CATARMAN, Northern Samar - A resolution, authored by Board Member Herbert Esponilla of the first district of this province, was recently passed by the Sangguniang Panlalawigan requesting President Gloria Macapagal Arroyo, at the opportune time to direct an equitable allocation and meaningful utilization of the coconut levy assets so that pursuant to Sandiganbayan Resolution dated December 29, 2004 in CC No. 033-F, the real beneficiaries of the coconut levy funds, the coconut farmers who contributed to it, and the entire coconut industry be given a chance to enjoy the benefits that are due to them.

The resolution was passed unanimously by all the members of the provincial board after the Supreme Court’s decision that the coop levy funds is owned by the government in trust for all the coconut farmers or public funds.

To recall, upon assumption to office of President Corazon Aquino, the said alleged ill-gotten wealth was placed under sequestration and a corresponding suits were brought to determine their legitimate owners.

On December 14, 2001 after one of the longest court battle in the history of our justice system, the Supreme Court in Republic vs. Cocofed, et al, G.R. No. 147062-64, declare that the levy was prima facie public funds, and further held that, (a) the coco levy funds were collected for a special purposes for which it should be utilize; (b) the burden of proof to show that they are private funds lies with Cojuangco, Cocofeed, et al and not the government; and (c) the Sandigan Bayan shall determine true ownership of the sequestered coco levy funds within the period of six months following the SC decision.

Pursuant to the Supreme Court’s decision, the Sandigan Bayan on May 7, 2004 rendered its judgment in CC No. 0033-F holding among others, that the: (a) CIIF Companies 9SOLCOM, CAGOIL, ILICOCO, SPMC, GRANEX, LEGOIL); (b) 14 holding companies; (c) 27% CIIF block of San Miguel CorCorporation (SMC) shares of stock totaling 33,133,266 shares as of 1983, together with all dividends declared paid and exercise thereon as well as any increments thereto arising from, but not limited to, the exercise of pre-emptive rights; are declared owned by the government in trust for all the coconut farmers and ordered reconveyed to government.

Last February 6, 2005, Pres. Arroyo announced that the government will sell the SMC shares to rehabilitate the coconut industry and help improve the lives of the coconut farmers. The sale of the 27% SMC shares is expected to generate at least 50 billion with yearly interest earning that could reach up to 4 to 5 billion pesos which could finally benefit the industry and the coconut farmers with the principle remaining untouched.

Pres. Arroyo, in her State of the Nation Address (SONA) last July 25, 2005, said that “it is high time to give more power and autonomy to local governments and take power from the center to the countryside that feeds it.”

And to make certain that, this time, which is consistent with the policy behind the Local Government Code, the benefits coming from the levy would reach and meaningfully benefits the farmers it is appropriate and expedient to involve the local government units, (provinces, cities, barangays) in the allocation and utilization of the levy funds guided by; (a) what the coconut farmers really need, (b) could assess and (c) meaningfully benefit frm.

To provide balance between (a) making sure benefits from the levy would reach the farmers at the barangay level and (b) the need to promote the industry on the national level (mass production of coir, geotextile, bio-diesel, further research on monolaurin as AIDS antidote, development of Agusan del Sur, etc.) an 80-20% sharing of the available funds should be adopted for purposes a) and b) respectively, the 20% to be managed by an upgraded Phil. Coconut Authority (PCA).

The coconut levy was imposed from 1982, directing the mandatory collection of 60 pesos on the average, for the first sale of every 100 kilos of copra. The levy was impose initially to provide a subsidy to make cooking oil affordable to housewives, later to fund investment in commercial and industrial coconut-related enterprises, “for the benefits of the coconut farmers” the quoted phrase having been repeated at least 82 times in the PDs and other issuances mandating the collection.

The declaration of policy of the said PDs and other issuances seek to promote the growth and development of the coconut industry. But the noble intent of the PDs and related issuances went to naught bulk of the levy collections and assets having become ill-gotten wealth claimed by people closed to the late dictator.

Meanwhile, another resolution was passed by the Provincial Board Council urging the local government units (League of Governors, Vice Governors, Provincial Board Members, Mayors, Vice Mayors, Councilors, and Punong Barangays) to formally and respectfully request the Supreme Court, the Sandiganbayan, the Solicitor General, the Department of Agriculture and the Philippine Coconut Authority to help hasten resolution of the long-standing coco levy related cases so that pursuant to the Sandiganbayan Resolution dated December 29, 2004 in CC No. 033-F the real beneficiaries of the coconut levy funds, the coconut farmers who contributed to it and the entire coconut industry be given a chance to enjoy the benefits that are due them.