NFA chief: ‘No irregularities in the disposition of rice stocks’

In this photo, taken July 4, 2014, an NFA worker unloads rice imported from Vietnam at the NFA warehouse in Taguig City. On March 7, 2024, suspended NFA chief Roderico Bioco maintained that there are no irregularities in the disposition of the government rice buffer stocks. The Office of the Ombudsman ordered the preventive suspension of Bioco and 138 other NFA officials and employees over the rice row. (File photo by JOAN BONDOC / Philippine Daily Inquirer)

MANILA, Philippines — No irregularities were committed in disposing of the government’s rice stocks, suspended National Food Authority (NFA) chief Roderico Bioco maintained.

During a hearing of the House committee on agriculture and food on Thursday, Bioco said existing NFA rules and regulations were followed in the sale of the rice buffer stocks. He also explained that the sale was only made to ensure the rice was properly disposed of before it became unsuitable for human consumption.

“We follow the existing rules and regulations and exercise due diligence to make sure this [rice stocks] will be judiciously managed. We ensure the sale of stocks before they become unfit for consumption. There are no irregularities in the disposition of our stocks,” he said.

Earlier in the same hearing, NFA Assistant Administrator for Operations Lemuel Pagayunan told House lawmakers that Bioco and other officials violated Presidential Decree No. 4, which states that large volumes of stocks sold through the agency’s central office should be approved by its council and undergo public bidding.

READ: NFA chief, 138 employees suspended over rice row

According to Pagayunan, he found memos issued from the NFA central office and addressed to specific traders concerning the sale of around 25,000; 17,000; 7,500; and another 25,000 bags of rice buffer stocks.

“When I saw this, I automatically questioned the process. These stocks are usually sold through provincial or regional offices, not from the central office. If there is no public bidding, the council should approve the disposition,” the NFA assistant administrator pointed out.

Bioco, however, countered Pagayunan, saying the basis of their actions was Commission on Audit (COA) Circular 89-296, dated January 27, 1989, which no longer requires public bidding in the sale of large volumes of rice buffer stocks.

Based on the letter-complaint that Pagayunan filed before the Office of the Ombudsman, Bioco allowed traders to sell 75,000 bags of “deteriorating or aging” NFA rice worth P93.75 million through a series of memoranda.

Pagayunan also said in the complaint that Bioco instructed them to repack the rice buffer stocks in containers without the NFA’s markings before selling them as commercial rice.

On March 4, the Office of the Ombudsman said the complaint has “sufficient grounds” and “strong evidence” and placed Bioco and 138 other NFA officials and employees under preventive suspension for six months.