Probe irregularities in agri imports from US — Opposition

Opposition congressmen sought yesterday an investigation into what they described as an irregularity in the importation of rice and other agricultural products from the United States.

In a resolution, Minority Leader Carlos Padilla and colleagues Rolex Suplico of Iloilo, Didagen Dilangalen of Maguindanao and Benasing Macarambon of Lanao del Sur accused officials of the Department of Agriculture (DA) of making millions of pesos from the anomaly.

They said beginning last year, the department and two of its agencies, the National Food Authority and the National Agriculture and Fishery Council, designated only one cargo-handling and stevedoring agency to handle agricultural imports from the US.

These imports are funded under US Public Law 480, under which the American government extends an annual soft loan facility to the Philippines and eight other poor countries.

The imports, mostly rice, corn and soybean meal, are sold to direct buyers here by the DA.

Padilla and his colleagues said before 2001, buyers of agricultural products coming from the US under PL 480 chose cargo handlers who offered them the lowest price for their service.

"They had to select the port service provider who could offer the best price because their cost would reflect on their retail prices for the imported products," said Padilla.

However, beginning last year, the opposition lawmakers said the DA and its agencies designated only one handler, North Front Shipping Services, without going through a bidding process that could have obtained the lowest price.

What is worse is that North Front, which charges importers P835 per metric ton, subcontracted the service to Bulkship Services, Inc. for P390 per metric ton, they said.

"That means that North Front, the favored cargo handler, is making P445 per metric ton without capital and without actually providing the service that buyers need," Padilla said.

It also means that the retail prices of US rice, corn and other products would be higher because of the high handling cost, he stressed.

They added that because of the anomaly, the US government has threatened to delist the country from PL 480 beneficiaries. – Jess Diaz