Senate seeks deeper probe on seized rice shipment

MANILA, Philippines - The Senate committee on agriculture yesterday ordered the Bureau of Customs (BOC) to retain in its custody the 420,000 sacks of smuggled rice from India and confiscate them in favor of the government until the smugglers are identified and held responsible for the illegal activity at the Subic Bay Freeport.

Senate President Juan Ponce Enrile expressed discontent with the Subic Bay Metropolitan Authority (SBMA) and some locators in the freeport for allowing such an illegal transshipment despite the stringent rules at the freeport. 

“I tell you, if it is shown that this shipment of rice is really intended for smuggle, then it should be forfeited. Let it be forfeited and give it to the poor of this country,” Enrile said.

The Senate also unraveled the mystery on who could be behind the smuggling of the 420,000 sacks of rice worth P500 million.

During a Senate hearing yesterday, Cesar Bulaon, an executive of the consignee, Metroeastern Trading, tagged one Bong Cuevas, a certain Protik Guha who is chief executive officer of Amira Foods India, and another Indian businessman as those who he had talked to about the rice shipment.

Also reportedly present in the meeting was Stephanie Sano, deputy administrator of the SBMA.

Sen. Francis Pangilinan, chairman of the Senate agriculture committee, asked the secretariat to issue invitations to Cuevas, Guha and Sano to attend the hearing next week and shed light on the rice shipment.

The 420,000 sacks of rice were shipped by Amira Foods India Ltd. to the Philippines sometime last January.

Sen. Loren Legarda was baffled when nobody from the BOC and SBMA knew Cuevas when he was involved in such a multimillion-peso transaction. 

It was at this point during the hearing when Enrile mentioned that he was knew Cuevas, whose real name was Vicente, because he was formerly involved in gaming operations in Port Irene in Cagayan province.

According to Enrile, Cuevas was known in the circles of those in the previous administration. 

“We must pinpoint responsibility… All these importations… (give us information on the) banks, suppliers abroad… this is the basic issue. Let us unmask the bankers, the financiers, the backers, the real importers. That’s why I had the privilege speech,” Enrile said.

Enrile said if there are government officials involved, then they must be punished.

“We want to go deeper. Who are behind this?” he added.

Pangilinan and Sen. Ralph Recto also pounced on the Metroeastern executives who initially denied that the rice shipment was meant for local consumption.  

They believe there was collusion among rice smugglers and some officials which caused the release of the shipment.   

Customs Commissioner Ruffy Biazon said his agency would consider the Senate’s recommendation to donate the seized rice shipment.

As to how the rice would be disposed of, Biazon said the BOC is mandated by law to have the goods auctioned because it is an income-generating agency. 

Biazon said distributing the rice to the poor could be an option if the administration would not pressure the BOC on reaching its revenue targets. 

Lawyer Redentor Tuason, SBMA senior deputy administrator for operations, said the SBMA did its job when it tipped off BOC about the rice shipment.

Tuazon said, “We provided the basis and we did not want them to ship out.” 

Angelito Banayo, administrator of the National Food Authority, said neither Amira nor Metroeastern have permits to import rice for the country.

Apart from this shipment, Biazon also reported to the Senate committee that the BOC also seized 45,000 bags of rice of 50 kilos each, which also came through the Subic Freeport, as these were mis-declared as construction materials.

At Malacañang, presidential spokesman Edwin Lacierda yesterday said President Aquino has ordered Biazon to make sure that smuggling would stop.

Lacierda said Biazon has stepped up efforts to curb smuggling and these should continue.

“We note, for instance, that there are a number of apprehensions that he has made in the past few weeks and we certainly commend the stepped-up efforts of Commissioner Biazon – not only on rice smuggling but also on other areas of smuggling; not only blatant smuggling but also technical smuggling where you undervalue your goods,” Lacierda said.

Lacierda said the “smuggling cartel” rampant during the past administration was being curbed and that the executive branch would support the Senate investigation into smuggling. – With Aurea Calica, Paolo Romero