Coco fund agency head resigns

United Coconut Planters Bank director Rolando Golez handed in his resignation letter yesterday to President Arroyo, simultaneously quitting the UCPB board and his post as president and chief executive officer of the Coconut Industry Investment Fund (CIIF) Oil Mills Group.

Golez’s resignation, which takes effect immediately, came in the wake of a government and legislative probe into alleged mismanagement of CIIF funds owned by coconut farmers to lavish its top executives with unwarranted benefits.

In a statement, UCPB chairman Jose Perez said Golez informed him yesterday morning that he had submitted his resignation letter to the President. UCPB acts as the administrator and supervising authority of CIIF.

Perez heads the special review committee formed by the UCPB board of directors to look into certain operating expenses of CIIF Oil Mills.

Despite Golez’s resignation, Perez said the committee would continue its investigation to include attached agencies of CIIF. Their findings and recommendation will be submitted to PCGG Chairman Camilo Sabio, he added.

The special review committee was created this week following the directive of former Philippine Commission on Good Government (PCGG) chairwoman Haydee Yorac in her letter dated April 27, 2005 to Perez. It was on the same day that Yorac left her post due to a lingering ailment.

Other members of the committee are UCPB directors Jesus Arranza, Rosalinda Casiguran, Romeo Royandoyan and Jose Marie Faustino. Royandoyan and Faustino are the farmers’ representatives to the UCPB board of directors.

Perez said the committee will question certain operating expenses at the CIIF Oil Mills. He said he had advised all CIIF companies to immediately restrict similar expenses pending a review of the companies’ policies.

Golez has cried foul over the allegation, saying it all started with "unsigned ‘white papers’ that were sent to PCGG."

Antonio Concepcion, vice president of the sales and marketing division of CIIF Oil Mills, backed Golez’s defense that all expenses were warranted and within the company’s policies.

But disgruntled CIIF employees who approached Yorac alleged that Golez received a Nissan Patrol worth about P2 million and for which about P25,000 in monthly gasoline expenses are charged to the company.

Golez has said the luxury vehicles purchased by the company — amounting to some P19 million, according to reports — belong to the company, not the executives.

The employees who circulated a "white paper" on Golez also accused him of spending P2 million on airfare alone covering eight trips abroad.

Moreover, they alleged that at least P960,000 in company funds were spent on privileges for Golez at the Wack Wack Golf and Country Club in Mandaluyong City.

The supposed extravagant privileges enjoyed by CIIF officials include unlimited representation allowances, golf and country club memberships, first-class travel expenses, daily $500 travel allowances and a car plan that allowed them to purchase luxury vehicles largely funded by coco levy funds.

The CIIF is the administrator of over P9 billion in levies collected from coconut farmers in the 1970s by the Marcos administration.

The PCGG is locked in a court battle with San Miguel Corp. chairman Eduardo Cojuangco over the coconut levy funds.

The government accuses Cojuangco of buying his 20-percent stake in San Miguel with coconut levy funds.

The PCGG is tasked with recovering government assets stolen during the Marcos dictatorship, estimated to be worth $10 billion.

The CIIF companies include the CIIF Oil Mills and the United Coconut Planters Bank Coconut Development Financing Corp.

According to Perez, he has sent a formal communication to the heads of the CIIF companies to furnish the special review committee with copies of their policies and these expenses for its review.

The UCBP chairman said the committee had issued interim guidelines to govern expenses while the review is being undertaken so as not to disrupt normal operations of CIIF companies.

In the past, UCPB was represented in the CIIF companies. But in 2002, the PCGG separated the actual administration of the CIIF companies from UCPB. In the same year, CIIF companies elected their own chair members who do not report to the UCPB board of directors.

Perez assured that the committee would carry out its review thoroughly and expeditiously.

Perks And Privileges

Meanwhile, the head of the Senate committee that will investigate the alleged wasteful spending at the CIIF wants to be provided with a list of benefits and privileges being enjoyed by the officers and personnel of CIIF and its attached agencies.

Sen. Ramon Magsaysay Jr., chairman of the Senate committee on agriculture and food, has stated the request in aid of its legislative inquiry in a letter dated last May 9 to Perez.

"The same is significant in charting legislation that may be submitted by the committee on improving the plight of Filipino farmers vis-à-vis the coco levy. Likewise, the same will form part of the records of the public hearings of the committee on agriculture and food," Magsaysay said.

There are two pending resolutions filed in the Senate (228 and 232) which seek to probe the reported lavish spending by CIIF officials, practices contrary to Mrs. Arroyo’s call for austerity measures.

"And on the extreme, (the allegation) may be unconscionable considering that the entities are supported by collections paid and contributed by Filipino farmers," Magsaysay said.

He said the committee will also question the actuation of United Coconut Chemicals Inc. (Cocochem) president and chief executive officer Helen Osias to purchase company vehicles worth P2.1 million.

This is nearly double the car purchase amount allowed top officials of Cocochem of P1.2 million each.

Magsaysay cited records that showed high-end Volvo S60 2.01 models are being used as service vehicles by Cocochem executives.

The lawmaker also noted that the travel allowance of Cocochem executives is "way above the ordinary departments and line agencies of the government."

While CIIF and its members under the CIIF group of companies are covered by their respective charters and are private firms by nature, Magsaysay pointed out a Supreme Court decision had ruled that the "monies supporting them and (which) founded their establishments are public funds."

"It is but proper that its unnecessary vainglorious and lavish spending be stopped and its thrift use promoted," Magsaysay said. — With Christina Mendez