Light Resigns as President of Sun-Diamond : Follows Reports of Overpayments for Crops

The president of Sun-Diamond Growers of California has resigned in the wake of the discovery of $43 million in suspected overpayments to walnut and raisin growers who sold their crops to the giant cooperative.

Sun-Diamond directors, at a special meeting Wednesday in Stockton, accepted the resignation submitted Tuesday by Frank R. Light. It took effect immediately.

Light, 57, announced in October that he would take early retirement within the next 12 to 18 months for what he described as personal reasons. However, since the magnitude of overpayments became known, Light said, “it’s in the best interests of the company--and my best personal interests--to go ahead and effectuate my retirement--to put somebody in with a longer-term commitment.”

As a temporary replacement, Sun-Diamond named William F. Allewelt Jr., who retired last June as president of Tri-Valley Growers, a San Francisco-based fruit canning cooperative. Allewelt, 59, said he will stay on the job for a few months--presumably until the overpayment is cleared up.

Surfaced in July

Meanwhile, Sun-Diamond suspended scheduled final payments to 2,700 growers for their 1984 walnut crop, pending the outcome of a special outside audit and an internal investigation. Growers count on those year-end checks to pay off crop costs.

The first sign of irregularities surfaced last July when a routine audit uncovered $4.7 million in overpayments to walnut growers. In October, auditors turned up $26 million in overpayments to raisin growers, and last month they reported an additional $12 million in walnut overpayments.

No discrepancies have been reported among the other associated cooperatives, spokesman R. William Winkler said. While the reasons are still unclear, he said such factors as valuation of inventory and other bookkeeping entries could also be involved. Two employees suspended last month have been reinstated.

Light emphasized to growers in Fresno last week that the cooperatives remain financially sound. “We have no evidence of stealing,” he said. “We have no evidence of employees absconding with funds.”

Sun-Diamond reported sales of $487.2 million in fiscal 1985, down from $517.4 million in the previous year.