By Marianne V. Go (The Philippine Star) Updated September 23, 2011 12:00
AM Comments (1)
MANILA, Philippines - The Department of Agriculture is set to resume
lending operations for the Agriculture Competitiveness Enhancement Fund
(ACEF) after approving new implementing guidelines for the funding program.
In a press conference, Agriculture Secretary Proceso J. Alcala said that
while some anomalies have been discovered regarding the previous use of
the ACEF, there remains at least P1.9 billion for continued grants and
loans.
Alcala had suspended the ACEF program early this year to review the
program following complaints and reports of anomalies.
Under the new guidelines, from the previous allocations of 60 percent
for loans, 30 percent for grants and 10 percent for scholarships, the
new allocations would be 30 percent for loans, 60 percent for grants and
10 percent for scholarships.
Unlike in the past when ACEF loans were interest and collateral-free,
Alcala said the loans would now carry a minimal four-percent interest
and borrowers would be required to enter into a so-called "table mortgage".
Additionally, Alcala said, approval of loans would now have to be
collectively approved by the DA secretary as well as the heads of the
Senate and House committees on agriculture.
In the past, Alcala said, only the DA secretary could approve loans
worth P15 million and below.
Agriculture undersecretary for administration and finance Antonio A.
Fleta said a total of P8 billion has been released in the form of grants
and loans. Of this amount, P3 billion were in the form of grants and P5
billion in the form of loans.
Fleta said grants, by their nature, do not have to be repaid, but it
does not mean that those previously granted are anomalous.
Of the P5 billion in loans, P1 billion is owed by the troubled
Quedancor, an agency under DA, Fleta said adding that they are now
trying to work out how Quedancor can pay back the amount.
As for the remaining P4 billion in loan releases, Fleta said the
collection rate is a mere 26 percent. He said at least 110 borrowers,
are in arrears, while 18 have already asked for a restructuring of their
loans.
The ACEF, Alcala explained, continues to be replenished from the
proceeds of the MAV (minimum access volume) tariff collections and well
as some repayments.
Meanwhile, Sen. Francis Pangilinan, chairman of the Senate committee on
agriculture and food said he will investigate irregularities in the use
of the ACEF that according to one news report drained the P10 billion fund.
Pangilinan said that "under the law, it is the COCAFM (Congressional
Oversight Committee on Agriculture and Fisheries Modernization) that is
tasked to administer the fund.
ACEF is a fund to help farmers and fisherfolk and agricultural
entrepreneurs become competitive.
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