BRIEFER ON THE STATUS OF THE COCO LEVY FUNDS AND ASSETS:

 Final Decisions of the Supreme Court- On January 24, 2012,

the Supreme Court on the two cases of Philippine Coconut
Producers Federation, Inc. (COCOFED), et al. v. Republic of the
Philippines, et al. (G.R. Nos. 177857-177858 and G.R. No.
178193), finally adjudicated that the coco levy funds, valued at
about P70 billion, were public funds and is to be used for the
benefit of coconut farmers and the development of the coconut
industry, as such, the same is reverted back to the ownership of
the government.

 The Supreme Court also held in the case of Republic of the

Philippines vs. Sandiganbayan (G.R. No. 118661), that the Coconut
Levy Funds are in the nature of taxes, that the so-called Farmers’
UCPB shares which is used to cover 64.98 % of UCPB shares of
stock, the CIIF companies, the CIIF Holding companies, are owned
by the Republic of the Philippines.

The decision contemplates the following coco levy funds and

assets:

1. Coco Levy Assets, including but not limited to the following:

a. The shares of stock in UCPB determined to be owned by

the Government valued at around Php. 15.6 billion;

b. The shares of stock in the CIIF Companies and the CIIF

Holding Companies;

c. The Five Million Five Hundred Thousand (5,500,000)

SMC shares paid by SMC and UCPB to and registered in
the name of PCGG as arbitration fee on or about 22
March 1999 (“PCGG SMC Shares”).
 2. Coco Levy SAGF with the Bureau of Treasury, pursuant to PD
No. 1234, including, but not limited to the following:

a. With respect of the Converted SMC Series 1 Preferred Shares,

sale proceeds of which amounts to around Php. 56.5 billion
which was deposited with the Bureau of Treasury:

i. All dividends declared, paid or issued after 17 September 2009;

ii. The proceeds from the redemption on 5 October 2012; and
iii. Income, interest, or profits derived from these assets;

b. With respect to the PCGG SMC Shares:

i. All dividends declared, paid or issued since 22 March 1990;

 As to Coco Levy Assets, the coco levy funds continue to earn interest
income up to the present.

The following presents the different initiatives as well as the statuses of

these initiatives as undertaken by the Office of the President, the Senate,
and the House of Representatives:

-Executive Initiatives-

 Two Executive Orders, EO’s 179 and 180 was signed by His
Excellency President Benigno Simeon Aquino III, on March 18,
2015 regarding the management of the coco levy funds.
 EO 179 provides for the administrative guidelines for the inventory
and privatization of coco levy assets.
 EO 180 on the other hand, provides for the administrative
guidelines for the reconveyance and utilization of coco levy assets
for the benefit of the coconut farmers and the development of the
Coconut Industry and for other purposes.

 These two proposed EOs states that there is a need to constitute

the coconut levy funds and assets into a Coconut Industry
Development Trust Fund in which the coco levy funds and assets
will be housed in a foundation to be called the Philippine Coconut
Farmers Foundation (PCFF) under the Office of the President,
which shall manage, administer, utilize or dispose certain assets of
the proposed PCFF.

 It also further proposes the establishment of a new farmer’s bank.

Proceeds of the government sales of farmer’s share in UCPB will
then be immediately deposited to the proposed farmer’s bank.
However, the Supreme Court issued a Temporary Restraining Order
(TRO) with respect to EO 179 and 180, effective immediately, and
until further orders from the Court.

 The said TRO was issued by the high court after a petition was filed
by the Confederation of Coconut Farmers Association (CCFOP)
before it, which petition was grounded on an alleged grave abuse
of authority when the said EOs were signed without the approval of
Congress and the Sandiganbayan. Up to the present, the
restraining order has not yet been lifted.
 -Senate and House of Representatives’ Initiatives-

 Such turn of events as mentioned above paved way for the drafting
of House Bill No. 6135- An Act Establishing the Coconut Farmers
and Industry Trust Fund.

 Primarily, this bill seeks to remove the coconut levy funds from the
coffer of the general fund of the National Government and institute
a Trust Fund. All assets and/or properties derived from all coco levy
recovered assets, and all interest earnings and incomes that are
available upon effectivity of this bill shall form part of the initial
capital of the Trust Fund.

 Under this Trust Fund there will be a creation of a Coconut Farmers

and Industry Trust Fund Committee, which among its powers, will
coordinate and monitor the implementation of the Coconut Farmers
Industry Development Plan. This Coconut Farmers and Industry
Development Plan will consists of programs, activities and projects
which will be prepared for a period of every five years and which
aims primarily in the increase of income and coconut productivity of
the coconut farmers.

 It also seeks to promote the coconut-based enterprises, provide

support to coconut farmers and organizations. The provision for the
establishment of social protection programs that directly benefit
 coconut farmers and farm workers is also among one of its
mandates.

 On 9 October, 2015, a day before the Congress had its recess, this
bill was among the others which were approved on third and final
reading.

 Senate Bill No. 2675- On 2 March 2015, Senator Cynthia Villar,

Chairperson of the Senate Committee on Agriculture and Food,
reported out committee nos. 106 which proposes the creation of
the Coconut Farmers and Industry Development Act of 2015 or the
Senate Bill No. 2675.

 The Coconut Farmers and Industry Trust Fund will be composed of

all coconut levy assets. Under the said bill, all cash assets will
become the initial capital trust fund. All non-cash assets will be
transferred to the Trust Fund Committee and will be privatized by
the Privatization and Management Office (PMO) within a five- year
period.

 The proceeds will be remitted to the trust fund and will augment its
capital. The Coconut Farmers and Industry Development Plan was
mandated to be formulated within 180 days after the effectivity of
the law.

 Furthermore, only programs and project6s falling under four

categories can be funded, namely, coconut productivity,
 community-based coconut enterprises, coconut farmers
organization and development and social protection programs.

 This bill however, despite efforts having it certified as urgent for

passage into law by Pres. Aquino, the Congress has failed to act on
it. Hence, the bill must be re-filed and re-deliberated anew by
Congress.

 The TRO issued against the two EOs and the legislative initiatives
taken, highlighted the prevailing view and predisposition that the
utilization of Coco Levy Funds should be provided for by a new law.