STOP OPERATION. Representatives of the Al-Sahar Agri-Ventures Inc., a PHP3.7-billion banana business venture in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), talk with Ministry of Labor and Employment minister Romy Sema (in dark suit) following their decision to cease operations in Maguindanao on Sept. 24, 2019. A total of 1, 039 workers, mostly former members of the Moro Islamic Liberation Front in three banana plantation sites of the province have lost their jobs due to the company’s closure. (Photo courtesy of MOLE-BARMM)
COTABATO CITY -- The Al-Sahar Agri-Ventures Inc. (ASAVI), a PHP3.7-billion banana business venture in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), has ceased its operations since last week, laying off over 1,000 workers in at least three Maguindanao towns.
In a statement dated Sept. 24, 2019 but released to the media on Tuesday, ASAVI said a total of 1, 039 workers, mostly Moro Islamic Liberation Front (MILF) members, are affected by the cessation of the company’s operation in the towns of Talayan, Datu Odin Sinsuat, and Buldon of the province.
“Please be informed that the company has issued on this date (Sept. 24) the notice of termination of the service contracts with its local community partners, and as a consequence thereof, the company’s local partners have no choice but to terminate the employment of the above-mentioned employees,” John Perrine, ASAVI’s representative to the BARMM, was quoted as saying.
In compliance with labor regulations, however, ASAVI said it has ensured the remuneration of the terminated employees “whether by the company or its local community partners shall be paid up under the law.”
ASAVI has pointed to delays in the release of loans from the Land Bank of the Philippines (LBP), which passes through the review of the Department of Finance (DOF), as one of the reasons in the company’s termination of its operation.
As part of the government’s peace deal with the MILF, ASAVI broke ground for the start of operation in a 350-hectare banana plantation in Talayan, Maguindanao in November 2014.
ASAVI said its stakeholders agreed to provide the initial equity of PHP502-million to proceed with the project as it was eyeing for more funding from Bangsamoro investment Facility, later renamed as “Harvest Fund.”
ASAVI said it has already spent the amount to fund its expansion in the towns of Talayan, Buldon, and Datu Odin Sinsuat towns.
Of the total targeted areas for expansion, ASAVI only managed to use 333-hectares of 350-hectares in Talayan; 12 out of 250 hectares in Datu Odin Sinsuat, and 44 out of 104 hectares in Buldon.
“The harvest fund was formally offered on Nov. 25, 2015 by the Japan International Cooperation Agency (JICA) in the amount of Y14.784 billion (USD120 million) and received approvals from the National Economic and Development Authority/DOF/Monetary Board with the LBP’s approval as the executing agency - all completed by June 16, 2016,” the ASVI statement said.
However, Perrine said the DOF, in a memorandum of agreement with JICA on Oct. 26, 2016, that was formalized in January 2017, reduced the amount of the harvest fund to 4.928-billion yen (USD140 million), prompting some concerned sectors in Japan to be “disturbed” with the amendments introduced by the Philippine side.
It said the late Mindanao Development Authority chairman Datu Abdul Khayr Alonto has assured them that he was going to have the discrepancy corrected with the remaining amount of USD80 million be restored for BARMM.
“But unfortunately to no avail up to the time of his (Alonto) untimely passing,” the firm said.
“It is our understanding that the amount of USD40 million or PHP2 billion that entered LBP from the JICA harvest fund has been disbursed outside the ARMM with no amount left for the BARMM," said Perrine, adding that the matter could be verified by the BARMM with the LBP.
He said only a separate grant, amounting to PHP290 million for technical assistance and capacity-building, among others, was left with a portion for such uses within the BARMM and the surrounding areas.
Lawyer Naguib Sinarimbo, BARMM interior minister and concurrent regional spokesperson, said top BARMM leaders are set to meet with Minister Romy Sema of the Ministry of Labor and Employment - BARMM to discuss the matter thoroughly.
“We will (also) certainly take this up with the Secretary of Finance,” he said.
ASAVI is an affiliate company of Unifrutti Group of Companies, which also manages other companies like La Frutera Inc., Wao Development Corporation and Mount Kalatungan Agri Ventures Inc. in the BARMM.
https://www.pna.gov.ph/articles/1081927
Don't know what's going here but this can't be good for the peace and order situation in Maguindanao where the Bangsamoro Islamic Freedom Fighters (BIFF) operate. Hundreds of unemployed former MILF (and some MNLF) rebels seething with discontent following their layoff from their jobs may cause some to question the efficacy of the government-MILF peace agreement and could provide fertile ground for BIFF recruitment.
ReplyDeleteFor additional information see the following opinion piece from the Philippine Star for additional information "Big security issue looms in Mindanao" at
https://retiredanalyst.blogspot.com/2019/09/opinion-big-security-issue-looms-in.html.