Responding to criticisms after the bicameral conference committee approved last week a bill creating a P100-billion levy trust fund, Senator Cynthia Villar said she sees no conflict with the recent Sandiganbayan declaring the coco levy trust fund as state-owned.
Under the bicam committee’s proposal, the fund will be used for 25 years for the benefit of 3.5 million coconut farmers.
“There is no conflict between the decision of the Sandiganbayan and the provisions of the law that the Congress passed,” Villar, who chairs the Senate committee on agriculture and food, said.
“I really do not see any conflicts. All the money in the fund will really go to the coconut farmers. We made sure of that. It is aimed at lifting coconut farmers, who are among the poorest in the country, out of poverty,” the senator said.
According to the Sandiganbayan, the estimated P74 billion worth of assets from the Coconut Industry Investment Fund belong to the government and should be distributed to coconut farmers.
In coming out with the new ruling, the Sandiganbayan overturned its 2017 decision calling for more hearings on the civil case involving United Coconut Planters Bank and the Coconut Planters Life Assurance Corp. by granting the government’s motion for reconsideration.
In 2014, the SC ruled with finality that 2004 decision of the Sandiganbayan declaring that the government is the owner of the coco levy funds.
“The cash and the assets from Coconut Farmers and Industry Trust Fund amounting to about P105 billion will be distributed to coconut farmers at the rate of P5 billion per year until the fund runs out,” Villar said.
“The P5 billion per year will be spent for the following: shared facilities, 30 percent; scholarship, 15 percent; empowerment of coconut farmer organization and their cooperatives, 15 percent; farm improvement to encourage self-sufficiency, 30 percent; and health and medical benefits, 10 percent,” she added.
On top of the said amount, the coconut industry will also get P10 billion allocation from the national budget that will be spent to further develop the industry.
“This will be earmarked for the following programs: infrastructure, 20 percen111t; planting, replanting and establishment of nurseries, 20 percent; intercropping, 10 percent; shared facilities, 20 percent; research and development, disease control and eradication, 10 percent; fertilization, 5 percent; new products and derivatives of cococut oil products, 5 percent; and credit through LandBank of the Philippines and Development Bank of the Philippines, 10 percent,” Villar said.