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Freeman Cebu Business

Maladies & deceitful practices

FULL DISCLOSURE - Fidel Abalos - The Freeman

Terrorism, typhoon, earthquake, volcanic eruptions, civil war and political instability are just among the usual calamities/crisis the world is in. While unaffected countries may just have to sympathize on their (affected countries) fate, we, as a nation, just couldn’t. 

For one, in us, most of these calamities/crisis are so customary. Year after year, these have become ordinary occurrences and the destructions they brought have become familiar sights. While these tragedies are inevitable, the consequential damages could have been mitigated. Probably, appropriate infrastructures should have been built to mitigate flooding in low-lying areas. Loss of lives could have been prevented had we declared areas along fault lines, precipices beside river banks and landslide-prone places as uninhabitable zones. However, instead of squarely facing the problem, we tend to try to learn to live with it.

Moreover, while roads should have been built in rebel infested areas in the country for easy access of our law enforcers and for use of our poor and neglected (therefore, easy recruits) farmers’ furtherance of their livelihood, these are left unattended. Terrorism, therefore, has continued to flourish.

This time though, it could be different. With the coronavirus wreaking havoc all over the globe, all countries are up in arms in protecting their respective turfs. In fact, just like other countries, two highly urbanized areas (Metro Manila and the Cebu Province) in the country have been locked down as precautionary or preventive measures. 

Honestly, for the very first time, we are too serious. Why should we wait to have a malady of this magnitude to be serious is for our politicians to answer.

In the meantime, some of our industries are seriously ill. Travel and tourism industries and all directly or indirectly affected ones are in bad shape. So serious that some may just fold up.

However, this pandemic has also brought opportunities to some industries. Manufacturers of some necessities are enjoying lots of opportunities they’ve never seen in normal times. For instance, amid concerns of the coronavirus, the entire humanity is on the prevention or precautionary mode. So that, as we’ve witnessed, there was a surge in demand for face masks, medicines, alcohol, or even tissues (though hard to understand), etc. As demand increases the need for more workers (for these companies) follow.   

While it is true that this malady presents decent opportunities to some, a handful of selfish individuals are also taking advantage of this situation we are badly in. Though manufacturers never raise their prices, some retailers or, simply, opportunists are doubling or tripling the retail prices. They are doing this despite existing laws that prohibit them. 

For one, when an area is in a state of calamity, the Department of Trade and Industry automatically imposes price freezes of all basic commodities. This would simply mean that basic commodities (such as, rice, corn; cooking oil; fresh, dried and canned fish and any marine produce; eggs; fresh pork, beef and poultry; fresh and processed milk; vegetables; root crops; sugar; coffee; laundry soap; detergent; candles; bread; salt; firewood and charcoal; as well as medicines and drugs classified essential as per the Department of Health) must remain at their prevailing prices prior to the declaration and is to remain up to a maximum of 60 days in accordance with Republic Act No. 7581.  Yet, as we all know, this provision is constantly violated.

Moreover, Section 5 of Republic Act No. 7581, otherwise referred to as the “Price Act”, is so explicit as far as these “illegal acts of price manipulation” is concerned. It considers unlawful, such acts as, hoarding (which is the undue accumulation by a person or combination of persons of any basic commodity beyond his or their normal inventory levels or the unreasonable limitation); profiteering (which is the sale or offering for sale of any basic necessity or prime commodity at a price grossly in excess of its true worth); and cartel (which is an agreement between two or more persons to artificially and unreasonably increase or manipulate their prices).

Of the aforementioned malpractices, hoarding and profiteering can be easily done through ocular inspection and surveillances. Cartel is quite difficult. However, knowing fully well that the same DOJ (through the NBI) is in its fold the Office for Competition, then, any cartel-like practices can be effectively investigated. 

Indeed, our laws are broadly complete. It is just that maybe, some unscrupulous retailers are just toying with these laws and have unduly taken advantage of the general public’s helplessness.   

CALAMITIES

CRISIS

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