SENATE BILL

JUN
30
2016

SBN-64: Coconut Levy Assets Disposition Act of 2016

An Act Providing For The Disposition Of The Coconut Levy Assets By The Privatization And Management Office, Creating The Coconut Industry Fund Committee, And Providing For The Management, Investment And Use Of Proceeds Of Such Assets For And In Behalf Of The Coconut Farmers And For Other Purposes

  • The Commission on Audit (COA), with the Philippine Coconut Authority (PCA) and Presidential Commission for Good Government (PCGG) shall conduct an audit and inventory of all coconut levy assets within 120 days from the effectivity of the Act.
  • The Privatization Management Office (PMO) is mandated to privatize all assets acquired through the Coco Levy Funds.
  • A Coconut Industry Trust Fund shall be created and earmarked as an escrow or Special Fund for the development of the coconut industry, for a period of 10 years from the effectivity of the Act. Thereafter, all remaining monies shall revert to the National Treasury.
  • Farmers who contributed to the levy and with existing certificate of shares of stock, may be granted a cash refund equivalent to their contributions plust the corresponding interest earnings should they opt to do so.
  • The Coconut Industry Trust Fund shall be capitalized from monies deposited with the United Coconut Planters Bank under the name of Coconut Industry Investment Fund (CIIF) pursuant to P.D. 1468, from the proceeds for the redemption of the CIIF SMC Shares; and all dividends accruing thereto. It shall be augmented with the proceeds of privatization to be remitted by the PMO.
  • A Coconut Industry Fund Committee, attached to the Office of the President is created as the advisory, monitoring and oversight body to implement the disposition of the Coco Levy Funds.
  • An amount of P30M to cover the expenses of the Committee shall be charged against the current appropriation of the PMO. Subsequent annual expenses of the Committee shall be charged against the Trust Income: Provided, That not more than three percent (3%) of the Trust Income shall be used for administrative expenses.

 

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