Palace accepts Yap explanation

MANILA, Philippines – Malacañang has accepted the explanation of Agriculture Secretary Arthur Yap about the alleged overpriced importation of rice from Vietnam.

Executive Secretary Eduardo Ermita said that he had talked to Yap about the reported anomaly in the rice imports, which a Reuters report said was overpriced by about 45 percent.

Yap vehemently denied the report, saying that it had no basis and that there was no such thing as $380 per metric ton Vietnamese rice as quoted by Reuters.

According to the report, the Philippine government purchased rice from the Vietnamese government at $550 per metric ton, which was significantly higher than the supposedly prevailing cash price for rice at the time it was purchased.

Yap showed documents indicating that the contract price given by Vietnam was within the average market rate and was even lower than some of the prices coming from the world’s largest rice source, Thailand.

“He said you can be sure there is no such thing as overpriced rice and everything was aboveboard,” Ermita said quoting Yap.

Ermita also justified the importation because 10 percent of the country’s requirements come from importations.

“He just wants to make sure that we have enough rice supply so there will be no shortage, but he denies vehemently that there is any overprice in the importation,” Ermita said.

“Anybody undertaking importation will be very, very careful because they know that the public is monitoring them, especially the media. I believe Secretary Yap,” he added.

The Senate, through Senator Loren Legarda, is considering the conduct of a probe into the alleged overpriced imports.

Ermita said that Yap would be available to testify in the probe if ever this pushes through.

Meanwhile, the call to probe the alleged overpriced rice importation deal snowballed yesterday, with Senator Mar Roxas joining calls for an inquiry.

Roxas said this deal should be unearthed and scrutinized, especially as the government, particularly the Department of Agriculture (DA), has been implicated in anomalous deals and controversial bidding.  

“There is a great contradiction between the trade prices of the (DA) and the Reuters data…  It is crucial for the government to explain and clarify the process that was undertaken by the Department of Agriculture in closing the government-to-government deal with Vietnam,” Roxas said, filing Senate Resolution No. 1163.

Yap rejects changes in rice procurement process

Meanwhile, despite criticism over a perceived lack of transparency in the Arroyo government’s rice procurement policy, Yap yesterday rejected any changes in the current rice procurement process.

Speaking to reporters yesterday at the sidelines of the launch of the Bayan Anihan project of Gawad Kalinga and Selecta in Barangay San Andres in Cainta, Rizal, Yap insisted that the government’s rice purchases are already transparent and are done collectively by the Departments of Agriculture, Finance and Trade and Industry and the National Food Authority.

Referring to the recent criticism over the alleged overpriced government-to-government rice purchase deal with Vietnam, Yap stressed, “When we bought it, it was transparent. If I change the procedures, how will it be more transparent?”

Yap, instead, lashed out at the Reuters report, calling it “irresponsible, baseless and malicious.”

Yap is even threatening a lawsuit.

“We are studying it. I will not take this sitting down,” Yap snapped.

He further criticized the Reuters report for quoting an alleged United Nations Food and Agriculture Organization agricultural economics consultant.

According to Yap, the DA has secured a certification that the said consultant identified by Reuters as Pablito Villegas is not a UN-FAO official.

Yap once again showed newsmen official rice price quotes by several Thai rice trading companies in December 2008 which confirmed that bids were all well above $550 per metric ton.

The Philippines had paid $549.50 per ton for 1.5 million MT of rice from Vietnam.

Yap reiterated that “there was no quote for any $380/MT in December.”

The Reuters report had quoted that in January and February 2009, rice prices had dropped to $380/MT to $460/MT for 5 percent brokens, but in December 2008 the price was at $400/MT to $410/MT for 5 percent brokens.

Yap insisted that the current rice procurement process is already transparent with the participation of the Procurement Transparency Group. — With Christina Mendez and Marianne Go