So, Malacañang abets ‘non-issue’

"It’s a non-issue," the National Food Authority bristled at criticism of its plan to import rice worth P1.3 billion through negotiated buying. "The country has enough rice for the lean months," wrote deputy administrator Gregorio Tan Jr. (Feedback, 5 Aug. 2004). "The NFA no longer intends to use the option of negotiated buying, although we had been given the standby authority to do so."

Now he’s talking, but only after government watchers raised a howl at the questionable scheme. I, for one, wrote that the premise for scrapping a public bidding – a supposed looming rice shortage – does not wash in the wake of Agriculture Sec. Luis Lorenzo’s elated broadcast of a bumper harvest (Gotcha, 4 Aug. 2004). Moreover, any negotiated buying is wasteful, compared to transparent bidding, because the buyer ends up stuck with the seller’s quoted price. Worse, it is prone to kickbacks. Thus, NFA’s plan is discrepant with calls for austerity and honesty in government spending.

The plan was unearthed last weekend when Justice Sec. Merceditas Gutierrez released an opinion that, assuming the NFA gave her accurate data, suspending public bidding rules for purchases above P300 million would be alright. Government can’t risk food rioting or a 1995-type mass hysteria arising from a rice shortage. Now Tan says they had sought the opinion as far back as June, but that they got it only on July 28. By that time, he says, the NFA had determined that, with its earlier public bidding of 200,000 tons, there won’t be a shortage after all.

In that case, Tan should have told Gutierrez, thanks, but no thanks, your opinion comes too late, we’ve already sufficiently covered ourselves. But no, the "late" opinion came unanswered. More than that, Malacañang followed up the next day with an endorsement. Presidential spokesman Ignacio Bunye was quoted as saying: "I believe there’s really a need for such (negotiated) importation."

It would seem there really was a plan to negotiate 91,500 more tons at a cost of P1.3 billion – just that it didn’t sit well with taxpayers who are being asked to pay more than they’re already doing. By dismissing it now, Tan in effect is saying that Malacañang is endorsing a non-issue.

At any rate, government watchers will certainly take him up on his word that the NFA will no longer negotiate the import. After all, he claims, although belatedly, that they already have imported – by standard public bidding – 50,000 of the 91,500 tons. If public bidding can be done after all, there should be no need in the future for wasteful, intransparent buying. The NFA should be on its toes always in accurately calculating the rice supply situation. No way can NFA chief Arthur Yap convince taxpayers, as he is attempting now, that they had asked for the authority to negotiate, but decided against it anyway, because their forecasts were right all along. Their only excuse for frazzled estimates can be war, archipelago-wide earthquake, or the second coming. Yap, ballyhooed to replace Lorenzo as agriculture chief, should impose that on the NFA, notorious as one of the flagships of corruption.

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Developed and emerging economies alike are choking for oil. Prices swooped this week to their highest in 13 years. Intertwined factors point to more dizzying rates in the next 10 years. China, Korea and India are racing at fast clip and sucking up all the oil they can get. America’s recovery is competing with them; so is Japan’s. Worldwide, gas-guzzling SUVs have become the vehicle of choice. Petroleum-exporting countries have reached peak productions, except for Saudi Arabia which can pump out 20 percent more, but only in six months. And only if it is not assaulted by terrorists who aim to bring down the monarchy and kick out Western oil engineers. Producers Venezuela and Nigeria, perennially in state of civil war, cannot pitch in. Iraq, with the world’s second largest reserve, holds some promise, but civil strife is not about to end soon. Russia, which opened huge new wells only four years ago, is deep in financial battle with its biggest private producer, recently jailed. Off-shore and Antarctic explorations, already too costly at four times the present rate per barrel, have yet to yield results. Anticipating harder times, all countries with enough cash are stockpiling by the millions of barrels, thus worsening the supply picture.

The Philippines, which buys less than one-half percent of the world oil produce, is in no position to negotiate for assured supply, unlike the US which consumes 25 percent. The oil crunch will push up prices of food, transportation and power. RP’s only recourse is two-fold: conserve on imported fuels, and shift to local alternatives fast.

That diesel rates will stay high should convince bus operators and truckers to switch to compressed natural gas. The Malampaya wells can supply the fuel at P9.30 per liter, compared to P19.85 for diesel, for at least 25 years, by which time new wells would have been discovered for mining.

Jeepneys can run on coconut-based biodiesel. At present, because of low demand, the price is P65 a liter. But if there’s a massive switch, makers can find economies of scale to produce more for less. Still, drivers who’ve tried mixing a liter of biodiesel in a full tank swear they got better mileage and cleaner exhaust.

Alcogas can also be extracted from ethanol in sugarcane and corn. One percent of government vehicles already run on it, on Malacañang’s orders. That could be raised to 20, then 50, ultimately 100 percent of official vehicles, again to bring the price down. Car owners can follow suit.

Power plants need not run solely on bunker oil. Provinces that face strong gusts year-round can switch to windmills, just as waterfall is used to swing turbines in hydroelectric plants.

Solar panels are becoming cheaper, and two big manufacturers have located in the Philippines. Homes, lighthouses, offices can switch to solar energy for water-heating and lighting.

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Catch Sapol ni Jarius Bondoc, Saturdays, 8 a.m., on DWIZ (882-AM).

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