Ex-NFA chief Banayo faces graft raps over rice smuggling

MANILA, Philippines - Four Senate committees have recommended the filing of charges against officials of the National Food Authority, including Chairman Angelito Banayo, and officials of the Subic Bay and Metropolitan Authority (SBMA) for the botched smuggling of 420,000 50-kilogram sacks of Indian white rice at the free port April last year.

The Senate has recommended the filing of charges for violation of Republic Act 3019 or the Anti-Graft and Corrupt Practices Act against Banayo, his former chief of staff, lawyer Gilbert Lauengco; assistant administrator Atty. Jose Cordero, of the grains marketing and operations department and chairman of the bids and awards committee;  Serafin Manalili, provincial manager of the NFA's Bulacan provincial office; Yolanda Navarro, NFA Albay; and members of the special bids and awards committee -- Celia Tan (vice-chairman); Judy Carol Dansal (member) and Carlito Go (member).

Lauengco is also a member of the NFA special bids and awards committee.

The recommendation is contained in a 43-page report submitted by Senators Ralph Recto, chairman of the Committee on Ways and Means; Francis Pangilinan, chairman of the committee on Agriculture and Food; Teofisto Guingona III, chairman of the Committee on Accountability and Public Officers; Manny Villar, chairman of the Committee on Trade and Commerce); and Franklin Drilon, vice-chairman of the Committee of Ways and Means.

The report was submitted at the plenary before Congress went into a -three month long break on February 6.

Charges for violation of the code of conduct and ethical standards under Republic Act 3019 are also recommended against Stefani Sano, SBMA senior deputy administrator of the Business and Investment Group.

Sano allegedly used the name of Senate President Juan Ponce Enrile to release the documents in favor of the Indian rice importer. Enrile has since castigated the NFA and SBMA officials for dragging his name into the issue.

The Senate also urged the Department of Justice to pursue vigorously the follow-up on the perjury cases filed against John Dexter Marfil, president and chief executive officer of the Masagana Import and Export Inc, for false testimony before the committees.

No charges were recommended against Protik Guha, chief executive officer of the Indian Amira Foods, which imported the rice to the country. Guha has testified before the Senate but had since returned to India.

It can be recalled that the Bureau of Customs (BoC) led by Commissioner Ruffy Biazon exposed the attempted smuggling, apparently after receiving a tip from an unimpeachable source who texted him about the incident.  It later turned out that the tipster was President Aquino himself.

The Senate recommended that Ombudsman and the Bureau of Customs to examine the documents and evidence gathered during the Senate investigation and conduct further investigations against Banayo and other officials of the SBMA for possible violation of the Anti-Graft and Corrupt Practices Act.

Rice cartel

After 11 public hearings and an executive session on the controversy, the Senate also established that there is a rice cartel operating in the country, using the farmers’ cooperatives as dummies in their operations.

The committees also found that a certain “Danny Ngo” and a certain “David Tan” to be behind the alleged rice cartel.

The Senate has tasked the Ombudsman, the Department of Justice and the National Bureau of Investigation to pursue the investigation and the filing of possible charges against the two personalities, a certain Danilo Garcia and a certain Willy Sy.

Appropriate charges are also recommended against cooperatives and their incorporators including: King Casey Trading, Loui London Trading St. Andrews Field and Cereals, Wish Granted Enterprises, Montevallo Enterprises,Formosa Multi-Purpose Cooperative,  Riverview Multi-Purpose Cooperative, Ugnayang Magsasaka sa Kaunlaran MPC, GPI san Miguel MPC, St. Dominic Rice and Foodstuff Enterprises, Pure Country Traiding, Chon Buri Traiding and Manhindra Rice and Food Trading.

The others were Nemic Fusion Rice and Grains Enterprises, West Point Rice and Cereals Traiding, Red Mountain Grain and Cereals Dealer, Sitio Muzon Farmers MPC, Sta. Cecilia MPC, Wings Grain and Rice Enterprises, Lexant International Traiding, Sili MPC, Kapatirang Takusa MPC, Samahan ng Magsasakang Kapampangan at Katagalugan MPC, Malimpampang Concern Citizens MPC and Ugnayang Magbubukid ng San Isidro Inc.

The Senate committees said found it questionable why some of the groups transacted with the same branches of banks, and why the registration dates of many of the cooperatives with the Department of Trade and Industry are the same.

The committees also found out during the hearings that the cooperatives have the same supplier.