Duterte’s reason to veto coco levy bill: To avoid repeating past mistakes

FILE: President Rodrigo Roa Duterte gives a message as he meets with the Barangay Councilors from the Fourth District of Quezon City at the Malacañan Palace on February 6, 2019. RICHARD MADELO/PRESIDENTIAL PHOTO

President Rodrigo Roa Duterte vetoed the bill seeking to provide a P100-billion trust fund to coconut farmers for its ‘lack of vital safeguards.’

The President, in his letter, said that though he wants to sign the bill into law to protect the well-being of the country’s coconut farmers while recognizing its industry’s “serious problems,” he expressed “serious concerns on the bill as presently formulated.”

“After much deliberation, I have come to the conclusion that the bill may be violative of the Constitution and is lacking in vital safeguards to avoid the repetition of painful mistakes committed in the past,” Duterte said in his letter.

Duterte returned Senate Bill No. 1233/House Bill No. 5745 or An act creating the Coconut Farmer and Industry Trust Fund, providing for its management and utilization, and for other purposes to the Congress without his signature for three reasons.

The Chief Executive noted that establishing a trust fund for the farmers violates Article IV, Section 29(3) of the 1987 Constitution which states “[All] money collected on any tax levied for a special purpose shall be treated as a special fund and paid out for such purpose only. If the purpose for which the special fund was created has been fulfilled or abandoned, the balance, if any shall be transferred to the general fund of the Government.”

“Second, the absence of a limit on a covered land area for entitlement to the benefits of the Trust Fund may disproportionately benefit wealthy coconut farm owners more than the smallholder farmers who desperately need the government’s affirmative assistance,” he added.

Duterte lastly said that “the broad powers given to the Philippine Coconut Authority (PCA) undermine relevant regulations and safeguards that were established precisely to avoid abuses.

The President still hopes for the Congress and Executive branches to continue working for a “relevant bill that is acceptable to all.

”

Malacañang earlier confirmed Duterte’s decision regarding the bill.