In a letter to NBI Director Federico Opinion, SRA Administrator Nicolas Alonzo also urged the NBI to take appropriate legal action against New Frontier Sugar Corp. (NFSC) should the agency find sufficient evidence to prove the company’s involvement in the fake quedan scam.
In his complaint, Alonzo claimed that NFSC used falsified sugar quedans as collateral for multimillion-peso loans from the International Exchange Bank (iBank).
A negotiable instrument representing ownership of specified amounts of sugar, a quedan is a document issued by a sugar mill or its warehouseman. It is the primary trading document used in the local sugar industry.
Alonzo said the falsified quedans were discovered when iBank requested SRA for a permit to ship sugar within Philippine territory. The said sugar was covered by Sugar Quedan Nos. B54-3004 to 3006. Apparently, the quedans were in iBank’s possession because the same were submitted by NFSC as collateral for a loan secured from the bank.
Upon examination, however, the SRA discovered that the signatures on the quedans were falsified. Aniano Chavez, SRA’s regulation officer, issued an affidavit stating that his supposed signatures appearing on NFSC’s quedans were forged.
As SRA regulation officer assigned to NFSC’s sugar mill, Chavez said his primary duty is to act as attesting signatory for NFSC’s sugar quedans. Knowing the legal implications of his duty, he takes extra care to ensure the "genuineness, veracity and authenticity" of his signatures to avoid any manipulation and/or forgery.
But as regards the NFSC quedans, Chavez stressed: "I vehemently disown and deny the signatures appearing in New Frontier Sugar Corp.’s quedans used as collateral in obtaining its loan from any bank or financial institution."
Concerned that fake quedans might victimize more private banks and government financial institutions, the House committee on good government has initiated hearings on the issue.
The committee hopes to introduce remedial legislation to preserve the integrity of the quedan system which, for generations, has been the lifeblood of the sugar trading industry.
Aside from fake quedans, the House panel is also investigating reports of rampant sugar smuggling by unscrupulous traders said to be close to cronies of President Estrada.
The congressional probe is being led by committee chairman Edgar Lara with the assistance of Iloilo Rep. Rolex Suplico, author of the resolution calling for an investigation into the so-called "sugar quedan scam."