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Coconut levy, mills wash
hands of P2B project


THE Coconut Industry Investment Fund-Oil Mills Group (CIIF-OMG) yesterday denied direct involvement in the P2-billion corn and salt fertilization project of the Philippine Coconut Authority, except for providing the funds.

"The scheme, design, procurement, implementation and monitoring is being done by the PCA," said Danilo Coronacion, CIIF-OMG president and chief executive officer.

Coronacion said CIIF-OMG is in charge of providing funds to coconut-related programs but with the following conditions: that there should be repayment scheme; the beneficiary should repay the loan amount in kind or in cash; it should be subject to periodic audit of the CIIF-OMG Audit Board with close coordination with the Commission of Audit; and the projects should be aligned with the CIIF-OMG business thrusts and mandate.

The CIIF-OMG is an association of accredited oil mills in the Philippines which are involved in the development of the coconut industry.

Coronacion said the P100 million which the Federation of Free Farmers claimed was given in advance to PCA, was specifically used to initiate the rehabilitation of coconut industry of the storm-ravaged provinces of Southern Tagalog, Bicol and Samar in 2006.

He noted that the P100 million was already a rounded figure, of which P84 million was intended for corn intercropping implemented last March 2007 to the present.

"We’re asking PCA to submit a comprehensive report. We have a Board of Audit, but it goes without saying, all reports should be under the scrutiny of COA," Coronacion said.

The FFF has called on the government to investigate the salt fertilization project and corn seed program, claiming these violated government rules on procurement.

FFF president Leonardo Montemayor, a former agriculture secretary, also said that only one supplier was allowed to submit a bid for the project, because all other interested bidders had earlier been disqualified by the PCA bidding committee.

The FFF also said the PCA allowed the bidding for the P1.89-billion salt supply project last December 2007 without a certification of fund availability.

Montemayor also claimed that the PCA’s estimated salt fertilization cost of P3,000 per hectare was "too big" and "likely overpriced."

PCA officials Wednesday denied knowledge of the P2 billion fund.

"Di namin ang hawak ang P1.89 billion, what we have is just the costing we’ll be needing to improve and raise the coconut production in the country," PCA deputy administrator Arturo Liguete said.

"The PCA has embarked on a general plan for a four-year production program beginning 2008 to 2011 to recover lost production due to calamities and secure supply needs for domestic, international markets and bio-fuel requirement," PCA administrator Oscar Garin said. – Randy Nobleza

 


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