Question & AnswerQ&A (Republic Act No. 1145)
The PHILCOA is a corporation created under Republic Act No. 1145, June 17, 1954, organized to ensure the development and stabilization of the coconut industry in the Philippines, under the supervision of the Office of Economic Coordination.
The main objectives are to ensure steady development and market stability of the coconut industry, promote effective merchandising of coconut products, improve tenancy relations and labor living conditions, and encourage invention of machinery for the coconut industry.
PHILCOA is under the direct supervision of the Office of Economic Coordination, and its main office is in the City of Manila.
PHILCOA may not engage in trading in any form without prior approval from the President of the Philippines, which can only be given after a recommendation from the National Economic Council.
PHILCOA can establish and operate experiment stations to conduct research on coconut culture, pest control, product manufacturing, and new uses. It can also purchase equipment and allocate funds to research institutions, owning exclusive rights to research results.
PHILCOA may regulate marketing and exportation by establishing standards for domestic trade and export, and it can inspect copra for export through its agents to ensure conformance to these standards.
The PHILCOA helps planters and processors organize associations and cooperatives to improve their marketing control and obtain more credit facilities.
The Board consists of five members appointed by the President with the consent of the Commission on Appointments, with three being coconut planters. The Board’s Chairman is designated by the President.
Members serve four-year terms. The Chairman receives a salary of 12,000 pesos per annum, and members receive 25 pesos per meeting attended, capped at 100 pesos per month, with public officials not entitled to per diem.
The Board prescribes PHILCOA bylaws, fixes compensation of officers, approves budgets, manages PHILCOA business, and performs duties assigned by the President.
The Chairman of the Board of Administrators manages the affairs and business of PHILCOA on behalf of the Board, subject to its control and supervision.
Appointments and promotions are based on civil service eligibility, merit, and efficiency, and all officers and employees are subject to the Civil Service Law except for some policy or highly technical positions declared by the President.
A fee of ten centavos per one hundred kilos of desiccated coconut, coconut oil, or copra is levied and collected from factories, mills, exporters, dealers, or producers. This funds PHILCOA operations and forms part of the Coconut Development Fund.
Those who violate the prohibition against financial interest in contracts or privileges are subject to dismissal and a fine of up to 1,000 pesos or imprisonment for up to one year, or both, at the court's discretion.
The functions of the Bureau of Commerce on copra standardization and inspection and the functions of the Sugar Quota Office on coconut oil export allocation were transferred to PHILCOA.
The Auditor General appoints an Auditor for PHILCOA whose salaries and expenses are paid by PHILCOA, with the number of personnel and salaries determined with Board consent or by the President if there is disagreement.
Applicable provisions of the Corporation Law apply to PHILCOA insofar as they are not inconsistent with this Act.
Yes, with National Economic Council recommendation and President's approval, PHILCOA may engage in projects and borrow funds, but total loans must not exceed ten million pesos at one time.
If any provision is held unconstitutional, the remaining provisions remain effective and unaffected.