Quedancor told to return P1-B loan

THE Commission on Audit (COA) ordered the Quedan and Rural Credit Guarantee Corporation (Quedancor) to return a P1billion loan to the Department of Agriculture (DA) after liquidation report on the money was not submitted.

Government auditors asked the government-owned and -controlled corporation to return to the DA the Agricultural Competitiveness Enhancement Fund (Acef) after they failed to revert back the billion- peso loan on time and also failed to submit of the needed terminal report.

On August 26, 2003, Quedancor and the DA entered into an agreement to finance projects and activities that will aid the agricultural and fisheries sector to become globally competitive, viable, efficient and sustainable.

The memorandum required Quedancor to set up a Special Program Fund equivalent to two percent per annum of the Acef fund, which will be sourced from the earnings of the Acef Fund.

As of 2005, the whole amount has been transferred to the different Quedancor offices nationwide.

The program, to be implemented for seven years, provided a P1 billion loan fund to Quedancor for the farmers and fisherfolk nationwide.

However, the Commission noted that “Quedancor failed to return the fund to the Department of Agriculture after its termination on August 26, 2010. “

Even the terminal report “has not also been submitted for verification,” COA added.

“Of the P1 billion Acef Fund, only P391.495 million have been fully paid, thus, indicative that the implementation of the program was not closely monitored,” COA said.