DOJ blames collusion among traders, importers for garlic price hike

MANILA, Philippines - Department of Justice (DOJ) investigators have discovered that collusion between some businessmen and a cartel of importers has caused the skyrocketing prices of garlic.

In a report released yesterday, the DOJ’s Office for Competition (OFC) said the market has adequate stocks of garlic and that no shortage of supply exists.

“Importation of garlic in the country is controlled mainly by at least four known individuals and allies’ interests through a web of dummy entities duly accredited by the Bureau of Plant Industry (BPI),” read the  report. 

The OFC said a cartel of garlic importers has cornered supply and is now dictating prices in the market.

“In particular, a person named Lilia Cruz, alias Leah Cruz, cornered at least 75 percent of the total garlic importation in the country by virtue of such import permits,” read the report.

Justice Secretary Leila de Lima said the National Bureau of Investigation (NBI) is gathering additional evidence to prosecute people involved in the cartel. 

Investigators saw a problem in the garlic importation system, particularly in the BPI and the National Garlic Action Team (NGAT) of the Department of Agriculture (DA).

Under the current system, clearances from BPI serve as import permits for garlic traders.

The DOJ said the BPI has no authority to use the plant quarantine clearance as an import permit and allocate the volume of garlic to be imported.

The BPI’s primary mandate is to restrict or control importation of plant products to prevent entry of pests, the DOJ added.

The DOJ said the BPI must not be concerned with the volume of imports or determining the financial capacity of importers.

The BPI must be stripped of its power to issue import permits, the DOJ added.

The DOJ said NGAT has contributed to the problem and must be abolished.

“Investigation revealed that it (NGAT) failed to serve its primary purpose and to ensure a balanced representation from both government and private sectors,” the DOJ said.

The DOJ said the flawed permit system has abetted the establishment of a garlic cartel, possibly with the collusion of some BPI and DA officials.

“The composition of the NGAT suggested blatant conflict of interest,” the DOJ said.   

“The lack of clear-cut guidelines and established procedures in determining the allocation of import permits has made the BPI system prone to partiality, manipulation and collusion.”

De Lima said the NBI will also look into the possible connivance of DA and BPI officials or personnel in the cartel.

The OFC report will be endorsed to the Office of the President and relevant agencies for consideration, she added.

The DOJ has recommended the amendment of the law to give the DA and BPI powers to monitor garlic warehouses and storage facilities.

Prices of chicken drop

Prices of chicken have started to drop after poultry suppliers in Southern Luzon have started to recover from the damage of Typhoon Glenda.

Agriculture Undersecretary for Livestock Jose Reaño said prices of dressed chicken in markets this week have been placed between P135 to P140 per kilogram from a high of P170 per kilo. – With Czeriza Valencia