CREATING A PHILIPPINE COCONUT AUTHORITY.

• Number: Presidential Decree No. 232
• Sections: 11

Preamble

WHEREAS, the Coconut Industry has attained magnitudes that

necessitate a more concerted effort at integrating the diffused efforts

currently being exerted towards its development;

WHEREAS, the global perspective on international fats and

oil supply situation indicates a need for developing other industrial and food

uses of coconut through a more purposeful and integrated research activity;

WHEREAS, the present stage of the development of the coconut

and other palm oils in the country is generally characterized by relatively low

yields and quality that could be substantially improved given the necessary

support from concomitant development activities such as research extension work,

marketing and the strengthening of credit institutions;

WHEREAS, the economic well-being of a major part of the

population depends to a large extent on the viability of the industry and its

improvement in the areas of production, processing and marketing; and

WHEREAS, the industry needs an intensive, extensive and

sustained foreign trade promotion effort in order that its position in markets

abroad will be maintained and enhanced;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Philippines, by virtue of the powers in me vested by the Constitution as

Commander-in-Chief of all the Armed Forces of the Philippines, pursuant to

Proclamation No. 1081, dated 21 September 1972, as amended by Proclamation No.

1104, dated 17 January 1973 and General Order No. 1, dated 22 September 1972, as

amended, in order to effect the desired and necessary changes and reforms in the

social and economic structure of our society, do hereby decree the creation of a

Philippine Coconut Authority, as follows:

Section 1 Declaration of Policy.

SECTION 1. Declaration of Policy. — It shall be the

policy of the State to promote accelerated growth and development of the coconut

and other palm oils industry so that the benefits of such growth shall accrue to

the greatest number, and to provide continued leadership and support in the

integrated development of the industry.

Section 2 Purposes and Objectives.

SEC. 2. Purposes and Objectives. — The Authority

shall have the following purposes and objectives:

a. To promote the accelerated development of the coconut and other palm oils

industry in all its aspects;

b. To provide general directions for the steady

and orderly development of the industry;

c. To achieve vertical integration

of the coconut industry so that coconut farmers become participants in and

beneficiaries of the development and growth of the coconut

industry.

Section 3 Powers and Functions.

SEC. 3. Powers and Functions. — To carry out the

purposes and objectives mentioned in the preceding Section, the Authority,

through its Board as hereinafter constituted, is hereby vested with the

following powers, in addition to those transferred to it under Section 6 of this

Decree:

a. To formulate and adopt a general program of development for the coconut

and other palm oils industry;

b. To evaluate the existing policies, programs

and projects of all agencies and instrumentalities having to do with industry

development and to integrate and coordinate the various facets of such

activities into the approved general development program;

c. To recommend to

the President of the Philippines and, upon his approval, to effect the

integration of agencies charged with the prosecution of certain aspects of

industry development with the view of attaining efficiency and effectiveness in

implementation of the general program;

d. To supervise, coordinate and

evaluate the activities of all agencies charged with the implementation of the

various aspects of industry development, and to allocate and/or coordinate the

release of public funds in accordance with approved development programs and

projects;

e. To regulate the marketing and export of coconut products and

by-products, as well as those of other palm oils, including the establishment of

quotas thereon, whenever the national interest so requires;

f. To receive and

administer funds provided by law; to draw, with the approval of the

President, funds from existing appropriations as may be necessary in support of

its program, and to accept donations, grants, gifts and assistance of all kinds

from international and local private foundations, associations or entities, and

to administer the same in accordance with the instructions or directions of the

donor or, in default thereof, in the manner it may in its discretion

determine;

g. To borrow the necessary funds from local and international

financing institutions, and to issue bonds and other instruments of

indebtedness, subject to existing rules and regulations of the Central Bank, for

the purpose of financing programs and projects deemed vital and necessary for

the early attainment of its goals and objectives;

h. To formulate and

recommend for adoption credit policies affecting production, marketing and

processing of coconut and other palm oils;

i. To formulate and recommend for

adoption by other agencies and instrumentalities, such programs and projects as

are necessary to accelerate industry development;

j. To enter into, make and

execute contracts of any kind as may be necessary or incidental to the

attainment of its purposes and, generally, to exercise all the powers necessary

to achieve the purposes and objectives for which it is

organized.

Section 4 Governing Board.

SEC. 4. Governing Board. — The Authority shall be

governed by a Board of eleven members, who shall meet as often as necessary,

composed of:

a. Three representatives at-large of the private sector, to be appointed by

the President, who shall have recognized competence in the many facets of the

industry and be leaders of the industry, acknowledged by both the Government and

private sector members of the coconut community;

b. The Chairman, National

Science Development Board;

c. The Undersecretary of Agriculture and Natural

Resources;

d. The Undersecretary of Trade;

e. The President, Philippine

Coconut Producers Federation;

f. The Chairman, United Coconut Associations of

the Philippines;

g. The Chairman of the Board, Coconut Investment

Company;

h. The Director, Bureau of Plant Industry; and

i. The Director,

Bureau of Agricultural Extension.

A Chairman shall be designated by the President from among the members of the

Board. The Board shall elect a Vice-Chairman who shall assume the functions of

the Chairman, whenever the latter is absent or incapacitated, and an Executive

Committee of five from among its members, to which it may delegate such of its

powers as it deems fit.

Section 5 Management.

SEC. 5. Management. — The management of the

Authority shall be vested in an Administrator, to be appointed by the Board, who

shall have the following powers and duties:

a. To direct and manage the affairs and business of the Authority, in

accordance with, policies and plans enunciated by the Board.

b. To recommend

and, upon approval by the Board, to establish and maintain an organization with

specific functions and responsibilities for each operating unit;

c. To

appoint and fix the number, with the approval of the Board, of such officials

and employees of the Authority as may be necessary for the proper discharge of

its functions and responsibilities, and with the approval likewise of the Board,

to remove, suspend and otherwise discipline, for just cause, any subordinate

personnel thereof;

d. To prepare and submit thirty days after the close of

each fiscal year an annual report to the President, and such periodic reports of

activities as may be required from time to time; and

e. To perform such other

duties as may be designed to him by the Board from time to

time.

Section 6 Abolished Agencies and Transitory Provisions.

SEC. 6. Abolished Agencies and Transitory

Provisions. — The Coconut Coordinating Council (CCC), the Philippine

Coconut Administration (PHILCOA) and the Philippine Coconut Research Institute

(PHILCORIN) are hereby abolished and their powers and functions transferred to

the Philippine Coconut Authority, together with all their respective

appropriations, funding from all sources, equipment and other assets, and such

personnel as are necessary: Provided, That personnel separated from the

service hereby shall have the same rights and privileges accorded to other

government employees separated as a result of implementation of the Integrated

Reorganization Plan: Provided, further, That the Authority, through its

Board, shall effect the transfers herein provided in a manner that will

insure the least disruption of on-going programs and projects: Provided,

finally, That in the period prior to the actual assumption of duties by the

Board and its functioning as such, all officers and employees of the abolished

agencies shall continue to exercise all their functions and discharge all their

duties and responsibilities until ordered otherwise by the Board of the

Authority, except that the Board of the PHILCORIN and the PHILCOA as well as the

Council itself, shall immediately cease to exist upon the effectivity of this

Decree, and their functions shall be exercised in the interim by the Chairman of

the National Science Development Board in the case of the PHILCORIN and by the

Secretary of Agriculture and Natural Resources in the case of the PHILCOA and

the CCC, with their incumbent Director, Chairman-General Manager and Executive

Director, respectively, as executive officers.

Section 7

SEC. 7. For purposes of coordinating plans and policies, in

accordance with Part II, Chapter IV, Article III, Par. 2 of the Integrated

Reorganization Plan, the Authority shall be attached to the Department of

Agriculture and Natural Resources.

Section 8 Repealing Clause.

SEC. 8. Repealing Clause.— All laws, executive and

administrative orders, rules and regulations inconsistent with the foregoing

provisions are hereby repealed or amended accordingly.

Section 9 Separability Clause.

SEC. 9. Separability Clause. — If any provision of

this Decree is held unconstitutional, the same shall apply only to the provision

and the remainder hereof remains valid.

Section 10 Effectivity.

SEC. 10. Effectivity. — This Act shall take effect

immediately.

Done in the City of Manila, this 30th day of June, in the year of Our Lord,

nineteen hundred and seventy-three.

(Sgd.) FERDINAND E. MARCOS

President

Republic of the Philippines

By the President:

(Sgd.) ROBERTO V. REYES

Assistant Executive Secretary

[*] Amended by Presidential Decree No. 271.