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 with not more than five hectares involved in cultivation; or (3) a farm worker or laborer engaged in harvesting or processing copra as a major livelihood.
Coconut Levy Assets refer to all kinds of property acquired through Coconut Levy Funds, including shares of stock in the UCPB, CIIF-Oil Mills Group companies, CIIF Holdings Companies, and the Converted SMC Series 1 Preferred Shares along with income or dividends from these assets.
The Trust Fund is created to consolidate benefits due to coconut farmers, especially the poor and marginalized, to increase incomes, alleviate poverty, and develop the coconut industry under a long-term development plan.
The Coconut Farmers and Industry Development Plan is prepared by the Philippine Coconut Authority (PCA) and approved by the President of the Philippines.
Major components include hybrid seed farm development, training of farmers, research and marketing, crop insurance, farm improvements, processing facilities, credit programs, infrastructure development, scholarships, and health programs, with specific percentage allocations ranging from 4% to 20%.
The Board includes: (a) Secretary of Agriculture as Chairperson; (b) Secretary of Finance as Vice Chairperson; (c) Secretary of Budget and Management; (d) Secretary of Science and Technology; (e) Secretary of Trade and Industry; (f) PCA Administrator; and (g) three members from the coconut farmers sector representing Luzon, Visayas, and Mindanao.
All government agencies and persons holding Coconut Levy Assets declared as government property must reconvey titles to the Republic of the Philippines, deliver stock certificates to the Bureau of the Treasury for safekeeping, and transfer all cash assets to the Trust Fund within one year from the Act's effectivity.
The Committee sets investment strategies, priorities, asset allocation, approves financial requirements of Designated Disposition Entities (DDEs), sets annual disbursement allocation (not less than ₱5 billion), and issues necessary guidelines for Trust Fund management.
The Department of Finance (DOF) is the Trust Fund Manager; it implements investment strategies, monitors market trends, recommends portfolio strategies, tracks financial metrics of securities, designates DDEs, and performs related functions.
The BTr holds and accounts for all Trust Fund assets, collects income, releases securities and funds based on instructions from the Trust Fund Manager, and acts as custodian and depository for the Trust Fund.
All Coconut Levy Assets must be sold or disposed of within five years from the effectivity of this Act, including assets that may be recovered in the future.
Yes, DDEs are empowered to take title, manage, conserve, and dispose of Coconut Levy Assets through sales, leases, or partnerships with private sector entities subject to approval by the Trust Fund Management Committee.
COCAFAM exercises oversight on the implementation of this Act, including receiving semi-annual reports on the status of disposition of Coconut Levy Assets and annual privatization and disposition reports from DDEs.
If any provision is held unconstitutional or invalid, all other provisions not affected shall remain valid and effective (Separability Clause).