DOJ: Garlic cartel also manipulated onion prices

MANILA, Philippines - The people behind the alleged garlic cartel are also monopolizing onion prices in the market, Justice Secretary Leila de Lima revealed on Wednesday.

“They are the same people,” De Lima said, as she announced that more than 100 people have been charged for manipulating garlic prices in 2014.

Among them were Bureau of Plant Industry former director Clarito Barron and Vieva Phils. chairman Lilia Cruz.

Barron appointed Cruz as head of the National Garlic Action Team (NGAT), which was tasked to assess the market situation for garlic. She also headed the National Onion Action Team, a parallel group for the onion industry.

De Lima said her department’s Office for Competition is set to release its findings on onion price manipulation this week. The findings will be forwarded to the National Bureau of Investigation for the filing of charges.

The NBI filed criminal complaint against Cruz and Barron on Wednesday for violation of the Anti-Graft and Corrupt Practices Act in connection with the garlic price hike issue.

Barron is also facing direct bribery charges allegedly for receiving P240,000 from importer-turned-whistle-blower Lilybeth Valenzuela.

Cruz was separately charged for violating laws against monopolies.

“Majority of import permits for onion and garlic issued by the BPI were given out to importers of Vieva Phils. Inc. headed by Lea Cruz after… Clarito Barron was seated as the BPI director,” Valenzuela said in a sworn statement submitted to the NBI.

Agriculture Secretary Proceso Alcala, meanwhile, voiced support for the filing of criminal cases against some of his subordinates and denied his involvement in the scam.

“This would give an opportunity for the accused officials of the Bureau of Plant Industry, members of the National Garlic Action Team and its farmers (as well as) other individuals to face the charges,” he said.

“The secretary is innocent of the malicious imputations against him. The department will not condone any activity that runs counter to the principles of good and faithful governance,” Undersecretary for Field Operations Emerson Palad stressed.

Evidence not enough

On reports linking Alcala to the garlic scam, De Lima said the NBI has not found enough evidence against the official.

“There was insufficient evidence gathered by the NBI with respect to Sec. Alcala,” she told reporters.

She said the NBI complaint only included those against whom sufficient evidence had been gathered.

A report by another daily said whistle-blower Valenzuela – in her sworn testimony – had implicated Alcala in the anomaly.

Valenzuela, a garlic importer, claimed that Barron had supposedly told importers of the need for Alcala’s blessings before they could be issued import permits.

She claimed garlic importers paid Barron P60,000 per import permit.

But while the NBI saw no need to include Alcala in its recent complaint with the ombudsman, De Lima said the agency is still checking other allegations against the DA chief.

Another set of charges would be filed today with the DOJ against 127 private individuals – mostly garlic importers – for alleged involvement in the cartel.

The charges would include violation of the Price Act, monopolies and combinations in restraint of trade under the Revised Penal Code; using fictitious name and concealing true name, also under the RPC; and obstruction of apprehension and prosecution of criminal offenders under Presidential Decree No. 1892.   

Malacañang, for its part, stressed that Cabinet members are entitled to due process.

“We will let the Department of Justice conduct the investigation (into the matter), which they themselves discovered based on the findings of the Office for Competition of the DOJ that were eventually confirmed by the National Bureau of Investigation,” Presidential Communications Operations Office Secretary Hermino Coloma Jr. said.

He said he had no idea if Alcala would take a leave while an investigation into the garlic issue was ongoing.

“There are prevailing processes and let us allow those processes to take place,” Coloma said, adding “members of the Cabinet serve at the pleasure of the President.”

Meanwhile, a source said the Bureau of Customs (BOC) had not been very cooperative with the NBI in the latter’s investigation into the garlic price manipulation, despite President Aquino’s order for investigators to get to the bottom of the issue.

“The BOC was one of the causes of delays. They frustrate the end of justice,” the source said.

“Many follow ups and phone calls were made with the office of Commissioner (John Phillip) Sevilla, but they gave the NBI a hard time. And when they did give documents, these were the wrong documents. The NBI asked for garlic, but what the NBI received were about onions,” he added. – With Edu Punay, Aurea Calica, Evelyn Macairan, Czeriza Valencia