The Department of Finance (DOF) said the disbursement guidelines of allocations under the coco levy trust fund for the implementation of programs that will benefit the coconut farmers and the industry are now being finalized for possible completion by the second week of August.
The Trust Fund Management Committee (TFMC), tasked to oversee the utilization of the Coconut Farmers and Industry Trust Fund (CFITF), has approved the principles that will establish the disbursement framework for the 15 implementing agencies tasked to carry out the projects, programs and activities to benefit the coconut farmers and their families, the DOF said in a statement.
“The important message there is that the implementing agencies cannot delay, they have to use the allocations and there is no excuse for delaying a program that you yourself planned. Unless of course, you know there is a typhoon or another pandemic or crisis,” Carlos Dominguez, DOF secretary, said.
The approval of these disbursement principles was done during the second TFMC meeting held via video conference last July 30.
The meeting also discussed the setting up of the Office of the Trust Fund Manager, which will implement the investment strategy set by the TFMC and manage the portfolio.
Under Republic Act No. 11524 creating the CFITF, the Trust Fund Manager is tasked to, among others, monitor market and economic trends and track securities in order to make informed investment decisions; recommend its portfolio strategy to the TFMC; track financial results of the companies in the portfolio and its various metrics such as, but not limited to, price-to-earnings ratios, inflation-adjusted return, sales, earnings and dividends; and recommend the designation of entities that will dispose the coco levy assets.
The Presidential Commission on Good Government reported during the meeting that, as of December 31, 2020, the total coco levy cash assets based on its inventory is estimated to amount to P113.88 billion, of which P76.4 billion is cash. This amount shall be transferred to the CFITF in tranches over five years.
As part of ensuring that the management of the CFITF is performed with transparency, accountability and prudence, the TFMC ordered a continuous update on the status of the coco levy assets, with the Bureau of the Treasury being mandated to ensure that all coco levy assets declared with finality to belong to the government be transferred in the name of the Republic of the Philippines.
The TFMC has also put in place numerous checks and balances to ensure proper utilization of the coco levy funds. Among these are the establishment of the Coconut Levy Asset Registry, which shall serve as the repository of all information related to coco levy assets and shall be periodically updated; and the regular monitoring of the status of disbursements of the implementing agencies. – Angela Celis
