Estrada vows to give back coco levy fund to coconut farmers

President Estrada promised coconut farmers yesterday that the government will pay back every centavo it has collected from them. However, the President stressed that the money will be pooled to form a trust fund for the rehabilitation of the coconut industry.

The money will start coming in after Mr. Estrada signs a law that would allow farmers to get back at least 27 percent of the 47 percent government-confiscated shares of San Miguel Corp. (SMC). The 27 percent share is estimated at P50 billion.

"I will make sure that the fund will go to the genuine advancement of the coconut industry," Mr. Estrada said in a speech before coconut farmers in Barangay Ayusan Dos, Tiaong, Quezon.

"As proof that the coco trust fund is for small farmers, the greater part would go to programs of the coconut sector," he added.

The fund will be handled and managed by a 10-man board which President Estrada himself will head.

About P5 billion of the fund will go to research and development of the sector, establishment of model coconut farms, a re-planting program and loans.

"I will make sure that every centavo of the coco levy funds will go back to the farmers," he said. "That is not a word of a politician."

The President was supposed to sign the law last month, but he decided to defer it until he has consulted with former Ambassador Eduardo "Danding" Cojuangco and former Congresswoman Ma. Clara Lobregat -- two of the key figures in the coconut industry.

Cojuangco is chairman of SMC, where coco funds were allegedly used to buy the food and beverage company's controlling shares.

Lobregat, meanwhile, heads the Coconut Confederation of the Philippines (Cocofed) -- a farmers' cooperative which is the registered owner of the funds.

According to Mr. Estrada, Cojuangco and Lobregat have initially agreed not to touch the entire P50 billion-fund.

But the two would very much like to use its P5-billion annual interest as a revolving fund to finance government projects as well as rehabilitate the moribund coconut industry, the President said. --