Iloilo Capitol to take over bleeding rice complex

By Rjay Zuriaga Castor

Beset with issues of mismanagement and financial losses, the provincial government of Iloilo is pushing to salvage the P200-million Iloilo Rice Processing Complex (IRPC) in Brgy. Amamaros, Pototan, which was donated by the Korean International Cooperation Agency (KOICA).

“We are already starting our discussion for the complex to be returned to us and what we can do will become part of our rice hybrid program […] The direction is to return it back to the province,” said Governor Arthur Defensor Jr. in a Thursday press conference.

This comes after the Pototan Farmers Multi-Purpose Cooperative (PFMPC), which oversees the management and business operations of the complex, announced revealed “misappropriation or mishandling of the operating fund” and “mismanagement of the operation.”

In a March 9 letter, Andrei Celiz, Chairman of the PFMPC Board of Directors, said that the management has encountered several challenges. The letter was addressed to Defensor, the municipal mayor of Pototan, and the Department of Agriculture Region 6 (DA-6).

“There was a legal problem concerning the mismanagement and misappropriation of funds by the IRPC personnel, thereby prompting the (DA-6) to file an estafa case against them,” he said. However, the case was dismissed by the Office of the Provincial Prosecutor of Iloilo.

Celiz added that more recently, the operations manager, who also acted as collections officer following the resignation of another employee, had gone on absence without leave status.

“He left with unliquidated accounts and collections on his shoulders,” he said.

Remedial measures

Confronted with financial and operational issues, Celiz said PMPC is in direct threat of depleting its own funds should the losses in the IRPC continue.

Apart from this, PMPC would also be compelled to provide its own funds for the salaries of the personnel.

According to Celiz, PFMPC cannot access the bank account of the IRPC to deposit the income derived from the operation into the Special Enterprise Fund (SEF), prompting them to create a new bank account for the SEF under the name PFMPC-IRPC.

The SEF is used for administrative expenses, personnel services, maintenance and other operating expenses, acquisition of additional equipment and facilities, and other agri-related activities that will sustain the commercial operation and management of the IRPC.

During its general assembly, Celiz said they have authorized the Board of Directors to terminate the memorandum of agreement (MOA) with KOICA and return the operation and management of the IRPC to the DA-6, the Provincial Government of Iloilo, and the Municipal Government of Pototan.

“To avoid further business losses and damage to the equipment, the PFMPC has ceased its operation (with skeleton office personnel to reconcile accounts and records for take-over and/or turn-over) as it prepares for its irrevocable decision of terminating its obligation of taking charge of the business operation and management of the IRPC,” Celiz said.

In the interim, the DA-6, the Provincial Government of Iloilo, and the Municipal Government of Pototan are currently overseeing the management.

Defensor said the turnover of the operation to the provincial government would boost the province’s production volume and harvest performance in palay production.

“This will be our facility that we are looking at if we will have intervention for the procurement and processing of our rice […] We can operate it and we can actually participate in the processing and maybe procurement of rice,” he said.

The rice processing complex was built in April 2012 to improve the efficiency of the post-production system for the farmers in the municipality.

On March 5, 2015, PFMPC entered into a MOA with the DA-6, the provincial government, and the municipal government of Pototan, under a joint venture for the IRPC.