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Wednesday, September 27, 2006
Dacongcogon Sugar Mill workers cry over delayed salaries

SIX months worth of unreleased salaries motivated about 200 workers of the Dacongcogon Central Sugar Mill to air their protest before Negros Occidental Governor Joseph Marañon Tuesday.

The group, led by Rolando Parpa, claimed they have not received their salaries since April up to present. Its members are all workers of the Dacongcogon Sugar Producers Cooperative Marketing Association.

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"The vision for the small farmers in Dacongcogon valley to own a cooperative sugar central has been fulfilled but the members failed to train and provide professional management bringing into disastrous state the project founded by the late Antonio Y. Fortich," said Parpa.

Parpa Tuesday said they might not be able to mill their canes as the central is still not repaired up to this date due to lack of financing.

"The mill management and their financial partners promised since April 2006 but up to this date they failed to provide funds and instead they shun government support," Parpa said.

As for Marañon, he said he will look into the complaint of the workers.

"The province is not into financing business but we feel that these small farmers should be given the opportunity to mill their canes," said Marañon.

Parpa said the Dacongcogon mill district used to generate an earning of P150 to P200 million and "the stoppage of its operations has grave economic impact."

"Kabankalan City Mayor Pedro Zayco Jr., Representative Genaro Alvarez (Sixth District, Negros Occidental) and the Provincial Board have expressed deep concern and appeal to the national government, particularly the Philippine Sugar Corp. (Philsucor) to save Dacongcogon from closure," he added.

He said if the sugar central closes, hundreds of employees would be laid off and thousands of farmers would suffer economic dislocation.

Parpa said the Provincial Government, through Philsucor can still financed Dacongcogon's operation, despite of limited time to repair it and prepare for milling.

He added that the province may rehabilitate and expand the sugar central to cope with the requirement for large and still increasing area of sugar plantations in the valley.

The Philsucor and the Philippine National Bank (PNB) are two financing institutions where sugar firms usually asked for loan assistance during the milling season.

Parpa, in a related interview, scored the present ruling board management for believing the "promises of their financing institution to meet the repair and operational needs of the sugar mill and after five months told that they were not able to find the money.

Parpa has also rejected the resolution of the general assembly to obtain financial arrangement with the PNB and Philsucor.

Parpa said that due to non-payment by Dacongcogon of its overdue amortization loans with PNB and Philsucor, they could resort to foreclosure.

"However, during previous discussions, it was considered better options for the PNB, to instead of foreclosure exercise the right to take over management of the mills as provided in its credit agreement of Dacongcogon," said Parpa.

He added that the PNB is willing to designate the Philsucor to handle the operation of the mill in its behalf.

Parpa further said that under the scheme the management of the mill would not remain with the sugar firm and could pave the way to a professionalized management of the mill up to the time the accounts of the cooperative with the PNB and the Philsucor shall be fully paid.

The sugar firm situated in Barangay Tabugon, Kabankalan City is composed of 9,000 employees. (RLB)

(September 27, 2006 issue)
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