In support of coconut farmers’ appeal to approve Senate Bill 1233, creating a Coconut Farmers and Industry Support Fund, we encourage the members of Laiko to send the following letter to our Senators.
Sangguniang Laiko ng Pilipinas
2/F Laiko Building, 372 Cabildo Street
Intramuros, Manila
March 12, 2018
Dear Senators,
Magandang Araw!
We write this letter in solidarity with our country’s coconut farmers and in support of KILUS Magniniyog’s position as regards the Coconut Farmers and Industry Trust Fund (SB 1233). Our network has been one with the small coconut farmers in their struggle for many years to recover the coco levy fund and put it to just utilization, management and administration.
We join them in humbly requesting from our representatives in the Senate to vote against proposed amendments to SB 1233 that would eliminate provisions that deny coconut farmers their right to decide on the coco levies amounting to some Php 75B in cash and billions more in assets. We share the following beliefs:
1. Coco levies are special funds for a special purpose—not to be categorized as part of the general fund
The coconut levy, created under the Marcos administration, was intended to develop the coconut industry with small coconut farmers as direct participants and primary beneficiaries. The experience of coconut farmers tells us they never benefitted from these levies; instead the interest of a few hacienderos and cronies were reigned.
Decades after, the injustice wrought to small coconut farmers as a result of the coco levy scam was finally recognized by the court in 2012 hence the decision determining 24% of SMC-CIIF bloc of shares as owned by the government, held in trust on the coconut farmers’ behalf, now valued to be about Php 75B in cash and billions more in other assets.
Therefore, the levies must be treated as a special fund as determined by the Supreme Court itself and with it, all that this entails within the framework of existing laws. The coco levies as special funds must stay and be utilized as such, not to be categorized as part of the general fund.
2. There is pressing need for legislation to provide for the coco levies’ just utilization, management and administration
Recognizing this history of the coco levy and seeking to correct it, KILUS Magniniyog filed legislation to form a Coconut Farmers’ Trust Fund out of the so far recovered coconut levy assets. Its spirit rests on the just utilization, management and administration (UMA) of the coconut levy assets for the mag-UUMA (farmer in bisaya)
Among its salient and defining features were the (a) Trust fund nature where only interest can be utilized (b) the Trust Fund Committee composed of government and farmer representatives (majority farmers) and (c) direct benefits to small coconut farmers including (i) farm improvements (ii) community-based enterprises (iii) support for farmers’ organizations and (iv) social pensions.
When enacted into law, the proposal would democratize the coconut industry to include small coconut farmers who to this day remain impoverished and at the hands of bigger players in the Industry. The proposal resulted from local and national assemblies of coconut farmers, painstakingly consulted with organized small coconut farmers and pursued through a 1,750 km long march from Davao to Manila in 2014.
3. The Philippine Coconut Authority (PCA) needs reforms, but not as part of this law
One of the major amendments proposed on the Senate floor is the removal of the Trust Fund Committee and the reconstitution of PCA as one that would stand in as the Committee—under the guise of rationalizing government. Although the coconut farmers would surely welcome the democratization of the PCA governing board to include their representatives (and indeed this is much needed), this does more harm than good.
First, the PCA charter remains the same—a charter that would still include palm oil industry development and in so far as coconut is concerned, limited only to coconut oil production. Second, the PCA is a Government-owned and Controlled Corporation (GOCC) whose primary function is to generate revenue. Third, the PCA has regulatory and other functions that will overburden the institution from fulfilling especially its functions vis-à-vis the Trust Fund. Fourth, historically the PCA was part of the coco levy scam itself. And finally, there is a big risk that the amendment of the PCA Charter via this measure may be questioned in Court and the salient features such as the reconstituted PCA board may be struck down as unconstitutional for impinging on another law, thus, risking the deletion of the most important feature of SB1233.
4. Enacting the Coconut Farmers’ Trust Fund Law shall engender trust between the coconut farmers’ sector and government
For the longest time, small coconut farmers have been excluded from policy and development decisions that affect their lives. SB 1233 which provides for, among others, a Trust Fund Committee composed of majority farmers and joined by representatives from government would pave the way for both government and small coconut farmers to jointly and in trust, ensure the just utilization, management and administration of the recovered coco levy.
Given the above reasons, and given the much delayed passage of this measure, we ask that you side with history and justice and pass SB1233 now!
Sincerely yours,
Ma. Julieta F. Wasan
President
