, ■,
EIGHTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES )
First Regular Session 
)
#ffur of tl;r ft>rart4r[>
*19 
SEP 16 P 3O 0
S E N A T E
S. B. No. 1 0 5 2
RECEIVED BT:
Introduced by Senator CYNTHIA A. VILLAR
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
EXPLANATORY NOTE
This bill was approved by both Houses of the 17th Congress. It was sent 
to the President for signing into law but was vetoed. It is now being refiled 
with modifications, taking into consideration the inputs being suggested by 
the executive branch of government.
In the chapter on definition, the coconut levy assets and the coconut 
levy funds are being defined, both of which are important ingredients to the 
Trust Fund.
The Coconut Farmers and Industry Trust Fund is being created, to be 
managed and disbursed in accordance with the Coconut Farmers and 
Industry Development Plan, which will be prepared by the Philippine Coconut 
Authority 
(PCA) 
in 
consultation 
with 
the 
coconut farmers and 
their 
organizations, industry associations, civil society organizations, academe, 
government agencies concerned, and other stakeholders in the coconut 
industry and approved by the President of the Philippines. The Plan shall set 
the directions and policies for the development and rehabilitation of the 
coconut industry for the next ninety-nine (99) years, the life-span of the Trust 
Fund.


The Plan shall include as objectives the increased farm productivity and 
incomes of coconut farmers; intensive effort on intercropping and livestock 
raising; 
establishment of coconut-based 
enterprises; 
rehabilitation 
and 
modernization of the coconut industry towards global competitiveness; 
poverty alleviation and social equity, among several others.
Immediately upon enactment of this bill into law, the Bureau of 
Treasury shall transfer Five Billion Pesos (P5,000,000,000.00) to the Trust 
Fund.
The utilization of the Trust Fund shall be for provisions of facilities 
essential to the industry, empowerment of coconut farmers' organizations and 
cooperatives, farm improvement to encourage self-sufficiency, scholarship 
program, and health and medical program for industry members. The Trust 
Fund monies shall be separate and distinct from the regular fund of the PCA 
from the General Appropriations Act (GAA).
Towards this end, the PCA, as the implementing agency of this 
proposed law, is being strengthened, with the presence of 5 government 
department secretaries in the Board, the PCA Administrator, and additional 3 
farmer representatives, one each from Luzon, Visayas and Mindanao.
To ensure the judicious use of the fund, the bill also creates the Trust 
Fund 
Management Committee 
comprised 
of representatives from 
the 
Department of Finance (DoF), Department of Budget and Management, and 
Department of Justice. The DoF shall be designated as the Fund Manager.
This proposed law is long overdue, it's about time the monies of our 
coconut farmers, which they rightfully own, should be plowed back to the 
coconut industry for the ultimate benefit not only of our coconut farmers but 
of our entire agricultural economy.
Flence, the early approval of this bill is earnestly sought.
CYNTHIA A. VILLAR
Senator


f'*
V.
EIGHTEENTH CONGRESS OF THE REPUBLIC 
)
OF THE PHILIPPINES 
)
First Regular Session 
)
S E N A T E
Senate
^ Itf of tlif fercifUip
•If 
SEP 16 P 3 « 0
RECElVcOSy
Senate Bill No.
Introduced by Senator Cynthia A. Villar
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:
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SEC. 1. Short Title. - This Act shall be known as the "Coconut Farmers and
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Industry Trust Fund Act."
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SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State
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to consolidate the benefits due to coconut farmers, especially the poor and
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marginalized, under various statutes and to expedite the delivery thereof
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to attain increased incomes for coconut farmers, alleviate poverty, and
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achieve social equality.


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DEFINITION OF TERMS 
SEC. 3. Definition of Terms. - As used in this Act:
(a) 
Coconut Farmer shall refer to:
(1) 
An 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;
(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 recovered in favor of the 
Government, as well as the fruits or income therefrom, including those
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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.; Iligan 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.;
(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 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;
(iv) 
The 
Coconut 
Industry 
Investment 
Fund 
created 
under 
Presidential Decree No. 1468;
(d) 
Designated 
Disposition 
Entity 
refers 
to 
Government 
Financial 
Institutions (GFIs) which, at the time of enactment of this Act, are one 
hundred 
percent 
(100%) 
owned 
by the 
Government, 
or 
National
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Government Agencies (NGAs), which are approved by the Trust Fund
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Management Committee, 
upon 
recommendation of the Trust Fund 
Manager, to perform similar functions as the BTr under Section 11 of this 
Act.
II
COCONUT FARMERS AND INDUSTRY DEVELOPMENT PLAN
SEC. 4. 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 a Coconut Farmers and 
Industry Development Plan, which shall be prepared by the Philippine 
Coconut Authority (PCA) and approved by the President of the Philippines. 
In the performance of its functions, 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.
In the formulation o f the Plan, the PCA shall be guided by the following
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objectives:
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(a) 
Increased incomes of coconut farmers;
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(b) 
Poverty alleviation and social equity; and
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(c) 
Rehabilitation and modernization of the coconut industry towards
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farm productivity.


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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 that directly benefit coconut farmers, farm 
workers, and their families, taking into consideration existing social 
protection programs of the government; and
(c) coconut farmers organization and development.
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The Plan shall provide the criteria for targeting beneficiaries, the indicators
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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
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the implementation of any and all of the programs and projects to be
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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;
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(ii) for projec±s 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
(iii) all projects shall be evaluated on the basis of financial returns and 
increased farmers income.
The Plan shall also include strategic and inclusive training programs 
dedicated for the coconut farmers based on a comprehensive review of 
existing training programs. Programs relating to planting, replanting, 
fertilization, research and development, market promotion, farm-to-market 
roads, and direct lending, shall be funded through regular appropriations.
The Plan shall take into account the utilization of the annual Trust Fund 
under the following allocations:
(a) Shared facilities program, thirty percent (30%);
(b) Farm improvement to encourage self-sufficiency, thirty percent (30% );
(c) Empowerment of coconut farmer organization and their cooperatives, 
fifteen percent (15% );
(d) Scholarship program, fifteen percent (15% ); and
(e) Health and medical program, ten percent (10%).
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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.
Before the Plan is submitted to the President for approval, the Department 
of Budget and Management, Department of Finance, Department of Trade 
and Industry, and the National Economic and Development Authority 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 Coco 
Levy Fund is conducted effectively;
(b) Whether the Plan manages Coco 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.


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III
THE 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 o f 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);


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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
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development. They shall be appointed by the President of the Philippines
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from a list of four (4) nominees for each island grouping; Provided, further,
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That any appointment to fill a vacancy in the Board arising from the death,
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removal, retirement, or resignation of the appointive members of the Board
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shall only be for the unexpired term: Provided, finally. That the term of
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office of the appointive members of the Board shall be for one (1) year,
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unless sooner removed for cause.
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The government representatives in the reconstituted PCA Board shall
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coordinate with the PCA in promulgating a nomination and screening
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process for the nominees of representatives of the coconut farmers in
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consultation with their respective organizations or associations.
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IV
FUTURE RECONVEYANCE OF COCONUT LEVY ASSETS AND/OR FUNDS
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SEC. 6. Reconveyance. - Any person having any Coconut Levy Asset and/or 
Fund in its administration, authority, custody, or control which have been
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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, in coordination with the Presidential Commission 
on Good Government, shall conduct an inventory and audit to determine 
compliance with pertinent laws, rules and regulations on the reconveyance 
of the Coconut Levy Assets and/or Fund to the Republic.
COCONUT FARMERS AND INDUSTRY TRUST FUND
SEC. 7. 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
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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 for the benefit of 
the coconut farmers and the development of the coconut industry.
SEC. 8. Nature and Capitalization of the Trust Fund. - The Coconut Farmers 
and Industry Trust Fund is separate and distinct from the regular funds
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appropriated to the PCA through the annual General Appropriations Act
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(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.
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The proceeds from the redemption of the Converted SMC Series 1
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Preferred Shares, dividends declared, paid, or issued on the Converted
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SMC Series 1 Preferred Shares, and all income or interest derived
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therefrom as of the effectivity of this Act, and any other cash Coconut Levy
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Asset, that are held by the BTr as a special account in the General Fund
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and as an escrow account, and cash held by UCPB as administrator of the
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CIIF, shall form part of the initial Trust Fund Principal of the Trust Fund.
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For this purpose, any provision of law to the contrary notwithstanding, all
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government agencies holding Coco Levy Funds and/or Assets shall transfer
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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,
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yields, or any monetary benefit derived from retained Coconut Levy Assets.
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SEC. 9. Utilization of the Trust Fund. - The utilization of the Trust Fund or
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any portion thereof shall be in accordance with the Coconut Farmers and
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Industry Development Plan as provided in Section 4 of this Act, Provided,
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That for purposes of the implementation of the Plan, for the execution of
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programs and projects identified in the Plan that are allowed to be funded
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out of the Trust Fund, pending the accrual or availability of the Trust Fund
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Income, and subject to annual Governmental audit, an initial allocation of
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Five Billion Pesos (P5,000,000,000.00) shall be available to the PCA, which
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shall include disbursements for the formulation of the Coconut Farmers and
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Industry Development Plan.
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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
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the provisions of this Act.
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SEC. 10. Creation of a Trust Fund Management Committee. -  There is
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hereby created a Trust Fund Management Committee, which shall be
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comprised of authorized representatives of the Department of Finance
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(DOF), Department of Budget and Management (DBM), and Department of
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Justice (DOJ). The Trust Fund Management Committee shall be responsible
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for setting the Investment Strategy of the Trust Fund, which includes the
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following, among others:
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a. 
Setting of investment priorities;
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b. 
Setting of investment themes;
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c. 
Evaluation of assets to determine portfolio size;
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d. 
Setting of asset allocation;
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e. 
Setting of policies with respect to particular asset types;
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f. 
Guidelines for portfolio turnover;
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g. 
Guidelines for Trust Fund Management Expenses;
h. 
Set the annual allocation of the Trust Fund available for disbursement 
to the PCA;
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Approval of the financial requirements of Designated Disposition 
Entities in relation to its functions set forth under 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;
j. 
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,
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administration, and utilization of the Trust Fund; Provided, That these
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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
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of the Trust Fund, including but not limited to transaction fees, redemption 
fees, placement fees, investment fees, transaction costs, and other 
operating expenses.
SEC 11. 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
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Fund Committee and managing the portfolio of the Trust Fund.
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In the performance of its functions, the DOF shall have the following
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functions:
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a. Monitor market and economic trends and track securities in order to
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make informed investment decisions;
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b. Recommend its portfolio strategy to the Trust Fund Committee;
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c. In managing the portfolio, track financial results of the companies in
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the portfolio and its various metrics, such as but not limited to, price-
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to-earnings ratios, inflation-adjusted return, sales, earnings, and
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dividends; and
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d. Recommend to the Trust Fund Committee the designation of
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alternative Designated Disposition Entities defined in Section 3 of this
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Act; and
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e. Perform other acts necessary to fulfill its mandate under this Act.
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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. Flold, 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 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.
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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 Coco 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.
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The Trust Fund Management Committee is hereby directed to draft the
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implementing rules and regulations in order to effectuate Sections 9 to 11
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of this Act.
VI
DISPOSITION OF NON-CASH COCONUT LEVY ASSETS
SEC. 13. Disposition of Non-Cash Coconut Levy Assets. - Pursuant to the 
mandate and the direction and policies set by relevant regulatory agencies. 
Coco Levy Assets defined in Section 3 hereof, which are assigned by the
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Trust Fund Management Committee to Designated Disposition Entities,
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shall be privatized or disposed subject to the regulatory approvals as
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required by law.
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This Act shall in no case exempt Coco Levy Assets from the respective 
jurisdictions 
of 
the 
various 
applicable 
regulators, 
particularly 
the 
Governance 
Commission 
for 
Government-owned 
and 
-Controlled 
Corporations (GCG), the Bangko Sentral ng Pilipinas (BSP), the Philippine 
Deposit Insurance Corporation (PDIC), and the Insurance Commission (IC).
SEC. 14. Additional Mandate of Designated Disposition Entities. - In
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addition to its powers, duties and functions. Designated Disposition Entities
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as may be assigned by the Trust Fund Management Committee shall, for
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and in behalf of the National Government, take title to and possession of,
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conserve, provisionally manage, and dispose the Coconut Levy Assets
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which have been identified for privatization and disposition.
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Subject to the approval of the Trust Fund Management Committee, the
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Designated Disposition Entities are hereby empowered to:
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(i) 
Implement the marketing and disposition program of the Coconut
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Levy Assets and/or Funds;
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(ii) 
Execute and deliver, on behalf of the National Government, deeds
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of sale, contracts, trust instruments, and other legally operative
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documents as may be necessary or appropriate to convey title to,
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take possession of, and conserve, such assets;
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(iii) 
Engage external expertise as may be necessary in the fulfillment
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of its tasks under this Act; and
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(iv) 
Adopt internal rules and regulations in relation to the marketing
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and disposition of the Coconut Levy Assets and/or Funds.
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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
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transferred to it, the Disposition Entities may recommend the following:
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(i) 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;
(ii) 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
(iii) Cause the subject corporations to undergo rehabilitation, merger, 
consolidation, spin-off, or other corporate acts of reformatory nature as it
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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. 15. 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. 
16. 
Reporting 
Requirements. 
- The Trust Fund 
Management 
Committee shall, on a semi-annual basis, submit to the President a report
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on the status of disposition of the Coconut Levy Assets, which shall include,
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among others, a description of the individual assets disposed of, their
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purchasers, the consideration received, and the agreed terms of payment.
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The Designated Disposition Entities shall, within three (3) months following
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the closure of books at the end of each fiscal year, submit a comprehensive
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annual report duly approved or endorsed by the PCA to the President on
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the status of its privatization efforts and its disposition program for the
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Coconut Levy Assets, which shall include the items described in the 
immediately preceding paragraph.
VII
FINAL PROVISIONS
SEC. 17. 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. 18. 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. 19. Repealing Clause. - All laws, executive orders, administrative 
orders, and rules and regulations inconsistent with this Act are hereby 
repealed or amended accordingly.
SEC. 20. Effectivity. - This Act shall take effect fifteen (15) days after its 
complete publication in the Official Gazette or in two (2) newspapers of 
general circulation.
Approved.
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