DOJ reopens probe of rice cartel

MANILA, Philippines - The Department of Justice (DOJ) has reopened its investigation of the rice smuggling cartel allegedly financed by a certain David Tan, who paid as much as P6 billion in kickbacks to customs officials and employees.

Secretary Leila de Lima said yesterday she had directed the National Bureau of Investigation (NBI) yesterday to pursue the probe that was suspended earlier this year due to lack of developments.

De Lima, however, contested a report that the DOJ failed to act on recommendation of the Senate to prosecute Tan as well as a certain Danny Ngo; Danilo Garcia, head of a rice dealers’ association in southern Metro Manila; and Willy Sy, owner of Montevallo Enterprises, allegedly a bogus cooperative.

She said the anti-graft division of NBI, an agency under the supervision of the DOJ, had started investigation on the matter immediately after receiving the request from the Senate last March.

Six teams were even created to pursue various leads in the probe.

 â€œThey were given 30 days to investigate and file their report on Tan’s case but there was no development. The investigation was then extended to 90 days but they still weren’t able to gather solid evidence against Tan, and thus the probe was temporarily suspended,” she explained.

She said among the difficulties encountered by the probers was the lack of certainty on the real names of Tan and Ngo.

“Their names are very common, so the NBI had a hard time verifying their identities,” she added. 

Financiers

In its 43-page report, the Senate joint committee investigating the existence of the rice smuggling cartel in the country found that Tan was among the “financiers” of 26 cooperatives that cornered a big chunk of the rice importation of the National Food Authority (NFA).

The cooperatives were identified as King Casey Trading, Loui London Trading, St. Andrews Field Grains and Cereals, Wish Granted Enterprises, Montevallo Enterprises, Formosa Multipurpose Cooperative, Riverview Multipurpose Cooperative, Ugnayang Magsasaka sa Kaunlaran MPC, GPI San Miguel MPC, St. Dominic Rice and Foodstuff Enterprises, Pure Country Trading, Chon Buri Trading, Mahindra Rice and Food Trading, Nemic Fusion Rice and Grains Enterprises, West Point Rice and Cereals Enterprises, Jaded Ranch Grains and Cereals Trading, Red Mountain Grain and Cereals Trader, Sitio Muzon Farmers MPC, Sta. Cecilia MPC, Zwings Grain and Rice Enterprises, Lexant International Trading, Sili MPC, Kapatirang Takusa MPC, Samahan ng Magsasakang Kapampangan at Katalugan MPC, Malipampang Concern Citizens MPC, and Ugnayang Magbubukid ng San Isidro Inc.

The cooperatives, according to the Senate report, were allegedly considered as fronts for Tan and his group.

Aside from the prosecution of Tan and his gang, the Senate also recommended charging ex-NFA administrator Lito Banayo, his former chief of staff Gilberto Lauengco, and six other NFA officials with graft since the NFA “very well knew that the participants (in the Private Sector Financed Importation Program) do not have the financial nor the technical capability to import rice.”

According to De Lima, the NBI agents were able to invite several representatives from at least 24 of the 26 cooperatives mentioned in the Senate report during their investigation.

 â€œMany of them were interviewed while some turned out to be non-existent cooperatives. But most of the resource persons in the case professed that they did not know Tan or his operations,” she recalled.

 â€œApparently there is a syndicate here,” she hinted.   

Meanwhile, Bureau of Internal Revenue chief Kim Henares sought the help of Davao City Mayor Rodrigo Duterte in curbing rice smuggling reported to be rampant in the southern part of the country.

Duterte said Henares called him and told him that Davao City is considered the “weakest link in raising revenues” but refused to elaborate. He warned traders that he would be forced to cancel their business permits if they engaged in rice smuggling.         – With Edith Regalado