Coco Levy Fund Scam
Encyclopedia
The Coco Levy Fund Scam was a controversy in the 1970s and 80's in the Philippines
involving the former President
Ferdinand Marcos
and his cronies. It is alleged that Marcos, Danding Cojuangco, Juan Ponce Enrile
, and others conspired to tax
coconut
farmers, promising them the development of the coconut industry and a share of the investments, but on the contrary were used for personal profit particularly in the purchase of United Coconut Planters Bank
(UCPB) and majority stake in San Miguel Corporation
(SMC), to name a few.
The issue has not died today, with coconut farmers fighting for justice against the forced taxation, and a share of the Coco Levy Funds' investments. The Coco Levy Fund is estimated to have ballooned anywhere in the range of P100-150 billion in assets.
The legal beginnings of the levy could be found in the Republic Act 6260, the Coconut Investment Act, of June 19, 1971. The act calls for the creation of a Coconut Investment Fund and a Coconut Investment Company (CIC). The objective of the CIC was to: (a) To fully tap the potential of the coconut planters in order to maximize their production and give them greater responsibility in directing and developing the coconut industry; (b) to accelerate the growth of the coconut industry and other related coconut products from the raw material stage to the semi-finished and finally, the finished product stage; (c) to improve, develop and expand the marketing system; and (d) to ensure stable and better incomes for coconut farmers.
In June 30, 1973, President Marcos created the Philippine Coconut Authority
through P.D. 232. The PCA's mandate was to "to promote accelerated growth and development of the coconut and other palm oils industry so that the benefits of such growth shall accrue to the greatest number, and to provide continued leadership and support in the integrated development of the industry." The said decree also consolidated the responsibilities and activities of the Coconut Coordinating Council (CCC), the Philippine Coconut Administration (PHILCOA), and the Philippine Coconut Research Institute (PHILCORIN), under one office.
Philippines
The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...
involving the former President
President of the Philippines
The President of the Philippines is the head of state and head of government of the Philippines. The president leads the executive branch of the Philippine government and is the commander-in-chief of the Armed Forces of the Philippines...
Ferdinand Marcos
Ferdinand Marcos
Ferdinand Emmanuel Edralin Marcos, Sr. was a Filipino leader and an authoritarian President of the Philippines from 1965 to 1986. He was a lawyer, member of the Philippine House of Representatives and a member of the Philippine Senate...
and his cronies. It is alleged that Marcos, Danding Cojuangco, Juan Ponce Enrile
Juan Ponce Enrile
Juan Ponce Enrile is a Filipino politician. As a protege of President Ferdinand Marcos, he served as Justice Secretary and then Defense Secretary under the Marcos regime. He later became one of the leaders of the 1986 People Power Movement that drove Marcos from power...
, and others conspired to tax
Tax
To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...
coconut
Coconut
The coconut palm, Cocos nucifera, is a member of the family Arecaceae . It is the only accepted species in the genus Cocos. The term coconut can refer to the entire coconut palm, the seed, or the fruit, which is not a botanical nut. The spelling cocoanut is an old-fashioned form of the word...
farmers, promising them the development of the coconut industry and a share of the investments, but on the contrary were used for personal profit particularly in the purchase of United Coconut Planters Bank
United Coconut Planters Bank
The United Coconut Planters Bank, more popularly known by its initials, UCPB, or by its old name, Cocobank, is one of the largest banks in the Philippines, ranking within the top twenty banks in the Philippines in terms of assets. The bank, owing to its name, caters heavily to coconut farmers, but...
(UCPB) and majority stake in San Miguel Corporation
San Miguel Corporation
Established in 1890 as a brewery, San Miguel Corporation is Southeast Asia's largest publicly listed food, beverage and packaging company with over 17,000 employees in over 100 major facilities throughout the Asia-Pacific....
(SMC), to name a few.
The issue has not died today, with coconut farmers fighting for justice against the forced taxation, and a share of the Coco Levy Funds' investments. The Coco Levy Fund is estimated to have ballooned anywhere in the range of P100-150 billion in assets.
Background
The Philippine coconut industry is responsible for 25% of the volume of the agricultural sector, and it is reportedly present in 68 of the 79 provinces of the country. Next to sugar, coconut products is also the leading agricultural export of the Philippines, with 37 products and by-products that were exported to 114 countries. The major exports are crude and refined oil, copra meal, desiccated coconut, activated carbon, and oleo-chemicals. About one-third of the Philippine population depends mainly on coconut production for its livelihood.The legal beginnings of the levy could be found in the Republic Act 6260, the Coconut Investment Act, of June 19, 1971. The act calls for the creation of a Coconut Investment Fund and a Coconut Investment Company (CIC). The objective of the CIC was to: (a) To fully tap the potential of the coconut planters in order to maximize their production and give them greater responsibility in directing and developing the coconut industry; (b) to accelerate the growth of the coconut industry and other related coconut products from the raw material stage to the semi-finished and finally, the finished product stage; (c) to improve, develop and expand the marketing system; and (d) to ensure stable and better incomes for coconut farmers.
In June 30, 1973, President Marcos created the Philippine Coconut Authority
Philippine Coconut Authority
The Philippines' Philippine Coconut Authority , abbreviated as PCA, is an agency of the Philippine government under the Department of Agriculture responsible for developing the coconut and other palm oil industry to its full potential in line with the new vision of a united, globally competitive...
through P.D. 232. The PCA's mandate was to "to promote accelerated growth and development of the coconut and other palm oils industry so that the benefits of such growth shall accrue to the greatest number, and to provide continued leadership and support in the integrated development of the industry." The said decree also consolidated the responsibilities and activities of the Coconut Coordinating Council (CCC), the Philippine Coconut Administration (PHILCOA), and the Philippine Coconut Research Institute (PHILCORIN), under one office.
See also
- Ferdinand MarcosFerdinand MarcosFerdinand Emmanuel Edralin Marcos, Sr. was a Filipino leader and an authoritarian President of the Philippines from 1965 to 1986. He was a lawyer, member of the Philippine House of Representatives and a member of the Philippine Senate...
- Danding Cojuangco
- United Coconut Planters BankUnited Coconut Planters BankThe United Coconut Planters Bank, more popularly known by its initials, UCPB, or by its old name, Cocobank, is one of the largest banks in the Philippines, ranking within the top twenty banks in the Philippines in terms of assets. The bank, owing to its name, caters heavily to coconut farmers, but...
- San Miguel CorporationSan Miguel CorporationEstablished in 1890 as a brewery, San Miguel Corporation is Southeast Asia's largest publicly listed food, beverage and packaging company with over 17,000 employees in over 100 major facilities throughout the Asia-Pacific....