Lawmaker seeks probe on status of P200-B coco levy funds

MANILA, Philippines - Rep. Sharon Garin of party-list group AAMBIS-OWA has asked the House of Representatives to examine the status of coconut levy funds, which she said amount to as much as P200 billion.

In Resolution 1518, Garin said many coconut farmers’ groups were inquiring where their funds were and how the government or their organizations could use them for their benefit.

“These poor coconut farmers have long suffered the injustice of paying the levies throughout the Marcos years without reaping the benefits. The coconut levy funds were exacted from coconut farmers and were supposedly for the implementation of various projects for their benefit,” she said.

She said the coco levy funds were different kinds of taxes imposed on coconut farmers during the Marcos regime.

She added that collections were funneled into several investment accounts, like the coconut industry investment fund, coconut consumers’ stabilization fund and coconut industry development fund, and used for various investment projects, including the establishment of United Coconut Planters Bank.

“It remains arguable as to whether any of these funds were actually used for the implementation of projects for the benefit of the poor coconut farmers, who paid the funds throughout the years, especially given the issues of misuse of the coco levy funds by private individuals for their own personal purposes of investment,” Garin stressed.

She pointed out that coco levy funds “were confirmed to have been used to buy 72.5 percent of the United Coconut Planters Bank and for the creation of companies and corporations such as the United Coconut Oil Mills, COCOFED, COCOMARK and COCOLIFE, among others.”

In 2013, she said the Supreme Court ruled that the coco levy funds were public in character and awarded all the shares of stocks and all funds connected to the coco levy investments to the government.

The SC also dismissed with finality all the petitions questioning ownership of the funds, she said.

“It is estimated that the coco levy funds now total between P150 billion to P200 billion, but there have been no actual accounting of the current value of all the shares of stocks, amounts held in escrow, dividends and interests and other acquired assets, which are now part of the funds returned to the government for the benefit of coconut farmers,” she said.

Following the 2013 SC decision, she said it was still unclear which agency was holding the funds and how the government could use them for the benefit of coconut farmers.

She noted that at least two state agencies want to dip their fingers into the huge pool of money.

In the absence of a law on how the money could be used, she said it was imperative for the House to conduct an inquiry so that the necessary remedial legislation could be passed.