PCA backs audit of coco levy funds

The Philippine Coconut Authority (PCA) said it supports the mounting clamor for an audit to coconut levy funds, which has been pending resolution by the Supreme Court.

PCA Administrator Danilo Coronacion said he also favors a pending bill in the House declaring the coconut levy funds as public funds.

Coronacion said the matter of audit of the levy funds has been discussed with the Executive Secretary and the Chief of the Presidential Legal Counsel even before the submission of a draft executive order.

Memorandum Circular No. 7, dated Nov. 16, 2001 states the government’s position on the levy issue that "at the present stage of litigation of the coconut levy cases in the Sandigan—bayan, a no compromise policy with any adversarial party must be observed."

The memorandum signed by Coronacion was meant to guide all PCA central, provincial and field personnel on the government’s stand on the levy issue. It added that the government "shall proceed to litigate the issues of the cases on the strength and merit of its claim to be resolved, accordingly, by the courts."

"A compromise agreement, if any, shall be among proper parties to any of the cases and must be premised on a declaration that the coconut levies are public funds for the benefit of the coconut farmers," the memorandum stated.

"All unnamed legal or equitable holders or beneficiaries of shares, monies, properties or assets derived from or funded by the coconut levies must be disclosed and shall be made parties to and shall sign any such compromise agreement," the circular added.

The levy funds, estimated at P130 billion this time, has been the subject of much speculation in the past two weeks over a supposed compromise agreement reached between the government and business tycoon (chairman and chief executive officer of San Miguel Corp.). Eduardo Cojuangco Jr. and Zamboanga Mayor Ma. Clara Lobregat, head of the Philippine Coconut Producers Federation (Cocofed).

Coronacion said he fully supports House Bill No. 4000 or the "Coco Levy Funds and Assets are Public Funds Act" (authored by Rep. Etta Rosales) declaring such funds and other future exaction on small coconut farmers as public funds.

"The PCA also welcomes the provisions on the disposition and management of the Levy funds as these will finally pave the way for their proper utilization," Coronacion said as he emphasized the urgency of rehabilitating the coconut sector, a billion dollar industry.

The funds, collected by PCA from 1973 to 1982 and invested in various companies, the levies concerned include the Coconut Industry Investment Fund (CIIF), the Coconut Consumers Stabilization Fund, the Coconut Development Fund, the Coconut Industry Stabilization Fund and the Coconut Reserve Fund. Also included are the assets acquired and established from them such as the United Coconut Planters Bank, the Coconut Industry Investment Fund companies and other assets and investments set up using the coconut levy funds.

HB4000 also calls for the creation of the Presidential Coconut Industry Development Council under the Office of the President in charge of the administration and management of CIRDF and implementation of social component of the development of coconut industry.

The bill, he said, will also enhance the position of PCA and the cooperation of the agency with the coconut farmers. The PCA will have one seat in the proposed nine-member council, five of whose members will come from the ranks of coconut farmer organizations accredited by PCA.