COMMENTARY

Misuse of Funds Leads to Further Exploitation of Tobacco Farmers

RA 7171 serves as the only law that can help the tobacco farmers continue their livelihood and keep the industry alive. Nonetheless, if the current trend of using its funds for creating bridges, municipal halls or other activities continues, the tobacco farmers will remain at the losing end.

BY ZOFIA LEAL
Bulatlat

Republic Act No. 7171 states that 15 percent of all the excise tax on cigarettes is automatically set aside for the Virginia tobacco-producing provinces. Ilocos Sur Governor Luis Singson authored the law when he was still a congressman.

RA 7171, however, has also been the cause of many disputes. During the term of former President Joseph Ejercito Estrada, the misuse of RA 7171, among other cases, was used against him in the impeachment case against him. Out of the P200 million given for the province of Ilocos Sur, P130 million reportedly went to the former president.      

In Rosario, La Union, then Vice Mayor Alberto Nidoy and other members of his Sangguniang Bayan (Municipal Council) filed a criminal complaint for malversation, technical malversation, falsification of public document and violation of Republic Act No. 3019 which is the Anti-Graft and Corruption Act, against the respondents, Josephine Flores and Violeta U. Garcia, mayor and treasurer, respectively, of the same municipality at the Office of the Ombudsman on April 23, 1999.  The fund for RA 7171 was supposedly transferred by the respondents to other banks than the one set by the government. A mismatch of the amount in the documents was also stated.       

RA 7171 was initially created for the advancement of the tobacco industry and its farmers. Nonetheless, it has been used by public officials to gather more funds, not for the farmers, but for themselves. In the face of the many cases that had been filed by legislators against one another, it is the farmers that continue to suffer. 

Until now, the funds that are being received by the local government units (LGUs) under RA 7171 are being used for other purposes.

In the city of Candon, Ilocos Sur in the year 2001-2002, most of the programs and projects were taken from the funds of RA 7171. These include the completion of the public market (P6 million), improvement and/or concreting of farm to market roads (P7.5 million), construction or repair of bridges (P16.6 million), creation of drainage canals and seawalls (P3.6 million), and even construction of public buildings and facilities such as the civic center (P2 million), senior citizens center (P1 million), San Isidro multi-purpose complex (P500,000) and the San Jose Barangay Health Center (P150,000).

In 2005, an amount of P25.75 million was taken from RA 7171 funds for the use of development projects, programs and activities also in Candon. It can be noted however, that out of the 14 listed only four projects will benefit the farmers. Even the construction of a new city hall was included in the list (P5 million). Other projects include tourism development (P1.3 million), improvement of barangay (village) roads, electrification program, construction or improvement of school buildings, construction or improvement of multi-purpose halls, and repair of bridges.   

Tobacco farmers already face a number of problems such as the riseko, down grading of produce, contract growing, excessive charging, and low prices.  If properly used, RA 7171 funds would at least help in easing the burden of the tobacco farmers. The call of Solidarity of Peasants Against Exploitation (Stop-Ex) is for the funds to be given directly to the farmers or the organizations that they belong to so they would directly benefit the farmers.   

If and when the time comes that Stop-Ex would receive the funds, it would be used to buy the agricultural tools and to provide for the capital needed by the farmers in the production of tobacco. 

RA 7171 serves as the only law that can help the tobacco farmers continue their livelihood and keep the industry alive. Nonetheless, if the current trend of using its funds for creating bridges, municipal halls or other activities continues, the tobacco farmers will remain at the losing end. Bulatlat

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