At the same time, the DTI also urged local cement retailers to moderate their price increases and refrain from raising cement prices due to the recently approved power rate hike.
The agent and supplier of adulterated cement or buriki bags to Bagong Barrio Construction Supply and Always Intercon General Merchandise in Caloocan City has been identified and the corresponding administrative case has been filed.
A total of 216 bags of Republic Cement were seized from Bagong Barrio Construction Supply and 25 bags from Always Intercon General Merchandise during the market monitoring activity of Special Monitoring Assistance to the Regional Operations Group Team (SMART) on March 18, 2005 in Caloocan City.
The contents of the seized cement bags were allegedly altered.
Trade and Industry Secretary Juan B. Santos assured that full penalties and sanctions would be imposed against the agent- suppliers of adulterated cement or buriki bags.
Moreover, BPS director Jesus L. Motoomull said, the filing of the administrative case does not bar or prevent any affected entity or person from filing a civil and/or criminal case against a retailer, agent or supplier of adulterated cement.
Thus, Motoomull said, Republic Cement Corp., whose cement bags have been adulterated, may file a civil and/or criminal case against the identified agent and supplier.
Bagong Barrio Construction Supply has entered into an amicable settlement through the government alternative dispute resolutions and as a consequence, has paid an administrative fine of P17,500.
They agreed to submit an oath of undertaking indicating that they will only distribute and sell cement that has passed the tests based on the Philippine National Standards (PNS) and to testify against the alleged adulterated cement or buriki agent.
On the other hand, Always Intercon General Merchandise refused to cooperate, forcing the DTI-BPS to elevate the case to the DTI-OLA (Office for Legal Affairs) for a formal hearing.
The DTI-BPS urged the public to be vigilant in purchasing critical consumer products like cement, advising all concerned stakeholders to purchase only from authorized or legitimate dealers and suppliers to be certain that the products are unadulterated.
Adulterated cement or buriki refers to several types of tampering which includes reduction of cement content in a 40-kg bag and addition of foreign materials. Adulterated cement bags are sold cheaper.
Motoomull said that adulterated cement can easily be distinguished because the bags are sluggish since they are underweight, the stitches are altered and the labels printed on the bags are indistinct.
He warned that "using cheap, adulterated cement in constructing public structures poses a great danger to the public. Adulterated cement falls below the compressive strength required in the PNS since the components have been altered.
Structures built using buriki cement have weak foundations that could collapse anytime and endanger the lives of people occupying them, Motoomull said.
The DTI also revealed that cement prices this week increased by two percent, or a maximum average of three pesos per bag.
The DTI admitted that the increase in power rates has affected prices, as power costs account for a major share of the production cost of cement.
"Industry sources disclosed that they are constrained to raise their prices for cement produced after the power rate hike. Considering the product’s limited shelf life, existing inventories at old prices may not be sufficient," Santos said.
Santos directed all DTI offices nationwide to intensify its price monitoring and to promptly respond to any extreme and unreasonable movement in the retail price of cement.
He appealed to the consuming public to be vigilant and to immediately report to the DTI unscrupulous retailers who may take undue advantage of the situation.
DTI’s price monitoring showed that cement prices have remained stable for the past three months, ranging from P 150 to P 165 per bag.