Romualdez warns: P2.4-B penalty signals tougher stance on smuggling
MANILA, Philippines — The imposition of a P2.4 billion penalty against 12 onion traders accused of involvement in agricultural smuggling should be a warning against business players looking to employ the same schemes, House of Representatives Speaker Ferdinand Martin Romualdez said on Friday.
Romualdez in a statement also said that this is only the start, noting that aside from hefty fines, people engaging in agricultural smuggling may also face prison time.
The Speaker said this after the Philippine Competition Commission (PCC) confirmed on Thursday that its Enforcement Office has already fined a group of vegetable traders “for entering into anti-competitive agreements for the supply of imported onions in the Philippines.”
“Economic sabotage is a crime of the highest order. The law demands life imprisonment for large-scale agricultural smuggling, and we will make sure those responsible face the full force of justice,” Romualdez said.
“These cartels are not just committing fraud; they are endangering our food security and destroying the livelihoods of our farmers,” he added.
In a statement from the PCC, the following were named as respondents for cases regarding the allocation of imported onions among supposed cartels and for colluding to lessen competition:
Article continues after this advertisement- Philippine Vieva Group of Companies, Inc. (Phil. Vieva Group)
- Tian Long Corp. (Tian Long)
- La Reina Fresh Vegetables & Young Indoor Plants, Inc. (La Reina)
- Yom Trading Corporation (Yom Trading)
- Vegetable Importers, Exporters & Vendors Association of the Philippines (VIEVA Phils.)
- Golden Shine International Freight Forwarders Corp. (Golden Shine)
- Lilia M. Cruz, vice president of Phil. Vieva Group, chairperson and president of Golden Shine, and chairperson of VIEVA Phils
- Eric Pabilona, board member of Phil. Vieva Group, corporate executive officer of Golden Shine, and corporate secretary of Tian Long
- Renato V. Francisco, Jr., board member of Phil. Vieva Group, president of La Reina, and chairman and president of Yom Trading
- Letty T. Baculando, board member of Phil. Vieva Group and incorporator of Golden Shine
- Mark Castro Ocampo, sole proprietor of Vegefru Producing Store (Vegefru)
- Nancy Callanta Rosal, sole proprietor of Rosal Fruit and Vegetable Trading
READ: 12 ‘onion cartel’ members bared, face P2.4-B fines
Article continues after this advertisementMost of the aforementioned companies and individuals were also subjects of a 2023 investigation by the House committee on agriculture and food regarding the possibility that high prices of onion in late 2022 were brought about by an artificial shortage created by these groups.
Last May 18, Marikina 2nd District Rep. Stella Quimbo and agriculture chairperson and Quezon 1st District Rep. Wilfrido Mark Enverga presented a matrix showing how smugglers take advantage of farmers and manipulate market prices of products, particularly onions.
Quimbo explained that since onion farmers would need cold storage to keep harvested onions fresh, traders who connive with cold storage operators would falsely claim that slots are already filled up.
Traders would then urge farmers to sell their produce at lower farm gate prices, as it would be better to earn from the onions than to leave them spoiled due to the lack of cold storage rooms.
The lawmaker also said there are cases where the storage facilities already reserved spaces for other big cold storage to ensure that farmers cannot deposit their onions anywhere.
READ: Quimbo: Cartels exploit farmers to rule onion industry
Romualdez assured the public that this is just the beginning, as criminal charges and long-term imprisonment are guaranteed for those who commit agricultural smuggling.
“The imposition of P2.4 billion in fines is just the opening salvo. Smugglers and price manipulators will face not just financial repercussions, but serious jail time. We will not tolerate the sabotage of our economy and the exploitation of Filipino families,” Romualdez said. “The law is clear—those who manipulate agricultural prices will face long prison terms. Smuggling, hoarding, and price manipulation will receive the toughest penalties.
“We are fully committed to wiping out these cartels. This is not just about onions—this is about safeguarding our food supply and ensuring that every Filipino has access to affordable agricultural products. Today, we struck a blow against one cartel, but this is only the beginning,” he added.
Romualdez also said that the House will do its job of strengthening existing laws so that smuggling, hoarding, and price manipulation can be avoided.
“We will strengthen the laws, ensuring that those who sabotage our economy with price manipulation and smuggling face longer jail terms and harsher penalties. The days of leniency are over,” he said.
“The House will not stop until these cartels are dismantled and those responsible for hurting our farmers and consumers are behind bars. This is a fight we will win—for the farmers, for the consumers, and for the entire Filipino nation,” he added.
