‘Wasted’ Acef to test Digong’s mettle to deal with gov’t malfeasance

Further clarification appears to be in order on the news item titled “Villar scolds DA: Pay your obligations to poor scholars” (News, 10/4/16).

The report on the “P13-billion collection for the Acef” (Agricultural Competitiveness Enhancement Fund) could be misleading. The huge amount represents tariffs and duties (not loan repayments) on imports of agricultural products to fund the Acef.

In this regard, the government’s proposal to channel to displaced tillers the additional tariffs, earned because of the nonextension of the quantitative restrictions (QR) on rice imports, should be evaluated in light of the failed Acef.

Secondly, the “P8 billion” reported in 2013 by Sen. Cynthia Villar, chair of the Senate agriculture committee, as “wasted,” because “most of the funds were lent to big companies and cooperatives and not to small farmers and fishermen” (based on the list of Acef debtors, which was published by the Commission on Audit or COA in 2008).

That year, out of loans receivable (P5.873 billion), “long overdue loans of P1.337B” represented a quarter. And out of P487.352-million amortizations due (zero interest and collateral free), only “7.19 percent were collected.” Based on a COA Audit report released in 2010, DA loans receivables ballooned to P8.11 billion—P1.66 billion from government-owned and -controlled corporation’s; P280 million from local governments; and P6.17 billion from other entities.

From the COA: “Confirmation/Validation of Receivables.” Confirmation was sought through 264 letters (please take note, “receivables” as differentiated from “total loans”): “only 37% replied (confirmed P1.29B); 53% (worth P2.1B) no reply; 10% (P370M) returned for various reasons” (mostly fictitious, unknown addresses, if not closed business).

The Acef was temporarily suspended due to “irregularities.” This was the subject of two letters to the editor (“Is Acef a failure or not? Answer in facts, figures,” Opinion, 9/30/11); “There goes Acef, there goes the pork barrel,” Opinion, 5/10/14).

What an irony! The DA paid only 20 percent of the tuition fees of state-scholars, leaving a balance of P310 million in debt to state universities and colleges (SUCs), while “wasted” P8 billion of Acef even as the facility got P13 billion from tariff collections.

Unless President Duterte steps in with the same zeal he applies in the drug war, Senator Villar must make good her warning “not to move for the approval of the proposed budget for DA until it settles its obligations to the SUCs,” and penalizes Acef borrowers in default and blacklists habitual nonpaying debtors.

We take note of President Duterte’s May 31 statement in a press conference in Davao City: “I want honesty and good faith in dealing with the people.” Will the Acef be a test of DU30’s mettle in addressing malfeasance in government?

MANUEL Q. BONDAD, Makati City