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Monday, June 24, 2024

DOF asks committee to prevent ‘double-dipping’ of coco levy trust fund

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Finance Secretary Carlos Dominguez III ordered the interagency Trust Fund Management Committee, which is tasked to oversee the utilization of the coco levy trust fund, to ensure there would be no “double-dipping” of resources in providing health and crop insurance coverage to 2.5 million coconut farmers.

Dominguez, who chairs the TFMC, said the next batch of members of the committee should ensure that the health and crop insurance coverage for coconut farmers, as provided by Republic Act 11524 or the Coconut Farmers and Industry Trust Fund Law, are “commercially viable and therefore, sustainable.”

Dominguez said during the last TFMC meeting under the Duterte administration that under the CFITF Law and the Coconut Farmers and Industry Development Plan approved by the president, a minimum of P200 million is allocated every year to the Philippine Crop Insurance Corp. for coconut farmers.

Another P500 million is allocated to the Philippine Health Insurance Corp. to administer the health and medical program for coconut farmers and their families.

“As the Trust Fund Management Committee, we need to ensure that there is no double-dipping of funds, that the crop and health insurance coverage to the coconut farmers should only come from the coco levy trust fund,” Dominguez said.

The Department of Budget and Management, represented at the meeting by Undersecretary Kim Robert De Leon, assured that the DBM would review the budget proposals of PCIC, PhilHealth and other government agencies receiving allocations from the CFITF “to ensure that no double dipping of funds would occur.”

Dominguez also said the premiums to be charged by the PCIC should take into consideration specific geographical and meteorological risks and also include reinsurance mechanisms with the private sector “in order to reduce the financial burden on the coco levy trust fund.”

The Bureau of the Treasury reported that the TFMC received from Land Bank of the Philippines the certificate of indebtedness with a principal amount of P1,121,141,234.00 with a fixed interest rate of 1.75 percent per annum for the sale of UCPB state shares.

The TFMC also received the P102,739,676.87 in cash proceeds for the sale of disputed UCPB shares and rights.

These shares were classified by the Presidential Commission on Good Government as coco levy assets under Republic Act 11524 or the CFITF Act.

The proceeds from the disputed shares will be credited to a separate escrow account pursuant to the implementing rules and regulations of Section 9 to 11 of RA 11524, which states that a disputed non-cash coco levy asset may be disposed of pending dispute, provided that the proceeds shall be deposited to and maintained in an escrow account.

The CFITF Law also provides that non-cash coco levy assets should be privatized or disposed of and that proceeds should augment the trust fund for the benefit of the coconut farmers.

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