Engineer Proceso Domingo, NIA assistant administrator for systems operation and equipment management, told The STAR that the writing off of the P6 billion worth of unpaid ISFs is part of the Compromise Agreement Program (CAP) which the NIA Board of Directors chaired by Agriculture Secretary Luis Lorenzo Jr. passed in Resolution 7181-03.
The resolution which will take effect on Aug. 7, means that some 740,000 farmers nationwide who are being serviced by National Irrigation Systems (NIS) jointly operated by NIA and irrigators associations, will no longer have to pay the P6 billion representing interests for unpaid ISFs from July 1,1975 to June 30,2003.
Farmers will only have to pay for the principal of P7 billion.
ISF is the charge for the services rendered by NIA and NIS for the maintenance of facilities and delivery of water in which monetary value is computed in cavans of palay per hectare. Its peso equivalent is based on the prevailing government support price for palay.
ISF is considered the primary source of income generation for NIA, a government owned and controlled corporation (GOCC). Low ISF collection has been blamed for past failure of NIA to consistently maintain its facilities.
Domingo, a member of the NIA board, said that the amount waived off by NIA is much bigger than the agency’s proposed 2004 budget of P5.4 billion. "This is the best gift that President Arroyo, Secretary Lorenzo and Administrator Paras can give farmers who have long been saddled with ISF payments," he said.
Domingo said that under the implementing guidelines for the compromise agreement, farmers covered by the program are those whose names appear in the irrigation feed register (IFR) to include landowners, tenants, lessees or recipients of Certificates of Land Transfer (CLTs).
The compromise agreement is covered by Section 36 of Presidential Decree 1445 also known as the State Audit Code of the Philippines which grants the Commission on Audit (COA) powers to or settle any liability by any government agency up to P10,000.
When the amount is P100,000, this is subject to approval of the President. — Manny Galvez