Year 2012 may herald a promising New Year for deserving farmer-borrowers with the reopening of the P10-billion Agricultural Competitiveness Enhancement Fund (Acef). “Abused farmer lending facility reopens in 2012, says Alcala” (Inquirer, 11/28/11)
But only P1.9 billion remains out of P10 billion for relending (interest and collateral-free) with unpaid amortization of P5.8 billion, and “It was worse than the fertilizer scam,” noted a Sept. 21, 2011 Inquirer news item. (“P10B agri funds drained”)
The much-needed reforms are now in place “to reinstate the P10-billion non-collateral credit fund.” But the latter feature is not standard or automatic based on Department of Agriculture-revised guidelines: “The Acef may also be extended as a collateral-free loan except for those which the Execom may require to put as collaterals and as security.” (Administrative Order 08, Series of 2006) Were the P8.7 billion disbursed as of mid-2010 all mortgage-free? Those generous loan features may have released borrowers from obligations to repay.
Allegations of “cash-sunduan” and Arroyo political allies’ hand in the choice of borrowers and approval of loans are impossible to document. But a determination of the process involved in the approval to the monitoring of compliance would be imperative. Were lapses committed? How could have billions of pesos remained unpaid for years? A medium-sized commercial bank could have collapsed and massive withdrawals ensued!
The public appears to have been deprived of the right to know the real score on the farmers’ fund that was meant to enhance livelihood. Administrative orders governing the Acef are airtight, but they seem lacking in implementation. Let’s hope for the best this time until 2015—the Acef’s expiry as mandated by law.
—MANUEL Q. BONDAD,
manuelbondad@yahoo.com