The check was released to UCPB Finance and Development Corp. (UFDC) chairman Noel Cabrera at the EDSA Shrine Monday during the rites commemorating the second anniversary of people power II.
One of those who witnessed the check turnover was Presidential Adviser and Special Resource Person to the UFDC Board Secretary Dodi Limcaoco.
Also on the UFDC board are Bishop Ramon Villena of Bayombong, Nueva Vizcaya and two representatives from major farmers’ organizations.
The check represents the first significant amount released for the benefit of an estimated 164,000 coconut farmers or their wives in programs and projects identified by the UFDC.
An estimated 8,000 wives of coconut farmers will be provided with micro-finance loans for livelihood projects.
About 60,000 farmers will also increase their income through a "farm diversification" program, which will result in increased prices for their copra and livestock.
At least 56,000 farmers will have a higher income since they can sell their copra directly to oil mills, cutting off traders and middlemen.
Another 30,000 farmers will be able to avail themselves of loans extended to cooperatives, non-government organizations and people’s groups.
The funds will be released directly to project beneficiaries by the first week of February. The money will be released as soft loans at 9.75 percent interest to cover processing, training, administrative and collection costs, which will allow the funds to be "cycled to benefit even more farmers."
The P700-million check is from the accrued interests of the coconut levy fund. It is a major milestone in the President’s pro-poor and poverty alleviation reform agenda.
The coconut levy has been an issue that has hounded five Philippine presidents, but major strides were made only during the Arroyo administration.
More benefits from the levy are expected soon, after the Sandiganbayan ruled that the fund is public in nature.
The sale of the 27 percent uncontested levy shares in San Miguel Corporation, estimated to be worth billions of pesos, is expected to further benefit the coconut farmers and farm workers.
On Dec. 14, 2001, the Supreme Court (SC) declared as public the P130 billion coco levy fund, resolving a 15-year legal battle over its ownership.
The SC then gave the Sandiganbayan six months — up to June 2002 — to resolve the pending coco levy cases. This deadline was extended to December last year upon the request of the anti-graft court.
The Supreme Court ruled that the PCGG-sequestered shares at the United Coconut Planters Bank (UCPB) were "indisputably acquired with coco levy funds, which are public in character."
The coco levy fund was forcibly collected from small coconut farmers in the form of taxes from 1973 to 1982. This levy, now known as the Coconut Industry Investment Fund (CIIF), has ballooned to P130 billion from P9 billion when it was last collected.
The fund was used by the Marcos family and their cronies to acquire or create companies including UCPB, Philippine Coconut Producers Federation Inc., Cocofed Marketing Corp., Cocofed Life Insurance Corp., and United Coconut Oil Mills Inc.