COA calls out Nueva Ecija gov’t over idle rice dryers

MANILA, Philippines – The Commission on Audit (COA) has called out the provincial government of Nueva Ecija over P100 million worth of grain drying facilities in the province that have not benefitted farmers.

A COA technical audit showed that the facilities were not operated long enough to recover the acquisition and operation costs because of several issues.

The provincial government built 10 grain-drying facilities in 2001 at a total cost of P100 million or P10 million each, in the municipalities of Llanera, Sto Domingo, Zaragoza, Quezon, Licab, Aliaga, Peñaranda, San Leonardo, Cabiao, and Jaen.

The facilities were supposed to help farmers store and dry their crops so they could sell quality rice for a good price.

Sixteen years after they were built, only 3 of the 10 facilities are deemed operational, although the last time these were used was in 2009. 

Nueva Ecija’s provincial agriculturist told COA that use of the facilities from 2007 to 2009 only generated P1.2 million in fees.

Farmers did not benefit

The facilities earn money from farmers who pay P25 to P35 per bag of rice for the drying fees. The small farmers also have to shoulder expenses to use the facilities.

“Aside from the drying fees, each farmer who would avail of the facility must bring his own gas needed to operate the facility. As a result, it was the traders who benefitted from the facility,” COA said.

Because no one was using them, COA said the dryers broke down one by one. 

The grain dryer in San Leonardo, it noted, was used only once because its stolen electrical wiring was not replaced.

“The facility was used only once, on wet season of year 2007. On November 21, 2007, the electric wire of the facility was stolen prompting the operation to stop. Due to lack of budget, they failed to provide replacement of the electric service wire. Hence the operation of the said drying facility ceased,” COA said.

COA scored the Office of the Provincial Agriculturist “for lapses in the monitoring of its programs and projects,” and the Provincial General Service Office “for failure to regularly monitor the status of its assets.”

Donated land

The drying facilities were built on donated private land, but there were conditions for the donation. COA discovered that the donation was only valid while the drying facilities were being used, afterwhich ownership automatically reverts to the donors.

“The condition provided in the Deed of Donation regarding the reversion of the property to the donor…was somehow disadvantageous to the government,” COA pointed out.

At least one facility was reportedly turned into a vehicle plant following a renegotiation with the land donor.

In COA’s exit interview of provincial officials, Nueva Ecija’s administrator said they are seeking the help of the Department of Agriculture (DA) to rehabilitate the facilities.

COA told Nueva Ecija officials to address the issue of the donated land and take all the necessary measures to put to good use the P100 million spent on the facilities. – Rappler.com