The Federation of Free Farmers (FFF) criticized the Department of Finance’s (DOF) “undue haste” in the issuance of implementing rules and regulations (IRR) governing the Coconut Farmers and Industry Trust Fund Act.
The group said stakeholders were not given enough time to comment on the proposed IRR which posted last May 27. Deadline for submission of comments is on June 3.
“It’s unclear how stakeholder submissions will be treated. Shouldn’t there be public hearings on this, considering that the Trust Fund Committee will decide on the fate of major companies acquired with the coconut levies, like the United Coconut Planters Bank (UCPB) and the oil mills under the Coconut Industry Investment Fund? How will public transparency and effective protection of farmers’ interests be assured in the Committee’s handling of an estimated P100 billion in cash and non-cash assets?” said FFF secretary-general Dioscoro Granada.
Granada said in a statement until the IRR are issued, no decision should be made on the privatization or utilization of coconut levy assets, including the Bangko Sentral ng Pilipinas’ (BSP) recent decision to approve the Land Bank of the Philippines’ (LBP) acquisition of the majority of shares of stock in UCPB.
The Trust Fund Management Committee is composed of authorized representatives of DOF, Department of Budget and Management and the Department of Justice.
In a virtual briefing yesterday, Leonardo Montemayor, FFF’s board chairman, said they will submit their comments to meet the DOF’s deadline on Thursday, noting that it is expected to represent over 90 percent of all organized coconut farmers in the country.
The DOF earlier said key sections of the IRR that need more input from stakeholders are the investment of coconut levy assets, annual allocation for disbursement as well as the management and custodianship of the trust fund.
The law that became effective last March, aims to provide over P75 billion worth of support in the form of a trust fund that will be deposited in tranches for the next five years, is expected to benefit 2.5 million coconut farmers and their families.
Under the current draft IRR of the law, the Bureau of Treasury shall transfer P10 billion to the trust fund immediately upon the enactment of the law. For the succeeding four years, transfers will be in the amounts of P10 billion for the second year; P15 billion each for the third and fourth years; and P25 billion and any amount accruing, including interest for the fifth year. – Jed Macapagal
