Question & AnswerQ&A (Republic Act No. 11524)
The short title of Republic Act No. 11524 is the "Coconut Farmers and Industry Trust Fund Act".
A coconut farmer refers to: (1) an owner of a coconut farm not more than five hectares who tills or supervises the land; (2) a leaseholder or tenant tilling or supervising a coconut farm not more than five hectares; or (3) a farm worker or laborer engaged in harvesting or processing copra as a major livelihood.
Coconut Levy Assets include all properties acquired through Coconut Levy Funds, such as shares in United Coconut Planters Bank, CIIF-Oil Mills Group companies, CIIF Holdings Companies, and the Converted San Miguel Corporation Series 1 Preferred Shares along with their dividends and increments.
The Trust Fund is created to consolidate benefits for coconut farmers, especially the poor, to expedite delivery of benefits, increase income, alleviate poverty, and develop the coconut industry over a 50-year development plan.
The Philippine Coconut Authority (PCA) is responsible for preparing the Development Plan, which must be approved by the President.
Key components include community-based enterprises, social protection for farmers, farmer organization development, research on coconut processing and production, integrated processing of coconut and downstream products, training, insurance, credit programs, infrastructure development, scholarships, and health programs.
The Trust Fund is capitalized through the proceeds from redemption of Converted SMC Series 1 Preferred Shares, dividends, income therefrom, cash Coconut Levy Assets transferred by the Bureau of the Treasury, and proceeds from privatization of Coconut Levy Assets, according to a schedule of annual allocations totaling billions of pesos over five years.
The PCA Board is composed of: the Agriculture Secretary (Chairperson); the Finance Secretary (Vice Chairperson); the Budget Secretary; the Science and Technology Secretary; the Trade and Industry Secretary; the PCA Administrator; and three coconut farmer representatives from Luzon, Visayas, and Mindanao appointed by the President.
The Committee sets investment strategy, investment priorities, asset allocation, approves budgets for disposition entities, sets annual disbursement allocations, and formulates policies for the management, administration, and utilization of the Trust Fund.
The Department of Finance (DOF) is assigned as the Trust Fund Manager responsible for implementing the investment strategy and managing the portfolio of the Trust Fund.
The BTr acts as the depository of the Trust Fund, holding and accounting all income and payments, releasing funds to implementing agencies, and managing securities according to instructions from the DOF as Trust Fund Manager.
All non-cash Coconut Levy Assets must be sold or disposed of within five (5) years after the effectivity of the Act or within five years from when they are declared as government property.
The DDEs include the Privatization Management Office (PMO), Land Bank of the Philippines (LBP), Development Bank of the Philippines (DBP), Social Security System (SSS), and Government Service Insurance System (GSIS), all fully government-owned at enactment.
Representatives must be Filipino citizens registered in the PCA Coconut Farmers Registry, own not more than five hectares of coconut farm in the past ten years, have experience and track record in promoting coconut farmers' interests, and be nominated by active farmer organizations or cooperatives.
The Congressional Oversight Committee on Agriculture and Fisheries Modernization (COCAFAM) exercises oversight on the implementation of the Act, including monitoring disposition of Coconut Levy Assets and Trust Fund utilization.