NFA admits issuing rice import permit to errant coop

CEBU DAILY NEWS FILE PHOTO

MANILA, Philippines — National Food Authority officials on Monday admitted issuing a farmers’ cooperative a permit to import rice in 2013 even after it had skirted guidelines.

The NFA officials made the admission after Sen. Ralph Recto took them to task for issuing permits to cooperatives after the arrival of a rice shipment despite an earlier Senate recommendation against it in 2012.

Officials said that the NFA stopped issuing post-arrival import permits only this month.

At the resumption of the agriculture committee’s inquiry into rice smuggling, Sen. Cynthia Villar cited in contempt Judilyne Lim for denying her links to a former personnel who engaged in rice trading on behalf of Lim’s company.

Davidson Bangayan, alleged rice smuggler, skipped the hearing due to back pains, and so did Leah Echeveria and Eugene Pioquinto, alleged facilitators in the importation of rice.

“Yes, your honor,’’ NFA assistant administrator Joseph dela Cruz said when asked by Recto if the agency had let such cooperatives to get away.

Quizzed by Recto, Dela Cruz admitted the NFA decided to grant an import permit to the San Carlos Multi-Purpose Cooperative despite bungling the procedure.

The cooperative is facing smuggling charges before the Department of Justice.

According to Dela Cruz, the cooperative submitted to the NFA documents to secure an import permit on Oct. 1, 2013. The NFA advised the cooperative to go to the Landbank of the Philippines first for processing of its documents.

The NFA later found out that the cooperative did not open a letter of credit with the Landbank, and made a direct payment to the supplier, bypassing the Landbank, Dela Cruz said.

The cooperative went back to the NFA to say that Landbank refused to process their documents, admitting that “they committed a mistake, they didn’t follow the guidelines and they offered an apology,’’ he said.

And recognizing that it was a legitimate importer and had paid advance tariff and duties, the NFA granted the cooperative an import permit, Dela Cruz said.

“So on Oct. 7, we issued the import permit to San Carlos Multi-Purpose Coop,’’ he said.

Recto commented: “Historically, we’ve seen this already. It would appear from documents that the NFA was letting these coops get away. Like we said, we know this already. Hopefully, this won’t happen again.’’

After conducting an inquiry into rice smuggling, the Senate recommended that the NFA stop issuing permits after the rice shipment has arrived.

Villar agreed with Recto’s observations, and pressed Dela Cruz why NFA has not shaped up in 2013 following the Senate recommendation.

Dela Cruz replied: “We made the corrections. When we discovered the findings of the Customs, the subsequent import permits of San Carlos were not issued. They didn’t consummate their allocation.’’

Hearing this, Recto said: “Your testimony today is saying that they’ve put one over you (napalusutan).’’

Customs Commissioner John Sevilla confirmed filing smuggling charges against executives of the cooperative before the DoJ for importing some P34 million worth of rice without the required permit.

In the hearing, Villar cited in contempt Lim for repeatedly denying that she had anything to do with Echeveria who allegedly convinced five cooperatives to transfer their allocation for imported rice to Lim’s company, DGL Commodities Inc.

At one point, Lim invoked her right to protect herself from self-incrimination. She asked for a copy of the documents about Echeveria’s deal but found the papers unclear.

“I don’t think we’re the one being referred to here,’’ Lim said, making a distinction between DGL Commodities Inc. and DGL Commodities Trading.

Villar said the committee decided against detaining resource persons cited in contempt inside the Senate for logistical reasons, and would merely prepare the filing of perjury charges against them.

“The rest have to come, otherwise we will have them arrested,’’ she said of the other witnesses who skipped the hearing.