Public-interest basis for coconut levy funds
- Coconut levy funds are treated as public funds because they were raised through the State’s police and taxing powers and are affected with public interest.
- The coconut levy funds are for the ultimate benefit of coconut farmers and to support and advance the development of the coconut industry.
- Government concern over the coconut levy funds exists to prevent concealment and dissipation, including through sequestration and other government measures where applicable.
- Corporations formed and organized from coconut levy funds, and assets acquired from them, are regarded as affected with public interest as well.
Covered funds and included assets
- Coconut levy funds include four general classes:
- (a) the Coconut Investment Fund created under Republic Act No. 6260 (effective June 19, 1971),
- (b) the Coconut Consumers Stabilization Fund under Presidential Decree No. 276 (effective August 29, 1973),
- (c) the Coconut Industry Development Fund under Presidential Decree No. 582 (effective November 14, 1974), and
- (d) the Coconut Industry Stabilization Fund under Presidential Decree No. 1841 (effective October 2, 1981).
- Coconut levy funds include all income, interests, proceeds or profits derived therefrom.
- Coconut levy funds include all assets, properties, and shares of stocks procured or obtained using those funds.
Rule: treat and manage as public funds
- Coconut levy funds must be treated, utilized, administered, and managed as public funds.
- Management must be consistent with the uses and purposes under the laws that created the coconut levy fund classes.
- Management must be consistent with government development priorities, including:
- coconut productivity,
- rehabilitation,
- research,
- extension,
- farmers organizations, and
- market promotions.
- The purpose of these priorities is to advance the development of the coconut industry and the welfare of coconut farmers.
Governance and Master Plan years 1995–2000
- An ad-hoc committee is created to jointly review, rationalize, and integrate concerns and programs in a Master Plan for the years 1995 to 2000.
- The ad-hoc committee consists of the heads of the following: Department of Agriculture, Presidential Commission on Good Government, Philippine Coconut Authority, United Coconut Planters Bank, and The Coconut Industry Investment Fund.
- The Secretary of Agriculture serves as Chairman of the ad-hoc committee.
- The committee operates in consultation with representatives of the coconut industry, including coconut farmers’ organizations.
Governing laws on public fund use and disposition
- All existing laws, rules, and regulations governing custodianship, use, disposition, disbursement, and/or divestment of public funds and properties must be applied to coconut levy funds.
- Coconut levy funds must be administered in a manner that aligns with the government’s applicable public-funds governance framework.
Constitutional and related legal anchors
- The order rests on the constitutional framework that empowers the Commission on Audit to examine and settle accounts for public funds and government-related entities.
- The order rests on the constitutional rule that no law may exempt entities of the Government or investments of public funds from Commission on Audit jurisdiction.
- The order is consistent with constitutional principles treating tax proceeds for special purposes as special funds, and transferring balances to the general fund once the purpose is fulfilled or abandoned.
- The order incorporates government-accountability concepts reflected in Presidential Decree No. 1445, including the accounting requirement for moneys received by public officers in any capacity unless specifically provided otherwise by law or competent authority.