Pay P1B debt, QUEDANCOR urged

January 30, 2011

Bernadette E. Tamayo
January 31, 2011

SENATOR Francis Pangilinan called on QUEDANCOR officials to settle their supposed P1 billion “debt” to the Agricultural Competitiveness Enhancement Fund (ACEF).

He also urged Department of Agriculture officials to suspend the release of ACEF funds until the agency is able to restructure its policies to meet the demands of its beneficiaries without going bankrupt.

“I am aware that ACEF was created to provide support to the agricultural sector, but releasing loans with zero interest and zero collateral attracts unscrupulous groups and individuals,” Pangilinan said.

“Unless we are able to address the loopholes, the most prudent thing to do is suspend the release of funds,” he added.

A report submitted to Pangilinan, Senate chairman of the Committee on Agriculture and Food, showed ACEF’s fund balance is only P1.8 billion. The same report showed that of the P20 billion total amount the agency has raised since 1999, only P200 million was collected as payment for loans since 2002.

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