After phantom soldiers and fake veterans, now it’s “ghost” borrowers.
Senator Franklin Drilon warned that the government can no longer recover a total of P2.5 billion in loans that went to what he called ghost borrowers under the Agricultural Competitiveness Enhancement Fund (Acef).
The Senate earlier uncovered ghost soldiers and questioned the existence of centenarian World War II veterans at separate hearings on military corruption and the proposed 2012 budget of the Philippine Veterans Affairs Office.
Acef, put up in 1996 after the Philippines joined the World Trade Organization, was meant to enhance the competitiveness of farmers and fisherfolk, and to boost the country’s food security.
Citing a Commission on Audit (COA) report, Drilon said many of the business ventures that got loans from the P10-billion fund might have been opened “just to make an advance” from the government credit line.
“The government is clearly prejudiced in this case because the amount could not be collected anymore since these are clearly ghost borrowers,” he said.
Among the alleged beneficiaries were politicians close to the Arroyo administration.
No response
Drilon noted that a total of 264 letters had been sent out to check on the status of the loans. But the government got no response from 140 beneficiaries, whose aggregate balance amounted to P2.1 billion, according to the COA report.
Twenty-seven of the recipients, whose balances were worth P370 million, were said to have returned the letters to COA “for various reasons.”
Drilon said borrowers whose combined loans amounted to P66.4 million “failed to pay back their loans due to the closure of the companies affected by typhoons and firms that no longer exist.”
Loans worth P1 million “may not be collected anymore because of death, insufficient address or unknown identity of the borrower,” he said.
Safety nets
Acef, funded by tariffs from agricultural products, is a mechanism aimed at providing financial support to the agriculture sector to increase its competitiveness in the global market.
The money from the taxes was supposed to be used to establish “safety nets” for those in the agriculture sector affected by trade liberalization.
In January, the fund was halted after officials saw irregularities in the program. Aside from the low repayment rate that left only P1.8 billion from the P10-billion fund, beneficiaries and former applicants also complained that past agriculture officials had asked kickbacks from them.
Agriculture officials said 110 accounts that drew funding from Acef were in arrears worth P3 billion. Many of these were projects worth P15 million and below.
Agriculture Undersecretary Antonio Fleta said Acef had a low repayment rate of 26 percent.
Agriculture Secretary Proceso Alcala said the beneficiaries did not find it urgent to pay back their loans as the program did not require any collateral or did not charge interest. In addition, many of the project owners turned out to be incapable of paying back the dues.
No trace
Some borrowers reasoned that they were left bankrupt by natural calamities, while others just vanished and could not be traced anymore, officials and records said.
Malacañang said individuals and groups that made a killing out of the fund should be unmasked.
“If there’s corruption, certainly we are eager to know who profited from that scam,” presidential spokesperson Edwin Lacierda said at news briefing in the Palace.
Aurora province
An audit conducted by the Department of Agriculture showed that Senator Edgardo Angara’s home province, Aurora, received a total of P300 million from Acef.
The province got P200 million in 2008 for the concreting of the Baler-Casiguran Highway, while the Aurora State University received P100 million in 2007 for its Enhancement of Technology-based Agribusiness Industry program.
Foul
Angara, a former agriculture secretary, cried foul for supposedly being “singled out” in the controversy surrounding the alleged misuse of Acef.
“It is irresponsible to single me out and impute irregularities without proof. Do not turn this into a witch-hunt,” he said in a statement.
Angara called for “an honest-to-goodness performance audit of Acef to resolve the controversy once and for all, instead of resorting to useless and damaging labeling that characterizes the fund as worse than the fertilizer scam.”
He said both the agriculture department and the Senate oversight committee on agriculture should conduct a “full and fair audit” of Acef. He was the author of the law establishing the facility.
Publish all names
“They should publish all the names of the beneficiaries of Acef, from Day 1 to the present, whether individuals, corporations, provinces or universities,” said Angara.
The senator said it would be easy to trace where the money went and how it was used. “I see no reason not to publish this information, unless there really are ghost beneficiaries.”
Angara said the P300 million received by Aurora was spent for projects that were channeled to the right beneficiaries.
“Just because I am a native of Aurora does not mean I made a profit from Acef,” he said. “We have results and outcomes to prove that the money was well-spent. There is nothing to hide.”
Conflict of interest
The militant Kilusang Magbubukid ng Pilipinas (KMP) said Angara had no moral ascendancy to conduct a probe of Acef because he was among those accused of benefiting from the fund.
“It appears that Angara has been used to practicing conflict of interest,” KMP vice chairman Randall Echanis said, noting that the senator is a member of the congressional oversight committee on agriculture and fisheries modernization (COCAFM).
KMP also assailed former Agriculture Secretary Arthur Yap’s statement that the low repayment rate did not make Acef a failure or a scam.
“It is the height of callousness for Yap to simply dismiss reports that only big businesses and corrupt bureaucrats benefited from the Acef while farmers suffer from the brunt of the massive flooding of imported agricultural products in the local market,” Echanis said.
He said farmers affected by the impact of agricultural trade liberalization were more than willing to testify that they did not receive a single cent from Acef.
Fund to reopen
The credit line is expected to reopen within the year, pending the Development Bank of the Philippines’ release of funds.
But Alcala no longer has full discretion in deciding who will get loans from Acef.
Loans amounting to P15 million and below used to require only the agriculture secretary’s approval after these had been passed by the reviewing committee.
Alcala said this rule was changed to include the two chairs of COCAFM, Senator Francis Pangilinan and Representative Mark Mendoza.
The change is part of the checks and balances instituted in preparation for the reopening of Acef.
“Before, the approval of loans P15 million and below was in the level of the secretary only after a review of the Technical Working Group. I did not approve of that anymore so the COCAFM chairs are now included,” Alcala said. With a report from Norman Bordadora
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Philippines Government
Showing posts with label Philippines Government. Show all posts
Showing posts with label Philippines Government. Show all posts
Friday, September 23, 2011
Thursday, September 22, 2011
Aquino on martial law: Never again, never forget
President Benigno Aquino III. INQUIRER photo
During a coffee break with Filipino reporters covering his US trip, the President was asked whether the people should forget or continue to remember how the late dictator Ferdinand Marcos imposed martial law 39 years ago on Tuesday (Wednesday in Manila).
He replied by quoting the writer George Santayana: “Those who forget the mistakes of the past are condemned to repeat them.”
“If we don’t remember, maybe one day, given the right conditions, we just might get into that kind of situation and there will be no certainty that it will be peacefully resolved,” he said.
Conditioning
Mr. Aquino said the people should not forget how they were “conditioned” by the Marcos dictatorship to think that the nation then was in chaos and that martial law needed to be imposed.
He said it should be remembered that “the desire of one man and a group decided for the people then, and until now the people continue to suffer from the wrong decisions made.”
He cited as example the bad debts incurred by the Marcos regime from building the mothballed Bataan Nuclear Power Plant.
“What should we remember about [martial law]? Whatever those revising history say, let us not forget that the person who implemented it had then finished his term in office as allowed under the Constitution. He was supposed to be a bar topnotcher but he did a lot of things that violated the rights of the people, including trying civilians in military courts,” the President said in an apparent reference to Marcos who had a military court try and sentence to death his late father, former Senator Benigno “Ninoy” Aquino Jr.
The assassination of Ninoy Aquino on his return home in 1983 after three years in exile in the United States sparked the 1986 Edsa People Power Revolution that toppled the Marcos dictatorship and installed his widow, Corazon Aquino, as President.
Human rights policy
In Manila, Malacañang renewed its commitment to uphold human rights in commemoration of the 39th anniversary of the imposition of martial law, but remained unclear on the definition of certain concepts that could lead to the adoption of a compensation bill for victims.
Mr. Aquino’s spokesperson Edwin Lacierda boldly said that there was no political prisoner under the current administration and that extrajudicial killings were being investigated.
“We have made a very strict policy to uphold human rights. In fact, we have extended even to those who do not agree with this administration due process, both substantive and procedural due process,” Lacierda said at Wednesday’s news briefing.
“In fact, that is why it takes us so long to file cases. It’s because we are in strict observance of human rights. We believe in due process and we will continue to uphold due process and human rights in this country,” he said.
Lacierda, however, said more precise definitions remained elusive.
Asked to comment on the human rights situation in the country 39 years after the imposition of martial law, he said: “I think we need a better definition of terms and maybe clearer terms of reference with respect to human rights.”
Terms too broad
“Broad terms” related to the human rights issue are apparently getting in the way of the compensation bill for victims of rights abuse, particularly those under the dictatorship.
“There was a bill that was submitted by the executive branch, prior to the [Legislative-Executive Development and Advisory Council] meeting,” Lacierda said. “Unfortunately, the terms and provisions were so broad that these would not be able to determine how one can be called a human rights victim.”
Mr. Aquino thinks that the compensation bill should be fine-tuned and its provisions made more specific, Lacierda said. He said the bill was still “being worked on.”
Lacierda said violating human rights was not a policy of the administration.
“Proof positive of this is the appointment of Loretta Rosales [as chairman of the Commission on Human Rights], who was herself a victim of torture under the Marcos regime,” he said.
He added that there was no political prisoner under Mr. Aquino’s watch despite demands from the Left that certain prisoners be released because they were “consultants” in the peace negotiations between the government and the communist-led National Democratic Front.
Lacierda also said the administration does not condone extrajudicial killings.
“So far, under this administration, there have been 10 extralegal killings that happened and they are all under investigation. Some of [the cases] have already been filed in court,” he said.
Philippines Government
OFW households saved less cash in Q3
LESS SAVINGS The appreciation of the peso has decreased the value of remittances in peso terms so that a smaller amount could have been apportioned by households for savings, according to the Bangko Sentral ng Pilipinas.
In its latest survey, the BSP reported that 35.5 percent of households dependent on remittances from overseas Filipino workers (OFWs) had less savings in the three months to September, compared with the 43 percent of respondents reported in the same quarter last year.
“The appreciation of the peso decreased the value of remittances in peso terms, hence, a smaller amount could have been apportioned by households for savings and purchase of big-ticket items,” the BSP said in a report.
The latest figure was also lower than the 44 percent recorded in the second quarter of the year.
There were 651 households covered in the BSP survey, which was conducted in July.
According to the central bank, OFW households are encouraged to set aside a certain sum for savings and investments to secure their future.
The BSP has been conducting seminars on savings and investments for migrant workers and their families. But it admitted that it still has a long way to go before most OFW households get to practice saving up and investing.
The peso’s appreciation was fueled by the surge in foreign capital inflows, particularly short-term investments in stocks, bonds and other securities.
The BSP said the sharp rise in foreign “hot money” inflows was due to the poor economic performance of the United States and Europe which, in turn, forced international portfolio fund owners to seek opportunities elsewhere, particularly in emerging markets like the Philippines.
Also, the rise of the peso has badly affected the fortunes of Filipino exporters, whose goods are now more expensive in dollar terms, and thus less competitive in foreign markets.
Traders have since urged the BSP to intervene in the foreign exchange market, particularly by making the peso much weaker against the US dollar.
But according to central bank officials, the regulator maintains a policy of allowing a market-determined exchange rate. They noted that a weak peso would not benefit all sectors, and that the regulator must stick to a bias-free policy.
However, the BSP does intervene in the foreign exchange market from time to time, but only to temper the sharp rise or fall of the peso.
Remittances from Filipino migrant workers continued to grow this year, particularly in dollar terms, despite the problems abroad.
The rise in remittances is attributed to continued strong demand for Filipino workers in overseas labor markets.
But economists said that while remittances have grown significantly in dollar terms, the peso value of the remittances have been registering almost flat growth because of the appreciation of the local currency against the US dollar.
Latest data from the BSP showed that remittances in the first seven months of the year reached $11.35 billion, rising by 6.3 percent from the $10.68 billion reported in the same period last year.
Philippines Government
Wednesday, September 21, 2011
P10B agri funds drained
It was worse than the fertilizer scam.
A P10-billion fund meant to help small farmers, fisherfolk and agriculture entrepreneurs raise their skills and production was used as a cash cow of agriculture officials, politicians and businessmen “favored” by the Arroyo administration for almost a decade, officials said.
The discovery of irregularities in Acef (Agricultural Competitiveness Enhancement Fund) has led lawmakers and agriculture officials to suspend the program in January and to review its implementation.
What they saw, according to officials who checked the Acef records, was a long list of companies and beneficiaries who failed to pay back their loans.
The same officials also heard of complaints from borrowers who said that agriculture officials demanded kickbacks in exchange for loan approvals.
Agriculture Secretary Proceso Alcala said his office had received complaints from beneficiaries and those who tried to apply for the fund that former agriculture officials had asked for kickbacks in exchange for approving their loans.
Legitimate projects were also set aside in favor of proponents who have questionable projects but are willing to provide kickbacks, officials said.
“As we investigated it, we found out that the majority of those who did not pay were the ones who were complaining about the kickbacks,” Alcala said. “It was as high as 20 to 35 percent,” he noted.
A senior agriculture official also noted that the Acef executive committee was lax in approving projects. Some proponents, who promised to give commissions, were not even required to appear at the Department of Agriculture to explain their projects, the official said.
Alcala said it was the Acef management that was accused of being the recipients of bribes. “They got money out of proceeds. After the funds are released, something goes to them,” he said.
Although the reports and complaints were numerous, Alcala said it was difficult to pin down the errant officials. “Of course, these had no receipts,” he said.
Some borrowers were also reluctant to say something on record because they knew that they got the deal out of bad faith, Alcala said.
The practice of asking for commissions in exchange for loan approval was confirmed by Gregorio San Diego, president of United Broilers Raisers Association (Ubra).
Four years ago, Ubra applied as a cooperative for the Acef to build a broiler breeder facility in Pampanga. San Diego said his group was encouraged by then Secretary Arthur Yap, but when the application reached the central office of the agriculture department, it was denied.
“They asked 10 percent from us,” he said, noting that it was considered a discount. “Others were told to give 35 percent,” he added.
In the end, Ubra decided not to push through with its application, San Diego said.
Senator Francis Pangilinan, cochair of the congressional oversight Committee on Agriculture and Fisheries Modernization, and sources confirmed that some of those who applied for the fund were personalities and politicians “favored” by the past administration.
‘Lender of last resort’
An industry source and an agriculture official, who reviewed the project and requested anonymity because of lack of authority to discuss the matter, described the use of Acef in the last decade as “plunder.”
“This was bigger than the fertilizer scam,” the industry source said, referring to the misuse of P728 million in agriculture funds under then Undersecretary Jocelyn “Joc-Joc” Bolante.
The fund, intended to benefit farmers, was said to have been diverted to the campaign kitty of then President Gloria Macapagal-Arroyo in 2004. Bolante and former Agriculture Secretary Cito Lorenzo have been charged with plunder at the Sandiganbayan.
“This was supposed to be for agricultural enhancement but they have become the lender of last resort,” the source said, referring to Acef.
Acef, established in 1996 and funded by tariffs from agricultural products, is a funding mechanism aimed at providing financial support to the agriculture sector to increase their competitiveness in the global market.
Safety net
The money from the taxes was supposed to be used to establish “safety nets” for agriculture sectors affected by trade liberalization.
“That was the basic tenet of Acef, but it was not followed. If it was implemented properly, say the industries were given common services, it would have made Philippine agriculture competitive. But this was not followed. Even those projects that were not aimed at competitiveness were given funding,” the industry source noted.
The fund was set up to enable farmers, fisherfolk, and cooperatives to upgrade their skills and facilities so that they can compete in an increasingly globalized agriculture market.
Loans up to P30M
Under the program, agricultural workers, cooperatives, nongovernment organizations, and local government units may take out loans ranging from P500,000 to P30 million.
Acef was supposed to have a 10-year life-span, but the agriculture department, during the term of former Secretary Yap, issued several memoranda extending the program and its scope.
Collateral-, interest-free
The program was especially designed to encourage small and medium agricultural enterprises to borrow from it as it does not demand a collateral from them and is interest-free. The lack of these requirements opened the fund to abuse and was the main reason for the low-repayment rate, officials said.
Acef contained P10.73 billion accumulated from collected tariffs from 1990 to 2010, according to the Department of Agriculture’s preliminary report as of February 2011.
During that period, the fund used P8.85 billion, mostly for grants and loans.
As of February, the agriculture department said P2.57 billion went to grants, while P5.82 billion went to loans to 299 accounts. Included in the loan portfolio was a P1-billion grant to the bankrupt Quedancor, which was supposed to be used for the agency’s training program. At about P372.78 million was used to fund scholarship programs.
Quedancor did not remit a single centavo to Acef and even borrowers who failed to pay were allowed to borrow huge sums again, officials said.
As of early 2011, only about P1.8 billion remained in Acef coffers as many of the creditors failed to pay back their loans over the years, the Department of Agriculture said.
Failure
Despite the huge amounts of money that were funneled into the fund since its creation, the credit mechanism that was supposed to improve Philippine agriculture, provide employment in the countryside and raise the income of farmers and fisherfolk failed in its vision.
In March, the technical working group on Acef said: “Available data indicate that the Acef has not been able to provide loans to the marginalized farmers and fisherfolk; but mostly to small and medium enterprises.”
In a report, the Commission on Audit (COA) said Acef was a failure. “The purpose of the program to raise farm productivity by extending credit to small farmers, fisherfolk and agricultural entrepreneurs was not achieved as manifested by the low collection rate of amortization due from the proponents. The inability of the proponents to pay the amortization is an indication that their livelihood agricultural activities did not succeed,” the report said.
Yap’s friend
One of the borrowers who was not punctual in paying his loan was Lyndon Tan, owner of Basic Necessity, a vegetable farm in Cavite, and a friend of former Secretary Yap.
Yap, project head of the book, “The Art of Agribusiness: 111 and More Success Stories in Agri-Entrepreneurship,” cited Tan as an example of a successful Filipino farm entrepreneur.
Tan, according to a recent agriculture department audit, sells his greens to supermarkets and restaurants. He borrowed P38 million from the fund for his farm in the mid-2000s. He only paid P4 million of it.
The COA also noted that Acef was inefficient and questioned why certain companies that did not remit were still given a chance to borrow millions of pesos.
In its 2010 report, the COA said five proponents with Acef loans of P72.245 million were given additional loans of P35.659 million for the same project, even if previous loans were not yet paid.
Gemsum Marketing
The companies were identified by CAA as C and L Farms, Hi-Las Marketing Corp., Moraleda Farms, Queen’s Agro-Industrial Farms Inc. and Gemsum Marketing.
But that was just the tip of the iceberg. There were 46 proponents who got loans from 2000 to 2008 but “have not paid a single installment,” the agriculture department said. Their loans from Acef totaled P802.95 million.
Baler-Casiguran road
Senator Edgardo Angara, a former agriculture secretary who authored the law that established the Acef, has been identified as one of the beneficiaries.
Angara’s home province Aurora received P300 million from the fund, according to an audit by the agriculture department.
Angara was cited by two sources as the one who recommended projects to the Acef committee.
The audit by the agriculture department found out that Aurora, Angara’s home province, benefited from two grants.
In 2008, the local government of Aurora received P200 million for the concreting of the Baler-Casiguran Highway.
Kilusang Magbubukid ng Pilipinas said the Baler-Casiguran Road was built to serve Angara’s Aurora Pacific Economic Zone and Freeport project.
In 2007, Aurora State University received P100 million for a project called Enhancement of Technology-Based Agribusiness Industry.
In a phone interview, Angara said he could not recall recommending the grant of P200 million for the concreting of the Baler-Casiguran road.
“Who is the source of that report? I do not recall … Why would they even use the word competitiveness for that? And why would I recommend it,” he told the Inquirer Tuesday night.
Angara said it was more likely that the P200 million came from his pork barrel.
“And if it indeed came from my pork barrel, that would not be considered irregular since it came from my (Priority Development Assistance Fund),” the senator added. With a report from Cathy Yamsuan
Philippines Government
A P10-billion fund meant to help small farmers, fisherfolk and agriculture entrepreneurs raise their skills and production was used as a cash cow of agriculture officials, politicians and businessmen “favored” by the Arroyo administration for almost a decade, officials said.
The discovery of irregularities in Acef (Agricultural Competitiveness Enhancement Fund) has led lawmakers and agriculture officials to suspend the program in January and to review its implementation.
What they saw, according to officials who checked the Acef records, was a long list of companies and beneficiaries who failed to pay back their loans.
The same officials also heard of complaints from borrowers who said that agriculture officials demanded kickbacks in exchange for loan approvals.
Agriculture Secretary Proceso Alcala said his office had received complaints from beneficiaries and those who tried to apply for the fund that former agriculture officials had asked for kickbacks in exchange for approving their loans.
Legitimate projects were also set aside in favor of proponents who have questionable projects but are willing to provide kickbacks, officials said.
“As we investigated it, we found out that the majority of those who did not pay were the ones who were complaining about the kickbacks,” Alcala said. “It was as high as 20 to 35 percent,” he noted.
A senior agriculture official also noted that the Acef executive committee was lax in approving projects. Some proponents, who promised to give commissions, were not even required to appear at the Department of Agriculture to explain their projects, the official said.
Alcala said it was the Acef management that was accused of being the recipients of bribes. “They got money out of proceeds. After the funds are released, something goes to them,” he said.
Although the reports and complaints were numerous, Alcala said it was difficult to pin down the errant officials. “Of course, these had no receipts,” he said.
Some borrowers were also reluctant to say something on record because they knew that they got the deal out of bad faith, Alcala said.
The practice of asking for commissions in exchange for loan approval was confirmed by Gregorio San Diego, president of United Broilers Raisers Association (Ubra).
Four years ago, Ubra applied as a cooperative for the Acef to build a broiler breeder facility in Pampanga. San Diego said his group was encouraged by then Secretary Arthur Yap, but when the application reached the central office of the agriculture department, it was denied.
“They asked 10 percent from us,” he said, noting that it was considered a discount. “Others were told to give 35 percent,” he added.
In the end, Ubra decided not to push through with its application, San Diego said.
Senator Francis Pangilinan, cochair of the congressional oversight Committee on Agriculture and Fisheries Modernization, and sources confirmed that some of those who applied for the fund were personalities and politicians “favored” by the past administration.
‘Lender of last resort’
An industry source and an agriculture official, who reviewed the project and requested anonymity because of lack of authority to discuss the matter, described the use of Acef in the last decade as “plunder.”
“This was bigger than the fertilizer scam,” the industry source said, referring to the misuse of P728 million in agriculture funds under then Undersecretary Jocelyn “Joc-Joc” Bolante.
The fund, intended to benefit farmers, was said to have been diverted to the campaign kitty of then President Gloria Macapagal-Arroyo in 2004. Bolante and former Agriculture Secretary Cito Lorenzo have been charged with plunder at the Sandiganbayan.
“This was supposed to be for agricultural enhancement but they have become the lender of last resort,” the source said, referring to Acef.
Acef, established in 1996 and funded by tariffs from agricultural products, is a funding mechanism aimed at providing financial support to the agriculture sector to increase their competitiveness in the global market.
Safety net
The money from the taxes was supposed to be used to establish “safety nets” for agriculture sectors affected by trade liberalization.
“That was the basic tenet of Acef, but it was not followed. If it was implemented properly, say the industries were given common services, it would have made Philippine agriculture competitive. But this was not followed. Even those projects that were not aimed at competitiveness were given funding,” the industry source noted.
The fund was set up to enable farmers, fisherfolk, and cooperatives to upgrade their skills and facilities so that they can compete in an increasingly globalized agriculture market.
Loans up to P30M
Under the program, agricultural workers, cooperatives, nongovernment organizations, and local government units may take out loans ranging from P500,000 to P30 million.
Acef was supposed to have a 10-year life-span, but the agriculture department, during the term of former Secretary Yap, issued several memoranda extending the program and its scope.
Collateral-, interest-free
The program was especially designed to encourage small and medium agricultural enterprises to borrow from it as it does not demand a collateral from them and is interest-free. The lack of these requirements opened the fund to abuse and was the main reason for the low-repayment rate, officials said.
Acef contained P10.73 billion accumulated from collected tariffs from 1990 to 2010, according to the Department of Agriculture’s preliminary report as of February 2011.
During that period, the fund used P8.85 billion, mostly for grants and loans.
As of February, the agriculture department said P2.57 billion went to grants, while P5.82 billion went to loans to 299 accounts. Included in the loan portfolio was a P1-billion grant to the bankrupt Quedancor, which was supposed to be used for the agency’s training program. At about P372.78 million was used to fund scholarship programs.
Quedancor did not remit a single centavo to Acef and even borrowers who failed to pay were allowed to borrow huge sums again, officials said.
As of early 2011, only about P1.8 billion remained in Acef coffers as many of the creditors failed to pay back their loans over the years, the Department of Agriculture said.
Failure
Despite the huge amounts of money that were funneled into the fund since its creation, the credit mechanism that was supposed to improve Philippine agriculture, provide employment in the countryside and raise the income of farmers and fisherfolk failed in its vision.
In March, the technical working group on Acef said: “Available data indicate that the Acef has not been able to provide loans to the marginalized farmers and fisherfolk; but mostly to small and medium enterprises.”
In a report, the Commission on Audit (COA) said Acef was a failure. “The purpose of the program to raise farm productivity by extending credit to small farmers, fisherfolk and agricultural entrepreneurs was not achieved as manifested by the low collection rate of amortization due from the proponents. The inability of the proponents to pay the amortization is an indication that their livelihood agricultural activities did not succeed,” the report said.
Yap’s friend
One of the borrowers who was not punctual in paying his loan was Lyndon Tan, owner of Basic Necessity, a vegetable farm in Cavite, and a friend of former Secretary Yap.
Yap, project head of the book, “The Art of Agribusiness: 111 and More Success Stories in Agri-Entrepreneurship,” cited Tan as an example of a successful Filipino farm entrepreneur.
Tan, according to a recent agriculture department audit, sells his greens to supermarkets and restaurants. He borrowed P38 million from the fund for his farm in the mid-2000s. He only paid P4 million of it.
The COA also noted that Acef was inefficient and questioned why certain companies that did not remit were still given a chance to borrow millions of pesos.
In its 2010 report, the COA said five proponents with Acef loans of P72.245 million were given additional loans of P35.659 million for the same project, even if previous loans were not yet paid.
Gemsum Marketing
The companies were identified by CAA as C and L Farms, Hi-Las Marketing Corp., Moraleda Farms, Queen’s Agro-Industrial Farms Inc. and Gemsum Marketing.
But that was just the tip of the iceberg. There were 46 proponents who got loans from 2000 to 2008 but “have not paid a single installment,” the agriculture department said. Their loans from Acef totaled P802.95 million.
Baler-Casiguran road
Senator Edgardo Angara, a former agriculture secretary who authored the law that established the Acef, has been identified as one of the beneficiaries.
Angara’s home province Aurora received P300 million from the fund, according to an audit by the agriculture department.
Angara was cited by two sources as the one who recommended projects to the Acef committee.
The audit by the agriculture department found out that Aurora, Angara’s home province, benefited from two grants.
In 2008, the local government of Aurora received P200 million for the concreting of the Baler-Casiguran Highway.
Kilusang Magbubukid ng Pilipinas said the Baler-Casiguran Road was built to serve Angara’s Aurora Pacific Economic Zone and Freeport project.
In 2007, Aurora State University received P100 million for a project called Enhancement of Technology-Based Agribusiness Industry.
In a phone interview, Angara said he could not recall recommending the grant of P200 million for the concreting of the Baler-Casiguran road.
“Who is the source of that report? I do not recall … Why would they even use the word competitiveness for that? And why would I recommend it,” he told the Inquirer Tuesday night.
Angara said it was more likely that the P200 million came from his pork barrel.
“And if it indeed came from my pork barrel, that would not be considered irregular since it came from my (Priority Development Assistance Fund),” the senator added. With a report from Cathy Yamsuan
Philippines Government
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