Duterte on why he vetoed coco levy bill: Measure lacks “vital safeguards”

(Eagle News)–President Rodrigo Duterte said he vetoed the measure creating a trust fund for coconut farmers because it was “lacking in vital safeguards to avoid a repetition of painful mistakes committed in the past.”

The President gave this explanation in a letter to Congress on Feb. 14, after the Palace confirmed he had vetoed the measure that established the P100-billion trust fund.

According to Duterte,  the establishment of an “effectively perpetual” trust fund would violate the 1987 Constitution, particularly Article VI, Section 29(3), which states that money collected on any tax imposed for a special purpose “shall be treated as a special fund and paid out for such purpose only.”

Duterte said  the absence of limits on the covered land area for entitlement of benefits may also “disproportionately benefit wealthy coconut farm owners.”

The President also criticized the broad powers given to the Philippine Coconut Authority (PCA) under the measure, saying it “undermine(d)” relevant regulations and safeguards from abuses.

Ultimately, he said the provisions do not reflect the “ultimate goal of accelerating the full utilization of coco levy assets and funds” for marginalized coconut farmers and the coconut industry.

“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,” the President said.

He expressed hope, however, that the executive and Congress would come up with a bill that is “acceptable to all.”