Coco levy funds subject to COA review–SC

MANILA, Philippines – The coco levy funds are subject to review by the Commission on Audit, the Supreme Court said as it declared as unconstitutional an executive issuance shielding it from such review.

In a 23-page decision, the high court en banc through Associate Justice Roberto Abad, declared as unconstitutional Executive Orders 312 and 313.

EO 312 dealt with the so-called “Sagip Niyugan” Program that provides for supplemental income to farmers which will be financed through a P1-billion fund while EO 313 created the coconut industry trust fund which would supposedly come from the interest income of the sale of the government’s stake in San Miguel Corporation. Under EO 313, funds to be kept at the United Coconut Planters Bank (UCPB) may be “augmented from time to time by grants, donations and other lawful transfers by public or private entities.”

Both EOs, according to coconut farmer petitioners Pambansang Koalisyon ng mga Samahang Magsasaka at Manggagawa sa Niyugan, violated the mandate of COA to “audit and examine funds owned or held in trust by the government” to which the high court agreed.

The high court, in its ruling, said that coco levy funds were taxes and “laws like EO 312 and 313 which remove such funds and assets acquired through them from the jurisdiction of the COA violate Article IX-D, Section 2(1) of the 1987 Constitution.” This provision gives COA the authority to examine government money and property.

“There is no legitimate reason why such funds should be shielded from CoA review and audit. The Philippine Coconut Authority which implements the coco-levy laws and collects the coco levy funds is a government owned and controlled corporation subject to COA review and audit,” the high court said.

Associate Justices Antonio Carpio, Teresita Leonardo-De Castro and Diosdado Peralta inhibited from the case.