The loan acquired by the Gamboa Hermanos Farmworkers Multipurpose Cooperative for sugar operations in 2007 from the Philippine Sugar Corp. was authorized by its Board of Directors and ratified by the general assembly.
This was emphasized by the leaders of the group in a special meeting it held recently, a copy of the minutes of which was furnished to the DAILY STAR.
The coop board also resolved that the management appeared before the Philsucor officers and directors to justify and discuss the need of the cooperative to secure the loan. It said that the involvement of Rep. Julio Ledesma IV (Neg. Occ. 1st District) in the loan acquisition is limited only to providing real estate collateral through the San Julio Realty Inc. which he co-owns.
The loan was used for the operations of the 405-hectare property that was acquired through the voluntary offer to sell of the Comprehensive Agrarian Reform Program, it said, adding that no director or member of the cooperative doubted the misuse of funds, the minutes also showed.
Despite the failure of the government to support its ethanol industry that resulted in the self-subsidization by the cooperative in crop year 2008-2010, and their losses reaching P33 million, the organization was still able to serviced its debt and paid Philsucor P38 million, the board said.
The cooperative also expressed its intent to settle its debt with Philsucor and will not renege on its obligation, adding that it requested for subsidies from Ledesma for their sugar operations in CY 2006-2007.
“The current standing crop with an estimated gross domestic product of P100.588 million evidently supports the intent, capacity and commitment to pay the loan,” it also said. *LTG