ALLEGATIONS of corruption, misuse, abuse, and neglect have marred the government's 19-year-old agricultural program meant to help prepare farmers and fishermen compete with their Association of Southeast Asian Nations (ASEAN) counterparts in time for tariff-free trade in 2015. With an accumulated budget of P13 billion, the program called the Agricultural Competitiveness Enchancement Fund (ACEF) is meant to help small farmers and fishermen improve the quality and volume of their harvest by funding their expansion and training programs. Its aim is to make them competitive vis-a-vis the expected untramelled entry of imported goods as a result of ASEAN integration and trade liberalization. everal farmers interviewed by the ABS-CBN Investigative team revealed that some Budget officials had asked for a commission, ranging anywhere between 15 and 35 percent of their loans as a condition for the release. Three of these farmers approached by Budget officials during the Arroyo administration backed out of the program because of this corrupt practice. One of them was Gregorio San Diego, president of United Broilers Raiser Association, which operates from Laguna to Tarlac. Before he filed his loan application, he said he commissioned a feasibility study on how to improve raising chicken. "So we submitted all the requirements but waited two years for the loan to come,” he told the ABS Investigative News team. "Yun pala, may hinihintay sila....Eh yung kalakaran na sinasabi nila, kumbaga common knowledge naman ito sa industriya na may hinihinging regalo. Ang sinasabi nila, talagang pinakamababang-mababa na yung 10 percent. Wala ngang interest, wala ngang collateral, may hinihintay naman na manggagaling sa iyo. Magpaparinig lang na, 'kaya di tumatakbo yung papel ninyo, hindi kayo willing na magbigay'.” If a farmer-borrower had no connections at the Department of Agriculture (DA), San Diego said, government officials may ask anywhere between 30 and 40 percent cut. "They say it is lower than what the bank required,” he said. "But still, hindi naman ayon sa batas iyan, dapat makuha mo ito na wala kang gagastusin. ” After senators discovered the anomalies, Pangilinan's oversight committee instituted some reforms, including imposing loan interests and collaterals, to ensure a speedy loan collection, but the Executive department had done little to recover funds, much less pump prime the agricultural sector through ACEF. Two separate reports–one done by the Congressional Oversight Committee on Food and Agricultural Modernization (COCAFM) and the other by the PIDS–confirmed that the management of the P13-billion fund was marred by corruption, abuse, and misuse during Arroyo's term between 2000 and 2010. The two reports did not accuse the administration of Joseph Estrada of anything.

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