Rice passed off as donation to DSWD

MANILA, Philippines - At least 300 metric tons of rice reportedly donated to the Department of Social Welfare and Development in 2008 apparently never reached the DSWD’s warehouse and the shipment was reportedly used in the political campaigns of then Philippine Amusement and Gaming Corp. (Pagcor) chairman Efraim Genuino’s two sons earlier this year, according to documents obtained by The STAR. 

The rice shipment was supposed to be a direct donation from Japanese gaming machines manufacturer Aruze Corp. to DSWD.

Aruze Corp. was awarded a provisional license by Pagcor to construct a hotel-resort complex in the Bagong Nayong Pilipino-Entertainment City project.

A deed of donation signed by then DSWD Secretary Esperanza Cabral and Aruze chairman Kazuo Okada states that the donation was made in July 2008.

The donated high-quality rice – a little over 300 metric tons of Thai long grain white rice – was supposedly intended for the victims of the typhoon “Frank,” which devastated Western Visayas.

The rice was shipped to the Philippines, according to a bill of lading of Evergreen Line from Thailand, on July 1, 2008, with the consignee as the DSWD and with specific notification to “Secretary Esperanza I. Cabral.” The port of discharge was at the Manila South Port.

A National Food Authority (NFA) import permit dated July 8, 2008 and duly signed by then NFA administrator Jessup Navarro clearly stated that the imported rice was being “donated by the Aruze Corp. of Japan to the Government of the Philippines through the Department of Social Welfare and Development intended for relief/rehabilitation of calamity affected areas.”

A Bureau of Customs import entry and internal revenue declaration form dated July 8, 2008, showed that the consignee DSWD paid on a deferred basis a total of P9,466,344.63 in duties, charges and other miscellaneous fees. Imported rice is subject to 35 percent tariff.

Diverted shipment?

However, upon its arrival in the Philippines, instead of being brought to the warehouse of the DSWD in Intramuros, the donated rice shipment was allegedly brought to a warehouse in Cabuyao, Laguna rented by Pagcor.

On July 18, 2008, Pagcor issued a press release announcing the turnover of over 300 metric tons of rice by Okada to the National Disaster Coordinating Council (NDCC) through the initiative of Genuino.

The Pagcor press release said the rice donation was being kept in a holding facility in Cabuyao, Laguna, and would be used to “augment supplies for the NDCC’s relief operation in typhoon-ravaged areas nationwide.”

Back in Laguna, local officials were allegedly surprised at the arrival of the rice shipment at an unaccredited NFA warehouse at a time when there was a rice supply shortage. Under NFA rules, rice owned by the government must be stored at an NFA-accredited facility.

However, in a letter signed by DSWD director for administrative service Marcelo Nicomedes Castillo dated July 30, 2008 to Cabuyao Mayor Isidro Hermedes Jr., the DSWD certified that “the 10,000 bags of rice of (30 kilograms per bag) stored at a warehouse in Cabuyao, Laguna is a donation to the Department of Social Welfare and Development (National Office) by Aruse (sic) Corp.”

Winners, losers

The controversial rice donation was brought to light following the discovery by the new management of Pagcor of campaign materials and rice sacks stamped with the name of “Atty. Win,” the campaign moniker adopted by Genuino’s son Erwin, who lost to then councilor Jejomar Binay Jr. in the Makati mayoral race.

Genuino’s other son, Anthony, won the mayoral race in Los Baños. He has been accused of vote-buying, a charge he has denied.

The former Pagcor head, in an interview with reporters on Aug. 5, claimed the discovery of the campaign materials and rice sacks were a “poorly invented allegation” linking Erwin’s failed mayoralty bid to the controversy involving alleged over-importation of rice by the past administration.

Genuino said the allegations were “baseless and just a concocted story.”

“There is no truth to that (allegation). They invented that story and planted the sacks of rice there so they could show to the people that Pagcor has been corrupt and should be sold already,” he said.

Genuino, however, admitted he received rice donations in 2008, but stressed they were personal stocks that he, in turn, donated to the government that same year.

“How can those rice donations I got two years ago be used for politics this year?” Genuino asked. “They should have been rotten already. Do you think that would help my son win?”

Genuino also stressed there were no public funds involved in the donated rice stocks.

“The government doesn’t have money to spend for rice. It was even me who donated those to the government because they were initially mine,” he said.

Asked if he would cooperate with any investigation, Genuino found the question silly. He said it would be absurd to investigate him for the rice he donated to the government two years ago.

There are also allegations that the more expensive donated Thai rice was actually “bartered” or sold for lower-quality rice that was reportedly distributed to victims of typhoon “Frank.”