DOJ: Collusion, cartel caused soaring garlic prices

Department of Agriculture employees under probe

MANILA, Philippines — It was not shortage in stocks but collusion between government officials and traders in the garlic industry that caused the staggering increase in garlic prices, the Department of Justice (DOJ) revealed Wednesday.

Citing findings of an investigation on soaring garlic prices, Justice Secretary Leila de Lima said that majority of permits were only granted to one group of garlic traders.

"This group can dictate the high prices," De Lima said in a state news report.

The import permits were issued by the Department of Agriculture's (DA) Bureau of Plant Industry, covering about 73 percent of garlic supply. The remaining 27 percent, meanwhile, were locally produced.

The report stated that garlic imports in the country are controlled mainly by at least four individuals and allies interests through a web of dummy entities accredited by the bureau.

The DOJ report alleged that a certain Lilia Cruz, alias Leah Cruz, cornered at least 75 percent of the total garlic importation in the country by influencing the release of import permits.

As a result, garlic prices reached P400 per kilo in Quezon City in June, averaging over P200 in other markets. The spikes were a 74-percent  from the same period last year and a 100-percent rise increase from average prices.

De Lima also criticized an arm of DA for worsening the apparently anomalous regulation in garlic supply.

"The formation of a National Garlic Action Team by the DA is unnecessary, unhelpful and actually contributed to the problem," De Lima said.

The DOJ also recommended the abolition of the permit system under the Bureau of Plant Industry in place of a "fair and transparent system that will allow competition in the garlic industry."

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"The flawed permit system abetted the establishment of a garlic cartel, possibly with the collusion of some BPI and DA officials," the report stated.

De Lima said the National Bureau of Investigation has launched a probe to build possible cases against involved officials and traders in the supposed cartel.