Dancongcogon Sugar Central in Barangay Tabugon, Kabankalan, has failed to begin milling because of financial troubles, leaving about 300 employees without salaries for more than three months with the amount reaching about P4 million, its officials said yesterday.

In fact, stress has taken its toll on the people at Dacongcogon causing mill worker Harry Jomen to die of a stroke yesterday, said Rolando Parpa, a director of the Dacongcogon Sugar Producers Cooperative Marketing Association, that owns the mill.

Many children have also been unable to go to school because of this problem, he said.

Ofelia Tagaysay, a planter member of the mill, said three other mill workers also suffered strokes due to stress, but luckily survived, caused by the uncertainty of the mill's operation and their not being paid.

She said wives of the workers have been holding prayer rallies at the mill gate.

Yesterday the groups of Wilfredo Miraflores, mill president, and Parpa met with Negros Occidental Gov. Joseph Marañon to try to find a solution to their plight.

Miraflores said he was waiting for Amertech International Ventures to finance the reopening of the mill, which he expects in 10 days.

Miraflores said that, in their contract, Amertech will have straight lease of the mill for 10 years, and the firm will be responsible for paying its workers and its debts.

Miraflores said Dacongcogon had expected to start milling on Nov. 8 but funds from another financier did not materialize so they looked for another one. However, after the meeting with Marañon yesterday, Miraflores said he would set a deadline for Amertech to deliver and if it fails to do so, he will return to the governor to seek help.

Parpa, on the other hand, said the wait for Miraflores' financiers has been too long while families are going hungry because of the delay in salaries for almost four months.

He said that on Oct. 23 the Dacongcogon Board had approved a resolution requesting clearance from the Department of Labor and Employment to declare a "dead season" and lay off its unpaid employees effective Oct. 30.

That means that, effective yesterday, 200 of the mills workers were considered laid off, Parpa said.

But Parpa yesterday submitted an appeal signed by employees and planter members of the Dacongcogon cooperative to Marañon, Vice Gov. Isidro Zayco, Rep. Genaro Rafael Alvarez (Neg. Occ., 6th district) and Kabankalan Mayor Pedro Zayco asking them to endorse their request for President Gloria Macapagal Arroyo to intervene and save the sugar mill from closure, being cannibalized, and sold out.

'TAKE-OVER NEEDED'

Parpa said this can be undertaken through the immediate takeover of Dacongcogon by the Philippine Sugar Corp. in cooperation with the Philippine National Bank.

The President could direct PHILSUCOR to fully rehabilitate the mill to meet the milling needs of the small farmers of Dacongcogon according to PHILSUCOR's mandate, he said.

If the President does not intervene the present state of the mill could deteriorate and kill the economy of Dacongcogon, he said.

"In April 2006 when it was clear that the cooperative wouldn't be able to pay its loans, PHILSUCOR had expressed willingness to continue the financing, provided management was turned over to them," Parpa said.

However, he claimed, the majority of the members of the Dacongcogon board who were so determined to hold on to their positions refused the PHILSUCOR offer.

"They intentionally cut off credit line with PNB in favor of an individual who promised financing for Dacongcogon, apparently in exchange for a marketing monopoly of the sugar and molasses products of the mill," he said, but he added that five months have passed and the money has not been produced.

RAPS READIED

He said on Aug. 25, 2006 the cooperative general assembly passed a resolution appealing for immediate PHILSUCOR and PNB intervention, but instead of implementing the assembly resolution, the board passed its own resolution on Sept. 5 approving a MOA to avail of financing from Amertech, which is "an obscure company with dubious financial capacity."

Parpa said charges will be filed by the planter-members against the board members who have refused to implement the resolution of the general assembly and their ouster is being sought.

Marañon said that, at the meeting, he told the groups of Miraflores and Parpa to unite, because if they do they can go to any financial institution to present their problems.

"I also told them to set a deadline for Amertech to produce its funding or return to PNB and PHILSUCOR," he said.

"I told them to think about the survival of the cooperative and the members," the governor added.

NEW HOPE GONE?

The 1973 Ramon Magsaysay Award for Public Service had been given to the late Bishop Antonio Y. Fortich and Benjamin Corteza Gaston for establishing the Dacongcogon sugar mill.

From collaboration between Fortich and Gaston the Dacongcogon Producers Cooperative Marketing Association Inc. was created in 1968 and the next year they organized the Dacongcogon Sugar and Rice Milling Company Inc.

The Magsasay Award citation to Fortich and Gaston stated that the Dacongcogon cooperative "had increased tenfold the members who have secured title to their lands. Corn and upland and lowland rice are also producing yields and prices new to these formerly subsistence farmers. Economic vitality in the 'Valley of Tall Grass' is evidence of what people, church and government can accomplish together, under effective and enlightened leadership."

Fortich and Gaston were given recognition for engineering of an experiment in rural development giving small, indebted farmers in Dacongcogon Valley control of their livelihood and new hope.

But Fortich and Gaston are now dead and the new hope they started in Dacongcogon appears to be on the verge of being lost unless someone intervenes.*CPG

back to top