127 gov’t execs, importers charged over garlic cartel

MANILA, Philippines - Criminal charges have been filed against 127 individuals, including former Bureau of Plant Industry (BPI) director Clarito Barron, over the alleged collusion with traders in a supposed cartel that caused prices of garlic to skyrocket last year.

Charges for direct bribery, profiteering and cartel under the Price Act, monopolies and restraint of trade under the Revised Penal Code, use of fictitious names and obstruction of justice were filed against them with the Department of Justice (DOJ) last Monday.

Apart from Barron, also charged were former BPI-Plant Quarantine Service chief Luben Marasigan, BPI-PQS officer-in-charge Merle Palacpac and businesswoman Lilia Cruz alias Lea Cruz, head of the Vegetable Importers, Exporters and Vendors Association of the Philippines Inc. (VIEVA Phils.) and chairperson of the National Garlic Action Team (NGAT) and National Onion Action Team (NOAT).

BPI is an agency under the Department of Agriculture that issues the required Plant Quarantine Clearances (PQC) and Sanitary and Phyto-Sanitary Import Clearances (SPS-IC) for the importation of garlic.

Barron yesterday denied the allegations and said the DOJ failed to establish that collusion indeed took place in the local garlic trade.

“The results of the investigation of the DOJ-Office of Competition is unfounded as its conclusions are based on weak accusations tainted with politics. It was not properly determined how collusion took place. It was just declared that there was one between traders and officials of the BPI,” he added.

Barron said they approved garlic import permit applications based on guidelines provided under the BPI’s mandate to ensure all plant species and products that enter the country are free from diseases.

“The issuance of plant quarantine clearance to accredited importers mean that the garlic they import are free from disease,” Barron said.

“If prices rise, we no longer have control in these. It is the Bureau of Customs that is expected to monitor this,” he added.

Barron said if there were indeed dummies found, these individuals should have immediately been charged with violation of the anti-dummy law.

“The BPI has no right to reject applications that follow regulations,” he said.

Barron also denied accepting bribe for the issuance of import clearances.

Barron was charged with direct bribery, graft and obstruction of justice after allegedly receiving P240,000 from garlic importer and whistle-blower Lilybeth Valenzuela, president of Vieva, after the issuance of four import permits for fresh garlic at P60,000 per import permit.

In her affidavit, Valenzuela claimed she gave the said amount to Barron inside his office at BPI located in Malate, Manila in October 2012.

She also alleged that representatives of importers or the importers themselves who are applying for import permits from BPI “were required to see Director Barron at his office after the release of the import permits in order to deliver payments for the (import permits),” according to the charge sheet.

The referral-complaint filed by the National Bureau of Investigation also listed over 100 importers and members of farmers’ cooperatives.

“The findings of the investigation show the presence of collusion among the BPI officials and importers of Vieva Phils. The farmers’ associations/multi-purpose cooperatives have no capability to complete importation transactions based on their financial statements/annual income tax returns. The import permits they secured from BPI were facilitated by Lilia/Lea Cruz, by paying to Director C.M. Barron the amount of P60,000 per import permit,” the NBI complaint read. – Czeriza Valencia