NFA under tight watch from all sides

Because of the anomalous sale of the National Food Authority (NFA) of what it called sale to its select private traders of “old and deteriorating” rice stocks, the agency is now under severe tight watch from all sides – except by the courts yet – at a price grossly disadvantageous to the government.

The said anomalous sale was first reported to the Office of the President and the NFA Governing Council and the Ombudsman’s office was the first to investigate it, which was followed by the Department of Agriculture (DA) and now the Senate and the House.

The Ombudsman is now investigating the sale of rice– mandated to be used for buffer stocking for relief operations during emergencies and calamities (both natural and man-made)– to select private millers and traders by the NFA from 2023 to January this year.

Already 138 personnel, including Administrator Roderico Bioco and Assistant Administrator for Operation Engr. John Robert Hermano, along with field officials and warehouse staff are being probed for their involvement in the sale. The legislature will include even the private traders involved in the deal.

In a recent interview with broadcaster, Anthony Taberna, Ombudsman Samuel Martirez said investigators in his agency are doing intensive probe into the stocks which NFA sold at P25 per kg. for 127,000 metric tons worth P180 million for January alone.

Similar sales were done in 2023, according to the report to OP by Engr. Lemuel Pagayunan (who was replaced by Bioco with Engr. Hermano to head the Operations on trumped up charges by Region 4 Manager Alvin Uy).

Engr. Pagayunan reported at least four (consummated and paid) sales of such stocks based on the following documents: 1). AO 2024-01–042 dated January 31, 2024 issued to Region 4  Regional Manager Alwin M. Uy of 25,000 bags worth P31.25 million to G4 Rice Mill Corp ()received by Ma. Lourdes F. Reyes) with OR #0491860 dated January 29, 2024; 2) AO2024-01-043 of Januaryt 31, 2024 issued to R4 Regional Manager Alwin M. Uy for 17,500 bags worth P31.25 million received and paid for by G4 Rice Mills San Manuel Corp (received by Lemuel C. Lunar with ORNo. 0491861 on January 29, 2024; 3) another 7,500 bags issued to NCR Regional Manager Maria Lewina Tolentino; and 4) AO2024-01-044 of January 31, 2024 issued to Region 4 Regional Manager Alwin Uy for 25,000 bags worth P31.25 million sold to NBK San Pedro Rice Mill and received by Anna Marie delos Santos with OR No. 0491862 dated January 29, 2024.

Albay Rep. Joey Salceda is asking the NFA to clarify the P152 billion in cash the agency was supposed to have received from 2018 to 2022 from government subsidies and rice sales, which must then be subjected to an exhaustive review by the Commission on Audit.

Salceda, vice chair of the agriculture committee, urged the 19th Congress “not to limit its investigation merely to the P93 million sale in question this year,” but to include all sales of buffer stock since the Rice Tariffication Law took effect in 2019.

“The NFA is supposed to have received a total of P85.7 billion in national government subsidies and another P66.3 billion in sales of rice stocks from 2018 to 2022. That totals to P152 billion from those five years alone,” said Salceda.

“That is additive. Even with a loss incurred of P20 billion – or the difference between the direct cost of rice and the sale of rice – that’s still P132 billion to account for,” he noted.

The Rice Tariffication Law earlier limited the NFA’s role to buffer stocking from local farmers. But Salceda noted that “in theory, the NFA should sometimes make gains, rather than merely make consistent losses, if it can auction its rice stocks.”

Earlier, President Marcos said the suspension of more than 130 NFA officials and employees involved in other questionable actions outside the anomalous sale of rice was a “safety measure.” “The situation does not only involve the anomalous sale of NFA rice but also warrants a review of procedures. that were undertaken without NFA Council approval, the DA and the Cabinet,” the President said.

House Deputy Majority Leader Erwin Tulfo blasted the NFA for manipulating the rice supplies, which led to their suspension. 

He berated Bioco on admission that the sale was not done through proper bidding and on how he chose the companies to sell to. The DA is also investigating rice sales to private traders in the past.

Senator Imee Marcos said the NFA has “completely lost its way” amid a cutback in the global rice supply. “The Philippines is now the world’s largest rice importer and the dire market situation today will only worsen in the coming months with El Nino and a tight global supply for the grain.

Marcos filed a Senate resolution Monday to probe the “highly suspicious” P93.75-million sale of 75,000 bags of rice stock to two traders as countless consumers clamored for cheaper rice.

She also asked why NFA was behind the purchase of rice from India when its charter strictly prohibits it from importing. She said the NFA failed to support local farmers, “desperate for aid, especially when rice smuggling forced them to sell their harvests below the production cost.