CONFED PRESIDENT LETTER TO LANDBANK

18 February 2025

Mr. Bongolan:

This is to acknowledge receipt of your letter dated 05 February 2025 concerning your response to our letter to His Excellency President Ferdinand R. Marcos, Jr. requesting that the control and ownership over UCPB Savings Bank be transferred to the Confederation of Coconut Farmers Organizations of the Philippines (CCFOP-CONFED), Inc.

In the said letter you advised us to “carefully review the bidding requirements and diligently study the applicable laws and BSP guidance and regulations pertaining to the qualification requirements for this transaction”.

Upon the most appropriate reflection of the evolving jurisprudence on the “coconut levy funds”, the CCFOP-CONFED is bent on pursuing the clear and unqualified dictates and pronouncements of the Supreme Court in the consolidated En Banc cases of COCOFED, et. al. vs. Republic of the Philippines (G.R. Nos. 177857-58, 24 January 2012) and Ursua vs. Republic of the Philippines (G.R. No. 178193) in its rulings that the “coco levy fund is a public fund and awarded to the government solely for the benefit of the coconut farmers and the development of the coconut industry.”

In the later case of Confederation of Coconut Farmers Organizations of the Philippines, Inc. (CCFOP) vs. His Excellency President Benigno Simeon C. Aquino III, et. al. (G.R. No. 217965, 08 August 2017), the Supreme Court reiterated and highlighted the ruling thatCoco Levy Funds and Assets and all proceeds of any privatization of the Coco Levy Assets shall be for the sole and exclusive benefit of all coconut farmers and the development of the coconut industry, to wit;

“Pursuant to this, E.O. 180 provides:

SECTION 1. Reiteration of Policy. – All Coco Levy Funds and Coco Levy Assets reconveyed to the Government, whether voluntarily or through lawful order from a competent court, and all proceeds of any privatization of the Coco Levy Assets, shall be used solely and exclusively for the benefit of all the coconut farmers and for the development of the coconut industry.

Any disposition and utilization shall be guided by the following objectives:

a.           Improving coconut farm productivity, developing coconut ­ based enterprises, and increasing the income of coconut farmers;

b.           Strengthening coconut farmers’ organizations; and

c.           Attaining a balanced, equitable, integrated, and sustainable growth, rehabilitation and development of the coconut industry.” (Emphases supplied)

In that same ruling the Supreme Court intoned most clearly that:

“The coconut levy funds are special funds allocated for a specific purpose and can never be used for purposes other than for the benefit of the coconut farmers or the development of the coconut industry. Any attempt to appropriate the said funds for another reason, no matter how noble or beneficial, would be struck down as unconstitutional.” (Emphases supplied)

It is to be noted that there has been neither a pronouncement nor declaration to be found in the entire process of the privatization and the sale of the shares of UCPB Savings Bank, Inc. that the proceeds thereof shall accrue solely and exclusively for the benefit of all the coconut farmers and for the development of the coconut industry pursuant to the herein-cited rulings. It is, thus, submitted that the privatization together with the entire bidding process of the UCPB Savings Bank, Inc. is null and void.  

After consultations with our membership, it was unanimously agreed and decided that CCFOP-CONFED will no longer participate in the bidding process but will instead focus its efforts on the declaration of the nullity of the privatization process and the recovery of the coconut levy assets including the UCPB Savings Bank, Inc. following the hereinabove-cited rulings Supreme Court on the “Coco Levy Funds” that it should be utilized for the benefit of the coconut farmers and the development of the coconut industry.

Further, our general membership is confident and secured in our position for the reinstatement of the three-fold strategic government intervention through the Philippine Coconut Authority (PCA) on the productivity side, Coconut Industry Investment Fund-Oil Mills Group (CIIF-OMG) on the processing and world trading side and the UCPB as the financial support bank of the coconut farmers and the coconut industry.

To this end, you are kindly placed on legal notice that CCFOP-CONFED will continue and persist in its unfailing efforts and struggles for the recovery of all the coconut levy assets including but not limited to the UCPB Savings Bank, Inc. by availing of the legal and/or administrative actions and safeguards to protect the paramount interests of all the coconut farmers in the Republic of the Philippines.

Thank you.

Sincerely,

CHARLES R. AVILA

President

CCFOP-CONFED

Copy Furnished:

HIS EXCELLENCY

FERDINAND R. MARCOS, JR.

PRESIDENT OF THE REPUBLIC OF THE PHILIPPINES

Malacañang Palace

Jose P. Laurel Street, City of Manila 1000

RALPH G. RECTO

Secretary

Department of Finance

DOF Building, BSP Complex

Roxas Boulevard, City of Manila 1004

UCPB-SB President

Producers Bank

Armstrong Holdings, Inc.