CIIF president says story of misused funds distorted

Some people want Rolando Golez out of the CIIF Oil Mills Group, which is now in hot water due to accusations of some of its employees that it misused funds belonging to the Coconut Industry Investment Fund (CIIF).

In an interview with The STAR, Golez said the accusations stemmed from the restructuring he had carried out in the company.

"I restructured the CIIF Oil Mills Group so that it would be responsive to the future and provide a career path for the employees. Ever since I came here, I did not retrench anybody. I even offered a special retirement program. Those who are retirable can opt for retirement and it is voluntary," said Golez, president and CEO of CIIF Oil Mills Group.

"I feel saddened by the fact that my side was not even heard, was not even asked (for)," Golez said.

He revealed that sometime last month, he was invited by former Presidential Commission on Good Government (PCGG) chairwoman Haydee Yorac to her office and asked to explain the allegations of irregularities at the CIIF Oil Mills.

Yorac sent a letter to United Coconut Planters Bank (UCPB) chairman Jose Perez dated last April 27 pointing out that CIIF companies were financed from coco levy funds declared by the Supreme Court to be prima facie public funds. She said therefore the CIIF officials were expected to act like good stewards of the fund.

Among other things, Yorac pointed out that CIIF officials purchased motor vehicles worth P19 billion from February 2003 to February 2005 which they were then allowed to purchase at book value after depreciation; and that there was a huge budget allotted for membership in golf and country clubs, "a luxury," she said, "which the farmers can ill afford."

She also questioned the travel privileges of its executives, which include a per diem allowance of $300 to $500 and an expense allowance for the wife or husband.

Golez defended the "perks" enjoyed by CIIF officials as being within the policies of the company. He said there is a price cap on the vehicle an executive is allowed to purchase and that the car is then owned by the company, not the executive.

"I chose a Nissan Patrol because it is safer. It is a company car, owned by the company assigned to me. It is not mine, no way. The story is distorted. This has been the policy ever since. I did not change any policy," he said.

However, he did not mention that executives are allowed to purchase the vehicles themselves after five years at a much lower cost.

Golez added that it is also the policy of CIIF that the wife or husband of an executive holding the position of vice president may join official trips abroad at company expense.

"We traveled with (our) wives in a conference last year. But my trip to other places with my wife was charged to my account. It was not absorbed by the company. I did not get anything more than I should get," Golez said, adding that he already had the policies reviewed.

He also emphasized that his expenses were examined and approved by a committee composed of the directors of the CIIF Oil Mills.

Meanwhile, privileges such as golf club memberships, representation, gasoline, food and other perks are all within the policy of the CIIF Oil Mills, he said.

"The report is distorted. I will leave it up to the committee because there was a committee created for this. Let the committee (investigate). I want to clear my name," said Golez.

Golez also clarified that he does not sit solely on the CIIF Board. "I am not the only one sitting on the board. During the time of PCGG Commissioner Ruben Carranza, he sat on the board of the Oil Mills," he said.

The board, he said, submits reports to the PCGG on a regular basis, and even to the Office of the President.

In the name of transparency, he said, he would support the committee charged to look into the allegations and review the policies in question such as the executive car plan and the business trips taken by executives.

The fact-finding body will be headed by UCPB chairman Jose Perez and some members of the UCPB board.

"It is but fair and appropriate to wait for these people to come out with their findings. These are credible and reputable people," Golez said.

All five members of the committee, however, were unavailable for comment yesterday.

But unnamed bank officials said "the bank has been unaware of what the CIIF companies were doing since it was only recently that the bank was allowed to directly sit on the CIIF board."

"We are not washing our hands but our hands were tied for a long time," one official said.

Ironically, it was also the PCCG that decided to separate the administration of the CIIF companies from the bank three years ago. Since then, CIIF companies elect their own chairmen who are independent of the UCPB board of directors. — With Ted Torres