Probe finds rice handling deal OK
A team that investigated the allegedly anomalous P1.08-billion rice cargo handling contract entered into by the National Food Authority (NFA) in 2014 found no irregularity in the deal and terminated the probe for lack of sufficient evidence.
The investigation covered the importation of 800,000 metric tons (MT) of rice from Vietnam Southern Food Corp. 11 (Vinafood 11) in April 2014 during the tenure of former NFA Administrator Orlan Calayag.
Members of the Joint Special Investigation Team from the Criminal Investigation and Detection Group, the National Bureau of Investigation, the Presidential Anti-Organized Crime Task Force and National Prosecutor’s Office recommended the termination of the investigation against Calayag and Avega Bros. Integrated Shipping Corp., the sole cargo company that the NFA hired to unload and deliver the rice to NFA warehouses.
Included in the investigation were Dennis M. Guerrero, the former special assistant of Calayag, Ludovico Jarina, Joseph de la Cruz, Alexander N. Vega Jr., Alison N. Vega and Alfredo Roa.
“Recommended for the closure and termination of the case as there was no sufficient evidence found for violation of antigraft and corrupt practices relevant to the alleged preferential appointment of the cargo handler and overpricing of the cargo handling rate,” read the 18-page report dated March 13, 2015.
“Avega was not given any unwarranted benefit, advantage or preference,” the report said.
The report noted that Avega was the only cargo handler accredited by the NFA committee for grains surveyor and integrated cargo handling services contractor since it was the only company that sought accreditation and submitted all documentary requirements.
It added that Avega was found qualified to handle trucking services based on its previous and current contracts.
The report noted that the owners of DYS SeaAir Wordwide Inc., led by a Teresito J. Alcantara and Ma. Crispina O. Perez, the supposed offended party in the deal, did not cooperate in the investigation.
The report also noted that the change in the policy transferring to the supplier the cost of delivering the rice to the NFA warehouses was done during the time of former NFA Administrator Lito Banayo in June 2012.
During the administration of Calayag, only four contracts were entered into by the NFA dated April 17, 2013, Nov.ember 2013, April 28, 2014 and April 30, 2014. All these contracts imposed on the supplier the obligation of unloading and delivering the rice to the warehouses of the NFA.
“As regards to the April 28 and 30 contracts, NFA expressly recommended Avega as the cargo handler,” the report said.
For the April 17, 2013, contract, Vinafood selected DYS as its cargo handler.
