Duterte: Coco industry trust fund bill may be violative of Constitution
President Duterte disclosed that he vetoed the bill creating the coconut farmers and industry trust fund as it may possibly violate the Constitution.
In his message to both houses of Congress, Duterte said that while he is keen on ensuring the well-being of coconut farmers, he is inclined to veto the enrolled and consolidated Senate Bill No. 1233 and House Bill No. 5745 creating the coconut farmers and industry trust fund.
"As desirous as I am to sign into law the long awaited measures that will enable us to attain these objectives, it is with much regret that I express serious concerns on the bill as presently formulated," he said.
"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 repetition of painful mistakes committed in the past," he added.
According to Duterte, the establishment of a perpetual trust fund would violate Article 6, Section 29(3) of the Constitution which provides that "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."
Duterte also said 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 smallholders who desperately need the government's affirmative assistance.
He pointed out lastly that the broad powers given to the Philippine Coconut Authority undermine relevant regulations and safeguards that were established precisely to avoid abuses.
Duterte, however, hopes that the Congress will be able to come up with a better bill since the one he vetoed does not reflect their goal of advancing the welfare of small coconut farmers.
"The aforestated provisions do not reflect our ultimate goal of accelerating the full utilization of coco levy assets and funds for the benefit of marginalized coconut farmers and our coconut industry, with due regard to relevant constitutional provisions," he said.
“I am hopeful that Congress and the Executive will continue working together towards a formulation of the relevant bill that is acceptable to all,” he added.
Early this month, Duterte also vetoed Senate Bill 1976 and House Bill 8522, an Act to Further Strengthen the Philippine Coconut Authority, amending Presidential Decree No. 1468, otherwise known as Revised Coconut Industry Code, as amended, and Appropriating Funds Therefor.