MANILA – President Rodrigo Duterte has signed an executive order (EO) transferring the Philippine Crop Insurance Corporation (PCIC) from the Department of Agriculture (DA) to the Department of Finance (DOF).
EO 148, signed by Duterte on Tuesday, transfers the PCIC from the DA and attaches it to the DOF for “policy and program coordination, and general supervision.”
The PCIC, which provides insurance protection to farmers against losses arising from natural disasters, plant diseases, and pest infestation, is currently attached to the DA pursuant to EO 74 issued in 2002.
The DOF is the agency primarily responsible for ensuring the sound and efficient management of the financial resources of the government, its subdivisions, agencies, and instrumentalities, and is mandated to formulate, institutionalize, and administer fiscal policies in coordination with other concerned subdivisions, agencies, and instrumentalities of government.
"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 DOF, DA, and to Governance Commission for GOCCs (GCG) to ensure that the operations of the PCIC are rationalized and monitored centrally so that government assets and resources are used effectively, and the government's exposure to all forms 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.
EO 148 also reorganizes the PCIC Board of Directors.
Under the order, the PCIC board will be chaired by the Finance Secretary while Agriculture Secretary will sit as vice-chair.