Presidential Commission on Good Government, and the Philippine Coconut Authority (PCA).

 

"Because there are differing figures on how much the assets really cost, we are including the conduct of audit and inventory in order to account for all assets funded out of the coconut levy funds, including its nature, value, description, among others," Villar said.

Levy assets

 

The Coconut Farmers and Industry Trust Fund Committee will be created to ensure the objectives of the proposed law are fulfilled, and to direct and coordinate the implementation of the plan and the privatization of the levy assets.

 

The committee will be composed of the secretary of the Department of Agriculture as chairman, the secretary of the Department of Finance as vice-chairman, with the National Economic and Development Administration director general, the PCA Administrator and five coconut farmers as members.

 

Under the bill, all cash assets, reported to be around P72 billion, will become the initial capital of the trust fund. All non-cash assets will be transferred to the Trust Fund Committee and will be privatized by the Privatization and Management Office (PMO) within five years, with the proceeds to be remitted to the trust fund to increase the capital.

Trust fund

 

The trust fund is to be maintained perpetually and can only be invested in Philippine government securities. The Bureau of Treasury will be designated as the trust fund depository.

 

Five percent of the initial capital of the trust fund will be used to put the plan in place, and to fund the expenses of the Trust Fund Committee, the audit and inventory, the formulation of the plan, and the activities of the PMO.

 

The Coconut Farmers and Industry Development Plan is to be formulated within 180 days after the law takes effect. For this purpose, an ad hoc committee composed of the NEDA as chairman, and members from the DA, Department of Agrarian Reform, Department of Trade and Industry, Department of Science and Technology, Department of Energy, Department of Public Works and Highways, Department of Interior and Local Government, and the NAPC, will be formed.

 

Only programs and projects falling under four categories can be funded, namely 1) coconut productivity, including intercropping and livestock raising, 2) community-based coconut enterprises that include the integrated processing of coconut products and downstream products, 3) coconut farmers organization and development, and 4) social protection programs such as medical, health and life insurance services and scholarship grants. 

 

Coconut farmers are considered as one of the poorest in the Philippines. 

 

Villar, citing a National Anti-Poverty Commission report, said coconut farmers have the highest poverty incidence at 60 percent and a per capita income of P41 a day.

 

About a third of the so-called arable agriculture land or about 3.5 million hectares are planted to coconuts, representing 68 out of 79 provinces and 1,195 out of the 1,554 municipalities in the country. – VS, GMA News