Friday, March 20, 2015

Pres. Aquino issues executive order on guidelines for reconveyance, use of coco levy assets



President Benigno S. Aquino III on Wednesday (March 18) issued Executive Order 180, providing the administrative guidelines for the reconveyance and utilization of coco levy assets for the benefit of coconut farmers and the country's coconut industry.

Through EO 180, the President mandated several government agencies to protect and recover the government’s rights and interests in coco levy assets.

The Order specifically instructs the Office of the Solicitor General (OSG), the Presidential Commission on Good Government (PCGG), and other government agencies under the Department of Justice to file pleadings and maintain appropriate legal actions to preserve and recover the government's entitlements in coco levy assets.

The EO mandates the PCGG, the Bureau of Treasury, the Governance Commission for Government-Owned or -Controlled Corporations (GOCCs), the OSG, and government representatives to sequestered corporations to reconvey and transfer titles of coco levy assets to the government.


These include shares of stocks in the United Coconut Planters Bank (UCPB), shares in Coconut Industry Investment Fund (CIIF) companies and holding companies, and 5.5 million San Miguel Corp. (SMC) shares paid by the SMC and UCPB in the name of PCGG.

These agencies must also deposit money and funds constituting the coco levy or accruing from the coco levy assets in the Special Account in the General Fund for Coco Levies with the Bureau of Treasury, pursuant to Presidential Decree 1234.

With respect to the converted SMC shares Series 1 preferred shares, these must include all dividends declared, paid or issued after September 17, 2009, the proceeds from the redemption on October 5, 2012, and income, interests or profits derived from those assets.

With regards to the PCGG SMC shares, these include all the dividends declared, paid or issued since March 22, 1990.

Government agencies controlling or administering coco levy assets must be dissolved pursuant to existing laws, with all the money and assets to be transferred or deposited to government coffers, according to the Order.

The Philippine Coconut Authority (PCA), in cooperation with the Office of the Presidential Assistant for Food Security and Agricultural Modernization, is mandated by the Order to develop a coconut industry roadmap and submit it to the President.

Initial funding for the industry roadmap, which will come from the money and funds constituting the coco levy and coco levy assets, will be released once the President approves the roadmap.

The Order specifies that the money must be allocated only for the benefit of the coconut farmers and the development of the coconut industry.

The PCA was also instructed by the President through the Order to issue implementing rules and regulations to ensure the fulfillment of the mandate of EO 180.

The President said in the Order that the use of the coco levy fund must improve coconut farm productivity, develop coconut-based enterprises, and increase the income of coconut farmers.

It must also strengthen coconut farmers' organizations as well as rehabilitate and develop the coconut industry.

The coco levy fund came from levies, taxes and enforced contributions imposed by the government on coconut farmers, planters and millers starting in the early 1970s. (PCOO News Release)

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