OPENING STATEMENT OF SENATOR RISA HONTIVEROS
SUGAR SMUGGLING SEASON 2
PRESS CON WITH SENATE MEDIA
MARCH 21, 2023

Around two weeks ago, I filed a Senate resolution on the entry of imported sugar ahead of a valid sugar order. Hihintayin ko na lang sana ang ating butihing Chair ng Blue Ribbon para dinigin ang usaping ito pero the time-sensitive and urgent developments of the matter compel me to share this with you all, and with the Filipino public.

What we may be witnessing is the unfolding of a crime. Nothing less than large-scale agricultural smuggling. Nothing less than economic sabotage. Bilyong bilyong pera ang pinag-uusapan.

Alam na natin, ng publiko, na last month, for reasons that are still unclear to me, the Department of Agriculture through Senior Undersecretary Domingo Panganiban ordered that the importation of 440,000 metric tons of sugar be coursed through only three traders, dahil, diumano, sila daw ang, and I quote, "most capable". While I have my doubts kung "most capable" nga ang mga yon, at inamin na din ni Usec. Panganiban na his decision was "hasty", the weeks that followed only demonstrated the consequences of the Usec's haste.

Weeks ago at least one industrial user of sugar went to Usec. Panganiban and asked if it might be able to import sugar from Thailand just for its own use -- we might recall that this was also an idea that Senate President Zubiri broached last year. Kung matatandaan natin, critical sa mga industrial users na ito ang asukal. Pwedeng ikasara ng planta ng Coca-cola ang kakulangan ng sugar, at damay ang trabaho ng ating mga kababayan.

The response of Mr Panganiban was that there will be only three importers and the company will have to negotiate with the chosen three, led by All Asian Counter Trade.

This company did as instructed and went to All Asian. All Asian, according to my sources, initially quoted a wholesale price of P85 per kilo. Why is this price so appalling?

You can actually buy refined sugar wholesale for P25 pesos per kilo in Thailand. Kung matino kang importer, you know that you would already get a decent profit if you sell sugar at 61 pesos, bayad na doon ang warehousing, duties, handling, at may maayos ka na na profit (of P8 per kilo) per industry standard at a wholesale price point of 61 pesos. The P85 asking price of All Asian imposes an additional P24 peso super profit for a total of (P24 plus P8) P32 per kilo profit. Multiplied by 440,000 metric tons, ang tubo mo na lampas sa normal ay 10.5 billion pesos. Malaki kung para sa 3 traders lang. Kung kasama ang normal profits, ang total ay 14 billion pesos!

Selling it at 85 pesos is nothing short of outrageous.

Parang tumama ka ng 50 times sa super lotto ng hindi ka man lang tumataya.

Mukhang medyo nahimasmasan naman itong tatlong traders and they are said to have agreed to sell the sugar at below 80 pesos.

Halimbawa, medyo mabait sila at ibenta nila ng P77 wholesale per kilo sa industrials at P77 din sa retailers para kaya namang maibaba sa P85 pesos ang presyo sa palengke at groceries. Dahil 25 pesos lang ang wholesale price ng asukal sa Thailand, at sabihin mo nang may costs ang duties, handling at warehousing, ang super profits (on top of normal profits) ng tatlong ito ay nasa P7 billion pa rin! With the normal profits at lagpas 10 billion ang kita!

Sa ganung tubo na pinaghahatian Lang ng tatlo, di Mahirap isipin kung magkano ang kickback diyan. Ang asukal mo, may sweetener.

You can ask your friends and relatives in the industry-- and I can give you a detailed computation too -- they will most probably say that my estimates are conservative.

I also want to ask: when was this photo taken? This is making the rounds now online and I confirmed na sila nga ang importers. I want to know, is it normal to host sugar importers in Malacanang? Is the President being manipulated by his underlings who handpicked the importers?

As the Bureau of Customs has confirmed, the first 20 containers for AllAsian have already arrived.

They arrived before a sugar order could even be signed. I have unconfirmed reports that further shipments have arrived in Subic and shipments arrived at the MICT as early as December.

Nung Byernes ng umaga, hindi pa rin pinapayagan ng Bureau of Customs na ilabas mula sa Batangas port ang unang shipment na ito at patuloy pa ring binabantayan ng BoC ang pagpasok ng susunod na shipments.

Ang ibig sabihin nito ay tinatrato pa rin ng BoC na illegal ang anumang shipments ng asukal ng All Asian Counter Trade, SUCDEN Philippines at Edison Lee Marketing. So far, they are holding the line.

Ang ibig sabihin din nito, as of last Friday, ay hindi pa rin nagbibigay ng go-signal ang Sugar Regulatory Administration sa Bureau of Customs -- kahit sinabi ni Undersecretary Panganiban na "let it be" na ang ibig sabihin is let it pass and let the smuggled sugar out of the ports.

No less than the office of the Executive Secretary expressed doubts about the legality of the DA's actions of choosing importers and allocating quantities to be imported before a sugar order could be signed by the SRA.

Mariin pa rin akong humihingi ng imbestigasyon. Kung hindi pa bubuksan ng ating Blue Ribbon Committee ang imbestigasyon, kausapin ninyo ang mga planters at processors. Alam nila ang nangyayari.

Kausapin ninyo ang industrials. Malalaman ninyo na pati ang kanilang mga global head offices ay nai-iskandalo na sa nangyayari dito.

But this is not just a state-sponsored formation of a cartel. It is not a state monopoly a la NASUTRA of old that purported to generate public revenues for those would then be plowed back in favor of the sugar industry. It is a cartel that generates super profits, none of which will go to the National Treasury. Hindi pa tayo, kahit kailan, nakaranas ng ganito kagarapal na monopolyo; walang ganito kahit noong panahon pa ng martial law dictatorship.

Everyday that we let this pass unhindered is a day of burden for our consumers suffering the highest prices of basic commodities we have seen in decades. Everyday that we let this pass, I dare say, is a blemish on the record of the Senate.

This is also not just a burden to consumers.

Hindi ako magtataka kung pipiliin na lang ng ilan sa mga food and beverage manufacturers na, sa halip na subukang ipasa sa mga end consumers ang mas mataas na presyo ng kanilang mga produkto dahil sa katakawan ng All Asian at ng kanyang mga kasosyo, ay sa Thailand na lang nila aangkatin ang finished products.

Asukal pa lang ang pinag-uusapan natin dito. Ang dami pang mga basic commodities na maaaring sinisipat na ng mga cartel sa ngayon.

Please, pigilan natin ito habang maaga pa, before the unmoderated greed can do even more damage.