Purposes and Objectives
- Steady and orderly development of the coconut industry.
- Stabilization and strengthening of the coconut industry’s world market position.
- Promotion of effective merchandising of copra, coconut oil, and related products domestically and abroad.
- Restriction on trading activities: PHILCOA requires President’s approval and recommendation from the National Economic Council to engage in any trading.
- Improvement of tenancy relations between coconut proprietors and tenants and enhancement of laborers' living conditions.
- Encouragement of inventing machinery to aid industry development.
Specific and General Powers
- Establishment and operation of central and regional experiment stations for research on coconut culture, pest control, product improvement, and new uses.
- Utilization of existing government research agencies allowed.
- Procurement of machinery, materials, equipment needed for research.
- Expansion of domestic and foreign markets for coconut products ensuring mutual benefits.
- Allocation of funds for research institutions, rights to research results vested in PHILCOA.
- Regulation of copra marketing and exportation; setting standards and conducting export inspections.
- Facilitation of planters’ and processors’ organization into associations/cooperatives and aiding credit access.
- Authority to enter contracts necessary for objectives and to exercise all necessary powers.
Special Authority to Undertake Projects and Incur Debt
- PHILCOA may engage in vital projects upon National Economic Council recommendation and Presidential approval.
- Allowed to borrow funds from financial institutions, capped at ten million pesos outstanding.
Governing Body: Board of Administrators
- Five-member Board appointed by the President with Commission on Appointments' consent; three must be coconut planters.
- No board member may serve as director of more than two government or semi-government corporations.
- Board Chairman designated by the President from among members.
- Board members serve four-year terms; vacancies filled for the unexpired term.
- Compensation: Chairman receives 12,000 pesos annually; members receive 25 pesos per meeting attended, capped at 100 pesos monthly; public officials not entitled to per diem.
Board of Administrators’ Powers and Duties
- Authority to adopt, amend, or repeal internal by-laws, rules, and regulations consistent with the Act.
- Fix salaries of officers and employees.
- Approve annual and supplemental budgets.
- Conduct PHILCOA business as prescribed by law.
- Perform duties assigned by the President.
- Members may be suspended or removed by the President for cause.
Management: Role and Powers of the Chairman
- Chairman manages PHILCOA’s affairs on behalf of the Board under its supervision.
- Required to submit annual reports to the President and Congress within 60 days after fiscal year-end.
- Appoints subordinate officials with Board approval; may remove or discipline for just cause.
- Performs other Board-assigned duties.
Appointments and Promotions
- Based on civil service eligibility, merit, and efficiency.
- Appointments violating these bases result in removal.
- Civil Service Law applies except to positions declared policy-determining or highly technical by the President upon Board recommendation.
Capitalization and Special Fund
- Imposition of a fee of ten centavos per 100 kilos on desiccated coconut, coconut oil, and copra, payable by industry stakeholders.
- PHILCOA collects fees under its promulgated rules.
- Initial loan authorization of 50,000 pesos for organization and maintenance.
- Funds collected constitute the "Coconut Development Fund," exclusively used by PHILCOA.
- All income from the fund is reinvested into the fund.
Transfer of Functions from Other Offices
- Transfer of copra standardization and inspection functions from the Bureau of Commerce.
- Transfer of coconut oil export allocation function from the Sugar Quota Office.
- Qualified personnel transferred to PHILCOA; non-qualified personnel retired.
Audit
- Appointment of PHILCOA Auditor by the Auditor General.
- Auditor’s personnel size and salaries determined with Board consent; disagreements resolved by the President.
- Auditor’s office expenses borne by PHILCOA.
Miscellaneous Provisions
- Corporation Law provisions applicable unless inconsistent with this Act.
- Prohibition on PHILCOA officers/employees having financial interests in contracts or special privileges related to PHILCOA during term.
- Violations punished by dismissal, fines up to 1,000 pesos, imprisonment up to one year, or both.
- Repeal of conflicting laws/orders including Republic Act No. 471 concerning fee allocations.
- Constitutionality clause: invalid provisions do not affect the rest.
- Act takes effect upon approval.