Other food companies can sell during Sinulog: City not part of SFI deals

CEBU, Philippines —  All local producers can sell during the Grand Parade day on January 19 as long as they comply with requirements set by the city and other government agencies, Mayor Edgardo Labella said yesterday.

His statement came after a Cebu-based food processing company sought his help after the Sinulog Foundation, Inc. reportedly barred the company and several others from selling their products at Sinulog-related activities.

Labella said the companies are allowed to sell under the principle of free enterprise.

Free enterprise refers to business activities that are not regulated by the government but are defined by a set of legal rules such as property rights, contracts, and competitive bidding.

Labella said among the requirements the companies need to comply are those from the Food and Drug Authority, Department of Trade and Industry, and the city.

He said he has advised Cebu City Police Director Engelbert Soriano not to confiscate any food, item, or article that are not illegal and are compliant with the requirements set forth by the government agencies.

“Local producers are very much allowed, especially the small and medium enterprises. We are encouraging them to engage in business,” Labella said.

Not Binding to City

SFI entered into an exclusive deal with San Miguel Foods Inc. (SMFI) but Labella said the agreement and the partnership “does not bind the city.”

Despite sitting as chairman of the SFI Board, the mayor admitted he did not see the contract between SFI and SMFI.

“I have nothing to do with that and I will never agree to any exclusivity contract,” Labella said.

The mayor’s brother, Elmer Labella, who is the foundation’s executive director, said the exclusivity contract was drawn by SMFI and the marketing group that SFI and the Sinulog Governing Board hired.

“It’s actually a different entity,” Elmer said, referring to the marketing group.

He said the marketing group has set up ways to maximize to generate more money from sponsorships.

“What we need are the expenses on the funds for the Sinulog to make it really successful… what I did is just support with what they planned to do as long as I find it legal,” Elmer said.

No Exclusives

Labella said the controversies this year as far as exclusive deals are concerned are eye-openers and he will advise SFI to refrain from engaging in this arrangement in the future.

“I will see to it that it should not be encouraged… I will never tolerate exclusivity provisions… We will look into this matter after Sinulog,” the mayor said.

The issue with SMFI came in the heels of another exclusivity issue when SFI entered into an exclusive broadcast contract with local television channel, MyTV, for the Sinulog Grand Parade and showdown on Sunday

Like in the SMFI deal, Labella said he was not informed of the exclusive contract with MyTV. He cancelled the contract on January 15 and opened the coverage to all media organizations.

MyTV reportedly bought the rights to an exclusive broadcast of the Grand Parade and showdown for P800,000. Elmer has said they accepted the offer because SFI has not been earning money from media outlets covering the festival for the past 40 years.

But the mayor said he was able to persuade SFI – after a long talk with foundation president Pericles Dakay – to back down from the contract.

"I really did not have a hand on this. But when I learned about this... na there is such an exclusivity contract unya nadunggan sad nako ang mga reklamo sa katawhan, sa akong tan-aw, kinahanglan gyud that I will come in as mayor. That exclusivity contract must not be implemented," Labella said earlier. JMO (FREEMAN)