A farmers group lamented the transfer of the Philippine Crop Insurance Corp. (PCIC) to the Department of Finance (DOF), arguing that the move reduced the number seats for farmer representatives in the state insurance firm’s board to just one from three.
The Federation of Free Farmers (FFF) said President Duterte’s Executive Order 148 did not only transfer the PCIC to the DOF from the Department of Agriculture (DA) but reorganized its board composition, resulting in the loss of two board seats for farmers representatives.
“It also reorganized the PCIC Board, designating the DOF Secretary as the Board Chairperson and adding the General Manager of the Government Service Insurance Corporation (GSIS) to the Board,” FFF said in a news statement issued on Thursday.
“As a result, the three Board seats previously allotted by the PCIC Charter (RA 8175) to farmer representatives were illegally reduced to only one seat,” it added.
Citing the Magna Carta for Small Farmers, FFF lamented the lack of consultation with farmers and concerned stakeholders on the PCIC transfer by the government.
The Magna Carta for Small Farmers or Republic Act 7607 mandates that a farmers representative must occupy a seat in boards of government agencies such as the Philippine Coconut Authority, the National Food Authority, and the PCIC, among others.
“Even the DA itself, which the EO says was among those who recommended the transfer, did not inform, much less consult, its constituents,” the group said.
The group urged the Congress to revisit Republic Act 10149, or the GOCC Governance Act of 2011, which was invoked under EO 148 as the basis for transferring PCIC to the DOF.
Section 5 of the GOCC Governance Act authorizes the President to reorganize government owned and controlled corporations (GOCCs) like the PCIC upon the recommendation of the Governance Commission for GOCCs.
“We recognize that the bureaucracy may need to be reorganized and streamlined from time to time,” FFF said.
“However, this should be done with proper consultation with affected stakeholders and also the legislators who crafted the charter of the GOCC involved. Otherwise, the Executive can easily subvert the original purpose for which the GOCC was created,” FFF added.
FFF is worried that the transfer of PCIC to the DOF would change the priorities of the state insurance firm toward “fiscal and monetary concerns” that may not be supportive of the needs of the farmers.
“Without crop insurance, banks will find it too risky to lend to farmers, and farmers will find it very difficult to pay their loans, much less recover from calamities. It is therefore very important that the coverage and services of the program are synchronized with the plans and strategies of the DA,” it said.
“Under the DoF, the priority will shift to fiscal and monetary concerns which may not necessarily be supportive of the needs of farmers and the DA,” it added.
Image courtesy of Nonie Reyes