DOJ: 2 state-owned coconut firms should remit 50% of earnings

By Rey E. Requejo

TWO corporations in the coconut industry are owned and controlled by the government and should be remitting at least 50 percent of their earnings to the Bureau of Treasury (BTr), according to the Department of Justice (DOJ).

Acting on the legal opinion sought by BTr Trust Fund Management Committee (TFMC) Secretariat Head Rosalia De Leon, Justice Secretary Jesus Crispin Remulla said the two corporations are the United Coconut Chemicals, Inc. (CocoChem) and the Coconut Industry Investment FundOil Mills Group (CIIFF-OMG).

“We confirm that both CocoChem and the CIIF-OMG are GOCCs (government-owned and controlled corporations) and are required to remit at least 50 percent of their reported net earnings to the National Government, through the BTr,” Remulla stressed.

De Leon sought a confirmatory legal opinion from the DOJ after it was discovered during the 11th TFMC meeting held last March 13 that Cocochem and CIIF-OMG have not been remitting their dividends to the national government.

Citing the Supreme Court (SC) ruling on Leyson vs. Ombudsman, Remulla said the high tribunal explained that the Administrative Code of 1987 mentioned three requisites for GOCCs.