The Commission on Audit has flagged the Philippine Coconut Authority for the distribution of P86.652 million worth of fertilizers, and P45.195 million worth of cacao and oil palm seedlings due to lack of proper documentation.
In a 2018 audit, state auditors questioned if legitimate beneficiaries had received the farm inputs for them since procedures and requirements under the small holder oil palm development program (SOPDP), Kasaganaan sa Niyugan at Kaunlaran ng Bayan (KAANIB) Enterprise Development Projects (KEDP) intercopping, and Participatory Coconut Planting Program (PCPP) were not complied with.
The programs were designed to empower small coconut farmers and farmers’ groups through the extension of government aid and establishment of linkage with the market and oil millers.
“There was no assurance that the delivered agricultural inputs in the total amount of P45.195 million were distributed to the bona fide program beneficiaries.
Also, the disbursement for the supply of palm oil seedlings …were not supported with the master list of approved farmer-participants who have actually planted the palm oil seedlings [MAFPAPOS],” the report read.
The SOPDP required that PCA agriculturists would register prospective program participants in coordination with barangay and municipal officials, while under the PCPP, the participation of palm oil mills and existing cooperatives were encouraged.
Among the documents required for evaluation of participants qualification were the original certificate of title, transfer certificates of title, certificate of land transfer, tax declarations, torrens title, homestead patent, letter of consent from the landowner, certificate of stewardship and/or certificate of ancestral domain title.
Validation of supporting documents under the PCPP incentives for supposed beneficiaries in PCA Region 8 (P447,300) and Region 13 (P18.69 million) were included in the master list of farmer participants even if no proofs of identity and land ownership were submitted.
In Regional Office 1-4B, auditors noted the lack of documents to support validation of eligibility by supposed farmers under the SOPDP who received oil palm seedlings amounting to P3.328 million.
“The absence of such documents cast doubt on the eligibility of the farmers who received the benefits,” the commission said.
“The absence of (master list) would not ensure that the recipients of the procured/delivered agricultural inputs are bona fide/eligible beneficiaries. Thus, the intended outcome of the projects of increasing oil palm production and increasing farmers’ income might not be attained,” it added.
The commission noted the PCA must require provincial coconut development manager (PCDM) and coconut development officer to strictly comply with project guidelines noting that non-submission of complete supporting documents is a violation of Presidential Decree No. 1445 or the Government Auditing Code of the Philippines.
A separate transaction involving P235.508 million distribution of multi-nutrient fertilizer and agricultural grade salt fertilizer for farmers under the salt fertilization project was also flagged for insufficient documents.
“There was no assurance that the delivered fertilizers were distributed to farmer participants. Moreover, this is contrary to Section 4(6) of PD No. 1445 that requires claims against government funds be supported with complete documentation,” the COA said.
Under the memorandum of agreement signed between the PCA and the Philippine International Trading Corp. in 2014, the latter was designated to supply and deliver MNF and AGSF in the total amount of P433 million transferred in 2015.