Arroyo scolds NFA official for neglecting US rice

President Arroyo scolded yesterday a National Food Authority (NFA) official for endangering 1.5 million sacks of imported rice by allowing them to be stored in a private warehouse in Batangas for over a year.

The President paid a surprise visit to the Bulk Handler Inc. warehouse in Mabini, Batangas and was shocked to see tons of rice waiting to be sold to private bidders.

She reportedly reprimanded NFA manager for Southern Luzon Danilo Bubabon for storing the commodity in a place where it could deteriorate and be completely wasted. Bubabon could not be reached for comment.

Presidential Spokesman Rigoberto Tiglao said Mrs. Arroyo was aghast at her discovery. First, because the rice — estimated to be worth P105 million — is apparently being hoarded by the NFA; and second, because the government pays the owner of the warehouse huge sums of money for the grains’ extended storage.

The warehouse is owned by a certain Michael Tan, believed to be a friend of former Finance Secretary Edgardo Espiritu.

"The President was told that this big shipment of imported rice, a basic commodity for Filipinos, has been languishing at Tan’s warehouse all these months," Tiglao said. "The warehouse is private and the government is paying storage fees."

The NFA imported the rice from the United States last year and it arrived in three shipments – one million sacks in February, 500,000 in March and another 500,000 in May.

The agency has managed to sell 500,000 sacks to private bidders last year and the remaining 1.5 million have been paid for by at least 15 buyers.

However, Tiglao said the buyers wanted the rice released in staggered basis, hence the NFA needed to extend its rent of Tan’s warehouse. "We are asking these buyers to explain why they are delaying the pullout of the rice from the warehouse," he said.

Tiglao noted that the President was very concerned with the agriculture sector and that she ordered the rice to be transferred from Batangas to various NFA warehouses in Metro Manila "to ensure that its quality is preserved."

The President learned in her Batangas visit that Tan’s warehouse in Barangay Calamias has been causing inconvenience to local residents who have to contend with a one-lane road to reach their homes.

She assured the residents that as soon as the sacks of rice are removed from the warehouse, she would order the facility closed and have a wider road constructed.

Meanwhile, the President said she is ordering the release of 27,000 sacks of rice from the NFA to be given to soldiers and be sold by the Housing and Urban Development Coordinating Council to relocated squatters.

She promised to work seriously on food security which, she said, is one of the priorities of her administration.