EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
Senate
of lijc SiPciTtarp
20 mar-4 P4 ;17
SENATE
RECtiV; a 8V:
Senate Bill No. 1396
(In substitution of Senate Bill Nos. 31, 266,1052 and
1127)
Prepared jointly by the Committee on Agriculture, Food 
and Agrarian Reform and the Committee on Finance with 
Senators Pangilinan, Recto, Villar and Marcos as authors
AN ACT CREATING THE COCONUT FARMERS AND 
INDUSTRY TRUST FUND, PROVIDING FOR ITS 
MANAGEMENT AND UTILIZATION, RECONSTITUTING 
FOR THE PURPOSE THE PHILIPPINE COCONUT 
AUTHORITY BOARD, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of 
the Philippines in Congress assembled:
1 
Section 1. Short Title. - This Act shall be known as the
2 
"Coconut Farmers and Industry Trust Fund Act".
3 
Sec. 2. Declaration of Policy. - It is hereby declared the
4 
policy of the State to consoiidate the benefits due to coconut
5 
farmers, especially the poor and marginalized, under various
6 
statutes and to expedite the delivery thereof to attain
7 
increased incomes for coconut farmers, alleviate poverty,
8 
and achieve social equality.
9 
I


1 
Definition OF Terms
2 
Sec. 3. Definition of Terms. - As used in this Act:
3 
(a) Coconut Farmer shdW refer to:
4 
(1) An owner of a coconut farm, who:
5 
(i) Tiiis the land (owner-cultivator), or
6 
(ii) Does not till the land, but has control and
7 
supervision over the cultivation of the coconut farm;
8 
(2) A leaseholder or tenant who tills or supervises the
9 
cultivation of the coconut farm; or
10 
(3) A farm worker or laborer, whether seasonal or
11 
itinerant, engaged in the harvesting of the nuts and
12 
processing of copra as a major means of livelihood;
13 
(b) Coconut Levy Assets shall refer to any and all kinds
14 
of property, whether real or personal, tangible or intangible,
15 
wherever situated, which have been acquired through the
16 
Coconut Levy Funds as defined in this Section, including
17 
those assets that may be recovered in favor of the
18 
government, as well as the fruits or income therefrom,
19 
including those acquired in exchange or substitution thereof.
20 
These shall include, among others, the following:
21 
(i) The shares of stock in United Coconut Planters
22 
Bank (UCPB) that were determined to be owned by the
23 
government;


1 
(ii) The CIIF-Oil Mills Group, which refers to the CIIF
2 
companies, namely: Southern Luzon Coconut Oil Mills;
3 
Cagayan de Oro Oil Co. Inc.; Iligan Coconut Industries, Inc.;
4 
San Pablo Manufacturing Corp.; Granexport Manufacturing
5 
Corp.; and Legaspi Oil Co., Inc.;
6 
(Hi) The CIIF Holding Companies, which refer to the
7 
fourteen (14) holding companies, namely: Anglo Ventures
8 
Corporation; ASC Investors, Inc.; Arc Investors, Inc.; AP
9 
Holdings, Inc.; Fernandez Holdings, Inc.; First Meridian
10 
Development, Inc.; Randy Allied Ventures, Inc.; Rock Steel
11 
Resources, Inc.; Roxas Shares, Inc.; San Miguel Officers
12 
Corps., Inc.; Soriano Shares, Inc.; Te Deum Resources, Inc.;
13 
Toda Holdings, Inc.; and Valhalla Properties Limited, Inc.;
14 
(iv) The Converted San Miguel Corporation (SMC)
15 
Series 1 Preferred Shares, which refers to the 753,848,312
16 
preferred shares of stock in SMC declared owned by the
17 
government, together with all the dividends declared, paid,
18 
or issued thereon, as well as any increments thereto arising
19 
from, but not limited to, the exercise of pre-emptive rights;
20 
(c) Coconut Levy Funds shall refer to various funds
21 
generated from levies, taxes, charges, and other fees
22 
exacted or imposed pursuant to or in connection with the
23 
sale of copra rececada or its equivalent in other coconut
24 
products, and collected for the most part from coconut


1 
farmers, planters, millers, refiners, processors, exporters,
2 
desiccators and other end-users of copra rececada or its
3 
equivalent in other coconut products. Specifically, the term
4 
shall refer to any or all of the following:
5 
(i) The Coconut Investment Fund created under
6 
Republic Act No. 6260;
7 
(ii) The Coconut Consumers Stabilization Fund, later
8 
renamed as the Coconut Industry Stabilization Fund, created
9 
under Presidential Decree No. 276;
10 
(iii) The Coconut Industry Development Fund created
11 
under Presidential Decree No. 582;
12 
(iv) The Coconut Industry Investment Fund created
13 
under Presidential Decree No. 1468;
14 
(d) Designated Disposition Entity refers to Government
15 
Financial Institutions (GFIs) which, at the time of enactment
16 
of this Act, are one hundred percent (100%) owned by the
17 
Government, or National Government Agencies (NGAs),
18 
which are approved by the Trust Fund Management
19 
Committee, upon recommendation of the Trust Fund
20 
Manager, to perform similar functions as the BTr under
21 
Section 11 of this Act.
22
23
24
II
COCONUT FARMERS AND INDUSTRY DEVELOPMENT
PLAN


1 
Sec, 4. Preparation of the Coconut Farmers and
2 
Industry Development Plan. - The utilization of the Trust
3 
Fund created under this Act, or any portion thereof, shall be
4 
in accordance with a Coconut Farmers and Industry
5 
Development Plan, which shall be prepared by the Philippine
6 
Coconut Authority (PCA) and approved by the President of
7 
the Philippines. In the performance of its functions, the PCA
8 
shall consult coconut farmers and their organizations,
9 
industry associations, civil society organizations, academe,
10 
government agencies concerned and other stakeholders in
11 
the coconut industry. The Plan shall set the directions and
12 
policies for the development and rehabilitation of the
13 
coconut industry within ninety-nine (99) years,
14 
In the formulation of the Plan, the PCA shall be
15 
guided by the following objectives:
16 
(a) Increased incomes of coconut farmers;
17 
(b) Poverty alleviation and social equity; and
18 
(c) Rehabilitation and modernization of the coconut
19 
industry towards farm productivity.
20 
The Plan shall include a national program for:
21 
(a) community-based enterprises, including integrated
22 
processing of products and downstream products intended
23 
to increase incomes of coconut farmers;


1 
(b) social protection that directly benefit coconut
2 
farmers, farm workers, and their families, taking into
3 
consideration existing social protection programs of the
4 
government; and
5 
(c) coconut farmers organization and development.
6 
The Plan shall provide the criteria for targeting
7 
beneficiaries, the indicators in determining the attainment of
8 
the abovementioned objectives, and the mechanisms for
9 
monitoring and evaluating the impact of the different
10 
components of the program.
11 
The 
Plan shall provide an indicative funding
12 
requirement or allocation for the implementation of any and
13 
all of the programs and projects to be funded by the initial
14 
Trust Fund Principal and the Trust Fund Income, which
15 
funding or allocation shall be itemized or broken down on a
16 
project-to-project basis: Provided, That,
17 
(i) for projects which are recurring, or to be
18 
implemented on a regular basis, the allocation shall indicate
19 
the annual amount that may be required to implement said
20 
project;
21 
(ii) for projects that are to be implemented or
22 
concluded within a period of time, the allocation shall
23 
indicate the total amount that may be required for the


1 
implementation of the whole project, itemized according to
2 
the phases or stages of said project; and
3 
(iii) all projects shall be evaluated on the basis of
4 
financial returns and increased farmers income.
5 
The Plan shall also include strategic and inclusive
6 
training programs dedicated for the coconut farmers based
7 
on a comprehensive review of existing training programs.
8 
Programs relating to planting, replanting, fertilization,
9 
research and development, market promotion, farm-to-
10 
market roads, and direct lending, shall be funded through
11 
regular appropriations.
12 
The Plan shall take into account the utilization of the
13 
annuai Trust Fund, based upon the amount in the Trust
14 
Fund Account, under the following allocations:
15 
(a) Shared facilities for processing, ten percent (10%);
16 
(b)Farm improvement through diversification and/or
17 
intercropping such as projects on livestock, dairy,
18 
poultry, coffee, cacao production, ten percent
19 
(10%);
20 
(c) Development of hybrid coconut seed farms and
21 
nurseries, to encourage self-sufficiency, ten percent
22 
(10%);
23 
(d) Empowerment of coconut farmer organization and
24 
their cooperatives, ten percent (10%);


1 
(e) Scholarship program, ten percent (10%);
2 
(f) Health and medical program, ten percent (10%);
3 
(g) Credit provision through the Development Bank of
4 
the Philippines (DBP) and Land Bank of the
5 
Philippines (LBP), ten percent (10%);
6 
(h) Infrastructure development, ten percent (10%);
7 
(i) Training of farmers in farm schools thru the
8 
Technological Education and Skills Development
9 
Authority (TESDA), ten percent (10%); and
10 
(j) Planting and replanting, ten percent (10%).
11 
Within one hundred twenty (120) days from the
12 
effectivity of this Act, the Plan shall be submitted by the PCA
13 
to the President, for approval. The PCA shall, within ninety
14 
(90) days from the effectivity of this Act, complete the
15 
Coconut Farmers Registry.
16 
Before the Plan is submitted to the President for
17 
approval, the Department of Budget and Management,
18 
Department of Finance, Department of Trade and Industry,
19 
and the National Economic and Development Authority shall
20 
provide their advisory opinions on the following matters:
21 
(a) Whether the Plan is supportive of and consistent with
22 
socio-economic development plans and oriented
23 
towards the achievement of explicit objectives and


1 
expected results, to ensure that the utilization of
2 
Coco Levy Fund is conducted effectively;
3 
(b) Whether the Plan manages Coco Levy Assets and
4 
Funds judiciously and in a manner supportive of
5 
development objectives;
6 
(c) Whether the Plan accelerates and sustains economic
7 
growth for the coconut industry;
8 
(d) Whether the Plan is programmed within the context
9 
of well-formulated and consistent long, medium, and
10 
short-term development plans and policies that will
11 
promote both the growth of the economy and the
12 
equitable distribution of the benefits of said growth to
13 
various members of society.
14 
III
15 
The Philippine Coconut Authority
16 
SEC. 5. The Philippine Coconut Authority (PCA). - The
17 
PCA, an independent public corporation created under
18 
Presidential Decree No. 1468, shall be reconstituted and
19 
strengthened to ensure the participation of coconut farmers
20 
in the crafting and implementation of the Coconut Farmers
21 
and Industry Development Plan. The composition of the PCA
22 
Board is hereby amended and the same shall now be
23 
composed of the following:


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
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) The Administrator of the Authority; and
g) Three (3) members from the coconut farmers 
sector (one each from Luzon, Visayas, and 
Mindanao); Provided, That the representatives 
from the coconut farmers sector shall be 
Filipino citizens, registered with the PCA's 
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 
for the past three (3) years in farmer 
organization and development or community 
enterprise development. They shall be
10


1 
appointed by the President of the Philippines
2 
from a iist of four (4) nominees for each island
3 
grouping: Provided, further, That any
4 
appointment to fiii a vacancy in the Board
5 
arising from death, removal, retirement, or
6 
resignation of the appointive members of the
7 
board shail oniy be for the unexpired term:
8 
Provided, finaiiy. That the term of office of the
9 
appointive members of the Board shall be for
10 
one (1) year, unless sooner removed for cause.
11 
The government representatives in the
12 
reconstituted PCA Board shall coordinate with the
13 
PCA in promulgating a nomination and screening
14 
process for the nominees of representatives of the
15 
coconut farmers in consuitation with their
16 
respective organizations or associations.
17 
IV
18 
FUTURE RECONVEYANCE OF COCONUT LEVY ASSETS
19 
AND/OR FUNDS
20 
SEC. 6. Reconveyance. - Any person having any
21 
Coconut Levy Asset and/or Fund in its administration,
22 
authority, custody, or control which have been finaily
23 
declared by the Supreme Court as belonging to the
11


1 
Government, shall perform or cause the performance of the
2 
following:
3 
(1) Reconvey title to the Republic of the Philippines;
4
5
6
7
8
(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;
9 Provided, That no temporary restraining order (TRO) or any
10 
injunction order can be issued except by the Supreme Court.
11 
The Commission on Audit, in coordination with the
12 
Presidential Commission on Good Government, shall conduct
13 
an inventory and audit to determine compliance with
14 
pertinent laws, rules and regulations on the reconveyance of
15 
the Coconut Levy Assets and/or Fund to the Republic.
16 
V
17 
Coconut Farmers and Industry Trust Fund
18 
Sec. 7. The Coconut Farmers and Industry Trust
19 
Fund. - There is hereby created a Trust Fund to be known
20 
as the "Coconut Farmers and Industry Trust Fund," referred
21 
to in this Act as the "Trust Fund," which shall be capitalized,
22 
managed, invested, utilized and accounted for in the manner
23 
provided in this Act.
12


1 
The Trust Fund shall be maintained in such manner
2 
for ninety-nine (99) years under the Coconut Farmers and
3 
Industry Deveiopment Plan to be formulated under Section
4 
4 of this Act, and shall be used for the benefit of the
5 
coconut farmers and the deveiopment of the coconut
6 
industry.
7 
SEC. 8. Nature and Capitalization of the Trust Fund. -
8 
The Coconut Farmers and Industry Trust Fund is separate
9 
and distinct from the regular funds appropriated to the PCA
10 
through the annual General Appropriations Act (GAA). As
11 
such, the PCA shall continue to pursue its mandate of
12 
implementing programs and projects from the regular GAA
13 
appropriations and from funds under the Trust Fund.
14 
The proceeds from the redemption of the Converted
15 
SMC Series 1 Preferred Shares, dividends declared, paid, or
16 
issued on the Converted SMC Series 1 Preferred Shares, and
17 
all income or interest derived therefrom as of the effectivity
18 
of this Act, and any other cash Coconut Levy Asset, that are
19 
held by the BTr as a special account in the general fund and
20 
as an escrow account, and cash held by UCPB as
21 
administrator of the CIIF, shall form part of the initial Trust
22 
Fund Principal of the Trust Fund.
23 
For this purpose, any provision of law to the contrary
24 
notwithstanding, all government agencies holding Coco Levy
13


1 
Funds and/or Assets shall transfer any and all monies to the
2 
Trust Fund within a period not exceeding five (5) years from
3 
the effectivity of this Act. Immediately upon the enactment
4 
of this Act, the BTr shall transfer Five Billion Pesos
5 
(P5,000,000,000.00) to a separate Trust Fund Account.
6 
The Trust Fund shall thereafter be augmented with all
7 
proceeds of privatization or disposition of the Coconut Levy
8 
Assets remitted directly thereto by the BTr, Privatization and
9 
Management Office (PMO), or other Designated Disposition
10 
Entities in accordance with this Act, including any and all
11 
forms of income, interests, earnings, yields, or any monetary
12 
benefit derived prior to the privatization or disposition of any
13 
of the Coconut Levy Assets, and any and all forms of
14 
income, interests, earnings, yields, or any monetary benefit
15 
derived from retained Coconut Levy Assets.
16 
Any amount of the Trust Fund income above the
17 
annual Inflation rate shall be available for disbursement by
18 
the PCA, which shall be utilized in accordance with the
19 
Development Plan for a period of ninety-nine (99) years:
20 
Provided, That the amount in the Trust Fund account for
21 
disposition by the PCA under the Development Plan shall not
22 
be lower than Five Billion Pesos (P5,000,000,000,000.00) for
23 
any given year.
14


1 
Sec. 9. Utilization of the Trust Fund. - The utilization of
2 
the Trust Fund or any portion thereof shall be in accordance
3 
with the Coconut Farmers and Industry Development Plan
4 
as provided in Section 4 of this Act: Provided, That for
5 
purposes of the implementation of the Plan, for the
6 
execution of programs and projects identified in the Plan
7 
that are allowed to be funded out of the Trust Fund,
8 
pending the accrual or availability of the Trust Fund Income,
9 
and subject to annual Government audit, an initial allocation
10 
of Five Billion Pesos (P5,000,000,000.00) shall be available
11 
to the PCA, which shall include disbursements for the
12 
formulation of the Coconut Farmers and Industry
13 
Development Plan.
14 
In the utilization of the Trust Fund, the PCA shall have
15 
the following powers and functions:
16 
(a) Approve disbursements from the Trust Fund
17 
including the funding for:
18 
(i) the formulation of the Coconut Farmers and
19 
Industry Development Plan; and
20 
(ii) the disbursements in accordance with the
21 
Coconut Farmers 
and Industry
22 
Development Plan.
23 
(b) Issue policies, rules and guidelines as may be
24 
necessary to implement the provisions of this Act.
15


1 
SEC. 10. Creation of a Trust Fund Management
2 
Committee. - There is hereby created a Trust Fund
3 
Management Committee, which shall be comprised of
4 
authorized representatives of the Department of Finance
5 
(DOF), Department of Budget and Management (DBM), and
6 
Department of Justice (DOJ). The Trust Fund Management
7 
Committee shall be responsible for setting the Investment
8 
Strategy of the Trust Fund, which includes the following,
9 
among others:
10 
a. 
Setting of investment priorities;
11 
b. 
Setting of investment themes;
12 
c. 
Evaluation of assets to determine portfolio size;
13 
d. 
Setting of asset allocation;
14 
e. 
Setting of policies with respect to particular asset
15 
types;
16 
f. 
Guidelines for portfolio turnover;
17 
g. 
Guidelines for Trust Fund Management Expenses;
18 
h. 
Set the annual allocation of the Trust Fund
19 
available for disbursement to the PCA;
20 
i. 
Approval of the financial 
requirements 
of
21 
Designated Disposition Entities in relation 
to its
22 
function set forth under this Act, including its annual
16


1 
budget for operations, management, 
and
2 
privatization/disposition of 
Coconut Levy 
Assets
3 
and/or Funds transferred and entrusted in its care;
4 
j. Designation of alternative Designated Disposition
6 
Entities as defined in Section 3 of this Act; and
6 
k. Other guidelines as may be necessary to fulfill its
7 
mandate under this Act.
8 
The BTr shall act as the Trust Fund Management
9 
Committee Secretariat and shall maintain records and
10 
accounts of all investments, receipts, disbursements, and
11 
other transactions relating to the management,
12 
administration, and utilization of the Trust Fund;
13 
Provided, That these records and accounts shall be
14 
maintained in accordance with existing accounting and
15 
auditing laws, rules and regulations, and shall be audited
16 
by the Commission on Audit (COA).
17 
For the above purposes, an amount of one-half of
18 
one percent of the Trust Fund Principal shall be utilized
19 
as Trust Fund Management Expense, which shall be
20 
sourced from the Trust Fund. The Trust Fund
21 
Management Expense shall answer for all expenses
22 
directly incurred in the management of the Trust Fund,
23 
including but not limited to transaction fees, redemption
17


1 
fees, placement fees, investment fees, transaction costs,
2 
and other operating expenses.
3 
SEC. 11. Designation of DOF as Trust Fund
4 
Manager. - The DOF is hereby designated as Manager of
5 
the Trust Fund. As Manager, it shall be responsible for
6 
implementing the Investment Strategy set by the Trust
7 
Fund Committee and managing the portfolio of the Trust
8 
Fund.
9 
In the performance of its functions, the DOF shall
10 
have the following functions:
11 
a. Monitor market and economic trends and track
12 
securities in order to make informed investment
13 
decisions;
14 
b. Recommend its portfolio strategy to the Trust Fund
15 
Committee;
16 
c. In managing the portfolio, track financial results of
17 
the companies in the portfolio and its various metrics,
18 
such as but not limited to, price-to-earnings ratios,
19 
inflation-adjusted return, sales, earnings, and
20 
dividends;
21 
d. Recommend to the Trust Fund Committee the
22 
designation of alternative Designated Disposition
23 
Entities defined in Section 3 of this Act; and
18


1 
e. Perform other acts necessary to fulfill its mandate
2 
under this Act.
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
SEC. 12. 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 
current and future 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 Department of Finance as 
Trust Fund Manager;
b. Release and deliver out securities and other assets 
of the Trust 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
19


1 
Industry Development Plan as approved by the
2 
President under Section 4 of this Act; and
3 
d. Perform any act as may be directed by the Trust
4 
Fund Manager in accordance with the Investment
5 
Guidelines set forth by the Trust Fund Committee.
6 
All cash Coconut Levy Assets shall be invested in
7 
Philippine government securities and other securities
8 
guaranteed by the National Government. On the other
9 
hand, the BTr may hold, manage and invest non-cash Coco
10 
Levy Assets, only upon approval of the DOF. Any income,
11 
earning or interest obtained from said investments shall be
12 
deposited to the Trust Fund Account.
13 
The Trust Fund Management Committee may
14 
designate alternative Designated Disposition Entities as 
16 defined in Section 3 of this Act.
16 
The Trust Fund Management Committee is hereby
17 
directed to draft the implementing rules and regulations in
18 
order to effectuate Sections 9 to 11 of this Act.
19 
VI
20 
DISPOSITION OF NON-CASH COCONUT LEVY ASSETS
21 
SEC. 13. Disposition of Non-Cash Coconut Levy
22 
Assets. - Pursuant to the mandate and the direction and
23 
policies set by relevant regulatory agencies. Coco Levy
20


1 
Assets defined in Section 3 hereof, which are assigned by
2 
the Trust Fund Management Committee to Designated
3 
Disposition Entities shall be privatized or disposed subject to
4 
the regulatory approvals as required by law.
5 
This Act shall in no case exempt Coco Levy Assets
6 
from the respective jurisdictions of the various applicable
7 
regulators, particularly the Governance Commission for
8 
Government-owned and -Controlled Corporations (GCG),
9 
the Bangko Sentral ng Pilipinas (BSP), the Philippine Deposit
10 
Insurance Corporation (PDIC), and the Insurance
11 
Commission (IC).
12 
SEC. 14. Additional Mandate of Designated
13 
Disposition Entities. - In addition to its powers, duties and
14 
functions. Designated Disposition Entities as may be
15 
assigned by the Trust Fund Management Committee shall,
16 
for and in behalf of the National Government, take title to
17 
and possession of, conserve, provisionally manage, and
18 
dispose the Coconut Levy Assets which have been identified
19 
for privatization and disposition.
20 
Subject to the approval of the Trust Fund
21 
Management Committee, the Designated Disposition Entities
22 
are hereby empowered to:
21


4
1 
(i) Implement the marketing and disposition program
2 
of the Coconut Levy Assets and/or Funds;
3
4
5
6
7
8
9
10
11
12
13
14
15
(ii) 
Execute and deiiver, 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 fulfiilment of its tasks under 
this Act; and
(iv) 
Adopt internai rules and regulations in relation 
to the marketing and disposition of the 
Coconut Levy Assets and/or Funds.
The Designated Disposition Entities shail prepare
16 
the disposition plans and policies of the Coconut Levy Assets
17 
transferred to it. They are empowered to enter into sales
18 
through public bidding, negotiated sale, lease, or any form
19 
of divestment or transmission of rights over the Coconut
20 
Levy Assets and/or Funds, including a partnership with the
21 
private sector in the management or operation of these
22 
Coconut Levy Assets and/or Funds prior to actual sale or
23 
disposition in accordance with the Investment Guidelines
22


1 
approved by the Trust Fund Management Committee:
2 
Provided, That the maintenance and operation expenses of
3 
the non-cash assets shail not in any manner be taken from
4 
the existing cash component of the coco ievy assets.
5 
Prior to the impiementation of any disposition pian
6 
for corporations transferred to it, the Disposition Entities
7 
may recommend the foliowing:
8 
(i) Require any of the subject corporations to adopt
9 
and implement cost-reduction measures to
10 
enhance the viability, and therefore the
11 
disposability of such corporations, to potential
12 
buyers, including measures requiring personnel
13 
retrenchment plans or other forms of corporate
14 
downsizing;
15 
(ii) Direct any of the subject corporations to
16 
submit to the Disposition Entity, within fixed
17 
time-tables, such reports and information as
18 
the Disposition Entity may require in the
19 
exercise of its ownership, administrative, and
20 
disposition over such corporations or their
21 
assets; and
22 
(iii) Cause the subject corporations to undergo
23 
rehabilitation, merger, consolidation, spin-off.
23


1
2
3
4
or other corporate acts of reformatory nature 
as it may deem necessary or desirable to 
expedite the disposition and privatization under 
this Act.
5 
Any of the above-enumerated, as well as the final
6 
disposition of such assets, shall be subject to the approval of
7 
the Trust Fund Management Committee.
8 
SEC. 15. Remittance of Proceeds of Privatization. -
9 
Any provision of law to the contrary notwithstanding, all
10 
proceeds or receipts from the sale of Coconut Levy Assets
11 
and/or Funds, except portions thereof for reimbursable
12 
custodianship and operational expenses, or such amount
13 
approved by the Trust Fund Management Committee to be
14 
retained by the Designated Disposition Entity, shall be
15 
remitted to the Trust Fund.
16 
SEC. 16. Reporting Requirements. - The Trust
17 
Fund Management Committee shall, on a semi-annual basis,
18 
submit to the President a report on the status of disposition
19 
of the Coconut Levy Assets, which shall include, among
20 
others, a description of the individual assets disposed of,
21 
their purchasers, the consideration received, and the agreed
22 
terms of payment.
24


1 
The Designated Disposition Entities shall, within
2 
three (3) months following the closure of books at the end
3 
of each fiscal year, submit a comprehensive annual report
4 
duly approved or endorsed by the PCA to the President on
5 
the status of its privatization efforts and its disposition
6 
program for the Coconut Levy Assets, which shall include
7 
the items described in the immediately preceding paragraph.
8 
VII
9 
FINAL PROVISIONS
10 
SEC. 17. Suppletory Application of Republic Act No.
11 
10149. - The provisions of Repubiic Act No. 10149,
12 
otherwise known as the "GOCC Governance Act of 2011,
13 
insofar as they are not inconsistent with the provisions of
14 
this Act, shall apply suppletorily.
15 
SEC. 18. Separability Clause. - If any provision of
16 
this Act is declared invalid or unconstitutional, the other
17 
provisions not affected by such declaration shall remain in
18 
full force and effect.
19 
SEC. 19. Repealing Clause. - All laws, executive
20 
orders, administrative orders, and rules and regulations
21 
inconsistent with this Act are hereby repealed or amended
22 
accordingly.
25


1 
SEC. 20. Effectivity. - This Act shall take effect
2 
fifteen (15) days after its complete publication in the Official
3 
Gazette or in two (2) newspapers of general circulation.
4 
Approved,
26