GMA: Probe coco fund misuse

President Arroyo said yesterday she had no regrets over the resignation of Coconut Industry Investment Fund (CIIF) president and chief executive officer Rolando Golez and would order an investigation into his alleged misuse of coconut levy funds.

As far as the President is concerned, the beleaguered Golez is not yet off the hook over allegations that he enjoyed excessive privileges while in office.

Presidential Commission on Good Government (PCGG) Chairman Camilo Sabio will become the CIIF’s acting chairman in the meantime. "When things have stabilized, Chairman Sabio will relinquish the chair (of the CIIF)," Mrs. Arroyo said.

The President also announced the appointment of former Philippine Coconut Authority (PCA) administrator Danilo Encarnacion, now a member of the board of directors of CIFF, as the CEO of the agency.

Sabio said the PCGG will conduct an investigation into the controversy separate from a probe already being conducted by United Coconut Planters Bank (UCPB), the administrator of CIIF.

"We still have to investigate so that it would be fair and due process would be followed and the law implemented," he said.

Golez simultaneously resigned as director of the UCPB but has denied the allegations against him.

"In view of the recent public accusations against me, no matter how untrue and unfair, it may very well serve your administration if I should tender my resignation as President/CEO of the CIIF Oil Mills Group and director of the UCPB effective immediately," he wrote in his resignation letter, which was read by Sabio.

Golez came under fire after he admitted receiving the same perks and privileges enjoyed by former officials of CIIF during the Marcos era when corruption was rampant.

His pronouncements exposed the kind of privileges and perks still enjoyed by executives of government-owned and -controlled corporations (GOCCs) and government financial institutions (GFIs), amid the Arroyo administration’s calls for austerity.

Mrs. Arroyo has ordered the prosecution of officials, particularly board members of GOCCs and GFIs, found to be collecting too much benefits from the government.

Mrs. Arroyo said nobody is indispensable in her administration although she said the salaries of presidents and CEOs of the GOCCs and GFIs need to be kept at competitive levels to keep them from moving to the private sector.

Congress probe on CIIF fund misuse

House leaders yesterday sought a separate investigation by Congress and the Office of the Ombudsman on the alleged fund misuse and abuses revealed by Golez.

They also sought to investigate other government agencies so that officials enjoying perks and privileges similar to CIIF officials could be punished.

The separate probe was being sought by Lanao del Sur Rep. Benasing Macarambon, chairman of the House committee on agriculture and food, and Davao del Sur Rep. Douglas Cagas, vice chairman of the committee on good government.

Meanwhile, opposition Sen. Juan Ponce Enrile challenged all the heads of CIIF subsidiaries to resign from their posts as he threatened to call for a full-scale investigation by the Blue Ribbon Committee.

Enrile said he is gathering evidence to support the allegations of wasteful usage of the coco levy funds by people who are assigned by the PCGG to manage the funds. Some of the companies involved are the UCPB, Cocolife, Cocoplans, UCPB Gen., Cocochem and the CIIF Oil Mills.

The Senate committee on agriculture and food is also conducting an inquiry into the proposed P8.4 billion Agusan del Sur coconut plantation project, said to be funded by the coco levy fund.

During yesterday’s hearing, committee chairman Ramon Magsaysay Jr. assured leaders of the coconut farmer organizations that the committee would "get to the bottom of the issues surrounding the coco levy-funded Agusan project and come up with the necessary safeguards and recommendations to benefit the real coconut farmers."

About 50 coconut farmers held a rally in front of the PCGG office along EDSA in Mandaluyong City yesterday demanding the resignation of other CIIF officers.

The rallyists also demanded the removal of PCGG Commissioner William Dichoso as the lead investigator of the probe on the CIIF fund misuse.

The farmers charged that the commissioner had been "negligent as protector of the coco levy funds."

Counting the perks

In compliance with the request of Sen. Magsaysay, UCPB chairman Jose Perez furnished the Senate with the summary of the benefits and privileges enjoyed by officers and employees of CIIF companies.

The document revealed that all top executives from vice president to president enjoyed a car financing program, gasoline allowance, golf club membership and per diem allowances for their foreign and local travels.

At the UCPB, the president enjoys a P2-million car loan while the senior vice presidents gets to purchase a car of his choice with a budget of P1.75 million. The executive vice president, the senior vice president, the VP for finance and vice president have their own car loan ceiling at P1.5 million, P1.25 million, P1 million and P950,000, respectively.

At Cocolife, Cocoplans, UCPB Gen, Cocochem and CIIF Oil Mills, car benefits for executives range from P800,000 to P1.5 million. The recipients also have an option to buy the car at the end of the five-year period at net book value.

The document also showed that gasoline allowance is from P3,000 to P8,800 a month while golf and sports club memberships range from P36,000 per year for the UCPB vice president and P120,000 for the president.

For trips to New York or Tokyo, the executives (except for Cocochem officials), are reimbursed for actual hotel and other expenses. For other destinations, they receive $1,000 a day for food and allowances.

For Cocochem officials, those holding the post of VP and above travel in business class for travel with six hours of travel time or less and first class for more than six hours.

The per diem allowance of traveling VP and directors are as follows: Asia-Pacific, $475; North or South Africa, Middle East, Australia, $500; Europe and Japan, $550. For chairman, president and CEO, the allowance ranges from $500 to $625 per day. — With reports from Marvin Sy, Christina Mendez, Katherine Adraneda, Sandy Araneta