Senators want ex-NFA chief to answer rice smuggle raps



Convinced that a syndicate is behind rice smuggling in the country, senators want the former head of the National Food Authority (NFA) to answer charges that he “favored” rice importers over domestic farmers as alleged by a disgruntled officer of a rice cooperative.

In an executive session, Simeon Sioson of  4SM Agri Venture Multi-Purpose Cooperative told senators  he was prepared to reveal more of former NFA Administrator Angelito Banayo’s alleged bias for rice importers.

Senate leaders have provided Sioson with 24-hour security after the co-op officer revealed he was receiving death threats and was under surveillance by parties displeased by the ongoing probe by the chamber’s agriculture committee.

Sioson’s revelation prompted Senate President Pro Tempore Jose “Jinggoy” Estrada to ask the committee to invite Banayo anew to the Senate hearings.

Banayo attended previous  hearings as NFA head but he has resigned from the NFA to run for a seat in the House of Representatives.

Contacted by the Philippine Daily Inquirer, Banayo said Monday that he did not favor rice importers during his stint at the NFA.

“I could not have possibly favored rice importers over domestic farmers. We reduced importations drastically at the NFA,” he told the Inquirer in a phone interview.

He said that in 2010, the Arroyo administration imported close to 2.5 million tons of rice, 200,000 tons of which were brought into the country by the private sector.

By 2011, only 860,000 tons of rice were imported, 660,000 tons of which were brought in by traders and farmer-cooperatives. This year, Banayo said, 500,000 tons were imported, 380,000 tons of which were brought in by the private sector while the NFA only brought in 120,000 tons.

“Bigger allocations are given to the private sector… How can they say then that we favored importers over the farmers?” he said.

Bidding of allocations

Banayo said a key change from the Arroyo administration’s practice of allocating imports to traders was the NFA’s bidding out of import permits under his stint. “The government loses a lot of revenue if importation permits are not bid out,” he said.

He said that since the bidding was held by the NFA, the agency started earning revenue. From P103 million in 2010, the agency earned P1.6 billion in 2011 and P2.6 billion this year.

Banayo said that people making the most noise probably lost in the bidding.

As for rice smuggling, Banayo said the illegal activity was the concern of the Bureau of Customs.

But he said, “There are many cooperatives, alleged farmer-cooperatives, which may be allowing themselves to be used or are unwittingly being used by rice smugglers.”

He said the NFA’s only concern was if a cargo of rice had an import permit. “If it does not have an importation permit, then it is illegal. Smuggling is the concern of the Customs,” he said.


Senate President Juan Ponce Enrile told co-op representatives who attended Monday’s hearing that traders were using them as fronts by buying their rice allocations and selling these at a huge profit.

“If you yourselves sell the imported rice that you are allowed to acquire through allocations, then you can earn more than the P5 per bag of rice that you are paid,” Enrile said.

Based on testimonies of various co-op representatives, they pay a “service fee” of as much as P61 million so they can participate in the bidding for an allocation of rice to be imported.

Normally, one allocation is equivalent to 10,000 metric tons (MT), or 200,000 bags.

For each bag, a cooperative receives P5. This means the 10,000-MT shipment earns a profit of only P1 million.

If the cooperatives themselves sell the imported rice, they could earn more than this sum from the sale of 200,000 bags, according to Enrile. This is because the co-ops eventually sell their allocations to wealthier rice traders.

Nixon Kua

Some co-op representatives said it was Banayo’s late associate, Nixon Kua, who subsidized the service fees paid to the NFA since the amounts were prohibitive to co-ops.

They alleged that Kua, a former chief of the Philippine Tourism Authority, would arrive with envelopes containing checks equivalent to the subsidy after convincing them to participate in the bidding.

At least two of the representatives said Kua had been a walk-in visitor in their co-op offices who offered to help them participate in the bidding for imported rice.

In the case of the Indian rice shipment seized in Subic months ago, Magdangal Bayani III of St. Andrews Field Grains and Cereal Trading said Kua had assured him that he would provide the necessary documentation that would allow the co-op to participate in the bidding for rice allocation.

The Bureau of Customs seized 420,000 bags of Indian rice, estimated to be worth P450 million, allegedly smuggled through the Subic Bay Freeport Zone in April. Also foiled was an attempt to smuggle more than P100-million worth of Vietnamese rice in Albay in September.

Four unidentified men shot Kua in the face while he and his daughter were about to enter his brother’s house in Ayala Greenfield Subdivision in Calamba City in July. The attackers fled with the daughter’s bag containing P90,000 in cash meant to pay construction workers of the house that Kua was building in the same subdivision.

Enrile, Estrada and the Senate agriculture committee chairman, Francis Pangilinan, were convinced of an existing syndicate in the NFA that allowed this arrangement that was disadvantageous to the co-ops.

Banayo told the Inquirer that “farmers” and “farmer-leaders” had to be differentiated. Farmers, he said, were planting rice while farmer-leaders imported rice.

“They (farmer-leaders) say they represent farmer cooperatives and the benefits go to farmers but they do not. That is the problem. We always tend to give incentives to organized farmers but who really benefits? The farmers or the farmer-leaders? Most farmers are not able to import at all,” he said.

Banayo said the “farmer-leaders” had sought extra incentives from the NFA.

Originally posted: 5:02 pm | Monday, December 10th, 2012

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  • kilabot

    banayo is pinkylacson’s and noykapon’s guy. you know what to expect.

  • patawad

    bago naging administrator si Banayo,  maraming sinasabi siyang corruption of the previous admin, then all of a sudden tumahimik.  di ba nga one time may sinabi si Penoy na massive corruption of the previous administrator of NFA, tapos wala na, tapos, kaput.  Pinag aralan, tapos kinopya kung paano gumawa ng kwarta ang mga tao before them, is the only thing i can think of, grabe pala yang si Banayo, fav ko pa namang columnist nuon yan.

  • EdgarEdgar

    Wow! Another bad news for Noynoy! And suddenly, Lacierda and Valte are on “no comment” mode on questions about Banayo’s rice smuggling activities.

  • pinoypower

    Now I am getting a connection of the recent press campaign that the Philippines will not attain rice self suficiency despite efforts by DA. That is to justify rice importation even though we have enough. The rice cartels, both legal and smugglers, are behind this campaign. It is just sad that there seems to be a collusion with the NFA just like in the past. In the end the farmers and consumers will suffer. Marami pa ring anomalya sa NFA kahit pa nasa tuwid na daan na tayo. Isa na diyan ang hindi maipaliwanag kung bakit hinahayaang mabulok ang bigas sa mga bodega kesa ipamigay ng libre sa mga mahihirap at biktima ng kalamidad.

  • agustin

    absuwelto si Banayo dito, dahil bata bata ito ni Lacson.Banayo is the head trainer for Lacson witness academy. walang tuwid na daan dito kung kaalyado ni noy AB.

  • Ciano

    sigurado abswelto si Banayo sa kasong ito kasi KKK.bahala na si Batman dito kung may patutunguhan ang imbistigasyon na to…

  • Jon

    “Kung walang corupt…
    Sino pang matitira sa gobyerno niyan?”

  • Ronald Diaz

     kawawa naman yun local natin magsasaka.. kaya pala ang napakamahal ng bigas dahil may mga taong nag-maniobra sa NFA..

  • Fred

    Banayo will run for congress next year. Marami yata syang pera? Nakapag-ipon siguro? Your guess is good as mine.


    ISANG ISDA na naman yang mabibingwit na yan!  Hindi na ‘ata mauubusan ng matitiklong mga MMM sa ating bayan….mukhang HALOS lahat ng mga pinagkatiwalaan ng malalaking pwesto ay nahihirapang iwasan ang pangangaliwa sa taong bayan sa pamamagitan ng pagiging kawatan.

    Bee tai!

    • Pepe Alas

      Tamà, bitay para sa mg̃a bobong badaf na tulad ni UrDISHONOR!!!

      • UrHONOR

        Ngayon naman BITAY ang pinagdidiskitahan ng baklang ito…..alam kon mahilig ka sa mana naka-bitin…..kaya attracted ka sa mga salitang may kinalaman sa bitin.  Hyop ka din namang bakla ka!

      • Pepe Alas

        Hahahaha! Yes! ¡¡¡Napípicon na siyá!!! I told you, I always win!

      • UrHONOR

        SIGUE…ululin mong sarili mo….you always win the bitin yan sigurado na es verdad.  HWOOOY, sister, con yan solamente an misyon mo aqui, magpahid ka muna aquel uhog mo porque nilalabas mo an iyon pagka-tonto y tortugo. Con necessita mas bitin pa, pregunta lo, hija de P.

      • Pepe Alas

        ¿Anó daw? Sa totoó lang, walâ acóng naiintíndihan. Macaluma man acó magsulát, di namán abnóy na catulad nitóng si UrBODYODOR.

        Walá na to. Talunán ná, iyaquin pa…

  • kayumanggui46

    it now appears that the real reason Hixon Kua was shot was because of his involvement in NFA anomalies during Banayo’s time and the robbery angle was just camouflage to hide a bigger crime…remember Banayo is Pafilo Lacson’s boy ang Lacson has literally gotten away with nurder like the Kuraotng Baleleng and Dacer-Corbito…Banayo and Magtanggol Gatdula, and Michael Ray Aquino, all Lacson’s boys and, the minions are dirty but the boss is clean…tell tghat to the Marines…and Aquino is blind if he doesn’t put Lacson in jail…

  • ddano

    Nakakita  na naman ng pagbabatehan ang mga honorables. as usual pag-nilabasan na, meme na ulit. till the next nakakabogli comes along. Tama na yan Pleaaaase! Kasuhan agad kung may evidencia kayo.

  • Garo Ungaro

    declare this confiscated NFA rice shipment in favor of the government, then…donate and distribute it to the disaster area…its much need food instead of being rotten and gone to waste…

  • johndcross1

    Putris puro blah blah naman.  Alam ninyo kung sino ang mga satanas na rice smuggler.  Bakit hangang ngayon wala pang nakukulong kahit isa.  Yung Indian rice smuggling incidents, sino ang nakulong? Wala!  MGA LINTIK KAYO MAGTRABAHO KAYO NG MABUTI!  BU. OF CUSTOMS KUMILOS KAYO AT IPAKULONG ANG MGA RICE SMUGGLERS NA IYAN!!

    Naka tutok kami sa inyong lahat!

    • tilamsik

      lols… the present crop of Customs people must be annihilated and replaced with young upright men and women if we want a breath of fresh air in that agency… lipulin ang mga timawa sa Customs

  • kalikasanipagtanggol

    Recycling of names sa recyling na pamumuno ng bansa at recycling din sa pangungulimbat! ibig sabihin parang ferris wheel lang minsan nasa itaas ka minsan nasa ilalim pero ferris wheel ng mga kawatan!

  • Bantay

    sana imbistigahan ang pagkamatay ni Nixon Kua.malamang may conspiracy theory ang pagkamatay nya…pero sa administrasyon ngayon,malabo mangyari yan kasi pag KKK ang sabit,ipapaulit ang imbistigasyon para pag takpan! wheee! kailan pa kaya aasenso ang bayan natin!!!

  • Fulpol

    Alcala says, no more rice importation, instead PH will export rice..

    legally, no rice importation… but only smuggling.

  • johnnie r

    Na KARMA si BANAYO!!!

  • Gene

    Mukhang nakadale na si Banayo at next move nya ay mag congressman para makasama mga kapwa buwayang congressmen.  Ika nga, panapanahon lang yan.  Ok, next!

  • tower_of_power

    These are the kind of people destroying our beloved country … PEOPLE WHO COMPLAIN OF CORRUPTION WHEN THEY THEMSELVES ARE MORE CORRUPT!!!! Just look at the time since Marcos was ousted … corrupt people were removed only to be replaced by more corrupt!!!


  • brentcom


  • Maldi2

    Ang TUWAD NA DAAN, bow!

    kaagad na tumakbo’t lumisan

    Dahil siya
    raw ay tatakbo sa halalan

    Ang totoo
    pinasibat, at di natin namalayan

    At alam na pala
    ni Panot ang katotohanan


    Wika nya’y
    di tayo titigil sa pag-aksyon

    natin lahat ang mandarambong

    Reklamo’t sigaw
    ng bayan ay dumadagundong

    Kalakaran ngayon
    lalong dumami ang TONG!


    Weder weder
    lang yan, ang sabi ni Juan

    Kami ngayon
    magpakasasa kaban ng bayan

    Oplan GMA at
    Corona ating ipagmatigasan

    natin kabulastugan ay matago’t pagtakpan!

  • Maldi2

    Another straight punch into the face of Simeon, bwahahahaha!  Tuwad na daan talaga oo…puno ka ng kabaluktutan! bwhehehehehe!

  • Jose Rizal

    Lito Banayo installation to NFA,despite the lack of experience and background on the administration of food (but a spin doctor of Erap), was a QUID-PRO-QUO on the Makati Drama of Cory and Erap exchanging “SORRY ASSES”…a DUO SINGING ACT TO OUST Gloria…thus the clamour of the bequethal of the baton to her only begotten sloth son.
    Walang kaalam-alam kundi mag-SPIN at mag-SPIN ng ISSUES…ang Jinggoy Unggoy to the rescue (using of course the Grand Senate Hall to perform another OPERATIC PERFORMANCE).
    Hahahahahahaha!  Dapat nakabarilan ko din si Noynoy madaling UTUIN (“tool”)…eto si Ochoa Paquito from QC Hall to Malacanan door instant EXEC SEC kahit na “Oh soooooo QUIET”….dahil wala pa masyadong alam…basta attorney-at-law lang daw…kagaya ni Valte’ng NAPAKABABAW…uto-uto lang sa PRESS…kunwari MALINIS…mga sagot at depensa sa “Tuwad Na Daan” mantra, daig pa’y CARDINAL ang nag-HOMILIYA…kaya todo brainwashed kay Juan ang RESULTA.
    Hahahahahahahaha! Asan na ba si Noynoy? Natutulog na naman ba ang KOLOKOY?
    Napakataas ang MORAL standard ng “Tuwad Na Daan” and was EXEMPLIFIED BY the INSTALLATION OF KKK, Mediocre Politicians and member of the PAPANSIN academe, INTERSPERESED with QUID-PRO-QUO oligarchaic appointments, and the MEDIOCRES…Hallelujah, hallelujah,hallelujah…sabi ni Panot, di ba ginaya ko lang si Jesus, mga HUMBLE begginings ang kanyang mga pinipili, mga kamag-anak…ganyan din…ginaya ko lang din….si Judas nga (parang si Erap) kinuha din ng Nanay ko para maganda ang backdrop para sa pagdating ng pamumuno ko!
    Hahahahahahaha! Utuin mo lang si Panot (na mortal kang kaaway ni FPGMA…at ang latest ay MAG-ALAY KA NG PAPURI SA KANYA on broadcast & print media), PRESTO may PUWESTO KA NA SA KANYANG SARILING GOBYERNO, na may TAG-LINE na “TAYO NA SA MATUWAD NA DAAN”….
    Hahahahahaha! Oh, ano, Edgardo Angara, MAGPATOTOO KA…para sulit ang bayad ng political concessions na binigay sa yo.
    Hahahahahahaha!  Magpapabola ka pa ba?

    • tarikan

      Joe R., additional info kay Ocho-ocho-aaa. Dati siyang notary public sa Quezon City Hall sideline daw nya yun. Sabi ng iba, he was the best notary public thereabouts in city hall. 

    • agustin

       wala gaanong karanasan ay kinukuha ni noy AB, katulad kay cheap justice Sera’no.,Trillanes at iba pa.

  • Francis81

    Nag-away pa nga si Banayo at Proceso Alcala nun sa hatian nila sa rice smuggling.Yan ang tuwad na daan!

    • Nilo C

      Wala kang hati do-on at wala manlang nalaglag kahit 5 peso para masalo mo???

  • $23257130

    grave talaga ang corruption sa panahon ni noynoy abnoytard. nakakadiri. pppwwweeeehhhhhhh. 

  • mekeni62

    mga farmers ang bumayo si Banayo ang kumain?

  • joboni96

    Nixon Kua

    intsik switik na naman

    intsik switik rice cartel

  • basyong

    marami ng naimbak na nakaw si banayo kaya tatakbong tongresman para walang hati ang mga magsasaka sa pdf niya.pangalawa gagawin niyang taguan ang tongress para hindi siya makasuhan ala pandak para maghabol sila sa tambol mayor

  • agustin

    Nasaan na ang tuwid na daan ? inutil. hindi yata alam ng pangulo ng bansa natin ito ahh.

  • Josemakabayan

    Look at your math sir, sure you imported less than the previous administration but the volume that were brought in by the private sectors are bigger. And what the farmer cooperatives are saying is that you favored the importers than the local farmers thru their cooperatives by giving the importers the bulk of the rice imports !!!! Wrong logic sir, another Palusot na naman !!!!!!

  • newname

    dapat ifreeze ang lahat ng ari arian ng magnanakaw na yan at ikulong…..para hindi na makagalaw. Hindi marunong mahiya tong Banayo na to….Ang akala siguro ang kanyang ginagawa e ok pa. Hindi na  huminto sa pagnanakaw. Etong buwaya na to dapat shot to kill na kasi mas marami ang mahihirapan sa ginagawa niya. At bantayan ang mga intsik sa bansa kung pwede ipabalik na ang mga intsik sa China para doon siya magpatuloy sa kaniyang mga paggaganso

  • randyaltarejos

    Perhaps, the Cooperative Development Authority may intervene in this case. If not, there is a strong need to rectify a policy that allows the creation of these farmers’ cooperatives. Why can’t the government establish a central cooperative that is run by the government, rather than the private sector? In this way, farmers can consign their harvests to the central cooperative, which in turn the latter will deal with the NFA.

  • Albert Einstien

    a PNOY appointee again & again….KKKs  a legend…..huwad na daan…!

  • AlexanderAmproz

    Very easy to be rice self sufficient.

    Los Banos IRI had already discovered since long time,
    the “New Rice Technology”, instead of harvesting 3 tons per hectare, it’s 9 to 12.
    No need any investments, pesticides or fertilizer’s, an easy to understand, 
    nuisance for the Drug and Rice Traders gooses laying golden eggs, 
    as it is a super bonus for the struggling to survived slaves farmers.

    Few years ago the INQUIRER published all the informations about it,
    only few are doing it, but it works very well, I observed it personally.

    Agriculture Secretaries sleeping on it since too long, to protect “friends” selfish interest, 
    detrimental to the country, as usual !

    NB: Starvation is probably the oldest power weapon,
    when no food it’s absolutely impossible to think about any things else than food,
    question of survival affecting 30 millions Pinoy’s.
    Adding on that, the next step on the way,
    is WATER shortages in Cebu(thank’s Thomas Osmena) and Manila,
    soon the poorest will be crawling for water or swaping condoms to buy it.

    Have fun in the Island’s Paradise ! AMAZING !!!

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