DOLE’s P20.9-M check bounced, Negros sugar planters complain

A check amounting to P20.9 million reportedly issued by the Department of Labor and Employment (DOLE) for some 30,000 sugar planters and their families in Negros Occidental has bounced, depriving them of their livelihood in the "off-milling" months of June to October this year.

The organization, the Binalbagan-Isabela Planters Association (BIPA) representing the farmers, brought the matter to President Arroyo and Labor Secretary Patricia Sto. Tomas, asking that the government make good its financial obligation.

The Negros Occidental-based group BIPA also urged the President and the Labor Secretary to punish the government officials involved in the alleged "scam."

"The months from June to October is known to sugar workers as ‘tiempo muerto’ or dead period or times. That may just be the fate awaiting our farmers because of this scam," said Enrique Montilla III, head of BIPA, in an interview with the press.

Montilla said that the money represents the three-percent share of farmers in the annual production of sugar in their area.

Republic Act No. 809, the Social Amelioration Act, mandates that organizations of sugar planters and farmers set aside the money, in the form of sugar "quedans" for use in the 5 to 6 months of the year when there is no activity in the sugar industry.

Montilla said under the law, DOLE is mandated to serve as "trustee for liquidation, safekeeping and distribution" of the proceeds at the end of a crop year.

And for crop year 2001 to 2002, BIPA planters and farmers accumulated P20,997,109.16 in social amelioration funds, said Montilla.

On May 2, 2002, DOLE Region VI Director Bienvenido Elorcha and DOLE casher Andrea Patagani issued the P20.9 million check to BIPA.

However, the check was dishonored by the Philippine National Bank (PNB) "due to a technical error."

BIPA again tried to have it deposited to their account on May 8, but PNB Binalbagan dishonored it for having been being drawn against uncollected deposit.

"The check was dishonored twice and, until now, remains unpaid," said Montilla in his letter to the President dated June 11, 2002.

Montilla said they have written both Sto. Tomas and Elorcha to ask why the check "bounced." However, they have yet to receive an explanation from the DOLE officials.

He said BIPA has been in operation for 19 years and this is the first time that they received a government check that bounced.

As a result of the delay in the issuance of the social amelioration funds, he said many sugar farmers are going hungry, deeply in debt, or have failed to enroll their children to school during the last enrolment period.

Montilla suspected that some DOLE officials may have used their money for private investments.