DoF warns of ‘double-dipping’ in coconut funds

The Philippine Crop Insurance Corporation is given at least 200 million pesos annually under the Coconut Farmers and Industries Development Plan. to insure the harvest of coconut farmers. PROVIDED PHOTO

Department of the Treasury (DoF) Secretary Carlos Domínguez 3rd directed a committee tasked with overseeing the use of the Coconut Fee Trust Fund to ensure funds are not “double-tracked” when provided to the approximately 2.5 million coconut farmers in country. crop insurance and health insurance.

Dominguez, who chairs the current Trust Fund Management Committee (TFMC), said in a statement over the weekend that the committee’s next group of members should also provide health and crop insurance for coconut farmers, as mandated by the accordance with the Republican legislation. Law 11524 or the Coconut Farmers and Growers Trust Fund (CFITF) Act is “commercially viable and therefore sustainable”.

The Finance Department said Dominguez mentioned the fact that under the CFITF law and the President-approved Coconut Farmers and Industries Development Plan, a minimum of 200 million pesos is allocated annually to the Philippine Crop Insurance Corporation. (PCIC) to insure the crop of coconut farmers

Philippine Health Insurance Corporation. (PhilHealth) will receive an additional 500 million pesos to administer a health and medical program for coconut growers and their families.

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“As a trust fund management committee, we must ensure that funds are not used twice, that crop insurance and health insurance for coconut farmers should come only from the coconut fees trust fund,” Dominguez said during the speech. The final meeting of the TFMC took place under the Duterte administration on June 16 last year.

The Treasury Department said Dominguez’s concern was shared by the Department of Budget and Management (DBM), which was represented at the meeting by Deputy Secretary of State Kim Robert de Leon. Dominguez was assured that the DBM would review budget requests for PCIC, PhilHealth, and all other public organizations receiving CFITF funding “to ensure there is no double dip in funds.”

The head of finance also said that in order to provide sustainable crop insurance for coconut farmers, PCIC insurance premiums must take into account specific geographic and meteorological risks. He added that reinsurance arrangements with the private sector should also be included “to reduce the financial burden on the coconut levy trust fund.”