by Yvonne T. Chua and Luz Rimban
VERA Files
(Conclusion)
Two months before the May 2004 elections, the Quedan and Rural Credit Guarantee Corp. (Quedancor) obtained a P5-billion syndicated loan from Equitable PCIBank and Land Bank of the Philippines but only needed at most a fifth of the money it borrowed.
It also presented “bloated figures” of its operations, including an “unachievable” repayment fee, in order to get the loan. And it had been offered better terms by the two banks but ignored or changed these. The terms were so disadvantageous that Quedancor got less than half of P5 billion.
The loan is one of the main reasons Quedancor, the credit guarantee arm of the Department of Agriculture, is now in financial distress.
An internal audit on the beleaguered state firm, interviews with its officials and employees, and documents obtained by VERA Files show that when Quedancor negotiated with the banks, it was already in the red because of its various failed lending programs.
It had also suddenly expanded operations under the Arroyo administration, creating regional, district and extension offices. Mass hiring caused the Quedancor bureaucracy to balloon from 520 in 2001 to 1,721 in 2004.
The firm was scouring for money to finance pending loan applications of up to P759 million, but there was no firm assurance of fresh funds coming from the national government, its traditional source of money.
It was at this point that the 11-member Quedancor board, chaired by then Agriculture Secretary Luis Lorenzo, approved a proposal to tap the capital market, where long-term funds such as bonds and stocks are traded.
Click here (VERA Files) for the rest of the story.
“It had also suddenly expanded operations under the Arroyo administration, creating regional, district and extension offices. ”
Kapag banko ay dinadagdagan ni Gloria, kapag bansa ay nililiitan!
So Quedancor has dried up. SSS will be next.
And there must be money, also at the MARINA. A ship that lays at the pier is a sure loss of revenue. So they have to come across on bended knees.
Former Surigao del Sur Rep. Prospero Pichay has accepted appointment as a board member of the Local Water Utilities Administration (LWUA), and he will eventually be elected chairman by that agency’s board, Executive Secretary Eduardo Ermita said yesterday. At first, he did not want the post. We do not know why he finally accepted. His first choice was BOC . He had nowhere to go. Shameless, this Pichay!
There’s s report that Gloria’s trip (again) to US was canceled. Did Malacanang cancel or Washington? And what’s the purpose of her trip this time? Bolante? MOA?
BE, you asked “And what’s the purpose of her trip this time? ” Check out my Aug. 29 column: Grasping at (foreign) straws
Thanks Ellen. If she expects Bush, Obama or MacCain to meet her, she will be very disappointed. Americans are very busy campaigning.
Will we ever see people at quedancor who have committed fraud punished according to Philippine laws? I have strong doubts. At this stage all cover-up experts in gloria’s administration are hard at work. Lies and more lies will fly till we’re so numb that we may not care at all.
Nabasa ko a while ago..na hindi na matutuloy si putot sa UN..bakit kaya? Akala ko pa mandin ay susuduin niya si Joc Joc..ang sabi ni siraulo hindi daw dadamputin si Joc Joc and he will move around as a free man..what a joke!
Joc Joc will move around as a free man because Malacanang says so. Jun Lozada arrived not as a free man and was abducted because Malacanang ordered it.
Three of the five farmers accused of being communist guerrillas were holding information on the fertilizer scam before they were “illegally abducted and detained,” according to Axel Pinpin, one of the “Tagaytay 5” and information officer of Kalipunan ng mga Magsasaka sa Kabite.
According to ABS-CBN News, goverment will ask that Jocjoc be deported to Hong Kong. wadafuk? Nasakop na ba natin ang Hong Kong? O nasakop na tayo ng Tsina?
Patung-patong na iskandalo sa pondo na tambak ang ebidensiya, malinaw pa sa ihi ng bagong panganak, plunder ang naghihintay kay Gloria at mga tuta niya sa 2010!
Huwag lang tayo maisahan ni Kabayad o ni Villar o kung sinuman ang malas na susunod.
Hongkong na lang dahil di matutuloy ang BJE where our laws cannot reach any exile there. But London is more like it. Blair can do something with that.
Hongkong because that’s Bolante’s port of origin when he went to the U.S.when he was arrested.
My understanding of deportation by the US is the country of origin, not port of origin. So, a Filipino immigrant in the US is deported to the Philippines. There are even instances when even if one is a naturalized citizen of another country, for example a Canadian-Filipino, the US deports him to RP and not Canada. A case in point is that Syrian born Canadian who was accused of being a terrorist by the US. He was deported to Syria instead of Canada. I’m not very certain about it, though. So, others’ opinions are welcome.
If I were to audit Quedancor, my report will mostly dwell on the glaring incompetence of management. They failed to exercise the very basic functions of management which is planning, organizing, directing and control. The accounting staff is helpless without the cooperation of management. The assumption therefore is Quedancor came into existence not to succeed but to fail. It was only to be used as milking cow of the powers that be.
It’s a conspiracy theory in the highest order and at its best.