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Senate wants ex-NFA chief Banayo probed

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Former National Food Authority Administrator Lito Banayo: Open bidding

MANILA, Philippines—A Senate joint probe committee has recommended that the Ombudsman investigate former National Food Authority (NFA) Administrator Lito Banayo and other NFA officials for possible graft in connection with the alleged use of NFA licensed rice importers as dummies by certain moneyed individuals who cornered state rice import quotas worth millions of pesos.

The inquiry, conducted by the committees on agriculture, ways and means, trade and commerce, and on the accountability of public officers, “found that there is sufficient basis to conclude that financiers are behind the anomalous transactions, and the testimony and documents obtained in the hearings establish without a doubt that these financiers exist and have employed dummies to rig the bidding process.”

Sen. Francis Pangilinan, chairman of the agriculture committee, presided over the hearings, which initially began with an investigation into the multimillion-peso attempted smuggling of rice at the ports of the Subic Bay Freeport Zone and Legazpi, Albay.

“The testimony and documents submitted by the Bureau of Customs (BOC), National Food Authority and the Department of Trade and Industry (DTI) before the committees strongly reveal that there is a rice cartel which involves certain government officials who allow transactions to be consummated regardless of the irreparable injury it would cause to the government,” read the committee report released by the joint investigation.

The committee report recommended that the Ombudsman together with the BOC examine the significant documents submitted before the committees and to conduct further investigation for possible violation of the Anti-Graft and Corrupt Practices Act against the following government officials:

Banayo; lawyer Gilbert Lauengco, Banayo’s former chief of staff and member of the NFA’s special bids and awards committee; assistant administrator Jose D. Cordero, grains marketing and operations department, and chairman of the SBAC; Serafin Manalili, manager of the NFA Bulacan office; Yolanda Navarro, NFA Albay provincial office; and members of the SBAC—Celia Z. Tan, lawyer Judy Carol L. Dansal and Carlito G. Co.

The committee report noted that testimony and documents at the hearings pointed to Danilo Garcia, Willy Sy, a certain “Danny Ngo” and a certain “David Tan” as being the alleged financiers of the illegal operation.

“These financiers and their accomplices must be unmasked and if warranted, the necessary charges filed against them,” the committee report said, as it asked the Ombudsman, the Department of Justice and the National Bureau of Investigation (NBI) to pursue the leads with respect to these individuals whose names came up during the hearings.

It said Garcia, Sy, Ngo and Tan should be investigated for graft, for illegal importation and for violation of the country’s laws against monopolies and restraint of trade.

Recommended for investigation were the following groups:

King Casey Trading, Loui London Trading, St. Andrews Field Grains and Cereals, Wish Granted Enterprises, Montevallo Enterprises, Formosa Multi-Purpose Cooperative, Riverview Multi-Purpose 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 Dealer, 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 Katagalugan MPC, Malipampang Concern Citizens MPC, and Ugnayang Magbubukid ng San Isidro.

Banayo denied the allegations, claiming that the country was never placed at a disadvantage during his tenure as NFA administrator.

“Bidding… was done openly unlike the previous practice of simply giving these to a chosen few,” Banayo said.

He claimed that because of the reforms that he instituted at the NFA, the state agency made P1.6 billion in 2011 and P2.6 billion in 2012, compared to a measly P103 million in 2010.

“[These improved figures] augmented our much-reduced budget subsidies. We are certain that we protected government interests and fulfilled our mandate,” Banayo said.

“We followed the law in all bidding procedures and relied on certifications given by other gov’t agencies, the BOC included,” he added.

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Tags: Graft and Corruption , Lito Banayo , National Food Authority , Philippines , Probe , Senate

  • eirons1043

    If Banayo is running for congressman just know who is his most influential rival.  This influential rival/s are the ones spreading the shot in the dark dirt of Banayo.  For sure Banayo is not a Saint but it is also sure that he is much better than whoever is his opponent.

  • maypakialamtayo

    eh! kung sagutin kaya kayo(senators) ni banayo, bakit kayo hindi kurap?

  • $23257130

    spokesperson to ni lacson di ba. pppppppppppppwwwweeeehhh kadiri eeeeewwwwww

  • daniboy2012

    execute smugglers (economic saboteurs) on the spot without hesitation…..leechess!!!

    • http://pulse.yahoo.com/_DH5D5H6XIXUJUHGMEHUWZFVIOU Dionisio

      malabo ito igan malabo pa sa pinaghugasan ng isdang tulingan kasi ang mga smuggler eh nakapatong sa palasyo at mga malalaking tao lalo na sa mga politiko.


    ANUPAMAN, mabuti na yong ma-imbistigahan para mawala ang pag-aalinlangan.  Hindi naman kaila sa marami na lubhang napakaraming mga kabayan na biglang-yaman o mga parvenus dahil sa pagnenegosyo.  Pero kung bigla-bigla ang pag-angat na halos puro poisition lang sa Gobierno ang pinanggalingan at alam naman ng lahat ng hindi malaki ang kita sa pagtratrabaho sa gobierno, TIYAK na pagdudududahan ang pinanggalingan ng kayamanan o “unexplained wealth” na tinatawag….lalo na’t merong mga sumbong ng pagmamanipula ng mga pamamaraan para makasali sa biyaya na ina-abot ng gobierno sa mga mangangalakal na ligal.  At sa pagkakataong ito, matunog-na-matunog ang hiyaw ng mga marami tungkol sa katiwalian na nangyari sa pamamahala ni Banayo sa NFA na kasangkot pa ang nasira nyang “katuwang’ na si Nixon Kua (RIP) na diumano ay pinaslang ng mga hindi-kilalang tao sa may bagong bahay na pinatatayo niya sa isang plush residential subdivision sa Laguna.

    Sa aking pananaw, hindi naman siguro gagawa ng ingay ang maraming rice traders na nasasangkot sa gusot ng rice smuggling na isa sa pinakamabigat na parusa sa mga mamamayan higit pa’t ang bigas ay ang pangunahing pagkain ng bayan.  At hindi di naman, siguro, gagawa si Banayo ng hindi ka-aya-aya sa kanyang naging pwesto dahil may ini-ingatan din syang dangal at pagka-tao.  KAYA, para mawala ang bulong-bulungan at mga dilang masasama, ang pag-iimbistiga sa lahat ng kasangkot sa usapang ito ay na-aankop at makatuwiran lamang.

  • http://twitter.com/r_eyesian ian reyes

    hindi ito yong taong critico ni GMA????? now its his turn

  • http://pulse.yahoo.com/_GYYFBINDMTZHM6TDHPB667452M agustin

    Last year , it was scheduled by the senate for investigation but Lacson interferred. Banayo was the planner and lecturer, and trainer for Lacson’s  ” WITNESS ACADEMY ” to demonized the Arroyos, like the NBN ZTE, JOSE PIDAL, HELLO GARCI, FERTILIZER SCAM, Helicopter scam, JUETENG GATE etc, the probe resulted to non acquiring of evidences, only a sham.

    • okayayonip

      you mean arroyos are not corrupt…..juice me naman. taas ang inyong mga kamay kung sumasangayon kayo kay agustin.

  • XY ZEE

    Ang tanong:
    Saan kumuha ng pang-kampanya si Banayo?

  • mapicchu

    the senate should cleanse itself prior to investigating other “scandals”.  at present, its moral leverage is ZERO!  

  • Rovingmoron

    Until the COA and a private auditing firm have conducted a thorough probe on the Senate funds, it cannot hold a public hearing or ask the Office of the Ombudsman to investigate the alleged involvement of Lito Banayo in rice smuggling, which defrauded the government of billions of revenues. Likewise, the Ombudsman must investigate as to whether Senate funds were juggled by JPE for other purposes other than what they were assigned to in the GAA.

  • Fulpol

    Banayo, tauhan ni Lacson?

  • concern_netizen

    Philippine rice imports:
    2009 – 1.8 million MT
    2010 – 2.37 million MT
    2011 – 860 thousand MT
    2012 – 500 thousand MT
    2013 – 120 thousand MT (projected)

    NFA made 103M in 2010, 1.6B in 2011, and 2.6B in 2012 after asking us to subsidize 8.1B in losses in 2009.

    Banayo may not be clean, but sure looks like a small fish to me.  How about the earlier NFA and DA chiefs who forced us to imports millions yet burdened us with billions of loss revenues?

    • http://profile.yahoo.com/I6PP5AA42KYHWKAXUESVEUHO3U Arnel

      Mas dumami ang smuggle na bigas  na hindi kasama sa listahan mo

    • http://pulse.yahoo.com/_E3CE56OQVPC4RPYD2NR4VD3SUE Bert

      Saka na yan, in the meantime, let the holier-than-thou Banayo clear himself from this corruption charges….

    • http://pulse.yahoo.com/_DH5D5H6XIXUJUHGMEHUWZFVIOU Dionisio

      tama ka igan panahon ni YAP ang daming nabulok na bigas sa NFA bodega. ung Import permit (IP) transferrable naman if the price is right. ang mga multi purpose coops (MPC’s) na binibigyan ng IP eh mga bugos at may malaking financier kaya tambak ang bigas sa mga bodega. sabi ng “kung walang corrupt, walang mahirap” admin eh iimbestigahan, ASK ko lang ANO NA ANG NANGYARI sa INVESTIGATION. bakit nawala na parang bula?????

    • concern_netizen

      I don”t tolerate Banayo.  It is right that we investigate his misdeeds.  But seriously, do we really expect him or any other new appointees to halt or reverse the blatant corruption instigated by the past administration for 9 years?  Take Bureau of Customs for instance.  It is impossible to eradicate smuggling altogether, but any concrete measures aimed combating corruption should be lauded.  The same is true with the PNP.  We can not expect that all erring police must be terminated immediately, but as long as the PNP chief is determined to clean up the force one bad egg at a time, then he must have our support.

      • http://pulse.yahoo.com/_E3CE56OQVPC4RPYD2NR4VD3SUE Bert

        We do not expect Banayo to halt or reverse the blatant corruption instigated by the past administration. And we do not expect him either to worsen or add on to the rampant corruption at the NFA. He was being appointed there to stop the anomalies in that agency, right?

    • http://profile.yahoo.com/N2QA6YVV4JWJWH5OZ75MC5Y3ME BS

      HA HA…ayos ang listahan mo. Kaya kumonti ang import ng NFA dahilan nga sa ibinigay ang karapatang mag import sa mga kaibigang intsik ni Banayo. Smuggled rice worth billions of tax payments ang nawala sa gobyerno.Ang pinakamasakit pa nito yung mga kawawang local farmers dahil bumaha ng bigas sa merkado ay yung palay nila ay bibilhin lamang ng mura.

  • http://www.facebook.com/red.villa.79 Red Villa

    sa korte ka na magpaliwanag banayo. maliwanag pa sa sikat ng araw ang modus nyo sa rice importation.

  • matalino matalino

    Banayo guilty? Oh yes. Hindi siya naging bata ni convicted plunderer Erap Estrada kung malinis siya. But, he will get away with it sa Senado- kasi, madaming kasamahan si Erap sa Senado. Obviously, it would be a cooked hearing or investigation.

    But, we must blame those stupid, self-serving, shortsighted registered voters who voted for those dakilang, super kurakot, super greedy, super self-serving, super deceitful Senators, Congressmen and elected Malacanang Officials.

    • http://pulse.yahoo.com/_E3CE56OQVPC4RPYD2NR4VD3SUE Bert

      Bakit naman si Erapskie sinisisi mo? Sino ba nag-APPOINT kay Banayo, di ba si PNOY mo? Tanggalin mo nga yellow’ng muta mo…….

    • wawa2172

      You are barking in a wrong tree, Banayo was only a hired political campaign manager of Erap and he was also hired by PNoy to handle his campaign then. PNoy however rewarded Banayo more by appointing him to the NFA. He must have looked into the credentials of Banayo before he appointed him so you cannot point the fault on Erap. Hindi naging matuwid ang mga appointment ni PNoy mabuti na lang at may kaunti pang may prinsipyo sa cabinet niya na tumulong sa pag unlad nang Pinas.

  • http://profile.yahoo.com/AND7MQ5FERICDOIAUW56RYT45A tower_of_power

    Ang anghel na lito ay dapt lang imbestigahan kasi yung mga bigas hindi alam kung para nga ba sa Pinas or Indonesia … pati kapitan ng barko hindi alam kung saan ideliver kaya yun ibinaba na lang sa Pinas … haaayyy nako!!! Kailangan natin mga anghel na hindi nalilito!!!

  • Noel

    Expect Ping Lacson to block the investigation or protect Banayo.  Bata at tauhan ni Ping si Banayo.

  • http://profile.yahoo.com/I6PP5AA42KYHWKAXUESVEUHO3U Arnel

    Ano ngayon ang masasabi ni Noynoy sa tuwad na daan???

    • http://pulse.yahoo.com/_E3CE56OQVPC4RPYD2NR4VD3SUE Bert

      Well, expect Pnoy to pay the BAIL in case Banayo, a known KKK is proven guilty and ordered arrested….

  • http://www.facebook.com/people/Charles-Lynel-F-Joven/685946584 Charles Lynel F. Joven

    well look at that, Lito Banayo is one of the trusted stooges of Sen. Ping Pong Lason, the rubout king..!

  • Maldi2

    Ika ni Panot, Philippines will be rice self-sufficient country by 2013.  (Yon naman ay pag di mabuking ang mga smuggling ni Banayo) bwahahahaha…bumaha nga ang bigas sa merkado pero di sa mga magsasaka..kundi galing sa udnerground ni Banayo!

  • http://www.facebook.com/maryjoy.villanueva.94043 Leoniza Carampatan

    di lang nfa ang nfa ang involve nya pati boc. grabe ang smuggling  ng bigas kaming mga farmer apektado dahil sobrang mura ng palay dahil sa sobrang baab ng smuggled rice. kahit ngayon na walang importation meron pa ring parating na imported rice. dapat pati ang boc imbestigahn din. talamak ang SOP sa pagpasok ng bigas at di nagbabayad ng buwis, balita ko ngayon 175k ang bawat container.

    • http://pulse.yahoo.com/_DH5D5H6XIXUJUHGMEHUWZFVIOU Dionisio

      what happen to then sec yap sa mga transaction ng bigas nuong termino nila, kay uniwide???? wala rin yatang nangyari sa investigation o baka naman NABANKETA na ang usapan kaya natigil at nawala ang balita tungkol sa NFA transactions nuon. wow NINGAS COGON ang daang matuwid,

  • malek_abdul

    Tama nga ang prediction ni PNoy na Philippines will be exporting rice this year if the weather permits kasi nga pag hindi nabasa ang mga bigas na imported it will be exported back to the country where it came from at lower cost.

    I thought Banayo is one of the “straight” and incorruptible cabinet PNoy had in his administration, mali pala ako.

  • http://pulse.yahoo.com/_DH5D5H6XIXUJUHGMEHUWZFVIOU Dionisio

    ano na ba ang nangyari sa imbestigasyon sa NFA prior to  banayo’s term, nuong panahon ni GMA na daming bigas ang nabulok sa mga NFA bodega’s. what happen sa father-in-law ng dept secretary na congressman ngayon. WHAT HAPPEN//////////WHAT HAPPEN?????????????????MAY INVESTIGATION BA////////////???????????????if meron, WHAT’s THE STATUS????????????? sana ipaalam ninyo sa publiko. hindi ung KAYO KAYO NA LANG kasi NILULUTO NINYO HA??????????????????????????????????????????????

    • http://pulse.yahoo.com/_E3CE56OQVPC4RPYD2NR4VD3SUE Bert

      What HAPPEN? Tanungin na rin natin si Banayo…….Di ba sa tuwid na daan wala dapat makakalusot at lutuan? Di kaya naghatian nalang ng commission para wala nang umangal….

      Tuwid Na Daan…hehehe

    • wawa2172

      Tapos na si GMA si PNoy na ngayon. He appointed Banayo to NFA but his appointee is a corrupt one. Tapos na ang importation nang smuggler ni The Pandak after her term. Ngayon its PNoy gang men raiding the NFA to fatten their bank accounts. 

  • ben311

    si pnot corrupt din ya.

  • http://pulse.yahoo.com/_5TBFLMGYQ6VOQOSMUUFHOML5VE Archie B

    Sen. Lacson to the rescue!!!

  • disqusted0fu

    This must be why Pnoy is confident in saying that the PH will be rice self sufficient by this year. Well, aside from am agriculture project established by the Arroyo administration in 2008 that is projected to take its effect by this year, perhaps the rice smuggling of Banayo will also help a lot with that. That’s probably why he hasn’t been prosecuted for it, same as every KKK, he gets Pnoy’s absolution.

  • rouelcalzita

    Nothing has been prosecuted from the past committee reports that submitted to Ombudsman…
    Taxpayers want any government official be convicted of a graft offense…

  • Norman Europa Nabatar

    If what Banayo is saying is true, then how would he account for the queuing for rice during his term, when so many rice stocks were in his inventory.  When I was managing a cooperative with seed capital from former speaker Prospero Nograles in Davao City, the CAPEMULCO, which was primarily dispensing NFA rice, the anomaly was so manifest, yet NFA’s employees basked in the corruption between traders and them, which was also found by us during a research funded by the USAID in Cagayan de Oro concerning the anomalous practices between them and the traders . This research was back then in the 90’s when Mr. Fidel V. Ramos was president.

    I believe, since this practice has set a precedence, the NFA should be abolished.  When Arroyo’s gang will be back in power, because they will be accountable and no party wash their dirty linen for them, they will do this again.   

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