GUINGONA HITS COCO LEVY ORDER: Senate Minority Leader Teofisto Guingona Jr.
warned yesterday that some P65 billion in public funds may go to a private
entity if the government implements President Estrada's executive order
providing for the establishment of a trust fund for coconut farmers.
Guingona said the coconut levy funds belong to the government as these were
collected from copra vendors during martial law under Presidential Decrees
276 and 414.
Last Nov. 8, the President issued Executive Order No. 313, which provides
for the establishment of a trust fund for coconut farmers, ostensibly to
revive the coconut industry.
Critics said the order favored the President's political patron,
businessman Eduardo Cojuangco Jr., head of food and beverage giant San
Miguel Corp.
Guingona said that in 1975, then President Ferdinand Marcos empowered a
group headed by Cojuangco to "possess, collect and utilize" the coconut
levy fund.
The Cojuangco group used the fund to set up the United Coconut Planters
Bank and to buy the majority shares in San Miguel, Guingona said.
He noted that Executive Order 313 will allow the coconut levy fund "to
finally get lost into the private fortunes" because the trust committee
will have authority to use the fund without going through the Commission on
Audit.
Under the executive order, government agencies like the Presidential
Commission on Good Government and the Office of the Solicitor General must
lift the sequestration order over the coconut levy funds even before the
courts could rule on the fund's ownership, he added.
Earlier, the leader of a group claiming to represent 3.4 million coconut
farmers and agricultural workers called on President Estrada to "unfreeze"
the coconut levy funds.
Small coconut farmers support the stand of Guingona that the fund is public
since it was collected as a government tax during the Marcos
administration.
In deciding the matter, the Supreme Court ruled that the fund was a
"private fund clothed with a public character." Phil. Star, 12/14/2000
ESTRADA APPROVES P1 BILLION RELIEF PACKAGE FOR COCO FARMERS: Pres. Estrada
ordered yesterday the release of P1 billion from the estimated P50-billion
coconut levy fund to assist coconut farmers who were grievously affected by
depressed copra prices in the world market.
According to Agriculture Secretary Edgardo Angara, coconut farmers "are
hurting" as farmgate prices have already hit an industry low of between P3
and P5 a kilo.
He said that the depression is "so deep" that scores of coconut farmers
have abandoned their farms, leaving the nuts to rot.
Of the P1-billion relief package that will be carried out by the Philippine
Coconut Authority, a transport allowance of P38.25 million will be given to
the farmers every month until copra prices stabilize.
About P236.2 million in marketing assistance will also be granted to
farmers groups and accredited oil mills.
The National Food Authority was also ordered to buy copra directly from the
farmers, while the agriculture department will push for the use of coconut
oil in generating electricity.
The fund will also help coconut farmers set up their own oil mills,
diversify into livestock and aqua—culture, and put up small businesses.
The depression was caused by a glut of palm oils and other competitors of
coconut oil in the global market. Its prices are expected to remain until
June next year. Phil. Star, 11/11/2000
COCO FARMERS ASK SC TO STOP ESTRADA EO -- COCONUT farmers yesterday vowed
to challenge before the Supreme Court an executive order signed recently
by President Estrada establishing a P50-billion coconut levy trust fund.
The Multi-Sectoral Task Force on the Coco Levy said it would ask the high
tribunal next week to stop the President from implementing Executive Order
No. 313.
The coconut farmers also rejected a P1-billion government subsidy fund,
saying it was not enough to provide even temporary relief to farmers
reeling from depressed copra prices.
Efren Villasenor, president of the country’s biggest coconut farmers’
group, said the government should not use part of a coconut levy fund to
finance the subsidy because ownership of the fund is still being contested
between the government and the private sector before the Sandiganbayan.
In a press conference, task force representatives accused Malacañang of
deceiving the people when it said that the EO would benefit the coconut
farmers.
They said the controversial provisions of the EO were never approved by
the farmers.
Romeo Royandoyan said Estrada’s EO in effect repealed two previous EOs
which declared the P100-billion coconut levy funds as public funds.
The government seized those shares after a 1986 "people’s power"
revolution ousted dictator Ferdinand Marcos, because of allegations the
shares were improperly acquired by Marcos and his associates.
The coconut levy fund was built up from taxes collected by the Marcos
administration. From 1973 to 1982, the government collected about P60 for
every 100 kilograms of copra produced by each coconut farmer. The levy was
supposed to finance coconut industry development programs.
Royandoyan said the EO also contradicted a Supreme Court ruling which
declared the funds as public in character, thus paving the way for the
previous administration to put these under sequestration.
The amount represented 31 percent of coconut farmers’ shares in San Miguel
Corp. Royandoyan said former Solicitor General Estelito Mendoza, lawyer of
businessman Eduardo Cojuangco, had admitted the 31 percent share although
both parties initially agreed on the 27 percent share as these were covered
by documents.
The missing 4 percent share, according to the task force, is worth about
P7.5 billion.
The task force said the farmers objected to a provision in the EO allowing
a private audit of the funds as insisted by the Cojuangco group.
It said that since the funds are public in character, the audit must be
conducted by the Commission on Audit.
The task force also questioned the government’s motive in issuing the EO,
coming at a time when the President’s credibility is being put to serious
doubt over his alleged involvement in the `jueteng’ bribery scandal.
Villasenor of the Pambansang Koalisyon ng mga Samahan ng Magsasaka at
Manggagawa sa Niyugan said that the farmers can’t support the EO because
the President gave back the issue of ownership to Cojuangco. "We did not
enter into a compromise with Malacañang although Agrarian Reform Secretary
Horacio Morales was insisting on a compromise," Villasenor said. "So we
were surprised to read in the newspapers about the signing of this EO."
Task Force head Rep. Wigberto Tañada said he, too, was saddened that Mr.
Estrada rushed the signing of an EO that was not acceptable to farmers.
"After the long negotiations undertaken between the government and the
Multi-Sectoral Task Force, it is really unfortunate to see that the pleas
of the small farmers have not been granted," Tañada said.
Yesterday, the Alyansa ng mga Kilusang Magbubukid joined other farmers
groups in rejecting the EO as a "blatant deception and betrayal of the
trust placed by the small coconut farmers on the Estrada administration."
The Sandigan at Ugnayan ng Magbubukid sa Pilipinas, on the other hand,
described the EO as a "big swindle" as it reverted back to Cojuangco the
ownership of the funds.
"There is nothing for farmers to be happy about, much less be thankful to
Erap," Sumapi said.
"The EO is a treacherous ploy that gives back the loot on a silver platter
to the thieves who have enriched themselves by extracting levies from the
sweat and blood of millions of small coconut farmers and farmworkers
during Marcos time," said Sumapi spokesperson Ed Mora. Inquirer 11-11-00
P1-B RELIEF FOR COCO FARMERS BANNER
By Cynthia D. Balana
PRESIDENT Estrada has approved a P1-billion relief package for the
country’s 1.6 million coconut farmers who have been adversely affected by
the decline in world prices of copra and coconut oil.
Agriculture Secretary Edgardo Angara said the relief program will be
carried out by the Philippine Coconut Authority and coconut farmers’
organizations, and will be funded by the coconut levy fund.
Last Wednesday, the President created a P50-billion trust fund for the
coconut tillers using contested shares in San Miguel Corp.
"The coconut farmers are deeply hurting and farmgate prices swing between
P3 and P5 per kilo, an industry low," Angara said.
He said average production cost is P7.04 per kilo.
According to Angara, the depression is so deep that scores of coconut
farmers have abandoned their farms.
The immediate relief of coconut farmers was part of the seven-point reform
agenda Angara’s political party, the Laban ng Demokratikong Pilipino,
recently submitted to President Estrada.
LDP condition
The relief package was reportedly part of the terms set by the LDP as a
condition for staying in Lapian ng Masang Pilipino, the administration’s
coalition.
The direct assistance shall be complemented by the push for the use of
coconut oil to complement bunker fuel and diesel, Angara said.
He said coconut oil is a viable extended substitute for bunker and diesel
fuel and this will also lessen the country’s dollar drain caused by
massive oil importation.
The fund shall also help coconut farmers set up their own oil mills,
diversify into livestock and aquaculture, and put up small businesses, he
added.
The program shall be called Erap’s Sagip Niyugan Program, according to PCA
administrator Eduardo Escueta.
Market glut
The depressed prices were a result of the glut in palm oils and other
products that compete with coconut oil in the world market.
The prices are expected to remain low until the second quarter of next
year.
As this developed, the signing by President Estrada of Executive Order
313 creating the P50-billion coconut trust fund drew mixed reactions
yesterday.
While some coconut farmers’ groups hailed the signing of the EO as
"a positive movement in the quest for social justice," the Multi-Sectoral
Task Force on the Coconut Levy Fund questioned where some of the shares of
the coco levy in San Miguel Corp. went.
According to the task force, the EO covers only 27 percent of SMC shares
when documents showed that the farmers’ share was 31 percent.
Forty-seven percent of SMC shares are being contested by the small coconut
farmers and a planters’ group headed by SMC chair Eduardo "Danding"
Cojuangco, a close friend and supporter of the President.
The EO creating the trust fund proposed to raise the P50 billion from the
sale of the farmers’ 27 percent in SMC. This presupposed that the other 20
percent shares would go to Cojuangco and his group.
"Clearly, it (EO 313) fails to account for the missing four percent of
shares," the task force said.
Contested in court
"Further, the 31 percent in shares are still being contested before the
Supreme Court. How then can these shares be released?" the task force
asked in a statement.
The Kilusang Magbubukid ng Pilipinas said the EO was just another
"political gimmick" of the administration.
Rafael Mariano, KMP chair, said Malacañang’s move, "like Mr. Estrada’s
distribution of fake land titles to the urban poor, was not intended to
return the coco levy fund to the small coconut farmers but to keep the
funds in the control of cronies of the President."
He said the land monopoly of big landlords of coconut lands is still the
major issue at hand.
Fifty-eight non-governmental and people’s organizations nationwide under
the umbrella of the Gabay ng Mundo sa Kaunlaran Foundation Inc. will be
submitting to the President their consolidated opposition to EO 313.
Gabay Foundation last year filed class action suits to recover the entire
coconut levy fund now estimated to be worth P150 billion.
The foundation said the coco levy funds are invested in SMC, the United
Coconut Planters Bank, Cocolife, Cocomark, 15 other companies, and
corporations believed owned by the family of the late president Ferdinand
Marcos and his cronies, including Cojuangco.
Timing dubious
According to Gabay, the timing of EO 313, in the wake of the impeachment
complaint against the President, was highly questionable, since the
question of the ownership of the funds is still before the Sandiganbayan
and the Supreme Court.
On the other hand, the Mindanao Coconut Farmers Forum, a coalition of
small coco farmers’ groups in the South, said that with the signing of
EO 313, "the impoverished coconut farmers sector is facing a brighter
future. Families in the coconut areas can now afford a comfortable life
with enough resources for food, medicine and education."
The Nagkakaisang Ugnayan ng Maliliit na Magsasaka sa Niyugan (Niugan),
one of the largest federations of small coconut farmers in the country,
also welcomed the signing of EO 313.
In a statement, the organization said that "the empty stomachs of
families in the coconut areas could no longer endure the non-resolution
of the coco levy fund. The coconut industry is sinking and the coco
farmers are sinking in their only source of livelihood."
Ana Marie Nemenzo, NAPC vice chair for the Basic Sectors, said the basic
sectors welcomed the EO as a positive development.
"This is a clear victory of the basic sectors since the resolution of the
coconut levy issue has been part of the reform agenda we have been pushing
for," she said.
P50-B TRUST FUND -ESTRADA TO SIGN COCO LEVY ORDER, FINALLY
By Cynthia D. Balana
Inquirer News Service
PRESIDENT Estrada will sign today an executive order putting up a P50-
billion coconut levy trust fund for farmers.
The signing, which will take place in Malacañang at 11 a.m., comes in the
wake of impeachment proceedings against the President at the House of
Representatives for allegedly receiving bribes from jueteng lords.
The signing of the EO will be witnessed by Cabinet members and top
officials of the Department of Agrarian Reform led by Secretary Horacio
Morales.
The EO had been drafted some months ago but the signing was stalled
because the Multi-Sectoral Task Force composed of coconut farmers and led
by Rep. Wigberto Tanada on one hand, and businessman Eduardo Cojuangco on
the other, could not agree on who should audit the funds.
The farmers have demanded that the funds be audited by the Commission on
Audit, as they believe the funds to be of public character.
Cojuangco, on the other hand, wanted the SGV to audit the funds.
Morales said that both groups have agreed on the following provisions for
inclusion in the EO as a compromise:
• The Coconut Trust Fund Committee shall maintain appropriate records and
accounts of all investments, receipts, disbursements, and other
transactions relating to the management, administration and disposition of
the trust and trust income.
• The Fund shall be audited annually or as often as necessary by an
external auditor designated by the Committee. The Committee may also
request the Commission on Audit to conduct an audit of the fund.
The Coconut Trust Fund Committee is composed of the President as chair,
and 10 members--four from government, four from coconut farmers’
organizations, one from the CHF, and one from an NGO--all to be appointed
by the President.
In return for agreeing to these provisions, the Multi-Sectoral Task Force
asked for the inclusion of the provision directing the Presidential
Commission on Good Government, the Office of the Solicitor General and
other appropriate government instrumentalities to exclude the 27 percent
Coconut Industry Investment Fund--San Miguel Corporation (CIIF-SMC) shares
from the case of RP vs Eduardo Cojuangco still pending before the
Sandiganbayan.
Morales said the compromise provisions were inserted in Section 14 of the
EO to qualify an earlier provision in the previous draft stating that the
ownership of the CIIF and related assets excluding the 27 percent SMC
shares shall be left for the courts to decide.
An estimated P100-billion coconut levy fund was collected from 2.5 million
coconut farmers nationwide by virtue of several presidential decrees
between 1972 to 1982 by then President Ferdinand Marcos.
The unfreezing of the levy funds was committed by Mr. Estrada in October
1998 on his first 100 days in office.
He promised to return very cent of the coconut levy funds to farmers.
Under the EO, the P5-billion earnings a year from the P50-billion trust
fund, will be used to finance projects for the coconut industry.
Some 60 percent of the P5 billion will be specifically earmarked for small
coconut farmers. The rest will be shared by the other sectors of the
coconut industry, for administrative costs and as "blow-back" funds.
Inquirer.11-8-00
FARMERS URGE SWIFT OK OF COCO-LEVY E.O.- Manila TWO NATIONAL federations
of farmers urged President Estrada yesterday to immediately sign an
executive order releasing some P50 billion in coconut levy funds.
The two groups said the funds’ release would help avert the collapse of
the coconut industry and provide immediate relief to more than five million
coconut farmers and workers and their families.
The groups wrote to Agrarian Reform Secretary Horacio Morales for help in
lobbying with the President for the immediate issuance of the EO.
Romulo Tapayan, peasant sector representative and head of the Kapisanan
ng Magniniyog (Kampil), said in a statement that ''while the Estrada
administration is deeply embroiled in a fierce political struggle to
preserve itself, five million coconut farmers and workers and their
families are fighting a real life-and-death struggle to keep body and
soul intact.’’
"Unfortunately for us, we do not have the luxury of time to wait for the
most serious political crisis that has hit the Erap presidency to resolve
itself," Tapayan said in his statement.
An immediate solution being sought by Tapayan and other peasant leaders is
the signing of the EO that has been stalled for sometime due to issues
such as disagreements on provisions on the audit of the funds. The levy has
grown to approximately P50 billion since the late dictator Ferdinand
Marcos decreed its compulsory collection in 1973.
Part of the fund has been invested in San Miguel Corp. This portion and
its interests have been sequestered by the Aquino administration after
the Edsa revolt in 1986.
The coconut levy fund has been the object of intense and prolonged court
battles and remains inaccessible to coconut farmers since the time of
Aquino, Ramos and now Estrada.
The recent oversupply and weak demand for coconut oil in the world market
has caused a sharp fall in the prices of copra, highlighting the urgency
to immediately unfreeze this fund, Tapayan said.
This problem is so critical because in some remote areas, the selling
price of copra has dropped to an all-time low of P2.50 per kilo, Tapayan
said.
"With the stroke of a pen, the President can make available to coconut
farmers some P50 billion which can be used for emergency loan assistance,
livelihood projects and other social safety net services," the peasant
leaders said.
Tapayan said the National Anti-Poverty Commission-Basic Sector has
supported and endorsed this demand for an executive order in an earlier
position paper submitted to Malacañang.
"We urge President Estrada to act swiftly and decisively even as he faces
his battle with those elements out to topple him,"Tapayan said.
"While this may sound parochial," the peasant leaders said, "coconut
farmers have long suffered in silence. To continue ignoring them at this
time when many are dying of hunger and malnutrition is to fan the flames of
widespread discontent in the countryside that may well be too hot to be
handled by the current or future administration."
COCO FARMERS IN DESPAIR OVER STORM, LOW PRICES- LUCENA CITY--Typhoon
"Reming" has left at least 150,000 coconut farmers here in Quezon
in despair over where to earn income to tide them over until the holiday
season.
"Where will we now turn (to) for help this time?" asked Jay Lim, provincial
coordinator of the Ugnayan ng mga Magsasaka sa Quezon, a coalition of
farmers’ organizations mostly composed of coconut peasants.
Lim echoed the sentiments of thousands of coconut farmers still reeling
under the effects of a steeply falling price of copra experienced for the
past several months now."Then here came this typhoon Reming, leaving
us (with) nothing but uncertain times ahead of us,’’ he lamented.
The prices of copra have hit an all-time low in 15 years, with the
prevailing price dropping from P18 per kilo (mill price) to a miserable
P6-7 a kilo. In Mindanao, the prices have dropped to as low as P2.50
per kilo.
In Quezon province alone, farm gate prices are alarmingly lower at P2
per kilo of copra and a measly 30 centavos per coconut piece.
"The coconut is not the same with other trees that have to be uprooted
first before (they are considered) damaged. In the coconut industry,
a . . . typhoon could result in unimaginable damages to crops. A strong
wind is all it takes to destroy coconuts," Lim said.
With the approaching Christmas season, he said, the families of coconut
farmers in the province would be facing a bleak holiday, he added.
``That's because we were not able to save from our previous harvest
because of the steep fall in the prices of copra, unlike (in) the past
years.
And now with this typhoon . . . I don't know,’’ he said, visibly distressed
over the situation that coconut farmers now find themselves in.
He blamed the wishy-washy stand of President Estrada on the issuance
of the much-awaited executive order on the coconut levy.
``If President Estrada had already signed his EO on the coconut levy, the
deploring effects of typhoon Reming would not leave us helpless because
we could be reassured of a soon-to-be rehabilitated industry,’’ Lim said.
The Philippine Coconut Authority here in Quezon has not yet come up with
an estimate of the damage brought by typhoon Reming to the province’s
coconut industry.Quezon was one of the areas hardest hit by Reming, that
left millions of pesos worth of damaged goods and farm products.
The setback of the coconut industry started after neighboring countries like
Malaysia and Indonesia produced an average of 9.2 and 5.6 million metric
tons of copra compared to the Philippines’ production of 1.2 million metric
tons.
The Philippines’ dominance in the international market has further
diminished with the recent production of cheap and abundant Malaysian
palm oil as well as by the emergence of Indonesia’s coconut products.
However, the PCA has put the blame on the low prices of copra on
increasing supply and falling demand. It said the Philippines has now an
abundant supply of coconut oil at a time when the country’s traditional
importing partners have their storage tanks brimming with cheap
Malaysian palm oil.
The PCA predicted that prices of the country’s coconut oil would bounce back
in the last quarter of the current year. However, the Ugma official said no
amount of ``soft’’ statistics could assuage the apprehension and helplessness
of coconut farmers in Quezon.
"What we eat is not figures and statistics," he said.
The same air of despair prevails over coconut farmers in Northern Mindanao.
Thousands of them have stopped harvesting their crops because of very low
copra prices,according to the PCA.
Jose Danilo Ontalan, PCA production and regulation officer in Northern
Mindanao, saidharvesting coconut was no longer a good option for the region’s
123,697 coconut farmerssince copra prices went down to P4.50-a-kilo
last Oct. 9.
On Friday, farm gate prices for copra rose to P5 per kilo. Still, Ontalan
said coconut farmers who face rising production costs are complaining
of the low prices. ``Farmers felt it was no longer advisable to harvest their
crops if the prices dipped again to four pesos a kilo,’’ Ontalan told the
Inquirer.
Prices of copra went down because of a high inventory of palm oil in the world
market.The PCA said world copra buyers resorted to buying palm oil for fear
that the Philippines would suffer poor copra harvests because of the El Niño
phenomenon.
Ontalan said Northern Mindanao coconut farmers would spend an average
P1,500 to P2,000 a hectare for labor in order to harvest their coconuts.
Since the average coconut farm in Northern Mindanao produces only 36 nuts
per tree a year, Ontalan said anything lower than four pesos would be
uneconomical to the farmers.
"The farmer feels that it would be better to leave the coconut in their farms
rather than harvest them and incur losses,’’ he said.Ontalan said the region’s
seven big coconut millers are already feeling the pinch of a shortage in the
supply of copra when farmers failed to make their deliveries.
Inquirer. 11- 4-00
UNFREEZE COCO FUNDS - FARMERS: The leader of a group claiming to represent
3.4 million coconut farmers and agricultural workers called on President
Estrada yesterday to issue an executive order "unfreezing" billions of
pesos in coconut levy funds.
Efren Villasenor, president of the Pambansang Koalisyon ng Magsasaka and
Manggagawa sa Niyugan, told a press conference the Chief Executive can
save the country's coconut industry if he signs the executive order.
"Only an executive order from President Estrada creating the coconut levy
fund would save 3.4 million coconut farmers and their 18 million
dependents from hunger and poverty," he said. Villasenor said the price of
copra has "gone from bad to worse," dropping from P4 to P3 a kilo in farms.
"At present, a coconut farmer is earning only P300 per hectare," he said.
"This means that a coconut farmer only earned P8 daily because of the
very low prices of copra."
Under a draft executive order, at least 27 percent or P50 billion of the
coconut levy fund will reportedly be used to revitalize the coconut
industry. Villasenor also called on the government to control the entry to
the country of palm oil and other coconut oil substitutes into boost
the prices of copra. Phil. Star, 10/26/2000
COCO LEVY CLAIMANTS WANT HEARINGS PURSUED: A mayor representing a group
of coconut farmers laying a claim on the controversial coconut levy fund
has asked the Sandiganbayan to continue hearings on the fund.
Zamboanga City Mayor Ma. Clara Lobregat yesterday asked the anti-graft
court to deny a motion by San Miguel Corp. (SMC) chairman Eduardo
Cojuangco seeking a dismissal of the case against him. Last Sept. 4,
Cojuangco submitted a motion to dismiss civil case no. 0033-A, filed
against him by the government, wherein he was accused of using coco
levy money to acquire First United Bank.
In 1975, the Philippine Coconut Authority bought First United Bank, which
later became UCPB. Cojuangco served as administrator of the Philippine
Coconut Authority at the time the levy - now with an estimated value
of P100 billion – was collected from coconut farmers from 1973
to 1982.
In his motion to dismiss, Cojuangco contended that he did not use
government money to acquire First United Bank. Cojuangco as well as big
coconut producers, represented by the Philippine Coconut Producers
Federation, Inc. (Cocofed), argued that the coconut levy is a private
fund.
However, small coconut farmers have been claiming that it is public
since it was collected as a government tax. Both sides have been laying
claims on the fund. Sought for its opinion, the Supreme Court vaguely
ruled that the fund was a "private fund clothed with public character."
Lobregat, who heads Cocofed, said they really have no objection on
Cojuangco's move because he was raising a different issue, that of
his innocence. But they are blocking his motion because, if granted,
it would be "very inconvenient and most prejudicial to the coconut
farmers to postpone the trial," said her written legal comment on
Cojuangco's motion.
Lobregat has asked the anti-graft court for a separate trial if it
decides to grant Cojuangco's motion. They want to prove that "the portion
of the coconut levy funds utilized to purchase the UCPB shares have
legitimately become private property of the coconut farmers," said her
written legal comment on Cojuangco's motion. Phil. Star, 09/13/2000
DRAFT EO ON COCO LEVY TRUST FUND OUT FINALLY: Coconut farmers' groups will
get the lion's share of 30 percent of the income from the government's
sale of shares in the food and beverage conglomerate San Miguel Corp.(SMC).
This is among the provisions in the final draft of an executive order that
seeks to rationalize the use of the levy collections that were used to
acquire 27 percent of outstanding capital stock in SMC through the Coconut
Industry Investment Fund.
The measure, which is set to be signed by President Estrada, specified as
immediate beneficiaries farmers' organizations like the Pambansang
Koalisyon ng mga Samahang Magsasaka sa Niyugan, Coconut Industry Reform
Movement, National Federation of Small Coconut Farmers' Organizations, and
the Nagkakaisang Ugnayan ng Maliliit na Magsasaka at Manggagawa sa Niyugan.
The 27 percent SMC stocks are now valued at P50 billion. At a conservative
income of 10 percent a year, or P5 billion, farmers' groups are assured of
an allocation of about P1.5 billion a year.
As provided by the measure, the farmers' share will serve to provide
"an immediate source of funds to finance socio-economic programs and
endeavors for the benefit of their members."
Once signed by the President, the executive order will effectively free the
levy fund, a private trust fund collected from farmers, producers and
millers from 1973 to 1982. The draft executive order also provides for the
creation of a coconut trust fund committee that will administer, manage and
supervise the operations of the trust fund to be capitalized from the sale
of the 27 percent SMC stocks.
With Mr. Estrada serving as chairman, the trust fund committee may also
identify other farmers' groups that are entitled to portions of the 30
percent of the fund income.
The trust fund committee will be composed of four members from the farmers'
groups and four from the government. The signing of the executive order has
been deferred several times due to disagreements between a task force made
up of small coconut farmers and producers representing the Philippine
Coconut Producers Federation (Cocofed).
Sources said many of the issues that caused the delays have been addressed
in the latest version. For instance, both the Commission on Audit and a
private firm may be authorized by the committee to conduct an audit of the
trust fund. Earlier Malacanang drafts required only a private firm to
conduct audits.
Also, a previous draft had designated the United Coconut Planters Bank
as the fund's sole depository institution. The latest version provides
for two banks, which will be recommended by the committee.
Phil. Star, 08/11/2000
ESTRADA WANTS COCO LEVY SETTLED BEFORE TRIP TO US: Pres. Estrada wants to
settle the controversial coconut levy issue before he leaves Monday for
his 10-day official visit to the United States. "Hopefully, I'm trying to
sign the executive order if we'll meet the deadline before I leave for the
United States," Mr. Estrada said yesterday. The executive order will create
a trust fund into which some P50 billion of the levy fund will be infused.
Earnings from the trust fund will be used to develop the coconut industry.
The P50 billion will come from San Miguel Corp. (SMC) chairman Eduardo
Cojuangco's 47 percent stake at the SMC, frozen by the government since 1986.
The possibility of a settlement emerged after Cojuangco, Mr. Estrada's
chief political patron, agreed to put the money in a trust fund.
The settlement became more possible after small farmers groups seeking to
recover the coco levy funds, represented by Rep. Wigberto Tanada
and former Trade Secretary Jose Concepcion, agreed to a demand from big
coconut producers for a 20 percent share in the funds' proceeds. The small
farmers and big coconut producers, represented by the Philippine Coconut
Producers Federation, Inc. (Cocofed), earlier disagreed over the
disposition of the trust fund proceeds. Cocofed contends that the coconut
levy is a private fund while the small coconut farmers claim it is public
since it was collected as a government tax. The small farmers also want the
Commission on Audit (COA) to audit the fund to determine its character.
The government wants it audited by the respected Sycip, Gorres & Velayo
(SGV) accounting firm. Mr. Estrada said, however, that bringing the COA
into the picture would complicate matters because it would be tantamount
to classifying the fund as public, running contrary to a Supreme Court
ruling that it was a "private fund clothed with public character."
As a compromise, the groups of Tanada and Concepcion have agreed to a joint
audit by the COA and SGV. Under the draft EO, Mr. Estrada will chair a
nine-man board of trustees that will manage the disposition of the trust
fund proceeds. Cojuangco gets to keep his remaining 20 percent stake in SMC.
However, Cojuangco said he would continue to press in court his claim over
his SMC stake. Phil. Star, 07/21/2000
ESTRADA OKS COCO FUNDS JOINT AUDIT: Pres. Estrada yesterday said he had
approved the joint audit by the government and the private sector of a
portion of the coconut levy funds which would be used as seed capital for
a trust fund for coconut farmers.
The President said the joint audit of the fund would be done by the
Commission on Audit and a private firm, possibly the SGV, or Sycip,
Gorres and Velayo.
He claimed that interests alone on the trust fund, which as proposed
would be given P50 billion,would amount to P5 billion a year, which
would be used for the rehabilitation of the coconut industry.
The President said he would sign the executive order which formalizes
a compromise agreement on the disputed funds, as both the multisectoral
task force on the coco levy funds and businessman Eduardo "Danding"
Cojuangco, chair of the San Miguel Corp., who was contesting the coco
levy shares, had been appeased. Cojuangco had already agreed to the
joint audit, Agrarian Secretary Horacio "Boy" Morales had disclosed
earlier.
Businessman Jose Concepcion Jr., one of the leaders of the multisectoral
task force, said the President had told him he would sign the EO before
he left for the United States on a state visit on July 24.
The final draft of the EO would be discussed by the multisectoral task
force.
Cojuangco earlier rejected the COA audit of the coco levy funds, claiming
that they had not yet been determined as public funds by the court.
Later, he agreed to the joint audit provided the audit would not have
an implication on the coco levy's nature--whether it is a public
or private fund.
The multisectoral group had also opposed the automatic allocation of
20 percent for the Coconut Producers' Federation of the Philippines,
which is identified with Cojuangco.
But Morales clarified that the 20 percent of the interest of the coconut
levy trust fund would not be automatically allocated to the Cocofed.
Inquirer, 06/07/2000
ERAP CHANGES MIND ABOUT COCO LEVY EO: Pres. Estrada has decided not to close
the doors yet on finding a solution to the coconut levy issued that will be
"acceptable" to both coconut farmers and businessman Eduardo "Danding"
Cojuangco.
The President's change of heart was apparently prompted by his talks with
businessman Jose Concepcion Jr., head of the Bishops' Businessmen's
Conference, and Cebu Archbishop Ricardo Cardinal Vidal.
After the talks the President decided to meet once more with Cojuangco, his
political patron, to broach the possibility of a joint audit of the coco
levy funds, to be conducted by the government and a private international
auditing firm.
Conception had been appealing to Mr. Estrada to reconsider his earlier
decision scrapping the signing of an executive order that would set up a
trust fund for coconut farmers from the proceeds of the coco levy. Inquirer,
06/07/2000
PEASANTS HIT ERAP FOR NIXING COCO LEVY EO: Peasant groups yesterday assailed
President Estrada for remaining loyal to businessman Eduardo "Danding"
Cojuangco, after he decided to scrap a much-awaited executive order that
would have partially settled the coconut levy fund dispute.
The Philippine Peasant Institute, one of the component organizations in the
multi-sectoral group representing small coconut farmers, said in a statement
yesterday that Mr. Estrada should decide the issue in favor of the small
farmers and not of his friend and political patron, Cojuangco.
Mr. Estrada blamed the multi-sectoral task force when he decided last
Saturday to drop the executive order, which would have freed up P50 billion
in levy funds lodged in 27 percent of San Miguel Corp. shares and set up a
trust fund for the benefit of the coconut industry.
The task force was opposed to the proposed EO's inclusion of a condition set
by Cojuangco that 20 percent of the trust fund's annual earnings should go
to his associates in the Coconut Producers Federation of the Philippines.
"President Estrada's position on the coconut levy issue betrays his loyalty
to Cojuangco," said Omi Royandoyan, PPI executive director.
He said the President should not blame the task force for the impasse on the
coconut levy settlement, nor use its objection as an excuse for his failure
to pass an EO acceptable to the small coconut farmers.
"The issue here is Danding Cojuangco and not the multi-sectoral task force.
The President is acting as if Danding is a benevolent benefactor who,
through the goodness of his heart, has agreed to finally share his wealth to
the small coconut farmers," Royandoyan said.
"He probably forgot that the coco levy came from the small farmers and that
Danding and his cohorts have been using this money for their benefit for
years now," he said.
Inquirer, 05/24/2000
ESTRADA SCRAPS EO ON COCONUT LEVY: Pres. Estrada has scrapped the much
awaited executive order aimed at settling the controversy over the
multibillion-peso coconut levy funds and establishing a trust fund for
coconut farmers.
"It's all up to the next president. At least I've tried my best," Mr.
Estrada said last Friday.
The President is annoyed with the multisectoral group, led by Rep. Wigberto
Tanada and representing the small coconut farmers, which is opposed to a
condition set by businessman Eduardo "Danding" Cojuangco that 20 percent
of the levy be granted to the Coconut Producers Federation of the
Philippines (Cocofed).
He stressed that Cojuangco would not be getting a single centavo from the
settlement, and that the Cocofed was the organization of coconut farmers who
were responsible for the coconut levy.
The levy was imposed on coconut farmers during Ferdinand Marcos'
dictatorship. The funds are now estimated at P120 billion.
He said he had gone to great lengths to convince Cojuangco, his political
patron and running mate in the 1992 presidential elections, to agree to a
settlement of the coconut levy funds, and the formation of a trust fund
under which coconut farmers would receive P5-6 billion.
He complained that the multisectoral group just did not want to reconsider
its position.
He blamed the impasse on what he called the uncompromising position of the
multisectoral group, and pointed out that it would take more years to
resolve the dispute on the levy funds.
The multisectoral group led by Tanada is composed of nongovernment
organizations representing coconut farmers and farmers' associations and
representatives of the private sector led by businessman Jose Concepcion.
Its position is that Cojuangco would use Cocofed officials and members to
get at the money.
The group also wants a public audit of the funds, something which Malacanang
is said not to approve of.
Furthermore, the group is opposed to a "repealing clause" of the
Malacanang draft order that would reverse EO 481 of former President Fidel
Ramos, which declares the levy fund as funds impressed with the public
interest.
The issue of whether the idle levy funds are public or private funds is
still being contested in court.
The Tanada-led group also fears that the commission to oversee the
management of the trust fund would be dominated by Cojuangco or his men.
Earlier, Ome Royandoyan, executive director of the Philippine Peasant
Institute and a member of the multisectoral group, said it appeared that Mr.
Estrada was bent on fulfilling a promise to Cojuangco that would allow him
to get the 20-percent share of the trust fund through the Cocofed.
Royandoyan said Pardo had issued an ultimatum on the 30-day deadline on
behalf of the President. Inquirer, 02/21/2000
COCO FARMERS PRESS FOR TRUST FUND OK: Coconut farmers expressed support
yesterday for a proposed executive order on the controversial P50-billion
coconut levy fund which President Estrada is expected to sign next month.
In a statement, members of the Philippine Coconut Producers Federation Inc.
(Cocofed) said the proposed order, which was drafted by a multisectoral task
force, "reflected the interest of small coconut farmers."
Agrarian Reform Secretary Horacio Morales said the President is likely to
sign the order next month in time for Mr. Estrada's State of the Nation
Address.
The executive order is expected to declare the coco levy fund as public
money and call for its audit by the Commission on Audit.
Earlier, some people from the private sector had insisted that a private
firm should audit the levy, which was collected from coconut farmers during
the regime of deposed dictator Ferdinand Marcos.
Rep. Wigberto Tanada, who was part of the group that drafted the order, said
coconut farmers believe that since they were the main contributors to the
fund, they should also be its primary beneficiaries.
Tanada assured that coconut farmers would have adequate representation in
the council which will be created to manage the funds.
Meanwhile in Surigao del Sur, members of the Pambansang Kalipunan ng mga
Samahan ng Maliliit na Magniniyog at Manggagawa sa Niyugan have forged an
alliance with the COCOFED to push for the adoption of the proposed executive
order.
The group's leader, Efren Villasenor, said what they are pushing for now is
for the coco levy funds to be declared public funds and be audited by the
government. Phil. Star, 05/13/2000
ESTRADA GIVES FARMERS 30 DAYS TO AGREE TO COCO LEVY EO: Pres. Estrada has
threatened to call off an executive order to partially settle the coconut
levy dispute because small coconut farmers have balked at a formula that
would favor presidential friend, Eduardo "Danding" Cojuangco.
Mr. Estrada has given the farmers 30 days to agree to the EO, according to a
multisectoral task force working with Malacanang to iron out a deal between
the farmers and Cojuangco and his associates.
Finance Secretary Jose Pardo on behalf of Mr. Estrada reportedly relay the
ultimatum to the task force.
Rep. Wigberto Tanada and business leader Jose Concepcion Jr heads the
multisectoral group.
Pardo was quoted by AFX News as saying: "We are appealing to the coconut
farmers' groups to get their act together or the President will not sign the
executive order, and we will just let the courts resolve this without
settlement."
Mr. Estrada was supposed to sign the EO on May 1, Labor Day, after several
postponements before because of strong farmer opposition.
The proposed executive order is expected to free up P50 billion in levy
funds lodged in 27 percent of San Miguel Corp. shares and the creation of a
trust fund to administer the proceeds for the benefit of the coconut
industry.
A compromise formula in the EO apparently grants two conditions imposed by
Cojuangco: the inclusion of his associates in the Coconut Producers
Federation of the Philippines in the trust fund management and a 20 percent
share for Cocofed in the annual earnings of the fund.
Ome Royandoyan, executive director of the Philippine Peasant Institute, a
task force member, said it appeared that Mr. Estrada was bent on fulfilling
his promise to Cojuangco that would allow the latter to get a portion of the
trust fund earnings through his Cocofed associates.
Another contentious issue is the matter of subjecting the trust fund to a
regular audit by the Commission on Audit, which the farmers want inserted
into the EO.
Royandoyan explained that Malacanang was initially pushing for the dismissal
of the criminal cases against Cojuangco in connection with the coco levy
with the signing of the EO last year. But the multisectoral task force
rejected this proposal.
According to reliable sources, Cojuangco and former Zamboanga Rep. Maria
Clara Lobregat, a Cocofed stalwart, had been meeting with the President on
the coco levy deal.
They said Mr. Estrada even wanted to consider that portion of the trust fund
that would go to Cojuangco as private funds.
Royandoyan said Malacanang's draft EO had a "repeal" clause that would
reverse EO 481 issued by former President Ramos declaring the coco levy fund
as "public funds."
Malacanang also wanted to create a commission that would handle the
remainder of the coco levy now estimated to amount to P120 to P150 billion.
Royandoyan said Malacanang and Cojuangco described as "practical" their
reasons for rejecting the public audit.
Royandoyan said he hoped President Estrada would change his mind and sign
the draft EO submitted by the multisectoral task force which reflected the
interests of the small coconut farmers. Inquirer, 05/11/2000
FARMERS ASK: WHERE'S COCO LEVY: LUCENA CITY--So you're just like any
politician who's good at breaking promises.
This is the sentiment of farmers in Quezon province after President Estrada
appeared to have "forgotten" about his promise to them that he would issue
an executive order before March was over that would partly settle the
dispute over the coconut levy fund.
March has come and gone but there is no sign that Mr. Estrada will keep his
promise, fumed Jay Lim, coordinator of Ugnayan ng mga Magsasaka sa Quezon or
Ugma-Quezon, a coalition of farmers' groups.
Lim said Mr. Estrada made the promise when he visited Tiaong, Quezon on
March 6 during which he also launched the first of a series of model farms
that his administration planned to establish all over the country.
Lim recalled the President telling the farmers: "I'm not a politician who
is only good in promising things. But this I will tell you: Before the month
ends, I'll sign my executive order (on the coconut levy fund)."
The signing of the President Estrada's EO on the coconut levy had been
postponed several times in the past due to issues that continued to crop up
in the consultation regarding the final draft of the document.
Lim said with the way promises of the President are being broken, "It's no
wonder that he is now under siege because of protests from all fronts."
He also assailed the coconut landlords' group behind the latest "demolition
job" conducted against former Philippine Coconut Authority administrator,
Brig. Gen. Virgilio David, saying its was a desperate attempt to sow
intrigues among the coconut levy claimants. Lim said it was David who
exposed the coconut levy scam.
Quezon Rep. Wigberto Tanada also urged the President to sign the
"pro-farmer" coco levy now.
Tanada warned that small coconut farmers are already restless waiting for
the executive order concerning the disposition of the 27-percent San Miguel
Corporation shares purchased with coco levy funds. Inquirer, 04/04/2000
COCO LEVY TRUST FUND – PALACE MEET TO BREAK IMPASSE: Malacanang has called
another meeting in the Palace to try to break the impasse over a proposed
executive order to partially settle the coconut levy fund dispute and create
a perpetual trust fund for the coconut industry.
Executive Secretary Ronaldo Zamora said yesterday the proposed trust fund
would be discussed in a meeting today of the Economic Coordinating Council
co-chaired by President Estrada and Finance Secretary Jose Pardo.
But Pardo expressed some doubt that the coco levy issue could be discussed
in today's meeting as, he said, Agrarian Secretary Horacio Morales had yet
to give him the necessary "documentation."
He said it might have to wait till next week although he said Morales had
told him that "agreements have been forged" among the different parties to
the dispute.
Zamora said there were several versions of the proposed EO that would order
the freeing of P50 billion in levy funds lodged in 27 percent of San Miguel
Corp. shares and set up a perpetual trust fund from the proceeds for the
rehabilitation of the coconut industry. The EO would also appoint a
commission to administer the trust fund.
Zamora said there had been no new developments in the drafting of the EO but
that the He said he was not aware if the President would meet with
presidential friend and businessman Eduardo Cojuangco, a key figure in the
coco levy dispute, before deciding which EO to sign. Inquirer, 03/08/2000
ESTRADA UNVEILS COCO LEVY PACKAGE: Pres. Estrada unwrapped yesterday five
government packages aimed to rehabilitate the country's ailing coconut
industry to be financed by earnings of the P50-billion coco levy trust fund.
The Malacanang Press Office said the President presented the five programs
during a closed-door meeting in Davao City with leaders and representatives
of the coconut industry.
Addressing the coconut farmers' group, Mr. Estrada said the programs would
ensure that the annual earnings of the coco levy trust fund would be used
exclusively to revitalize the coconut industry.
The five programs are:
* Strengthening and research for new technologies for the coconut industry,
as well as developing extension programs for technology transfer;
* conduct of seminars on coconut cooperative management and capital
development;
* establishment of model coconut farms;
* implementation of a massive replanting program and propagation of farm
animals; and
* strengthening the role of banks and financial institutions in
rehabilitating the coconut industry, particularly in the promotion of
diversification and downstream processing. Phil. Star, 03/04/2000
PRESIDENT FLIES TO HONG KONG, WOOS INVESTORS: HONG KONG - President Estrada
planed in here yesterday to meet with top executives of the island's
multinational companies and financial and investment houses which have
expressed interest in setting up business in the Philippines.
The presidential stopover here came on the heels of his attendance in the
Round Table joint summit of the United Nations and the Association of
Southeast Asian Nations, as well as the 10th Session of the UN Conference on
Trade and Development held in Bangkok, Thailand.
Mr. Estrada said he would meet with Anthony Leung, managing director of the
Chase Manhattan Bank, and John Meredith and Eddie Teh, managing director and
director, respectively, of the Hutchinson Group owned by Chinese taipan Li
Ka-shing.
The President may also meet with Macau-based gambling mogul Stanley Ho whose
floating Jumbo Palace restaurant is docked in Manila Bay.
Mr. Estrada also said certain Japanese and German beer brewers have
expressed interest in buying 27 percent of sequestered coconut levy funds
with SMC.
He added no contract signing would take place during his brief stay in the
former Crown Colony. "They just want to see me."
Mr. Estrada also lamented that Ho has been victimized by bad publicity over
his (Ho) alleged links with international crime syndicates, specifically the
Hong Kong Triad. Phil. Star, 02/14/2000
LANDLORDS, NOT FARMERS, PUT UP COCO LEVY FUND:
Who really owns the coconut levy fund? While there is no definite answer
yet to this P50-billion question, President Estrada indicated yesterday that
the government will recognize landlords, or the owners of coconut plantations,
as the ones who put up the levy fund. And as such, landlords will largely
represent their interest in the soon-to-be-created body that will oversee
the use of the fund. "Actually, the coconut planters are the ones who set
up the fund, not the farmers. The farmers did not have the money. The ones
who made investments were planters who owned the plantations, they gave
the levies," the President said. Mr. Estrada has already announced that
he will chair the 10-member body that will supervise the use of an initial
P5 billion to P6 billion of the fund. The creation of the coco trust fund
body will be contained in a proposed executive order which the President
will soon sign as part of the implementation of an agreement between the
principal parties involved. Mr. Estrada, however, said the executive order
is still being reviewed by his office. The P6 billion constitutes the
interest earnings from the frozen coconut levy fund.
The President admitted the issuance of the EO was being delayed by certain
court claims being pursued by various coconut farmers' groups. The farmers
want that they be made direct beneficiaries of the coco levy fund. Earlier,
the President said the money will not be used as a doleout to farmers and
that it cannot be considered as a public fund yet. Mr. Estrada said Friday
that he was able to convince Cojuangco to give up the 27 percent of his total
47 percent ownership shares in San Miguel Corp. (SMC). The shares, which were
invested by the businessman's United Coconut Planters Bank in the food and
beverage conglomerate, consist of the P50 billion that will converted into a
trust fund for the rehabilitation of the coconut industry. Cojuangco, however,
said he will battle it out in courts to prove that the other 20 percent
ownership shares in SMC were his own investment, and that it did not come
from the coconut levy funds.
Phil. Star, 01/19/2000
NEW BODY TO OVERSEE P50-B COCO FUND: A Presidential Coconut Development
Commission (PCDC) composed of 10 members from the government and the
private sector will soon be created to manage an estimated P50-billion
"irrevocable trust fund" to be taken out of the controversial coconut
levy. Jose Concepcion Jr., co-chair of the Bishops-Businessmen's Conference
which actively participated in the coco levy negotiations, yesterday
said that this consensus was reached in a "final meeting" held Dec. 23
among the coconut farmers' groups, the BBC, Rep. Wigberto Tanada and
two government representatives.
The government was represented by Agrarian Reform Secretary Horacio
Morales and National Anti-Poverty Commission (NAPC) co-Chair Dona
Gasgonia. Concepcion said that the consensus would be contained in
an executive order that President Estrada would issue in the next
few days. In the Dec. 23 meeting, Concepcion said a consensus was
reached on the principles and guidelines that would govern the
coconut levy funds. These, he said, include the use, disposition and
administration of the coconut levy fund for the benefit of the small coconut
farmers and farm workers through the establishment of an irrevocable
trust fund and creation of the PCDC for the rehabilitation of the coconut
industry; the coco levy funds are clearly affected with public interest
as declared by the Supreme Court, and that only the income, interest, earnings
and dividends of the coco levy trust fund will be used.
The PCDC will be composed of five representatives each from the
government and the private sector, according to Concepcion. He said
the President, the Department of Agriculture, the Department of Agrarian
Reform would represent the government, the NAPC and a farmers' sector
representative from the NAPC. Of the private sector representatives, two
would come from nongovernmental groups and three from small coconut farmers
and farm workers from Luzon, the Visayas and Mindanao. Concepcion said
the NGOs would be selected and appointed by the President from a short
list based on the criteria of probity, impartiality, technical competence
and lack of conflict of interest. Cocofed wanted to be the 11th member
but its inclusion was opposed because it was already
represented
P40-B COCO LEVY FUND –SMALL FARMERS TO GET 4 SEATS IN MANAGEMENT
BODY: Small farmers will get four seats in the nine-member management
committee which will administer P40 billion in coconut levy funds
representing the 27 percent of shares in San Miguel Corporation.
This is one of the major points tackled in a consultation meeting of
Agrarian Reform Secretary Horacio Morales with farmer-leaders and their
supporters last Dec. 23. The other major points agreed upon are that
farmers will also be assured
of access to at least 30 percent of the funds' annual earning, and that
the principal amount will not be deposited solely at the United Coconut
Planters Bank but in other trustee institutions as well.
The meeting was held in Makati three days after the aborted signing by
President Estrada on Dec. 20 of an executive order (EO) dealing with the
disposition of the uncontested 27 percent of shares in SMC.
The President has announced that he would finally release an EO after
the Christmas holidays.
According to plans, the 27 percent of SMC shares worth P40 billion will be
converted into a perpetual trust fund to revive the coconut industry.
Cojuangco is reportedly willing to concede the bloc but wants to retain
control over another bloc constituting 20 percent of SMC shares estimated
to be worth P30 billion.
If combined, the two shares represent a total of P70 billion.
The entire coconut levy assets is estimated to be P100 billion, with the
balance lodged in shares at UCPB and other coconut-related business ventures.
The levy was collected between 1973 and 1982 and it totaled P9.6 billion.
The said amount has been invested and has grown to P100 billion.
Among those present during the consultation meeting were Rep. Wigberto
Tanada, Efren Villasenior of the Pambansang Koalisyon ng mga Samahang
Magsasaka at Manggagawa sa Niyugan and representatives of the Bishops-
Business Conference, Jose Concepcion and Vicente Jaime.
According to Villasenior, Morales is expected to present to coconut
farmers anytime soon a revised executive order which will provide a
partial resolution to the levy dispute.
Villasenior explained that the management committee would have a
representation ratio of a 4-4-1: four for government, four for farmers,
and one for the Coconut Industry Investment Fund or the consortium of
companies which hold the 27 percent of SMC shares.
Villasenior, however, said that the farmers had stressed to Morales
that the four seats for farmers should not contain any categorical
identification of the Coconut Producers Federation of the Philippines
(Cocofed) as among those groups entitled to any one of the four seats.
The Cocofed is the only recognized group representing farmers during the
Marcos regime. Prominent figures in its leadership have been identified
with businessman Cojuangco.
Villasenior also said that a proposal was raised to increase the farmers'
assured share of the funds' earnings to 30 percent, up from the last
proposal of 20 percent.
But Villasenior said he was personally calling for a 60-percent share
to farmers, 30 percent for government projects, 7 percent to be plowed
back to the principal and 3 percent for administration costs.
Inquirer, 01/03/2000
BISHOPS REJECT COCO LEVY DEAL: The Catholic Bishops Conference of the
Philippines yesterday declared its opposition to what it said was a
"highly objectionable" plan to use P40 billion of the disputed coconut
levy funds to create a trust fund for the rehabilitation of the coconut
industry.
CBCP President Archbishop Orlando Quevedo said the draft executive
order that would carry out the plan does not adequately ensure the
"significant substantive role" of small coconut farmers in determining
how the funds would be managed. Also yesterday, a group of small coconut
farmers staged a protest in Malacanang, some clad in Santa Claus suits
and carrying sackfuls of coconut "gifts" on their backs, to remind
President Estrada to have their interest in mind when he approves and
signs the executive order creating the committee to handle the funds.
The coconut "gifts" were to nudge Mr. Estrada into "thinking and acting
pro-poor" and not "pro-Danding" while he's pushing for the settlement of
the levy dispute.
The farmers, members of the Pambansang Kilusan ng mga Samahang Magsasaka,
are apprehensive that businessman Eduardo "Danding" Cojuangco and his
associates would end up controlling the funds despite pending criminal
and civil suits against them in connection with the levy.
But Mr. Estrada appeared unimpressed by the protesting farmers, saying
they should desist for now as he was still studying the executive order.
He said he would be issuing the executive order sometime next month.
Mr. Estrada was supposed to have signed last Monday a draft executive order
concerning the disposition of an estimated P40 billion in levy funds lodged
in 27 percent of San Miguel Corp. shares.
But the issuance of the EO, the draft of which had been produced after a
meeting between Estrada administration officials and Cojuangco last week,
was postponed for after the holidays.
The President reiterated that he would chair the "commission" which would
be formed to handle the trust fund.
Under the draft EO, a committee to be chaired by Mr. Estrada himself will
manage the P40-billion fund. It will be composed of seven to nine people
from the government, coconut farmers and the Coconut Federation of the
Philippines.
Mr. Estrada said the committee might be formed by the middle of January.
Quevedo said the proposed EO should not only be revised to ensure the
participation of the ordinary farmers but should also be worded in such
a way that it does not imply a settlement of the coconut levy issue.
Pakisama chair Vicente Fabe said during yesterday's protest action that
there have been pressures to include in the management committee
Cojuangco's Cocofed associates who are among the businessman's
co-respondents in pending suits before the Sandiganbayan.
The Coconut Industry Reform Movement, in a statement yesterday, provided
three possible scenarios as the reasons for the delay in the issuance of
the executive order:
-- For the government to find a way to appease Cojuangco and Cocofed
"by maybe offering something else equally interesting and huge for them
to let go of the levy."
-- For the government to "find a graceful exit, like the courts stopping
any issuances pertaining to the levy, and never touch it again for as long
as it is in power because the issue is too hot to handle."
-- For Malacanang to ram an EO favorable to Cojuangco "due to its macho
tendencies and 'weather-weather' syndrome."
COIR executive director Joey Faustino said that farmers have no choice
at present except to push the government to make a choice.
Inquirer, 12/23/99
ESTRADA TO CHAIR COCO LEVY BODY: Pres. Estrada himself will chair the
committee that will be formed to oversee about P40 billion for the
rehabilitation of the coconut industry.
The President announced this himself yesterday, only a day after
Malacanang said that it would not dominate the committee although it
would be "a major player."
The President also said the executive order that would create the
committee to manage the P40-billion fund would be issued after the
holiday season.
Asked if he plans to install Agrarian Reform Secretary Horacio "Boy"
Morales as his co-chair, the President only said, "Probably."
The committee will be composed of seven to nine people, most of whom
will be drawn from the private sector, according to presidential
spokesperson Jerry Barican.
The spokesperson said on Sunday that although the committee would be
effectively placed under the supervision of the President, Malacanang
did not plan to dominate it.
Farmers promptly called the delay in the issuance of the executive order
"a failure of political will" and "a victory of political patronage."
They accused Malacanang of favoring the President's personal friend and
political ally, Eduardo "Danding" Cojuangco Jr., over the millions of
coconut farmers.
The President said his heading the committee would ensure that the fund
would be used solely for the coconut industry.
"President Estrada blew another chance to prove his commitment to the poor
and his promise to put their interest over those of his friends,
" said Efren Villasenor, president of the Pambansang Koalisyon ng mga
Samahan Magsasaka at Manggagawa sa Niyugan.
Joey Faustino, executive director of the Coconut Industry Reform Movement,
said Mr. Estrada could have made a decision in favor of farmers,
"but it appears that the influence of Danding, who is a padrino (godfather)
of the President, is more important."
Villasenor doubts whether it will be feasible for the President himself
to chair the committee.
Sunday night, farmer leaders held a crucial meeting with Morales to
discuss the draft of a proposed executive order. They also made
suggestions ensuring their participation in the management and use of the
funds.
The draft provided the farmers three seats in a nine-member fund management
committee. It also sought to allot for small coco farmers 20 percent of
interest earnings from the projected P40-billion trust fund.
The draft gave Cojuangco's associates in the Coconut Producers Federation
of the Philippines (Cocofed) one seat and an equal 20-percent allotment
from the trust earnings.
Principal figures in Cocofed, as well as Cojuangco, are still facing
anti-graft charges.
"It looks like Malacanang ignored the points which were relayed by
Morales," said Vicente Fabe, chair of the Pambansang Kilusan ng mga
Samahang Magsasaka.
Rafael Mariano, chair of the Kilusang Magbubukid ng Pilipinas, said:
"This proves where the heart of President Estrada belongs."
Rep. Rafael Nantes urged the government to finally settle the issue of
the controversial coconut levy fund in favor of the millions of coconut
farmers in the country.
In Lucena City, Mulanay Mayor Joselito Ojeda, the president of the Quezon
Province League of Municipalities, said Morales should be given ample time
to prove his capability in managing the multi-billion coconut levy fund.
Inquirer, 12/21/99
FARMERS, DANDING, GOV"T NEAR COCO DEAL: Coconut farmers have
apparently accepted the inevitable prospect of working with the people
and institutions associated with the controversial coconut levy, and they
seem amenable to Malacanang's wish to fast-track a settlement.
"The process is moving forward," said Rep. Wigberto Tanada yesterday,
after a consultation meeting late Friday between the farmers and Agrarian
Reform Secretary Horacio Morales.
The meeting between the DAR secretary and the farmers followed a top-level
one late Thursday, involving senior government officials and billionaire
businessman Eduardo "Danding" Cojuangco.
The meeting resulted in a draft executive order for the disposition of the
portion of the levy funds now lodged in San Miguel Corp. shares.
The deficit-burdened Estrada administration has been pursuing a negotiated
settlement of the dispute despite the many court cases surrounding it,
so it can turn the levy money into a trust fund to supposedly rehabilitate
the coconut industry and benefit the coconut farmers.
Mr. Estrada is expected to issue an executive order to create the trust
fund.
In an interview yesterday, Tanada said the farmers seemed more agreeable
to working with their old foes at the Coconut Federation of the
Philippines (Cocofed) in a management committee proposed to be set up
to administer the proceeds from the disposition of the disputed SMC shares.
The farmers contend that Cocofed, composed mainly of landlords, was
itself a beneficiary of the coconut levy, a forced tax imposed on
the coconut industry during the Marcos dictatorship.
Marcos appointed Cojuangco as administrator of the fund, now worth an
estimated P100 billion.
The dispute involves ownership of various businesses which Cojuangco
allegedly bought using the coconut levy.
These include the United Coconut Planters Bank, San Miguel Corp. and
various coconut-related ventures.
The compromise deal being pushed by Malacanang involves the 27 percent
of SMC shares, estimated to be worth at least P40 billion, which have
been under government sequestration since the 1986 Edsa Revolution.
Cojuangco reportedly will not dispute the ownership of these shares but
wants to retain a separate bloc consisting of 20 percent of SMC shares
valued at P30 billion.
Legal questions regarding the ownership of the levy funds are still
pending before the Sandiganbayan.
Tanada said the farmers would accept working with their Cocofed antagonists
but on two conditions.
First, they should "either have the majority or at least have an equal
number of seats with Cocofed."
Second, the Cocofed representative should not be among Cojuangco's
co-respondents in the recovery suit for the levy funds filed by the
government with the Sandiganbayan during the Aquino administration.
This second condition applies especially to Zamboanga City Mayor
Ma. Clara Lobregat, who alternated as chair and president of Cocofed.
Ordinary farmers claim that the levy was automatically subtracted from
the selling price of their copra but that the government issued no receipts
to them. Tanada, however, said the government has to disclose the
contents of the draft executive order that has been submitted for approval
by Mr. Estrada.
The executive director of the Coconut Industry Reform Movement (COIR)
also expressed openness to the prospect of farmers sitting with a Cocofed
representative in the management committee to handle the funds.
A Quezon-based farmers' organization, however, has criticized the
personalities who participated in the Thursday meeting and the secrecy
surrounding the drafting of the proposed executive order.
"Why so much secrecy and the highly questionable participation in the
Malacanang meeting of several personalities that have been associated with
the coconut levy scandal?" said Jay Lim, organizer of Ugnayan ng mga
Magsasaka sa Quezon or Ugma-Quezon.
He also criticized the emerging role of Morales as the possible
administrator of the levy funds.
"Why Boy Morales when he has proven in his several DAR decisions that
he has an anti-farmer bias," Lim added.
The Ugma officer said that Morales had shown "extra affection" for
Danding Cojuangco's interests. Inquirer, 12/19/99
MORALES EYED AS COCO LEVY FUNDS ADMINISTRATOR: Agrarian Sec. Horacio
"Boy" Morales has emerged as the unanimous choice of coconut farmers
and businessman Eduardo "Danding" Cojuangco to administer the controversial
coconut levy funds.
Cojuangco has indicated he has no objection to Morales as administrator
of the funds and his approval jibes with that of coconut farmers, who had
previously expressed their consent for the agrarian reform secretary to
manage the funds lodged in 27 percent of shares at the San Miguel Corp.
The same source, however, said it's up to the President to decide on who
should administer the funds. Cojuangco, he said, also finds Executive
Secretary Ronaldo Zamora and presidential adviser on poverty alleviation
Dona Gasgonia acceptable as administrator.
The block of shares, whose ownership Cojuangco will no longer contest, is
estimated to be worth P40 billion.
According to plans, the government-sequestration over the shares will be
lifted, then liquefied and converted into a perpetual trust fund for the
coconut industry and farmers before the end of this year.
Farmers represented by the Coconut Industry Reform Movement have no
adverse
reaction to Cojuangco's approval of Morales who will likely head a
committee which shall oversee the utilization of the funds.
"That's okay but the more important thing now is what kind of programs
will be put up when the funds are already there," said COIR executive
director Joey Faustino.
Faustino also said it was important to ensure the adequate representation
of farmers in the management committee as well as to keep out parties
involved in the extraction and use of the levy funds during the Marcos
regime.
Faustino was referring to the Philippine Coconut Producers Federation,
whose officials are among Cojuangco's co-respondents in a pending
recovery suit filed by the President Commission on Good Government before
the Sandiganbayan. Inquirer, 12/16/99
FARMERS, RELIGIOUS HEADS BUCK COCO DEAL: Coconut farmers, Catholic and
Protestant bishops and Muslim ulama (religious leaders) in Mindanao are
against any compromise deal between the government and businessman Eduardo
"Danding" Cojuangco over the P100-billion coconut levy funds.
Participants to the Interfaith Conference for Justice and Peace on the
Coconut Levy Issue in Davao City said they would hold rallies to protest
moves by the Estrada administration to legitimize Cojuangco's control over
the funds.
The conference was organized by the Pambansang Koalisyon ng mga Magsasaka
at Mangagawa sa Niyog (PKSMMN), the Ulama League of the Philippines and the
bishops of Catholic and Protestant churches in Mindanao.
The government has started "fine-tuning" a compromise agreement with
Cojuangco on the coconut levy funds. A government lawyer said the Estrada
administration wanted to use the funds from the levy to pay the
government's obligations.
But Efren Villaseñor, PKSMMN chair, said a government-Cojuangco deal would
mean the withdrawal of the misappropriation charges against Cojuangco filed
by the Presidential Commission on Good Government (PCGG) with the
Sandiganbayan.
Villaseñor said withdrawal of the charges would disregard the motion
for intervention that coconut farmers had filed with the anti-graft court.
The farmers' motion calls for the recovery of every centavo of the levy
funds.
The cases involving the coco levy funds have been pending with the
Sandiganbayan and the Supreme Court since 1986. The courts have yet to
determine the ownership of the funds.
Oscar Santos, chair of the Coco Industry Reform Movement, described as
"lopsided" the proposal of Cojuangco's lawyer Estelito Mendoza to allow
Cojuangco to keep 20 percent of his shares in San Miguel Corp. (SMC)
and his holdings in the United Coconut Planters Bank (UCPB).
Cojuangco's 20 percent share in SMC worth P29.9 billion is part of the
47 percent share which the PCGG had sequestered in 1986.
Mendoza has also proposed that the remaining 27 percent of the SMC share,
which amounts to about P40 billion, be turned into a "self-sustaining
trust fund" for legitimate coconut farmers.
But Santos said all five presidential decrees authorizing the coco levy
had said that the levy's proceeds go to "the greatest number of coconut
farmers."
Virgilio David, former Philippine Coconut Authority administrator who
joined the interfaith dialogue, said he doubted whether the remaining
27-percent share in SMC would benefit small coconut farmers.
David said the money used in buying the SMC shares came from the UCPB,
the depository bank of the coco levy.
He said 80 percent of UCPB's assets were listed in the name of 11 entities
and corporations which he described as Cojuangco's dummy corporations.
Instead of a compromise settlement, President Estrada should create an
independent committee that will manage the levy funds, according to
Villaseñor.
He said small coconut farmers must be represented in the proposed
committee.
A Quezon provincial board member favors a compromise agreement.
But board member Claro Talaga, a leader of coconut farmers in the
province, said President Estrada should remain "neutral and unbiased"
in the compromise deal.
Talaga said in Lucena City that the "legitimate" coconut farmers should
be informed about the details of the proposed agreement.
But who are the legitimate coconut farmers?
He proposed that an election among coconut farmers' groups be conducted
to determine those who should represent the interest of the claimants.
Quezon province was a major contributor to the coco levy that was imposed
during the time of President Marcos. Inquirer, 07/03/99
SHOULDN'T WE GET OUR MONEY BACK - FARMERS: A farmers' organization and
a party-list group yesterday questioned President Ramos' order lifting
the sequestration order on the multibillion-peso coconut levy funds
while another farmer's organization welcomed it.
Ramos' directive contained in Executive Order 481 also drew various
reactions from three presidentiables --support from former defense
secretary Renato de Villa and Sen. Raul Roco, and a statement of
concern from former Manila Mayor Alfredo Lim.
The Pambansang Kilusan ng mga Samahang Magsasaka (Pakisama) and the
Alyansa ng mga Batayang Sektor (ABS), a multisectoral coalition and a
party-list candidate, both called on Ramos to recall his order and
subject the issue to intensive consultations with organizations of
small coconut workers and farm workers.
On the other hand, the Katipunan ng mga Maliliit na Magniniyog sa
Pilipinas (KAMMPIL) hailed EO 481 that Ramos and Executive Secretary
Renato Corona signed on Friday, nine days to election day.
EO 481 directed the Presidential Commission on Good Government to
liquefy or monetize the coconut levy funds, and to transfer to the
general funds of the government any excess from the sale of the assets
after the requirements of the coconut industry have been met.
In 1986 or 12 years ago, the coconut levy fund was estimated to have
reached P9.69 billion.
Pakisama president Vic A. Fabe, who is also a nominee of ABS for the
party-list election, said they appreciate Ramos' move to help the
coconut farmers and the coconut industry but added that "the order is
very much open to abuse."
On Ramos' directive for government to use excess coconut levy funds,
Fabe said the funds should be "for the sole benefit of the small
coconut farmers and farm workers and the coconut industry."
ABS, on the other hand, also called for a clear and transparent policy
on the nature and use of the coconut levy funds. The group urged all
party-list groups to publicly state their position on the coconut levy
funds.
Both Pakisama and ABS also cited the series of events that raise
suspicions about secret deals and compromises between the government
and the Marcos cronies involved in the coconut levy fund scandal.
In particular, they noted that late last year, the Ramos administration
entered into secret negotiations with Marcos crony, Eduardo Cojuangco
Jr., for the sale of the latter's share in San Miguel Corp. to Metro
Pacific. Last April 20, the groups recalled that the Sandiganbayan
suddenly allowed Cojuangco to vote the sequestered shares in San
Miguel, one of the country's largest food and beverage conglomerates.
Last week, Cojuangco filed a motion before the Sandiganbayan requesting
that he also be allowed to vote the sequestered coconut levy fund
shares in the United Coconut Planter's Bank during the stockholders'
meeting on May 14.
"The President claims that everything is according to the laws, and
there will be the 'usual audit.' Are these the same laws and usual
audit which were followed in the PEA-Amari deal and in the other
so-called 'midnight madness sales' of the government?" Pakisama asked.
KAMPPIL secretary general Romulo Tapayan, on the other hand, said only
a small part of the coconut levy fund will be directly affected by
Ramos' EO 481. He, nevertheless, described the move as big, decisive
and very important.
Tapayan said Ramos' decision is not yet a complete victory for the
farmers who have yet to closely monitor two developments.
Tapayan said the second development that bears watching is the
dangerous possibility of Vice President Joseph Estrada clinching
victory on May 11.
Tapayan demanded the creation of a multisectoral committee with
representatives from farmers' organizations and different government
agencies to take charge of the immediate disposition of the coco levy
fund.
Meanwhile, Reporma presidential bet De Villa welcomed Ramos' order
lifting the sequestration on the coco levy funds "provided that its
implementation will ensure that the money will go to the coconut
farmers."
But Liberal Party-Kampi presidential bet, Alfredo Lim, questioned
Ramos' directive. "This is a very unusual move on the part of the
administration," he said, adding that the fund might be used in the
campaign of Lakas standard-bearer, Speaker Jose de Venecia Jr.
Lim questioned the timing of the Ramos' "midnight order."
Lim urged the Ramos administration to give a more "believable" reason
to explain to the Filipino people the issuance of EO 481.
For his part, Aksyon Demokratiko presidential bet Sen. Raul Roco said
the lifting of the sequestration order on the coconut levy fund is "a
right thing" done "for the wrong reason."
Roco was a lawyer with the ACCRA law office in the late '70s to the
'80s and served as legal counsel of the San Miguel Corp. The ACCRA law
office represented Cojuangco in the United Coconut Planters Bank, which
was supposedly organized using coco levy fund collections from coconut
farmers.
Roco had earlier said the public should be wary and vigilant of
midnight deals the Ramos administration would try to pull off to raise
funds for the campaign. Mla. Times, 05/03/98
US GOV'T OWES US $182M, SAY COCONUT FARMERS: LEGAZPI CITY-The
Philippine Coconut Producers Federation, reportedly composed of more
than one million coconut farmers nationwide, is seeking the return of
$182 million collected from them by the US government in the form of
excise tax since the granting of Philippine independence in 1946.
This was disclosed to the Inquirer on Saturday by Manuel V. del
Rosario, Cocofed managing director, during a regional meeting here of
Cocofed officials and coconut industry leaders representing some
200,000 coconut farmers in Bicol.
Del Rosario said he had gone twice to the US to seek ways of getting
back the amount, which he claimed belonged to Filipino coconut farmers.
The three-percent excise tax on every pound of coconut oil coming from
the Philippines was imposed on May 10, 1934 when the US congress passed
the Revenue Act of 1934.
The tax was levied in response to pressure from American dairy farmers
who feared the great competition posed by the cheaper butter substitute
margarine, which was produced from Philippine coconut oil, according to
a research paper of Jose R. Eleazar Jr., Philippine Coconut Research
and Development Foundation Inc. and Cocofed vice president for
Mindanao.
He said that though $150 million representing part of the proceeds was
returned to President Manuel Quezon's Commonwealth Government, the
United States continued to collect the excise tax even after Philippine
independence until 1966, in the process amassing $182 million, he said.
Eleazar's paper,``The Coconut Industry: 100 Years and Beyond," said
that prior to the imposition, coconut oil price went up to as high as
52 cents a pound, as compared to its current price of 26 cents.
This was because at the start of World War I, the US turned to
strategic buying and stockpiling of available coconut oil which was
used in glycerine, an essential warfare material.
``This led to higher market prices and increased the affluence and
security of the industry," Eleazar said.
He claimed that Filipinos and Americans alike widely protested the
imposition of the tax, but added that not even President Roosevelt's
opposition could stop Congress from passing the tax law.
He said Governor General Frank Murphy vehemently protested the tax,
stating that it was equal to 200 percent of the current price and would
work incalculable harm on the Philippines without advantage to the
United States.
Eleazar quoted Murphy's wire to Washington on Feb. 24, 1934: ``Intimate
contact with the situation locally forces me to the conclusion that the
unlimited application of the tax will provoke a near disaster in the
economy of the Philippines. The general feeling is pronouncedly against
the moral right of the United States to legislate so severely against a
territory under the flag as practically to destroy an industry on which
more than 3,000,000 people are dependent."
The Cocofed official said collection of the tax by the US Bureau of
Internal Revenue began on May 11, 1934 and went on for more than three
decades.
The proceeds during the entire period totaled $332 million. These were
deposited in the US Treasury under the name, Philippine Coconut Oil
Trust Fund.
President Quezon bargained for the refund of the tax collections to the
Philippines.
Eleazar said the US government agreed, but only on two conditions: 1)
Not a single cent from the refund would be used to help the coconut
industry and 2) the coconut industry was not to be given any budget
allocation even from other sources of funds.
Of the $332 million, $150 million was reverted to the Philippines on
July 4, 1946. The excise tax money was used to open the gates to
Mindanao, to fund 40 percent of post-war rehabilitation and to fund the
development of Quezon City.
NEW BODY TO OVERSEE P50-B COCO FUND: A Presidential Coconut Development
Commission (PCDC) composed of 10 members from the government and the
private sector will soon be created to manage an estimated P50-billion
"irrevocable trust fund" to be taken out of the controversial coconut levy.
Jose Concepcion Jr., co-chair of the Bishops-Businessmen's Conference
which actively participated in the coco levy negotiations, yesterday said
that this consensus was reached in a "final meeting" held Dec. 23 among the
coconut farmers' groups, the BBC, Rep. Wigberto Tanada and two government
representatives.
The government was represented by Agrarian Reform Secretary Horacio
Morales and National Anti-Poverty Commission (NAPC) co-Chair Dona
Gasgonia.
Concepcion said that the consensus would be contained in an executive
order that President Estrada would issue in the next few days.
In the Dec. 23 meeting, Concepcion said a consensus was reached on the
principles and guidelines that would govern the coconut levy funds.
These, he said, include the use, disposition and administration of the
coconut levy fund for the benefit of the small coconut farmers and farm
workers through the establishment of an irrevocable trust fund and creation
of the PCDC for the rehabilitation of the coconut industry; the coco levy
funds are clearly affected with public interest as declared by the Supreme
Court, and that only the income, interest, earnings and dividends of the
coco levy trust fund will be used.
The PCDC will be composed of five representatives each from the government
and the private sector, according to Concepcion.
He said the President, the Department of Agriculture, the Department of
Agrarian Reform would represent the government, the NAPC and a farmers'
sector representative from the NAPC.
Of the private sector representatives, two would come from nongovernmental
groups and three from small coconut farmers and farm workers from Luzon,
the Visayas and Mindanao.
Concepcion said the NGOs would be selected and appointed by the President
from a short list based on the criteria of probity, impartiality, technical
competence and lack of conflict of interest.
Cocofed wanted to be the 11th member but its inclusion was opposed because
it was already represented in the farmers' sector.
Concepcion said the President would head the commission for two years.
After that the President may relinquish the chairmanship to a
representative of the coconut farmers.
Concepcion said the coconut farmers would be organized nationwide into
municipal and provincial groups to elect the three representatives.
He said a farmers' advisory group would also be created to help a
five-member executive committee.
The executive committee members, he said, would be chosen from among
the 10 commission members. Inquirer, 01/14/2000
US GOV'T OWES US $182M, SAY COCONUT FARMERS: LEGAZPI CITY-The
Philippine Coconut Producers Federation, reportedly composed of more
than one million coconut farmers nationwide, is seeking the return of
$182 million collected from them by the US government in the form of
excise tax since the granting of Philippine independence in 1946.
This was disclosed to the Inquirer on Saturday by Manuel V. del
Rosario, Cocofed managing director, during a regional meeting here of
Cocofed officials and coconut industry leaders representing some
200,000 coconut farmers in Bicol.
Del Rosario said he had gone twice to the US to seek ways of getting
back the amount, which he claimed belonged to Filipino coconut farmers.
The three-percent excise tax on every pound of coconut oil coming from
the Philippines was imposed on May 10, 1934 when the US congress passed
the Revenue Act of 1934.
The tax was levied in response to pressure from American dairy farmers
who feared the great competition posed by the cheaper butter substitute
margarine, which was produced from Philippine coconut oil, according to
a research paper of Jose R. Eleazar Jr., Philippine Coconut Research
and Development Foundation Inc. and Cocofed vice president for
Mindanao.
He said that though $150 million representing part of the proceeds was
returned to President Manuel Quezon's Commonwealth Government, the
United States continued to collect the excise tax even after Philippine
independence until 1966, in the process amassing $182 million, he said.
Eleazar's paper,``The Coconut Industry: 100 Years and Beyond," said
that prior to the imposition, coconut oil price went up to as high as
52 cents a pound, as compared to its current price of 26 cents.
This was because at the start of World War I, the US turned to
strategic buying and stockpiling of available coconut oil which was
used in glycerine, an essential warfare material.
``This led to higher market prices and increased the affluence and
security of the industry," Eleazar said.
He claimed that Filipinos and Americans alike widely protested the
imposition of the tax, but added that not even President Roosevelt's
opposition could stop Congress from passing the tax law.
He said Governor General Frank Murphy vehemently protested the tax,
stating that it was equal to 200 percent of the current price and would
work incalculable harm on the Philippines without advantage to the
United States.
Eleazar quoted Murphy's wire to Washington on Feb. 24, 1934: ``Intimate
contact with the situation locally forces me to the conclusion that the
unlimited application of the tax will provoke a near disaster in the
economy of the Philippines. The general feeling is pronouncedly against
the moral right of the United States to legislate so severely against a
territory under the flag as practically to destroy an industry on which
more than 3,000,000 people are dependent."
The Cocofed official said collection of the tax by the US Bureau of
Internal Revenue began on May 11, 1934 and went on for more than three
decades.
The proceeds during the entire period totaled $332 million. These were
deposited in the US Treasury under the name, Philippine Coconut Oil
Trust Fund.
President Quezon bargained for the refund of the tax collections to the
Philippines.
Eleazar said the US government agreed, but only on two conditions: 1)
Not a single cent from the refund would be used to help the coconut
industry and 2) the coconut industry was not to be given any budget
allocation even from other sources of funds.
Of the $332 million, $150 million was reverted to the Philippines on
July 4, 1946. The excise tax money was used to open the gates to
Mindanao, to fund 40 percent of post-war rehabilitation and to fund the
development of Quezon City.
It was also used in the construction of the legislative and the jai
alai building, roads, schools and sugar centrals, among others.
But even with the granting of the Philippine independence, the US
continued collecting the tax and raised $182 million more, Eleazar
said.
This accrued to the US Treasury but was no longer refunded. Attempts to
negotiate for the refund were made by at least two past administrations
but all the claims were denied by the US government.
On April 13, 1966, President Lyndon Johnson permanently suspended the
excise tax.
The American farmers lobbied the US Congress to put a clamp on the
producers of coconut oil. Inquirer, 02/02/98
