MANILA – President Rodrigo Duterte has issued an executive order (EO) that transfers the Philippine Crop Insurance Corporation (PCIC) from the Department of Agriculture (DA) to the Department of Finance (DOF).
According to EO 148, which was signed by Duterte on Tuesday, the PCIC is transferred from the DA to the DOF for “policy and program coordination, and general supervision”.
The PCIC, which protects farmers from losses caused by natural catastrophes, plant diseases, and insect infestation, is currently tied to the DA pursuant to EO 74, which was issued in 2002.
The DOF is the agency in charge of ensuring the sound and efficient management of the government’s financial resources, as well as those of its subdivisions, agencies, and instrumentalities. It is also mandated with formulating, institutionalizing, and administering fiscal policies in collaboration with other concerned government subdivisions, agencies, and instrumentalities.
“In order for the PCIC to effectively perform its mandate of providing insurance protection to farmers in the most cost-efficient manner, there is a need to align its plans and programs with national development policies and the government’s overall fiscal plan,” the EO read.
This transfer was recommended by the DOF, DA, and the Governance Commission for GOCCs (GCG) to ensure that the PCIC’s operations are rationalized and centrally monitored so that government assets and resources are used effectively, and the government’s exposure to all types of liabilities, including subsidies, is warranted and incurred through prudent measures.
“A modernized agriculture founded on social equity is one of the key components of the government’s national agenda for poverty alleviation and national development,” the EO added.
The PCIC Board of Directors is likewise reorganized as a result of EO 148.
The PCIC board will be chaired by the Finance Secretary, with the Agriculture Secretary serving as vice-chair.
Members include the presidents of PCIC, the Land Bank of the Philippines, and the Government Service Insurance System, as well as representatives from the private insurance industry and the subsistence farmer’s sector.
