Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Eighteenth Congress
Second Regular Session

HOUSE BILL NO.-_ 792°

Introduced by:

Honorable DAVID C. SUAREZ

EXPLANATORY NOTE

Coconut remains to be one of the most important crops and a
major export of the Philippines. The Philippines is one of the largest
producers of coconut in the world, second to Indonesia. However,
despite the continued boom of coconut exports, there has been no
significant improvement in the coconut industry for past years.

The total current number of coconut farmers is at 2,513,457 as
reported by the Philippine Coconut Authority.

The coconut industry plays a major role in the economic and
agricultural development of the country. Based on the 2018 Selected
Statistics on Agriculture published by the Philippines Statistics Authority,
a total of 14,049,100 metric tons of coconuts were produced by the
country in 2017. Coconut consistently ranks third among the crops with
the highest volume production from 2013 to 2017. It places second
among the crops with the largest areas planted/harvested, next to palay.
In terms of export, coconut-based products have been among the top


export products of the country. Clearly, the contribution of the coconut
industry is significant to our economic gains. However, it is saddening
that the support obtained by our coconut farmers from the government is
inversely proportional. There is a decreasing trend in the world copra
prices and domestic farm-gate prices. Moreover, coconut remains
vulnerable to destruction during typhoon season. It can be recalled that
the country lost 33 million coconut trees from the destruction brought by
typhoons Pablo and Yolanda.

The Supreme Court has previously declared that the coconut levy
fund and coconut levy assets are owned by the government and must be
used only for the intended purpose of benefiting all coconut farmers and
development of the coconut industry. In this regard, this bill aims to
create a special fund that shall be called the Coconut Farmers and
Industry Development Trust Fund. This Trust Fund shall originate from
the coconut levy fund and its assets and shall be allocated to support
our coconut farmers and for the research and development of the
coconut industry in the country, in compliance with the Supreme Court
decision.

In view of the foregoing, the approval of this bill is earnestly
sought.

DAVID “JA’ ~ SUAREZ
Representaj

2nd District, Quezon Province


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Eighteenth Congress
Second Regular Session

HOUSE BILLNO. —_7910

Introduced by:

Honorable DAVID C. SUAREZ

AN ACT
DECLARING THE COCONUT LEVY ASSETS AS A TRUST FUND,
PROVIDING FOR ITS MANAGEMENT AND _ UTILIZATION,
AUTHORIZING THE PRIVATIZATION AND MANAGEMENT OFFICE
TO DISPOSE THE COCONUT LEVY ASSETS AND FOR OTHER
PURPOSES

Be it enacted by the Senate and House of Representatives of the
Philippines in Congress assembled:

SECTION 1. Short Title. This Act shall be known as the
‘Coconut Farmers and Industry Trust Fund Act.’

SEC. 2. Declaration of Policy. \t is hereby declared the policy of
the State to consolidate the benefits due to coconut farmers, especially
the poor and marginalized, under various statutes and to expedite the
delivery thereof to attain a balanced, equitable, integrated and
sustainable growth and development of the coconut industry.

!
DEFINITION OF TERMS
SEC. 3. Definition of Terms. As used in this Act:
(a) Coconut Farmer shall refer to:


(1) A farmer-owner of a coconut farm who:
(i) Tills the land (owner-cultivator); or
(ii) | Does not till the land, but has control and supervision over

the cultivation of the coconut farm; and

(2) A leaseholder or tenant who tills or supervises the cultivation of the
coconut farm; or

(3) A farm worker or laborer, whether seasonal or itinerant, engaged in
the harvesting of the nuts and processing of copra as a major
means of livelihood.

(b) Coconut Levy Assets shall refer to any and all kinds of property,

whether real or personal, tangible or intangible, wherever situated,
which have been acquired through the Coconut Levy Funds as defined
in this Section, including those assets that may be later recovered in
favor of the Government, as well as the fruits or income therefrom, and
those acquired in exchange or substitution thereof. These shall include,
among others, the following:

(i) |The shares of stock in United Coconut Planters Bank
(UCPB) that were determined to be owned by the
Government;

(ii) | The CIIF-Oil Mills Group, which refers to the CIIF companies,
namely: Southern Luzon Coconut Oil Mills; Cagayan de Oro
Oil Co. Inc.; lligan Coconut Industries, Inc.; San Pablo
Manufacturing Corp.; Granexport Manufacturing Corp.; and
Legaspi Oil Co, Inc.;

(iii) The CIIF Holding Companies, which refers to the fourteen
(14) holding companies, namely: Anglo Ventures
Corporation; ASC Investors, Inc.; Arc Investors, Inc.; AP
Holdings, Inc.; Fernandez Holdings, Inc.; First Meridian
Development, Inc.; Randy Allied Ventures, Inc.; Rock Steel
Resources, Inc.; Roxas Shares, Inc.; San Miguel Officers
Corps., Inc.; Soriano Shares, Inc.; Te Deum Resources,
Inc.; Toda Holdings, Inc.; and Valhalla Properties Limited,
Inc.; and

(iv) The Converted San Miguel Corporation (SMC) Series 1
Preferred Shares, which refers to the 753,848,312 preferred
shares of stock in SMC declared owned by the Government,
together with all the dividends declared, paid, or issued
thereon, as well as any increments thereto arising from, but
not limited to, the exercise of pre-emptive rights;


(c) Coconut Levy Funds shall refer to various funds generated from
levies, taxes, charges, and other fees exacted or imposed pursuant to or
in connection with the sale of copra rececada or its equivalent in other
coconut products, and collected for the most part from coconut farmers,
planters, millers, refiners, processors, exporters, desiccators, and other
end-users of copra rececada or its equivalent in other coconut products.
Specifically, the term shall refer to any or all of the funds generated from
the following:

(i) | The Coconut Investment Fund created under Republic Act
No. 6260;

(ii) |The Coconut Consumers Stabilization Fund, later renamed
as the Coconut Industry Stabilization Fund, created under
Presidential Decree No. 276;

(iii) The Coconut Industry Development Fund created under
Presidential Decree No. 582; and

(iv) The Coconut Industry Investment Fund created under
Presidential Decree No. 1468;

(d) Designated Disposition Entity shall refer to Government
Financial Institutions (GFls) which, at the time of enactment of this Act,
are one hundred percent (100%) owned by the Government, or
National Government Agencies (NGAs), which are approved by the
Trust Fund Management Committee, upon recommendation of the
Trust Fund Manager, to perform similar functions as the BTr under
Section 13 of this Act.

iT)
COCONUT FARMERS AND INDUSTRY DEVELOPMENT PLAN

SEC. 4. The Coconut Farmers and Industry Development Plan.

A. Preparation of the Coconut Farmers and Industry
Development Plan. The utilization of the Trust Fund created under
this Act, or any portion thereof, shall be in accordance with the Coconut
Farmers and Industry Development Plan, hereinafter referred to as the
Plan, which shall be prepared by the Philippine Coconut Authority
(PCA) and approved by the President of the Philippines. The Plan shall
be subject to mandatory annual review.

In the performance of its functions, including the preparation of the
Plan, the PCA shall consult coconut farmers and their organizations,
industry associations, civil society organizations, academe, government


agencies concerned, and other stakeholders in the coconut industry.
The Plan shall set the directions and policies for the development and
rehabilitation of the coconut industry within ninety-nine (99) years.

B. OBJECTIVES OF THE PLAN

In the formulation of the Plan, the PCA shall be guided by the
following objectives:

(a) To increase incomes of coconut farmers;

(b) To alleviate poverty and promote social equity; and

(c) To rehabilitate and modernize the coconut industry towards farm
productivity.

C. COMPONENTS OF THE PLAN
The Plan shall include a national program for:

(a) Community-based enterprises, including integrated processing of
products and downstream products intended to increase incomes of
coconut farmers;

(b) Social protection programs that directly benefit the poor and
marginalized coconut farmers, farmworkers and their families taking
into consideration existing social protection programs of the
Government; and

(c) Coconut farmers organization and development.

D. FUNDING OF THE PLAN

The Plan shall provide the criteria for targeting beneficiaries, the
indicators in determining the attainment of the abovementioned
objectives, and the mechanisms for monitoring and evaluating the
impact of the different components of the program.

The Plan shall provide an indicative funding requirement or
allocation for the implementation of any and all of the programs and
projects to be funded by the initial Trust Fund Principal and the Trust
Fund Income, which funding or allocation shall be itemized or broken
down on a project-to-project basis, Provided, That:

(i) for projects which are recurring, or to be implemented on a
regular basis, the allocation shall indicate the annual amount
that may be required to implement said project;


(ii) for projects that are to be implemented or concluded within a
period of time, the allocation shall indicate the total amount that
may be required for the implementation of the whole project,
itemized according to the phases or stages of said project; and

(ili) all projects shall be evaluated on the basis of financial returns
and increased farmers income.

The Plan shall take into account the annual utilization of the Trust
Fund under the following allocations:

(a) Shared facilities program, ten percent (10%);

(b)Farm improvement through diversification and/or intercropping
such as projects on livestock, dairy, poultry, coffee, and cacao
production, ten percent (10%);

(c) Development of hybrid coconut seed farms and nurseries, to
encourage self-sufficiency, ten percent (10%);

(d)Empowerment of coconut farmer organizations and their
cooperatives, ten percent (10%);

(e) Scholarship program, ten percent (10%);

(f) Health and medical program, ten percent (10%);

(g) Credit provision through the Development Bank of the Philippines
(DBP) and Land Bank of the Philippines (LBP), ten percent (10%);

(h) Infrastructure development, ten percent (10%);

(i) Training of farmers in farm schools through the Technological
Education and Skills Development Authority (TESDA), ten percent
(10%); and

(j) Planting and replanting, ten percent (10%).

E. APPROVAL OF THE PLAN

Within one hundred twenty (120) days from the effectivity of this
Act, the Plan shall be submitted by the PCA to the President for
approval. The PCA shall, within ninety (90) days from the effectivity of
this Act, complete the Coconut Farmers Registry.

Prior to the submission of the Plan to the President for approval,
the Department of Budget and Management (DBM)r, Department of
Finance (DOF), Department of Trade and Industry (DTI), and the
National Economic and Development Authority (NEDA) shall provide
their advisory opinions on the following matters:

(a)Whether the Plan is supportive of and consistent with socio-
economic development plans and oriented towards the


achievement of explicit objectives and expected results, to ensure
that the utilization of Coconut Levy Fund is conducted effectively;

(b)Whether the Plan manages Coconut Levy Assets and Funds
judiciously and in a manner supportive of development objectives;

(c)Whether the Plan accelerates and sustains economic growth for
the coconut industry;

(d)Whether the Plan is programmed within the context of well-
formulated and consistent long, medium, and_ short-term
development plans and policies that will promote both the growth
of the economy and the equitable distribution of the benefits of
said growth to various members of society.

MM
PHILIPPINE COCONUT AUTHORITY

SEC. 5. The Philippine Coconut Authority (PCA). The PCA, an
independent public corporation created under Presidential Decree No.
1468, shall be reconstituted and strengthened to ensure the participation
of coconut farmers in the crafting and implementation of the Coconut
Farmers and Industry Development Plan. The composition of the PCA
Board is hereby amended and the same shall now be composed of the
following:

(a)The Secretary of the Department of Agriculture (DA), as
Chairperson;

(b)The Secretary of the Department of Finance (DOF), as Vice
Chairperson;

(c)The Secretary of the Department of Budget and Management
(DBM);

(d)The Secretary of the Department of Science and Technology
(DOST);

(e)The Secretary of the Department of Trade and Industry (DTI);

(f) Three (3) representatives from the coconut farmers sector, one
each from Luzon, Visayas, and Mindanao); and

(g)One (1) representative from the coconut industry sector.

Provided, That the representatives from the coconut farmers
sector shall be Filipino citizens, registered with the PCA Coconut
Farmers Registry, have considerable experience and reputable track
record in promoting coconut farmers’ interest and welfare, and
nominated by coconut farmers organizations or cooperatives that are
active in farmer organization and development or community enterprise


development for the past three (3) years. They shall be appointed by the
President of the Philippines from a list of four (4) nominees for each
island grouping;

Provided, further, That the representative from the coconut
industry sector should have considerable experience and reputable track
record in coconut industry enterprise development and management,
and nominated by entities or organization duly registered with or
accredited by the PCA and shall be appointed by the President from a
list of five (5) nominees.

Provided, however, That any appointment to fill a vacancy in the
Board arising from the death, removal, retirement, or resignation of the
appointive members of the Board shall only be for the unexpired term.

Provided, finally, That the term of office of the appointive members
of the Board shall be for one (1) year, unless sooner removed for cause.

The ex officio members of the Board shall designate their
respective permanent alternates who shall be the next-in-rank officials
whose acts shall be considered as the acts of their principals.

The government representatives in the reconstituted PCA Board
shall coordinate with the PCA in promulgating a nomination and
screening process for the nominees of representatives of the coconut
farmers in consultation with their respective organizations or
associations.

The Philippine Coconut Authority (PCA) shall serve as the
Secretariat to the Board. It shall furnish the necessary administration,
secretarial and other support services to the Board and shall also
integrate, coordinate and monitor the implementation of the Coconut
Farmers and Industry Development Plan.

SEC. 6. Coconut Levy Advisory Board

There is hereby created an Advisory Board, to be known as the
Coconut Levy Advisory Board, which shall be composed of
representatives from the coconut farmers and their organizations,
industry associations, civil society organizations, academe, and other
stakeholders in the coconut industry. The PCA shall organize the
selection of members to the Advisory Board.


The Advisory Board shall provide assistance, advice, and
expertise to the PCA Board in the formulation of policies and programs
to develop and modernize the coconut industry; and evaluate its
implementation to ensure the efficiency and effectiveness of the
programs and projects being implemented.

IV
FUTURE RECONVEYANCE OF COCONUT LEVY ASSETS
AND/OR FUNDS

SEC. 7. Reconveyance. Any person having any Coconut Levy
Asset and/or Fund in its administration, authority, custody, or control
which have been finally declared by the Supreme Court as belonging to
the Government, shall perform or cause the performance of the
following:

(1)Reconvey title to the Republic of the Philippines;

(2)Deliver all stock certificates and other evidence of ownership to the
Bureau of the Treasury (BTr) for safekeeping; and

(3)Transfer all cash Coconut Levy Assets to the Trust Fund;

Provided, That no temporary restraining order (TRO) or any
injunction order can be issued except by the Supreme Court.

The Commission on Audit (COA), in coordination with the
Presidential Commission on Good Government (PCGG), shall conduct
an inventory and audit to determine compliance with pertinent laws,
tules and regulations on the reconveyance of the Coconut Levy Assets
and/or Fund to the Republic.

Vv
COCONUT FARMERS AND INDUSTRY TRUST FUND

SEC. 8. The Coconut Farmers and Industry Trust Fund. There
is hereby created a Trust Fund to be known as the ‘Coconut Farmers
and Industry Trust Fund,’ referred to in this Act as the ‘Trust Fund,’
which shall be capitalized, managed, invested, utilized, and accounted
for in the manner provided in this Act.

The Trust Fund shall be maintained in such manner for ninety-nine
(99) years under the Coconut Farmers and Industry Development Plan
to be formulated under Section 4 of this Act, and shall be used
exclusively for the ultimate benefit of the coconut farmers and for the


development of the coconut industry, as embodied in the Coconut
Farmers and Industry Development Plan.

SEC. 9. Nature and Capitalization of the Trust Fund. The
Coconut Farmers and Industry Trust Fund is separate and distinct from
the regular funds appropriated to the PCA through the annual General
Appropriations Act (GAA). As such, the PCA shall continue to pursue its
mandate of implementing programs and projects from the regular GAA
appropriations and from funds under the Trust Fund-

The proceeds from the redemption of the Converted SMC Series 1
Preferred Shares, dividends declared, paid, or issued on the Converted
SMC Series 1 Preferred Shares, and all income or interest derived
therefrom as of the effectivity of this Act, and any other cash Coconut
Levy Asset, that are held by the BTr as a special account in the General
Fund and as an escrow account, and cash held by UCPB as
administrator of the CIIF, shall form part of the initial Trust Fund Principal
of the Trust Fund.

For this purpose, any provision of law to the contrary
notwithstanding, all government agencies holding Coconut Levy Funds
and/or assets shall transfer any and all monies to the Trust Fund within a
period not exceeding five (5) years from the effectivity of this Act.
Immediately upon the enactment of this Act, the BTr shall transfer Five
Billion Pesos (P5,000,000,000.00) to a separate Trust Fund Account.

The Trust Fund shall thereafter be augmented with all proceeds of
privatization or disposition of the Coconut Levy Assets remitted directly
thereto by the BTr, Privatization and Management Office (PMO), or other
Designated Disposition Entities in accordance with this Act, including
any and all forms of income, interests, earnings, yields, or any monetary
benefit derived prior to the privatization or disposition of any of the
Coconut Levy Assets, and any and all forms of income, interests,
earnings, yields, or any monetary benefit derived from retained Coconut
Levy Assets.

Any amount of the Trust Fund income above the annual inflation
rate shall be available for disbursement by the PCA, which shall be
utilized in accordance with the development plan for a period of ninety-
nine (99) years: Provided, That the amount in the Trust Fund account for
disposition by the PCA under the development plan shall not be lower
than Five Billion Pesos (Php 5,000,000,000.00) for any given year.


SEC. 10. Utilization of the Trust Fund. The utilization of the Trust
Fund or any portion thereof shall be in accordance with the Coconut
Farmers and Industry Development Plan as provided in Section 4 of this
Act, Provided, That for purposes of the implementation of the Plan, for
the execution of programs and projects identified in the Plan that are
allowed to be funded out of the Trust Fund, pending the accrual or
availability of the Trust Fund Income, and subject to annual
governmental audit, an initial allocation of Five Billion Pesos
(P5,000,000,000.00) shall be available to the PCA, which shall include
disbursements for the formulation of the Coconut Farmers and Industry
Development Plan.

In the utilization of the Trust Fund, the PCA shall have the
following powers and functions:

(a)Approve disbursements from the Trust Fund including the funding
for:
(i) the formulation of the Coconut Farmers and Industry
Development Plan; and
(ii) the disbursements in accordance with the Coconut Farmers
and Industry Development Plan.
(b)Issue policies, rules and guidelines as may be necessary to
implement the provisions of this Act.

SEC. 11. Creation of a Trust Fund Management Committee.
There is hereby created a Trust Fund Management Committee, which
shall be composed of authorized representatives of the Department of
Finance (DOF), Department of Budget and Management (DBM), and
Department of Justice (DOJ). The Trust Fund Management Committee
shall be responsible for setting the Investment Strategy of the Trust
Fund, which includes the following, among others:

Setting of investment priorities;

Setting of investment themes;

Evaluation of assets to determine portfolio size;

Setting of asset allocation;

Setting of policies with respect to particular asset types;
Guidelines for portfolio turnover;

Guidelines for Trust Fund Management Expenses;

Set the annual allocation of the Trust Fund available for
disbursement to the PCA;

Approval of the financial requirements of Designated
Disposition Entities in relation to its functions set forth under

zFe-ea0oD


this Act, including its annual budget for operations,
management, and privatization/disposition of Coconut Levy
Assets and/or Funds transferred and entrusted in its care;

i. Designation of alternative Designated Disposition Entities as
defined in Section 3 of this Act; and

k. Other guidelines as may be necessary to fulfill its mandate
under this Act.

The BTr shall act as the Trust Fund Management Committee
Secretariat and shall maintain records and accounts of all investments,
receipts, disbursements, and other transactions relating to the
management, administration, and utilization of the Trust Fund; Provided,
That these records and accounts shall be maintained in accordance with
existing accounting and auditing laws, rules and regulations, and shall
be audited by the Commission on Audit (COA).

For the above purposes, an amount of one-half of one percent of
the Trust Fund Principal shall be utilized as Trust Fund Management
Expense, which shall be sourced from the Trust Fund. The Trust Fund
Management Expense shall answer for all expenses directly incurred in
the management of the Trust Fund, including but not limited to
transaction fees, redemption fees, placement fees, investment fees,
transaction costs, and other operating expenses.

SEC. 12. Designation of DOF as Trust Fund Manager. The DOF
is hereby designated as Manager of the Trust Fund. As Manager, it shall
be responsible for implementing the Investment Strategy set by the Trust
Fund Management Committee and managing the portfolio of the Trust
Fund.

In the performance of its functions, the DOF shall have the
following functions:

a. Monitor market and economic trends and track securities in order
to make informed investment decisions;

b. Recommend its portfolio strategy to the Trust Fund Committee;

c. In managing the portfolio, track financial results of the companies
in the portfolio and its various metrics, such as but not limited to,
price-to-earnings ratios, inflation-adjusted return, sales, earnings,
and dividends; and

d. Recommend to the Trust Fund Committee the designation of
alternative Designated Disposition Entities defined in Section 3 of
this Act; and

e. Perform other acts necessary to fulfill its mandate under this Act.


SEC. 13. Management and Custodianship of the Trust Fund.
Any law to the contrary notwithstanding, the BTr is hereby designated as
the depository of the Trust Fund. As depository, the BTr shall have the
following functions:

a. Hold, account, and collect on a timely basis all income and other
payments with respect to securities and other assets to which the
Trust Fund shall be entitled to in the manner set forth by the DOF
as Trust Fund Manager;

b. Release and deliver out securities and other assets of the Trusts
Fund upon receipt of proper instructions from the Trust Fund
Manager, specifying the securities or assets to be delivered out
and the person or persons to whom the delivery is to be made;

c. Release funds directly for the implementation of projects as
instructed by the PCA pursuant to the implementation of the
Coconut Farmers and Industry Development Plan as approved by
the President under Section 4 of this Act; and

d. Perform any act as may be directed by the Trust Fund Manager in
accordance with the Investment Guidelines set forth by the Trust
Fund Committee.

All cash Coconut Levy Assets shall be invested in Philippine
government securities and other securities guaranteed by the National
Government. On the other hand, the BTr may hold, manage and invest
non-cash Coconut Levy Assets, only upon approval of the DOF. Any
income, earning or interest obtained from said investments shall be
deposited to the Trust Fund Account.

The Trust Fund Management Committee may designate
alternative Designated Disposition Entities as defined in Section 3 of this
Act.

The Trust Fund Management Committee is hereby directed to draft
the implementing rules and regulations in order to effectuate Sections 9
to 11 of this Act.

vi
DISPOSITION OF NON-CASH COCONUT LEVY ASSETS

SEC. 14. Disposition of Non-Cash Coconut Levy Assets.
Pursuant to the mandate and the direction and policies set by relevant
regulatory agencies, Coconut Levy Assets defined in Section 3 hereof,


which are assigned by the Trust Fund Management Committee to
Designated Disposition Entities, shall be privatized or disposed subject
to the regulatory approvals as required by law.

This Act shall in no case exempt Coconut Levy Assets from the
respective jurisdictions of the various applicable regulators, particularly
the Privatization and Management Office (PMO), the Bangko Sentral ng
Pilipinas (BSP), the Philippine Deposit Insurance Corporation (PDIC),
and the Insurance Commission (IC).

SEC. 15. Additional Mandate of Designated Disposition
Entities. In addition to its powers, duties and functions, Designated
Disposition Entities as may be assigned by the Trust Fund Management
Committee shall, for and in behalf of the National Government, take title
to and possession of, conserve, provisionally manage, and dispose the
Coconut Levy Assets which have been identified for privatization and
disposition.

Subject to the approval of the Trust Fund Management Committee,
the Designated Disposition Entities are hereby empowered to:

(i) | Implement the marketing and disposition program of the
Coconut Levy Assets and/or Funds;

(ii) | Execute and deliver, on behalf of the National Government,
deeds of sale, contracts, trust instruments, and other legally
operative documents as may be necessary or appropriate to
convey title to, take possession of, and conserve, such assets;

(iii) Engage external expertise as may be necessary in the
fulfillment of its tasks under this Act; and

(iv) Adopt internal rules and regulations in relation to the marketing
and disposition of the Coconut Levy Assets and/or Funds.

The Designated Disposition Entities shall prepare the disposition
plans and policies of the Coconut Levy Assets transferred to it. They are
empowered to enter into sales through public bidding, negotiated sale,
lease, or any form of divestment or transmission of rights over the
Coconut Levy Assets and/or Funds, including a partnership with the
private sector in the management or operation of these Coconut Levy
Assets and/or Funds prior to actual sale or disposition in accordance
with the Investment Guidelines approved by the Trust Fund
Management Committee.


Prior to the implementation of any disposition plan for corporations
transferred to it, the Disposition Entities may recommend the following:

a. Require any of the subject corporations to adopt and
implement cost-reduction measures to enhance the viability,
and therefore the disposability of such corporations, to
potential buyers, including measures requiring personnel
retrenchment plans or other forms of corporate downsizing;

b. Direct any of the subject corporations to submit to the
Disposition Entity, within fixed time-tables, such reports and
information as the Disposition Entity may require in the
exercise of its ownership, administrative, and disposition
over such corporations or their assets; and

c. Cause the subject corporations to undergo rehabilitation,
merger, consolidation, spin-off, or other corporate acts of
teformatory nature as it may deem necessary or desirable to
expedite the disposition and privatization under this Act.

Any of the above-enumerated, as well as the final disposition of
such assets, shall be subject to the approval of the Trust Fund
Management Committee.

SEC. 16. Remittance of Proceeds of Privatization. Any provision
of law to the contrary notwithstanding, all proceeds or receipts from the
sale of Coconut Levy Assets and/or Funds, except portions thereof for
reimbursable custodianship and operational expenses, or such amount
approved by the Trust Fund Management Committee to be retained by
the Designated Disposition Entity, shall be remitted to the Trust Fund.

SEC. 17. Reporting Requirements. The Trust Fund Management
Committee shall, on a semi-annual basis, submit to the President a
report on the status of disposition of the Coconut Levy Assets, which
shall include, among others, a description of the individual assets
disposed of, their purchasers, the consideration received, and the
agreed terms of payment.

The Designated Disposition Entities shall, within three (3) months
following the closure of books at the end of each fiscal year, submit a
comprehensive annual report duly approved or endorsed by the PCA to
the President on the status of its privatization efforts and its disposition


program for the Coconut Levy Assets, which shall include the items
described in the immediately preceding paragraph.

Vil
FINAL PROVISIONS
SEC. 18. Suppletory Application of Republic Act No. 10149.
The provisions of Republic Act No. 10149, otherwise known as the
“GOCC Governance Act of 2011, insofar as they are not inconsistent
with the provisions of this Act, shall apply suppletorily.

SEC. 19. Separability Clause. If any provision of this Act is
declared invalid or unconstitutional, the other provisions not affected by
such declaration shall remain in full force and effect.

SEC. 20. Repealing Clause. All laws, executive orders,
administrative orders, and rules and regulations inconsistent with this
Act are hereby repealed or amended accordingly.

SEC. 21. Effectivity. This Act shall take effect fifteen (15) days

after its publication in the Official Gazette or in two (2) newspapers of
general circulation.

Approved,