NFA clarifies rice importation issues

Kindly share with us a space of your prestigious paper to clarify some issues regarding the National Food Authority’s importation of 800,000 metric tons of rice, which were discussed in the column of Mr. Jarius Bondoc on May 21 and 23, 2014.

Among other things, Mr. Bondoc averred that: 1) the appointed handler is delaying the arrival of the rice from Vietnam; 2) the cargo handler cannot be located; 3) the cargo handler is asking for a higher price; and 4) the fee for cargo handling was padded by as much as $30/MT.

We wish to point out that none of these allegations is true.

First of all, the suppliers — Vietnam Northern Food Corporation and Vietnam Southern Food Corporation II – have not made any complaint about the cargo handlers, the fees, or the contracts which had already been executed between them. Besides, NFA is not part of the contracting parties for the cargo handling, it’s between the supplier and cargo handler. However, last May 8, 2014, the cargo handler requested the assistance of NFA on the cited issues. On May 15, the parties met and resolved all the issues.

Second, the cargo handler is not missing. It is a reputable company based in Makati City with extensive expertise and experience in their line of business. In preparation for the arrival of the imported rice, the cargo handler has already coordinated with the concerned NFA Regional Offices and port authorities and is already mobilizing its resources.

Third and fourth, the handling fee, per contract, is $30/MT only, which makes the allegation of price padding by as much as $30/MT totally inconceivable. Last year’s handling contract with the same supplier was for $32/MT. The decrease in handling fee certainly could not mean ‘padding‘ in the contract price.

The Vinafood I and II informed NFA that the rice deliveries will arrive as scheduled, per contract. As of June 09, more than half or 459,400 MT were already either delivered at the designated NFA warehouse or have arrived at our local port, in transit or currently loading. The balance of 340,600 MT or the total volume of 800,000 MT should be totally delivered to NFA warehouses on or before end of August.

Once again, we would like to assure the Filipino people that the bidding for this latest rice importation of NFA has been very transparent. The decision to import and the guidelines for it were made in close coordination and cooperation with the Departments of Budget and Management, Finance, and Trade and Industry. The pre-bidding and actual bidding itself were witnessed by representatives from all bidders as well as from the embassies of Thailand, Vietnam and Cambodia; various government agencies such as the Bangko Sentral ng Pilipinas, Department of Finance, Senate and House of Representatives,the Commission on Audit, farmers and farmer organizations, civil society and the media. The proceedings were even videotaped for reference purposes. As we repeatedly say, our office is open to address any inquiries for the sake of transparency.

We hope that this humble explanation would enlighten your esteemed readers to a more objective understanding of the issue. — REX C. ESTOPEREZ, Department Manager for Public Affairs, National Food Authority