CIIF not under PCA

This is to belie the statement of Rep. Danilo Suarez reported in the news item “Solon seeks probe of palm oil imports by government firm” (Inquirer, 2/3/13).

In behalf of the Philippine Coconut Authority (PCA), I deny his statement that CIIF, the importer of palm oil under the brand name Mitra, is under the PCA.

PCA does not hold any single share of stock in CIIF, and none of the directors or officers of the former is a director or officer of the latter. And vice versa.

As a matter of fact, PCA and CIIF have been engaged in a protracted and lengthy legal battle—Philippine Coconut Oil Producers Association (PCOPA) and Ibuyan vs. The Secretary of Agriculture, Philippine Coconut Authority (PCA) et al., docketed as Civil Case No. Q-96-27056 in Branch 98 of RTC Quezon City.

This case was brought in 1996 by PCOPA, of which the five oil mills of CIIF are members, to question the increase of PCA fees from six centavos per kilo of copra on first sale to 12 centavos. If PCA controls CIIF then the latter would have readily complied with the imposition of the former. But CIIF has been in the forefront of that legal battle against PCA.

Also, the charter of PCA prohibits it from investing in a profitable business. If PCA is not allowed to do business for profit, with more reason is it prohibited to control other corporations for profit like investing in palm oil selling.

Finally, PCA’s powers are limited to research, regulation and development of the industry and to the improvement of the lives of coconut farmers. It renders services like replanting, fertilization, intercropping and training of farmers for free and not for profit.

—EUCLIDES G. FORBES, administrator, Philippine Coconut Authority, Elliptical Road, Diliman, QC