MikeLigalig.com

By Bohol Chronicle

The president of a multi-million corporation demanding P4.1 million from the provincial government of Bohol (PGB) categorically stated that he was not aware of a demand letter bearing his signature.

Ernst Stengg, President of Petrogreen Oil Commodity Holdings Inc. told the Chronicle yesterday that he only knew about the letter when Gov. Edgar Chatto wrote them to clarify certain issues concerning their demand payment for the supply of jatropha planting materials.

Petrogreen Oil Commodity Holdings, Inc. presented to the Chatto administration sales and/or delivery invoices worth P4,134,312.80 shortly after it took office last July 2010.

The demand letter was reportedly signed by Ernst Stengg, president of Petrogreen.

However, in an exclusive interview with the Chronicle yesterday, Leonora Stengg, Petrogreen Board of Director and wife of Ernst Stengg, speaking in behalf of her husband appealed to Gov. Chatto to meet with Petrogreen board of directors to clarify certain issues arising from the assailed supply contract agreement.

When asked about their reaction if the SP decides not to pay the claims of Petrogreen, Mrs. Stengg replied "We will stand by the truth". However, she did not elaborate.

To pay or not to pay. This is the question confronting the Sangguniang Panglalawigan after Gov. Chatto referred the matter to the SP for further study.

Since the jatropha planting materials were delivered during the Aumentado administration the newly installed governor referred the matter to the SP to thresh out several issues concerning the legal and financial obligations of the Provincial government.
         

Initial findings of the SP showed that the much ballyhooed Jatropha program of the previous administration has been non existent for more than a year after the Memorandum of Agreement (MOA) entered into between the Philippine National Oil Corporation-Alternative Fuels Corporation (PNOC-AFC) represented by its President and CEO Gen. Romeo P. Tolentino and the Provincial Government of Bohol (PGB) represented by then Governor Erico Aumentado was rescinded last September 30, 2009, two months after the MOA was signed.

The MOA was signed on July 22, 2009.

Petrogreen's participation in the project came in after the company's proposal contained in a letter dated June 22, 2009 signed by Poch V. Lamug, Managing Director and COO to supply certified planting materials for the Jatropha Plantation Project (JPP) was affirmed by Antonieto Pernia, former chief of staff and designated project director of JPP, also Head of the Provincial Government Media Affairs (PGMA) and Atty. Handel Lagunay, Head of the Provincial Legal Office signing in behalf of the PGB.

However, initial findings of the SP revealed that Lagunay and Pernia signed the agreement with Petrogreen one month before the previous SP granted the authority to former Governor Aumentado to enter into a contract with PNOC-AFC.

The Petrogreen agreement was signed June 22, 2009.

The SP Resolution dated July 14, 2009 did not authorize the Governor nor any other official of the PGB to enter into a contract with Petrogreen.

Sources from the SP told the Chronicle that this arrangement were highly irregular since Petrogreen together with Lagunay and Pernia agreed to a supply contract a month before the PGB and PNOC-AFC signed the MOA for the development of 3,000 hectares of Jatropha Curcas Plantations.

Moreover, SP sources said that there was no bidding conducted for the supply of jatropha planting materials.

Documents obtained by the Chronicle showed that planting of jatropha seedlings started even before the signing of the MOA.

Documents also showed that Petrogreen thru Lamug, Pernia and Lagunay agreed that the pick-up price of the Jatropha planting materials will be Php3.80/piece plus 80 centavos if delivered to any point in Bohol.

But the program implementation was hampered by the bickerings between the PGB and the PNO-AFC who were at loggerheads over the type of planting materials to be used in the plantations.

The PGB favored Jatropha cuttings over seedlings based on positive results in young plants growing in the fields.

But PNOC-AFC refuted the PGB with pictures allegedly showing cuttings used as planting materials were rotting and dying.

Asked to comment on the issue, Pernia, short of admitting that the agreement with Petrogreen Managing Director and COO Poch Lamug for the supply of jatropha planting materials was flawed, explained that the contract was done in haste since the JPP would be highlighted in the SONA as one of the achievements in the alternative fuel program of the GMA administration.

Pernia also bared that the previous administration was practically caught unaware of the change of variety for jatropha planting materials from cuttings to seedlings under Gen. Tolentino since it was already agreed during the term of former PNOC-AFC President and CEO Peter Anthony Abaya that jatropha cuttings would be utilized.

Pernia also said that the PGB could not accept the planting materials offered by the PNOC-AFC sourced from Los Banos since this would entail additional delivery expenses and would also affect the quality of the planting materials while in transit because of the distance.

Petrogreen was chosen as the preferred supplier because of the proximity of their nursery located in Guindulman.

To save the project Petrogreen thru Lamug reportedly offered to shoulder the labor and planting expenses of the farmers thru a P300,000.00 fund coursed thru Pernia.

Pernia confirmed this arrangement and told the Chronicle that growers beneficiaries submitted receipts for labor and planting reimbursements to Glen Doloritos, Executive Asst. of the Chatto administration.

The establishment of Jatropha Curcas plantations was conceived in support of the GMA administration's agenda to develop the Biofuels Industry as part of the country's energy self sufficiency program.

The PNOC-AFC will provide funding for an initial 1,000 has. to cover cost of planting materials, farm inputs, labor cost for land preparation and planting, administration, supervision and maintenance for 16.5 months.

Estimated cost was P25,000/has. with 1,250 seedlings/has. of jatropha curcas variety.
The MOA was valid for ten years or until PNOC-AFC has recovered its investments whichever is later.

However, on September 22, 2009 or two months after the signing of the MOA, Aumentado decided to cancel the agreement due to the non-release of an agreed .6M from PNOC-AFC intended for documentation of partner-growers/cooperatives and labor expenses.

So who's holding the proverbial empty bag - Petrogreen or the jatropha grower?

Agricultural experts have been warning farmers not to rush into this jatropha project even as government agencies have been trumpeting the financial gains that would benefit growers of tuba-tuba. - CMV

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