Mass resignation hits CIIF-OMG after controversial Palace nomination

Over 10 officials of the Coconut Industry Investment Fund-Oil Mills Group (CIIF-OMG), including its president, have tendered their resignation following the controversial nomination of a new president by the Palace.

In an interview on Dobol B sa News TV, former CIIF-OMG vice president Joven Evangelista said those who resigned were their president Benedicto Lor, five out of eight directors, all the vice presidents, several key officers, and two plant managers.

Aside from the resignations, over 170 personnel also signed an "expression of support."

Evangelista however said their resignation is not irrevocable.

"Nasa Malacañang naman po siguro [ang desisyon]," he said. "Nakahanda naman kaming sumunod."

Rehan Lao

Evangelista said they are protesting Malacañang's nomination of Rehan Lao, whose qualifications they are questioning, as the company's president and CEO.

"Ginawa po ito ng board ayon na rin po sa suporta doon sa kampanya ng ating mahal na pangulo na linisin ang gobyerno. Yun po ang ginagawa ng administration ni President Lor sa CIIF-OMG," he said.

"Tuloy-tuloy ang kampanya namin laban sa graft and corruption then nagulat tayo na may nomination na ganyan galing kay Executive Secretary [Salvador] Medialdea," Evangelista added.

Evangelista accused Lao of claiming that he was a lawyer even though he did not pass the Bar examinations.

"Sinearch namin iyan... sa aming pagsasaliksik lumabas na siya ay graduate ng law, kumuha ng Bar, pero hindi pumasa sa Bar exam," he said.

Evangelista said Lao is facing an administrative case before the Office of the Ombudsman after four CIIF-OMG directors filed a complaint of "misrepresentation."

Aside from claiming that he is a lawyer, Lao also allegedly claimed he has already been appointed as company president even before the board of directors could discuss his nomination from Malacañang.  

Medialdea: Respect Duterte's decision

Documents released by Malacañang showed President Rodrigo Duterte on June 25 appointed Lao as member of the board of directors of CIIF-OMG for the San Pablo Manufacturing Corporation, Southern Luzon Coconut Oil Mill, Inc., and Legaspi Oil Company, Inc.

Lao was appointed to serve the unexpired term of former Senator Wigberto Tañada in the agency that began on July 1, 2018 and will end on June 30, 2019.

Duterte also named Oscar Pialago Sr. as CIIF-OMG director for the Granexport Manufacturing Corporation, Cagayan de Oro Oil Company, Inc., and Iligan Coconut Industries, Inc.

He replaced Lao and will serve until June 30, 2019.

Medialdea, however, said it was up to Duterte who to appoint as president of the state-run firm.

The Palace official said he explained to the disgruntled CIIF-OMG officials in a meeting on Thursday to respect Duterte’s decision to pick Lao as the new president.

Medialdea added he was surprised by the resignation of the CIIF-OMG officials even as he clarified that these officials had been serving on a holdover capacity. He said the term of these officials expired on June 30 last year.

“As a matter of fact, there is no need for them to resign. We have all the right to change them. Wala hong nagsasabi sa amin na umalis kayo diyan,” Medialdea said in an interview on Dobol B sa News TV.

“We have to put some members of the Board. Hindi naman pwedeng pabayaan po ‘yan [kasi] magiging pabaya naman kami kung hindi kami maglalagay ng mga tao diyan,” he added.

Medialdea declined to comment on the allegations against Lao.

July 3 Board elections

Evangelista, in the radio interview, said the company had an election of officers last July 3 where the company accepted Lao's nomination as president and CEO. However, Lao lost to Lor.

After this, the board of directors reportedly received a text message from Medialdea inviting them for a meeting. During the meeting, Medialdea questioned the election, saying that it opposed the "desire" of the Office of the President to appoint Lao as their president and CEO.

Evangelista cited that Lao is also facing criminal charges before the Office of the Ombudsman for alleged non-filing of his Statement of Assets, Liabilities and Net Worth.

"Ang [pasya] ng board, hindi siya fit, pagka hindi ka nag-file ng SALN naaapektuhan ang integrity mo eh," he said, adding he was clueless why the Office of the President was not aware of Lao's criminal and administrative cases.

Evangelista claimed the company recently hit its target of P105 million in five months time.

"Ipagpapalit mo 'yun doon sa isang tao na may mga administrative and criminal cases. 'Yun nga ang nakakapagtaka, wala kaming maisip na sagot kundi naiisip namin, baka politics," he said.

"Dahil doon sa mga acts of representation na nangyari, lalong-lalo na 'yung pagba-brag ni Mr. Lao na siya na ang presidente... Nag-create siya ng malaking confusion, sa investors, accreditors namin, particularly sa bangko. Kaya ang nangyari, hinold (hold) ng bangko ang pagutang namin," Evangelista continued.

CIIF-OMG's investigation found that Lao came from the Department of the Interior and Local Government (DILG) and is currently the national president of the Special Assistant to the President (SAP) Movement, which promotes the candidacy of Secretary Bong Go for senator.

Evangelista said Lor in his affidavit claimed that a certain couple named Lou Luy and Jocel Luy introduced themselves as having "strong connections" with Go.

He said the couple approached Lor to ask funds for Go's mid term elections campaign.

However at that time, Lor already turned over CIFF's money to the National Treasury, and that he could not address their request because the funds are for coconut farmers.

"Dahil nga tinanggihan ang request ng mag-asawa, naglakad sila ng endorsement ng tatlong tao at gusto nilang ipasok as Vice President ng kumpanya sa sensitive positions katulad ng VP for operations, VP for finance, VP for marketing. Nakita po agad ng board natin 'yung intensyon kung bakit gagawin yon."

"Nakita po agad ng board ang ganu'n style, hinarang po ito at hindi nakapasok ang tatlo," Evangelista continued.

He however admitted the possiblity that the couple might only be using the name of Go, and that the Special Assistant to the President is not aware of the matter.

"Gusto po namin makakuha ng [comment] sa kaniya, malinawan ang mga bagay na ito, at ang importante sana, sa mahal na Pangulo," Evangelista said. —with Virgil Lopez and Jamil Santos/KBK, GMA News