“Compromise” bill to benefit coco farmers, coco industry

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By JUNE S. BLANCO

  

REP. Erico Aumentado (2nd District, Bohol) has filed a “compromise” bill seeking to allocate the coconut levy fund for coconut farmers and to develop the coconut industry.

House Bill 6714 proposes to allocate the over P84 billion coconut levy fund adjudged by the Supreme Court to be owned by the government to be used only for both purposes – “marrying” the positions of Agriculture Secretary Proceso Alcala and Senator Joker Arroyo.

Alcala wants to use the fund exclusively for the rehabilitation and development of the coconut industry. On the other hand, Arroyo wants the fund to be given directly to the coconut farmers as desired by them.

In a recent decision, the Supreme Court declared that the CIIF companies are owned by the government. The CIIF Oil Mills Group constitutes the biggest and the most integrated conglomerate in the Philippine coconut industry.

In his explanatory note on the bill, Aumentado named these companies to be the Southern Luzon Coconut Oil Mills (Solcom), Cagayan de Oro Oil Co., Inc. (Cagoil), Iligan Coconut Industries, Inc. (Ilicoco), San Pablo Manufacturing Corp. (SPMC), Granexport Manufacturing Corp. (Granex), and Legaspi Oil Co., Inc. (Legoil), and 14 holding companies – Soriano Shares, Inc., ACS Investors, Inc., Roxas Shares, Inc., Arc Investors, Inc., Toda Holdings, Inc., AP Holdings, Inc., SMC Officers Corps, Inc., Te Deum Resources, Inc., Randy Allied Ventures, Inc., Rock Steel Resources, Inc., Valhalla Properties Ltd., Inc. and First Meridian Development, Inc..

Together with the CIIF Block of San Miguel Corporation (SMC), these companies own stocks totaling 33,133,266 shares as of 1983, as well as all dividends declared, paid and issued, plus increments, but not limited to the exercise of pre-emptive rights (Petitioners COCOFED, et al. G.R. Nos. 177857-58 and Danila S. Ursua, G.R. No. 178193).

To resolve the Alcala-Arroyo impasse, Aumentado said his measure aims to install a compromise mechanism: 40% for all coconut farmers cash share; 40% for the development of the coconut industry; and 20% as revolving fund for the scholarship program of the coconut farmers’ children to pursue their education, dreams and aspirations.

The revolving education fund can be accessed exclusively by the farmers’ children as a concessional loan to be paid on installment basis from their employment the soonest possible time.

Those who will take up agriculture courses shall be prioritized in the availment of the student loan fund. This aims to encourage more students to take up agriculture and provide the necessary technicians and experts to develop the agriculture industry in the country, the solon explained.

Further, he said, the legislation could avert a possible agrarian problem if the coconut farmers are totally divested of their just share of the coconut levy fund which they had contributed in the first place, if all of the said fund shall be channeled to the development of the coconut industry which was the very foundation and reason of the coconut levy created under Presidential Decree (PD) 755.

The proposed “Coconut Levy Fund Allocation Act of 2013”.provides that the Philippine Coconut Authority (PCA), in consultation with the coconut farmers’ cooperative officials and the Department of Agriculture shall promulgate the implementing rules and regulations (IRR) the new measure within a period of 90 days from its enactment into law.

It wll take effect 15 days after its publication in at least two national newspapers of general circulation, or the national gazette.