Department of Agriculture squandered P14B–COA

Alcala’s reply

In its answer to the COA audit findings, Alcala’s office said the accomplishment reports from the agriculture department’s regional field units (RFUs) and field offices were being reviewed.

Alcala also vowed to “coordinate with the RFUs for the revalidation of projects through field monitoring and conduct problem-solving sessions with the implementing agencies.”

“Measures are being taken to implement the audit recommendations,” Alcala said, noting that the delay in the completion of the project was due to various constraints.

“The template for (farm-to-market road projects) is under revision to include information, such as right-of-way, obstruction within the construction limits, and unstable peace and order situation to minimize problems causing delay in the implementation of the projects,” he added.

P4.3B in loans uncollected

State auditors also took to task the DA for its failure to maximize the Agricultural Competitiveness Enhancement Fund (Acef) due to its failure to collect P4.3 billion in loans it released to various private businesses.

Created under Republic Act No. 8178, or the Agricultural Tariffication Act, after the Philippines became a member of the World Trade Organization in 1996, the Acef was intended to act as a “safety net” for small farmers and fishermen affected by the trade liberalization policies adopted by the government.

The fund, collected from the tariffs of imported agricultural products, was supposed to finance the construction of farm-to-market roads, postharvest facilities, irrigation facilities, credit, research and development, and extension services for the agriculture sector.

Acef, which the agriculture department suspended in January 2011 after the COA declared that it failed to help marginalized farmers, was originally set to expire in 2007, but was extended until this year.

“The objective of the Acef to protect farmers and fisherfolk against unfair trade practices and to increase productivity by providing the necessary support services may not be properly evaluated by management due to lack of efficient evaluation, implementation and monitoring mechanism and controls on the projects,” the COA said.

P229M unreleased loans

The audit commission said the department also approved loans amounting to P229 million that it had yet to release to 12 business enterprises whose applications for financial assistance were approved as early as 2007.

“This could affect the viability of the project because of the time lapsed between the approval of loans and the actual implementation of the projects. The financial and feasibility study done before may not be appropriate if the said projects will be implemented in the succeeding year,” the COA said.

State auditors also uncovered “deficiencies” in several projects funded by P4.8 billion in DAP funds.

The projects included construction of farm-to-market roads, credit financing for livestock sector and financial assistance for the cultivation of high-value commercial crops.

“The implementation of the objectives of the DAP projects were inefficient and ineffective… due to the deficiencies in the implementation of the projects,” the COA said.

In addition, the COA said P224.5 million in PDAF allocations of several lawmakers was also put to waste because the projects financed by the pork barrel were “ineffective.”

Enrile, Pangandaman’s PDAF

Of the amount, it said NAFC spent P199.4 million, including P45 million from detained Sen. Juan Ponce Enrile and P30 million from Lanao del Sur Rep. Mohammed Pangandaman, to livelihood projects outside its mandate.

Alcala’s office said the department had already suspended the allocation of funds to NAFC since June 2012 and that it had sent demand letters “requesting the full liquidation of the fund transfers.”

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