LETTER OF INSTRUCTIONS NO. 107

TO    :      FEDERICO B. MORENO

        Office-in-Charge Philippine
        Virginia Tobacco Administration

-    344 Hogsheads are missing from the Farmers' Virginia Tobacco Redriers (FVTR) warehouses at Bauang, La Union.

-    In addition, 200 Hogsheads were found open in the same warehouses, their contents pilfered or spoiled because of exposure to dust, insects and the elements.

-    2786 bales of threshed tobacco are piled in the PTFC & RC warehouses. These tobaccos have been in storage for 5 to 6 years and are expected to have deteriorated.

(a)    To conduct a thorough inquiry to determine responsibility for the loss of 344 hogshead and the pilferage of the contents of 200 other hogsheads in the warehouses of the PVTR, at Bauang, La Union and to prepare the appropriate administrative charges against the officials or employees of the PVTA who are responsible for the irregularity;

(b)    To suspend payment of all warehousing and other fees that are due or to become due the FVTR from the PVTA until the outcome of the inquiry is determined;

(c)    To sell the remaining stocks in the FVTR warehouses as well as the 2786 bales of threshed tobacco in the PTFC & RC Bodegas at the earliest possible time; and

(d)    To adopt adequate security measures to safeguard the stocks of the PVTA.

Since 19.07.98.