House probes misuse of coco levy funds

The House will investigate the alleged misuse of coconut levy funds at the sequestered Coconut Industry Investment Fund (CIIF). The investigation was prompted by a letter sent to United Coconut Planters Bank Chairman Jose Perez by former Presidential Commission on Good Government (PCGG) chairwoman Haydee Yorac denouncing the irregularities.

Bacolod City Rep. Monico Puentevella and Quezon City Rep. Erin Tanada of Quezon filed separate resolutions asking the House committee on good government to conduct an inquiry.

In Resolution 784, Puentevella said he was scandalized by the supposed perks that CIIF officials enjoy, including luxury vehicles, travel privileges for executives that extend to the wives and huge dollar per diem allowances.

The CIIF allegedly spent nearly P20 million from February 2003 to February this year, including the purchase of a new Nissan Patrol for Rolando Golez, the company’s chief executive officer.

Golez has explained that the perks that he and other CIIF officials enjoy are authorized by company policies. He noted that the Nissan Patrol was not his, but the property of the company.

He added that PCGG commissioners, including Ruben Carranza, who are members of the CIIF board of directors also enjoyed such privileges.

"What is ironic is that while its officials wallow in luxury, CIIF, which was put up out of levy collection from coconut farmers, reported losses of P70 million as of February this year," Puentevella said.

Tanada said it is obvious that CIIF officials are not protecting the interest of coconut farmers who should benefit from the fund.

"They are supposed to run the company professionally and make it earn profits for coconut farmers, not run it into the ground," he stressed.

Tanada, whose province is one of the coconut-producing areas in the country, added that those who appointed CIIF officers should be partly responsible for the irregularities.

In a telephone conversation with The STAR, the PCGG said yesterday it is now looking into the case of Golez.

PCGG Chairman Camilo Sabido said, however, they cannot say for certain if the accusations against Golez were true.

For his part, PCGG Commissioner William Dichoso, who will head the investigating panel, urged the media to wait for the outcome of the investigation.

"I cannot make any comment on the case until we have gathered all the evidence and checked on (its) veracity," Dichoso said.

A parallel investigation is also being conducted by a committee created by the UCPB.

Meanwhile, an opposition lawmaker urged the Commission on Audit (COA) to assert its constitutional authority to regularly examine the financial operations of the CIIF.

"For as long as the CIIF companies are beyond the coverage of government rules and are not subject to COA audit, I am afraid that the government will be helpless in preventing the fund misuse," Sen. Aquilino Pimentel Jr. said.

For his part, Golez told The STAR in an exclusive interview that the information sent to the PCGG on the alleged misuse of funds at the CIIF came from an unsigned and unverified "white paper."

"This all started with unsigned white papers. These are actually the unsigned white papers that were sent to PCGG," Golez said.

Golez also denied that the pair of golf shoes his wife owns was bought using company money. He said only one plane ticket was provided to her by the CIIF Oil Mills Group last year during an official trip which required the presence of the participants and their spouses.

During a visit to Golez’ office at the UCPB Building in Makati City, the original expense reports and receipts were shown to The STAR.

On the other hand, Antonio Concepcion, vice president of the sales and marketing division of CIIF Oil Mills Group, said in a letter to a newspaper that the trips abroad taken by Golez and his wife were all official and were meant to represent the CIIF in meetings with foreign buyers of Philippines coconut products.

"The existing company policies on foreign business travels allow the President to have first class airline tickets for trips with travel time of more than six hours. Once a year, all officers with the rank of Vice President and up have the privilege to bring their wife along during a business trip at the expense of the company. This has been the practice before Mr. Golez joined the company," Concepcion said.

On the issue of the reported losses of the company, Concepcion explained that based on historical trends, a negative figure is expected during the first quarter of any year. — With Sandy Araneta, Christina Mendez