Regulators abet sugar smuggling; P70 per kilo at Kadiwa too pricey

This is a case for the ombudsman.

Regulators are ordering the Bureau of Customs to release 6,500 tons of contraband refined sugar worth P650 million. They’re legitimizing the confiscated shipment with an antedated import permit.

Inducing public officials to commit crime and allowing themselves to be induced constitute graft and corruption. So does giving any private party any unwarranted benefit, advantage or preference.

Agricultural smuggling of at least P1 million is economic sabotage, a non-bailable life-term offense. A combination or series of offenses of at least P50 million is plunder, also non-bailable with life imprisonment.

The ombudsman is tasked to prosecute erring public officials. The office may investigate on its own or act on formal complaints.

The Sugar Regulatory Administration memo-ed Customs weeks ago to free the Thai sugar that arrived at Port of Batangas last Feb. 9. Customs Legal Director Yasmin Obillos-Mapa is evaluating the order, Asst. Commissioner Vincent Maronilla said yesterday.

The SRA board consists of Agriculture Senior Usec Domingo Panganiban, administrator David John Thaddeus Alba, planters’ representative Pablo Luis Azcona and millers’ representative Mitzi Mangwag. As secretary of agriculture, President Bongbong Marcos Jr. is chairman.

Customs detained the sugar on Feb. 14, a day after Agriculture Asec James Layug alerted them. Owner: All Asian Countertrade Inc. of Michael Escaler.

It landed when no sugar imports were permitted. SRA’s Sugar Order No. 2 of Sept. 13, 2022 allowed deliveries only up to Nov. 15. Its Sugar Order No. 6 of Feb. 15, 2023 became effective Feb. 18. Five days were set till Feb. 23 to accept and evaluate import bids, then another five days till Feb. 28 to award winning importers.

Senator Risa Hontiveros exposed rigging. Panganiban admitted he personally chose three importers from a three-page list on Jan. 13. He invoked authority from Marcos Jr. and Executive Sec. Lucas Bersamin, both mum on the anomaly.

All Asian was allocated 240,000 tons for 2023. Granted 100,000 tons each were S&D Sucden of Ian Alvarado and Edison Lee Marketing of Edwin Lee.

Panganiban told SRA to include All Asian’s confiscated 6,500 tons in its 240,000-ton grant. Hontiveros denounced the “government-sponsored smuggling.”

Customs may soon free the 6,500 tons. “We act on the say-so of regulatory agencies like SRA,” Maronilla said.

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Justifying Panganiban’s actions, his spokesman claims that the 6,500 tons should be released to avert sugar shortage.

False. Since November, Customs has seized 9,827 tons on prompting by Asec Layug as head of Inspectorate and Enforcement.

Customs and Layug must be congratulated, not contradicted, for catching smuggled sugar:

• Nov. 12, 953.4 tons, Manila International Container Port;

• Jan. 11, 137.9 tons, MICP;

• Jan. 14, 4,000 tons, Port of Batangas;

• Feb. 6, 82.74 tons, MICP;

• Feb. 15, 110.32 tons, MICP;

• Feb. 16, 110.32 tons, MICP;

• Feb. 17, 82.74 tons, MICP;

• Feb. 17, 27.58 tons, MICP;

• Feb. 22, 110.32 tons, MICP;

• Feb. 28, 52 tons, MICP;

• Feb. 28, 78 tons, MICP;

• Mar. 2, 1,508 tons, Port of Subic;

• Mar. 7, 130 tons, MICP;

• Mar. 8, 78 tons, MICP;

• Mar. 8, 312 tons, MICP;

• Mar. 9, 468 tons, MICP;

• Mar. 10, 26 tons, MICP;

• Mar. 10, 338 tons, MICP;

• Mar. 11, 312 tons, MICP;

• Mar. 11, 130 tons, MICP;

• Mar. 15, 780 tons, Subic.

The issue is not supply but price. Hontiveros said industrial users begged Panganiban to import on their own but were directed to buy only from the three. They were quoted P85 per kilo.

Hontiveros called it profiteering. Thai wholesale price is P20-P25. Add shipping, insurance, handling, warehousing, 5-percent duty and standard margin of P8. Final price should be P61 per kilo.

The three’s markup is P32 a kilo – or P14 billion from 440,000 tons.

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Malacañang announced that the 9,827 confiscated tons will be retailed in Kadiwa rolling stores at P70 a kilo.

That’s pricey for indigents that Kadiwa serves.

Government spent nothing for the contraband. If it lost anything at all, it’s the 5-percent duty on sugar that Customs valuates at P100,000 per ton or P100 per kilo. That 5-percent duty is P5 per kilo.

Therefore, Kadiwa should sell the sugar at P5 per kilo, the potential revenue that government lost.

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