Pimentel said that while the Agusan Valley project is supposedly intended to benefit the coconut industry and farmer workers in this sector, agriculture officials are split on its implementation.

While Agriculture Secretary Arthur Yap fully supports the project, Philippine Coconut Administration (PCA) Administrator Evangeline Valbuena is vigorously opposing it on the ground that the Agusan property was "meant for agroforestry," and its implementation "is not in the spirit of the coconut levy fund."

Citing news reports, Pimentel said Valbuena is instead pushing for the simultaneous implementation of coconut development projects in several provinces with an allocation of an average of R50 million per province.

Members of the PCA board of directors, PCA employees and leaders of coconut farmers organizations have backed Valbuena’s stand on the issue.

Pimentel observed that the feud over the stalled coconut development project has become so bitter and intense that Administrator Valbuena now finds herself under tremendous pressure to resign.

"In the light of the enormous problems besetting the coconut industry as shown in the declining copra production and the urgency of rehabilitating the industry, it is imperative on the part of the legislators to look into the Agusan Valley project. Agriculture and Philcoa officials, on the other hand, have the responsibility to enlighten the farmers and other stake holders in the coconut industry about this project," he said.

He said the inquiry will also enable agriculture and Philcoa officials to inform legislators on the utilization of the coconut levy assets, particularly those invested in the San Miguel Corp. shares of stock which have been unfrozen by a recent ruling of the Sandiganbayan.