Senate Blue Ribbon to start inquiry on ‘sugar fiasco’

MANILA, Philippines — The Senate Blue Ribbon committee is set to start tomorrow its inquiry into the attempt to import 300,000 metric tons of sugar that reportedly exceeded the country’s requirements and was allegedly motivated by corruption.

Sen. Francis Tolentino, who chairs the committee, said former officials of the Sugar Regulatory Administration (SRA) were among those summoned to the probe sought by Senate President Juan Miguel Zubiri and other senators.

“This (sugar fiasco) is still a developing story. What will happen on Tuesday is part of the developing story. How it will end up, how it will evolve will depend on the facts and evidence that will be established,” Tolentino, speaking partly in Filipino, told dzBB radio yesterday.

He said all the actions and recommendations of the committee – which adopted its new rules last week – will be “based on established facts, evidence, and applicable laws and regulations.”

Earlier, President Marcos appointed David John Thaddeus Alba as acting administrator of the SRA to replace Hermenegildo Serafica, who resigned last week following the Chief Executive’s revocation of Sugar Order No. 4, which would have imported 300,000 MT of sugar during harvest season.

Marcos also appointed Pablo Luis Azcona as sugar planters’ representative to the SRA board, replacing Aurelio Gerardo Valderrama Jr.; and Ma. Mitzi Mangwag, representing sugar millers, in place of Roland Beltran, who earlier resigned due to health reasons.

Tolentino stressed that these resignations do not mean former officials cannot be held accountable for any lapse or misdeed in relation to their issuance of SO 4.

The importation would have been on top of the 200,000 MT of sugar under SO 3 issued last May that has nearly the entire volume having already entered the country.

In his privilege speech last week, a P600 million “tongpats” or kickback might be behind the attempt by some corrupt officials and traders to import sugar even as stocks are being hoarded in warehouses in Metro Manila and other parts of the country.

“Why do they want additional importation? My dear colleagues, we were not born yesterday. Most of us know importation is a lucrative business… there’s ‘tongpats’ (kickbacks), there’s an SOP that’s being given,” Zubiri said.

He said reliable sources from the SRA and the sugar industry told him the kickbacks range from P50 to P100 per bag of sugar, and the aborted importation of 300,000 MT is equivalent to six million bags.

At P50 per bag in kickback would amount to P300 million while P100 would translate to P600 million in bribes, he said.

“Insiders tell me that’s happening. I’m not saying it happened, but it’s possible (because) why are they pushing for importation?” Zubiri said.

He said SO 3 was issued apparently in defiance to separate temporary restraining orders issued by two courts in Negros Occidental.

As of July 31, some 172,000 MT have entered the country and 27,000 MT of sugar are on its way, he said.

Contrary to the former SRA officials’ claims of shortage, only 45,000 MT of sugar have been withdrawn from storage and there are still 136,000 MT in various warehouses, he added.