Wirecard, another embarrassment for the country

The Wirecard scandal reads like fiction, a sophisticated money heist of sorts billions of dollars in missing funds, rogue employees, an accounting firm accused of negligence and forged documents.

But fiction it is not.

One thing is certain, the Wirecard issue is another embarrassment for Filipinos. Why is our country always linked to missing funds? Is Manila now the favorite destination of stolen or laundered money?

Regulators should do more to protect the country’s reputation by promoting good corporate governance practices. We shouldn’t be a haven for rogue bank employees or notorious lawyers.

It’s suspicious that even Wirecard’s former top officials, who may be involved in the crime, recently visited the Philippines.

Is the Philippines a netherworld for global financial crimes? Every concerned government agency should look into this. Law enforcement agencies must implement the rule of law so criminals don’t do these things with impunity. Corporations, banks, law firms should also have better internal safeguards.

The last thing we need is another embarrassment. There’s just too much of that already.

Fertilizer wars

First, there was the issue on chicken imports. And now, there’s another controversy hounding the Department of Agriculture (DA). This time it’s about fertilizers for farmers.

Is this another fertilizer scam? Or just another politicized issue?

Filipino farmers rely heavily on fertilizers. They use it as soil conditioners or to boost crop production.

With the onset of the coronavirus disease 2019 or COVID-19, and the disruption of the food supply chain, the DA saw the need to boost local food production.

Fertilizers versus cash dole-outs

Agriculture Secretary William Dar pushed for the distribution of free fertilizers instead of doling out cash to farmers, noting that it’s a practical idea.

Based on the plan, urea fertilizers will be given free to farmers, with a “buy two, take two” scheme for those who use certified inbred seeds and “buy two, take three” for hybrid users.

To ensure supply, the DA conducted a centralized bidding for urea last April with an approved budget for the contract of P1,000 per 59-kilogram sack.

But after announcing the winning bids, trouble began and issues surfaced.

The DA said the centralized bidding was aboveboard and transparent and favorably influenced the retail prices of urea to go down to less than P1,000 per sack from more than P1,100 previously.

Overpricing claims

However, the agriculture group Samahang Industriya ng Agrikultura (SINAG) accused DA of “centralized corruption,” saying that receipts from retail outlets in Central Luzon showed that the price of urea in June 2020 was only P850 per 50-kilogram bag.

On the other hand, the DA insists that its price peg of P1,000 per bag was in fact lower than the P1,080 average price of urea from the country’s 14 regions.

“The downward trend of prices of urea shows that we are on the right track in centralizing the bidding process, thus providing our farmers nationwide with affordable and reasonably-priced fertilizers,” said Sec. Dar.

Congressional inquiry

Upon the request of industry groups like SINAG, the Senate agriculture committee headed by Sen. Cynthia Villar promised to conduct a probe when Congress resumes sessions. A similar call was made by a progressive bloc in the House of Representatives.

In a House Resolution, the Makabayan bloc said the total contract for the P1.8 billion fertilizer distribution program could be overpriced by at least P271.66 million.

It noted that the prevailing average price of urea is pegged at only P850 per bag compared to the DA’s P1,000 price point.

Sec. Dar welcomed all planned inquiries, saying that he’s prepared to defend the centralized fertilizer bidding.

Question of motive

It’s good that Sec. Dar is willing to face the inquiries. It would settle the issue once and for all as to whether the fertilizer is indeed overpriced or not.

I asked agriculture beat reporters, including our indefatigable Louise Maureen Simeon and several other industry sources, on what else could be the cause of the mayhem.

I got several answers. Some say only an investigation would clear the issue. Others said the DA must have stepped on the toes of sour-graping or “disgruntled suppliers” who prefer the old system of decentralized, regional bidding.

“If urea was only P850 per sack, how come no suppliers challenged the winning bids by offering the fertilizer at that price point during the April bidding?” one source said.

The same source said the Fertilizer Industry Association of the Philippines (FIAP) has kept silent about the issue despite being a member of SINAG.

Like any other advocacy group, SINAG, no doubt, is free to express its views especially on matters involving food security, including perceived abuses in government.

But as with any other case, complainants must prove allegations of corruption.

Sec. Dar should also prove that everything was above board.

As for me, I’m going to monitor this issue and hope to find more answers. At the end of the day, what is important is that taxpayers’ money is used properly.

Iris Gonzales’ email address is [email protected]. Follow her on Twitter @eyesgonzales. Column archives at eyesgonzales.com