May 12, 2005

Ex-coconut authority chief to run P140-B coco levy but...
By Christine O. Avenda¤o
May 12, 2005
Page A1

A NEW MAN has been named to take over the state-run trustee of the P140-billion coconut levy fund, and it appears to be good news for farmers' groups.

President Macapagal-Arroyo yesterday announced that Danny Coronacion would replace Rolando Golez as chief executive officer of the Coconut Industry Investment Fund (CIIF). But she also said Camilo Sabio, the newly appointed chair of the Presidential Commission on Good Government would be the officer in charge of the CIIF Oil Mills Group in the meantime.

"When things have stabilized, Sabio will relinquish the chairmanship [to Coronacion]," Ms Arroyo said at a news conference.

Golez resigned the other day, following the disclosure of the lavish perks and privileges he had been enjoying as president and CEO of the CIIF.

Ms Arroyo said she had immediately accepted Golez's resignation.

Sabio told reporters that United Coconut Planters Bank (UCPB) and the PCGG would continue with the investigation of Golez despite his resignation, "so that it would be fair, due process would be followed, and the law would be implemented."

In a phone interview, Coronacion said Ms Arroyo called to offer him the position the other day. He said he accepted the offer because he could not refuse the President.

"I wasn't expecting [the offer] because I was under the impression that there was somebody else for the position," he said.

Coronacion is the first administrator of the Philippine Coconut Authority (PCA) under the Arroyo administration. He held the position from 2001 to 2004.

Reached by phone, Romeo Royandoyan, executive director of the Philippine Peasant Institute, said many farmers' groups would be elated by Coronacion's appointment.

"If the news is true, we wholeheartedly support [the appointment] because he's highly qualified," Royandoyan said. "His heart is with the coconut farmers."
Coconut man

After his stint at the PCA, Coronacion was named to the board of directors of the CIIF Oil Mills Group-his position at present.

Coronacion said he also served as a special resource person for UCPB-CIIF Finance and Development Corp.

"So I've never left the industry after PCA," he said.

As the new CEO of the CIIF, Coronacion intends to examine the company structure, review its programs and strengthen its coordination with the Department of Agriculture, PCA and UCPB, among others.

"There is also a need to institute mechanisms for more effective farmers' participation in the formulation and implementation of programs," he said.

Before the PCA, Coronacion was a senior special assistant at the Department of Foreign Affairs, during the term of Foreign Secretary Raul Manglapus.

He worked with the DFA until 1992.

He served as a deputy administrator of the Philippine Overseas Employment Administration from 1996 to 1998.

Coronacion said he even dabbled briefly in politics when he ran for a seat in the House-and lost-during the elections in 1998.

Golez should explain
Lawmakers want Golez to explain to Congress and the Ombudsman the use of the coconut levy fund for his perks as CIIF president and CEO.

"The issue is of national importance because the money used for the perks and privileges of Golez came from the coconut farmers. How much of the levy collected from coconut farmers has been diverted to these perks and privileges?" said Davao del Sur Rep. Douglas Cagas, vice chair of the House committee on good government.

Cagas and Lanao del Sur Rep. Benasing Macarambon, chair of the House committee on agriculture and food, said Golez's resignation "did not absolve him of the extravagant practices" of the CIIF during his administration.

They said Congress and the Ombudsman should have separate investigations and also look into other government agencies that might have followed the CIIF example.

"Well, I'm glad [Golez], resigned but I think he should still explain. We could invite him as a resource person to air his side," said Akbayan Rep. Loretta Anne Rosales.

According to Rosales, Macarambon promised that his committee would conduct an investigation next week.

On Tuesday, Representatives Lorenzo Tanada III, Rafael Nantes, Proceso Alcala, Danilo Suarez, Del de Guzman and Edcel Lagman also filed a resolution calling for an inquiry into the loss of some P70 million from the CIIF fund.

"The [coconut levy] fund is a public fund, as declared by the Supreme Court, and is owned by millions of coconut farmers nationwide," Tanada said.

"It should not be used to pay for the ostentatious lifestyle of its supposed guardians and caretakers, especially when an economic crisis is devastating the lives of the coconut farmers and the Filipino people," he added.

Independent audit
The investigating committee led by UCPB chair Jose Perez has decided to select an independent audit firm to conduct a thorough study of the financial reports of the CIIF group of companies.

"The committee is now selecting among the top auditing firms including Price Waterhouse Coopers, Mananghaya, among others. This will guide us all in setting the proper perspective in this investigation. We will assist them in gathering the needed data," Perez said.

He reiterated that the audit of financial reports and also of related company policies would be appropriate as all government-owned and -controlled corporations were subject to austerity measures, as ordered by Malacanang.

Perez said Golez's resignation did not save him from facing an inquiry regarding his expenses at the CIIF.

"He said he will cooperate well with the investigation," Perez said. "We will give him the chance to do so."

He added a subpoena would be issued to Golez to compel him to appear in the next hearing. With reports from Philip C. Tubeza, Franco Emman von Cena and Christine Gaylican