Another NFA anomaly: P1-B hauling rate overprice

With marching orders to “clean up the agriculture department,” new Presidential Assistant Francis Pangilinan must look into this:

The National Food Authority, an agri-agency placed under him, is into another multibillion-peso scam. In importing 800,000 tons of rice from Vietnam, it has assigned the hauling to a favored firm in Manila. Cargo handling is more than double the usual rate. There’s kickback of P1.08 billion, NFA insiders murmur.

Masking the racket is a new policy called “Cost + Insurance + Freight Delivered, Duty Unpaid.” The scheme is supposed to save the NFA money. Whereas the agency before undertook the hauling, it now transfers the responsibility to the supplier. That way the supplier — no longer the NFA — would absorb such risks as short landing, wet bags, short weight, and spoilage. The NFA used to lose $5-$7 per ton due to those unforeseen factors, the Commission on Audit has red-flagged.

Now here’s the catch. In recently bidding out the 800,000-ton rice import, the NFA stated that it would assign whom to handle the cargo. This is restated in the subsequent contract with the sole bidder for the entire 800,000 tons, Vinafood (Vietnam National Food Corp.).

“The Supplier shall utilize the Cargo Handler appointed by the Entity for the unloading and delivery of the cargoes from the disport to the designated warehouses, for the Supplier’s account,” the contract says. “The scope of work of the Cargo Handler is subject to the conformity of the Entity.”

Signing the contract were NFA Administrator Orlan Calayag and Deputy Ludovico Jarina, with Vinafood Director Le Xuan Minh and Deputy Phan Xuan Que. Calayag issued Minh a Notice to Proceed on Apr. 30, 2014. Deliveries shall be made this May to Aug., to six Philippine ports near NFA warehouses.

A further catch. The NFA assigned to Vinafood its sole accredited cargo handler. That shipping firm is the only one certified because of the NFA’s tailor-fit rule. Applicants must have at least five years experience in handling its rice imports. The Manila-based firm exclusively has been serving the NFA for over a decade. In 2009 businessmen in Cebu, the country’s shipping capital, questioned the Manila firm’s monopoly of NFA cargoes even to the island-province and nearby Bohol. Competitors had asked the Ombudsman to investigate.

The NFA used to spend $27.50 per ton for self-cargo handling. The prevailing market rate during the recent NFA bidding-contracting was $24 max. Yet the imposed rate of the NFA to Vinafood was $54 — or overprice of more than double: $30 per ton.

Multiply that by 800,000 tons, then by P45:$1, and the overprice is P1.08 billion.

Pangilinan would find the smoking gun embedded in the contract for the first 200,000 tons to be delivered before month’s end, insiders say. The deal is for a total of $439 per ton. Vinafood’s basic price of rice is $409 per ton – inclusive of the $358 cost of goods, $27 standard insurance, and the $24 freight at the time of the bidding. There’s “tong-pats” (kickback) of $30 per ton.

Vinafood and Thai rice sellers know only too well the “kalakaran” (S-O-P): they must give to the crooks at NFA. Overpricing used to be in the cost of goods. But that’s now easy to check, as world traders post daily prices online. That’s how the NFA was caught last year padding by P3.4 billion the import cost for 705,200 tons from Vinafood. Along with the private broker of the deal between two rice state agencies, Calayag and Agriculture Sec. Proceso Alcala are under investigation.

Apparently the crooks have shifted the kickbacks to the freight.

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Most of Boracay’s seafood and souvenirs come from Romblon, 50 minutes away by speedboat, two hours by ferry. Trekkers from the white sands of the former invariably discover there’s even more fun at the latter’s nature and history sites, bistros, and famed marble works.

Romblon province consists of three main islands. Gov. Ed Firmalo knows each one well, to promote to divers, game fishers, spelunkers, culture buffs, and shoppers. A doctor, he values environment care, for health, food supply, and tourism.

Tablas, the biggest island, has the Looc Bay Marine Preserve, designated in 1999. It is home to over a hundred marine species, including the giant starfish, turtle and clam, and rare octopus, eel, and lionfish. Beside the century-old lighthouse, a floating kiosk features picnic lunch, fish feeding, and snorkeling. A P100-entrance fee includes the short boat ride. Sunsets are breathtaking, at Looc’s Villa M, cliff-side Resort by the Sea in Santa Fe, or the two-kilometer beachfront in Odiongan, the airport-seaport town. In Calatrava are rock formations; in Ferrol, a turtle sanctuary near Binucot Sunset Cove Resort; in San Agustin, the “blue hole” dive zone 75 feet deep, where mantas dwell.

Legend has it that in Sibuyan Island was found on a mountaintop a colossal oyster three meters in diameter. Scientists say it truly was undersea millions of years ago. Sibuyan’s allure is for mountain climbers, waterfall trekkers, cave explorers, and zip-line thrill-seekers.

On Romblon Island, the capital, are the 400-year-old St. Joseph Cathedral and bell tower. Under restoration are the ruins of Fort San Andres, a Spanish-era pirate lookout, up the cliff. At the town center is the province’s heritage houses, of gobernadorcillos of old. Everywhere are marble sculpture shops. For eats and treats, topmost is Dream Paradise Mountain Resort. Nearby are resort towns: Cobrador, Logbon, and Alag, favorites for angling, diving, and feasting on native cakes and seafood.

Luzon, Negros, and Cebu mainlanders can reach Tablas and Romblon via 2GO Travel ships (www.2GO.com.ph). Highlight of the half-day hops: dolphins swimming astride.

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Catch Sapol radio show, Saturdays, 8-10 a.m., DWIZ (882-AM).

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