A lawmaker has called for a congressional inquiry into the importation of palm cooking oil by oil milling companies owned by the Coconut Industry Investment Fund (CIIF).
“While businesses are free within the bounds of the law to engage in practices that will enhance profitability, there is an inherent conflict of interest when companies funded through the coconut levy fund engage in the importation of palm cooking oil,” said Rep. Danilo Suarez (3rd District, Quezon).
In filing House Resolution 3017, Suarez said since the CIIF was created from the coconut levy funds, “there is a premise that the CIIF must be used to protect and improve the life of coconut farmers.”
“The CIIF is an offshoot of the coconut levy which was imposed on the sale of copra from 1973 to 1982. Out of the accumulated funds from this levy was established the United Coconut Planters Bank (UCPB) and the CIIF, which was charged with managing the coco levy fund,” Suarez said.
Suarez said the CIIF Oil Milling Group has the objective of serving the world’s demand for fats and oil and animal feeds with a firm commitment to retain as a truly reliable and consistent supplier.
Citing records of the Bureau of Customs, Suarez said the three mills owned by the CIIF are engaged in the importation of palm oil. These companies are the Legaspi Oil Company, Inc., San Pablo Manufacturing Corporation, and Cagayan De Oro Oil Co., which is owned or substantially owned by the CIIF.
The three companies imported a combined total of 11,721, 069 kilograms of Mitra Cooking Oil from Indonesia for the years 2011 to 2012. The total value imported was P631,005,786.00.