[EXCERPTS OF Q&A] Senator Risa Hontiveros during the CA hearing on the ad-interim appointment of DA Sec. Francisco Laurel Tiu Jr

Senator Risa Hontiveros (SRH): Tulad po ng lahat natin malapit po sa akin ang sektor ng magsasaka at mangingisda kaya matagal ko na sinasabi na hindi ito part-time job na bibigyang pansin lamang kung kailan maisipan. Kailangan ng tutok at malasakit, panahon at kakayahan sa harap ng sunod-sunod na kontrobersyang tumama sa sektor mula noong pumasok ang kasalukuyang administrasyon. Gusto ko simulan ang pagtatanong sa inyo, Mr. Secretary with the organizational situation and reform at the DA.

Mr. Secretary, malaki ang tiwala ng Pangulo sa paghirang sa inyo bilang kapalit niya. Puwede po bang ibahagi niyo sa amin kung ano ang inyong marching orders mula sa kanya? Kanina sinabi nyo mahigpit ang bilin nila tungkol sa linisin na agad and go after smugglers and increase productivity. Ano ang mga repormang inaasahang niyang gagawin niyo sa Kagawaran ng Agrikultura?

Francisco Tiu Laurel Jr. (LAUREL): Mr Chair first we have to reorganize the DA. From the org chart pa lang, we have a new org chart that we will be presenting to the DA family in January para malinaw yung line yung chain of command so streamlining of course, we also have a system we need to change some of the system to make it more investor-friendly, business-friendly, fisherfolk and farmer-friendly. We have to fix din the database for the farmers list and fisherfolk dahil maraming yatang hindi nasa listahan pa. So then of course, we will also have changes in basically sa digitalization that is very crucial we have to digitalize para to get accurate information on all aspects of agriculture, to name a few Mr Chair.

SRH: Salamat, Mr Secretary, and also for the fact that it's not too few, medyo malaman na ang unang sagot ninyo, something for the committee to sink our teeth into. At salamat na kasama sa sinabi nyo na magiging friendly yang department ay farmers at fisherfolk - hindi palaging sinasabi yun, and it's a great example na sa Cabinet trying to reflect and balance competing interests, na tamang dapat ang Department of Agriculture ang champion para sa farmers at fisherfolk. Salamat doon sa pagnanais nyo na maging mas farmers at fishefolk friendly ang DA.

Now dako na po sa susunod na tanong, tungkol sa underspending. Kayo po ay isang kilalang negosyante Mr Secretary. Bago halimbawa bilhin o mag-assume ng control ng isang kompanya, kumpara sa isang kagawaran, standard operating procedure na to do due diligence sa kalagayan niyan. Nabrief na po ba kayo sa budget utilization of your Department?

LAUREL: Your Honor, Yes, nabrief na po ako, Ma'am.

SRH: And this question is very important to me because in the past five years, the budget of the DA more than doubled from 47.3 billion in 2019 to 98.86 billion in 2023. However, in the last five years also, the budget utilization or disbursement rate has never gone beyond 80% This year, at the end of the third quarter, it's only at 63.8% Of course, having only been appointed in early November, I know the Secretary is not responsible for these figures. Pero ano po ang plano ng good Secretary para i-address ang underspending simula sa 2024, ano ang inyong target sa 2024 at kapag kinonfirm sa susunod na taon, ano po ang targets nyo sa susunod na taon?

LAUREL: Mr Chair Your Honor, tama ho kayo nagdouble po ang budget ano but yung manpower nga is actually the same. So, coming 2024 medyo lumaki pa yung budget ng konti but I guess we really need manpower to implement these things eh. From my assessment, medyo kulang, personal assessment, while only 30 days in office, medyo kulang yung manpower but of course, that will be requested maybe sa DBM the new plantilla so that's we're aiming for.

As for the update, yung current na naobligate na is 81% as of Novemebr 30, pero kasi doon sa figures, official figures lalabas na 70% lang because we were just recently given a 12 billion fund from the rice tariffication na pumasok, but this will be for the farmers, this will be disbursed na next week.

So, as of the moment, the reality because of the 12 billion fund is 70, but next week pag lumabas na yan sa amin it will be 81% na. Moving forward for 2024, I've instructed the DA family na kailangan maobligate ito as much as possible hopefully almost everything by June next year. Yan yung personal target ko, of course, I might be aiming too high but at least, that's my target and I'll try to achieve that the best I can.

SRH: Salamat Mr. Secretary, mas okay siguro to aim too hight that to aim too low kasi pag nag aim too high man, bumaba doon ng kaunti or more than kaunti ay makakatama pa rin sa respetableng level or even better than the previous years.

I suppose doon sa una nyong binanggit kanina na reorganization, at bagong organizational chart na ipepresent nyo sa January, doon masasalamin yung additional human resources niyo at sa new plantilla. Sabi niyo nga na malapit na kayo umabot sa obligation level percentage na 81% which is actually the average performance in the past five years, oh no no, it's a bit better, kasi past five years dipa lumalagpas sa 80%, so ngayon nasa 81% na kayo. So hopefully within the next remaining month of the year, makataas pa, and then I wish you the best doon sa possibly too high target of obligating by the middle of next year, then that would hopefully produce better spending overall by end of 2024.

Dako naman po ako sa COA observations at yung Sugar Order No. 6. Nabrief na po ba ang Secretary tungkol sa COA audit observations for the year 2022 and other years?

Before the Secretary answers that, gusto ko lang i-put on record na yung 2022 COA audit report raised the following issues. These are some of the issues raised:

• ₱24.25 billion unliquidated transfers to implementing agencies and NGOs

• Undistributed 855,493 bags of seeds and 2,088 various mechanization equipment procured under the Rice Competitiveness Enhancement Funds

• Issues with fund utilization and implementation of FMR projects such as the slow completion of 402 FMR projects with a total contract cost of ₱5.75 billion funded between 2018-202, unpaid obligations worth ₱3.2 billion between 2016-2022 despite the availability of funds and ito pa po

• Non-implementation, lack of management and monitoring of ACEF evidenced by ?4.82 billion worth of past due accounts which have not yet been collected by the Landbank and ?213.13 million of the total ?460 million fund transfers for R&D between 2019-2022 remain unliquidated; and

• ₱284.14 million unutilized funds earmarked for the implementation of the Coconut Farmers and Industry Development Program (CFIDP) just reverted to the Treasury due to delayed submission of documentary requirements to DBM and BTr.

Going back to the issue of unliquidated funds, our reading of the COA audit report suggests that this seems to be a perennial problem in DA. The nearly ₱25 billion unliquidated funds transferred to various entities I mentioned earlier is a case not the only a failure to liquidate.

It appears that even internally, this has been an institutional weakness along with non-compliance to procurement rules. There are also unliquidated cash advances for local and foreign travels of DA officials and staff amounting to ₱207.76 million flagged by COA. On top of those two cases, there is also an unliquidated amount of ₱99 million to the PS-DBM.

Iyong sa Farm to Market Roads na hindi malaman kung nagawa ba o hindi, sa badyet na 5.75 billion, makakagawa na ng daan mula Quezon City hanggang Sorsogon, 575 kilometers. 10 million per kilometer.

Ano pong intensyon ng secretary gawin tungkol sa mga ito? Ano po ang plano ninyo na hindi na maulit ito under your watch?

LAUREL: Mr Chair, Your Honor, thank you for the question. Basically, first of all, yung sa Sugar Order no. 6, I was just made aware about a week ago, ang immediate action ko diyan is magkaroon ng fact-finding commission to see what really happened and ensure accountability. Of course, once the fact-finding comes out I will have to review it strictly, and strengthen it and look at the system and strengthen and put control measures in the systems para maavoid yung similar problems in the future.

Yung sa, Your Honor, yung sa FMR unliquidated na 5 billion, I just got the information now that the current status now is that the 5 billion is fully unliquidated as of June 2022. Mayroon pang 4 million that remains unliquidated, which is from 2012 but not part of the 5 billion. For the ACEF naman and sa Coconut, sa travel at yung 99 million sa DBM unfortunately, I cannot say that I am aware at this moment, I will look into this and audit this myself. Mr Chair.

SRH: Maraming salamat, Secretary. So mag fafact-funding commission or committee kayo tungkol sa Sugar Order No. 6. I hope you don't mind if I suggest na baka useful din po na tingnan nyo yung Blue Ribbon investigation report dito sa Senado, kalakip po yung minority report on the Sugar Order No. 6 na ginawang bahagi po ng buong Committee Report. I hope na it will be useful sa department sa inyong sariling fact finding process.

At tungkol naman po doon sa 5 billion plus na unfinished FMRs fund, sabi niyo po fully liquidated except for 4 million if I heard right. Kung maaari pong makahingi through our chair ng committee, ng copy ng liquidation na iyon?

LAUREL: Your Honor, yes we will give you a copy and I would really appreciate a copy of the Blue Ribbon Committee report, Ma'am.

SRH: Will do Secretary, hingin ko, andito kanina si Chair Francis Tolentino, hihingi po ako para mapadala ng CommSec sa Department, sa office nyo. Salamat po.

Sabi niyo po, you would look into other issues that I mentioned and moving forward, irereview nyo strengthen yung systems to avoid similar problems in the future. Maraming salamat para doon. So that's moving forward pero as far as the recent past is concerned, paano sa tingin niyo po mapapanagot ang may kagagawan nitong pagwaldas ng pera ng bayan at mga taong nasangkot sa kontrobersya - halimbawa nga po yung Sugar Order No. 6 noong nakaraang taon? Mayroon bang papanagutin dito?

LAUREL: Your Honor, basically kung may nagsala ay dapat talagang parusahan, in what legal means available or necessary your honor.

SRH: I hope po pagkatapos ng fact finding process nyo ay mabalitaan din namin kung ano yung findings and recommendations and any sanctions as provided by law. Salamat po.

I filed Senate Resolution 497 investigating Sugar Order No. 6 which raises questions into the criteria and policy of the Department in issuing sugar orders as well as possible collusion between government officials and smugglers. The Senate also conducted hearings into amending the anti-agricultural smuggling law.

In fact, Sec., kagabi ay inaamend na nga itong panukalang-batas na ito, to include government employees or officials proven to be complicit to smuggling providing stiffer penalties. These spikes in the prices of these high value crops - at naappreciate ko sinabi nyo kanina sa inyong introductory statement gusto nyong palawigin pa yung productivity natin in terms also of high-value crops in particular yung pagsirit ng presyo ng mga ito such as onions and sugar - really give opportunities to smugglers and cartels to take advantage of the general public. May bago bang policy ang DA pagdating sa importation para maiwasan magkaroon ulit ng sugar fiasco tulad ng Sugar Order No. 6?

Naappreciate ko rin, Sec sabi niyo rin kanina sa tingin nyo given production levels baka kailangan lang tayong mag-angkat ng 200,000 MT sa susunod na taon. So any policies moving forward to prevent repeats of such fiascos in the recent past?

LAUREL: Your Honor, sa anti-smuggling we need amendments sa RA 10845 to plug in the loopholes we need to have create specific office sa DA and my undersecretary and manned by investigators and lawyers. Kailangan din namin ng establishment of Witness Protection Program to encourage complainants para maging witness. Also, we need also - ang importante rin - to include a financial investigation unit through the Anti-Money Laundering Council and Bureau of Internal Revenue.

Basically mas madaling mahuli yang mga yan if we follow the money. So mag-establish din ng creation sa DOJ of a special prosecution team for agricultural smuggling cases, then ang importante din sa digitalization, we have to yung inter-commerce software ng DA ay parang 15 years old na eh. So we have to upgrade to plug in all the loopholes and have more transparency na nakaconnect yan sa BOC.

And I intend to do pre-inspection at origin at no cost to the government. Doon tingin ko makakabawas tayo, makocontrol natin dyan, saka mas magiging malinaw kung ano yung papasok at mabawasan yung kalokohan.

SRH: Salamat Secretary yung amendments na binanggit nyo, as I shared earlier, practically as we speak this week, tinatrabaho po talaga yun ng Senado under the committee on Agriculture yung Anti-Agricultural Smuggling Law.

Interesting ano, yung ideya nyo ng isang witness protection program, I suppose you are discussing that with your counterparts in DOJ, for example yung viability nyan or possible coordination diyan. Yung inspection at origin so bahagi na po ba ito ng first border inspection?

LAUREL: Your Honor, yung first border inspection is another component, this is the inspection at origin. Doon pa lang dapat mahuli na natin yung sakit, saka buksan yung container para makita talaga kung ano yung laman, walang nakatagong ibang bagay. Of course, we will have the first border inspection din in case na may dumating na dito na mareredflag, kasi may mga shipments na - let's say walang avian flu sa bansang pinanggalingan, then ang travel time is 40 days tapos biglang nagdeclare sila para sigurado, two point because we have this big ASF and Avian Flu, a major ASF problem we have to solve it by monitoring our ships and imports eh.

SRH: Maganda po yung at origin kasi naitanong din namin yun sa inbvestigation ng Blue Ribbon sa Sugar Order No. 6 sino yung nagpadala mula sa Thailand kasi wala namang dadating ditong smuggled sugar kung walang kasabwat sa origin. Salamat po para doon.

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SRH: In 2016, Congress enacted R.A. 10845, otherwise known as the Anti-Agricultural Smuggling Act. Seven years after, there is not one conviction.

Ano po ang pagtatasa ninyo bakit nagfail itong batas? Sa tingin ninyo specific changes ang kailangan para tugunan ang agricultural economic sabotage (smuggling, hoarding, profiteering, and cartels)? Bukod po sa mga napagusapan na natin Sec, dahil ina-amend ngayon ang batas na ito.

LAUREL: Your honor, in order to do what needs to be done, we should really strengthen the enforcement and intelligence capability of the DA. Of course, in close conjunction with the Bureau of Customs and the PNP. Basically we have to link everybody to the same information and honestly, we need more funding for this, kasi we have to move to track and to monitor yung mga known smugglers at hoarders at profiteers. Kaso walang pondo eh, walang pondo sa totoo lang.

But then, meron din minsan issues, mahirap sabihin, but we need to work closely with the Prosecution Service and the judiciary for proper case build up. Kasi marami ang nahuhuli pero nakakawala din at the end of the day. Actually maraming nahuhuli, just the last three weeks after I got appointed, halos everyday may nahuhuli. Meron muntik makalusot, buti na lang may mga kaibigan tayo sa judiciary na mga makabansa, nationalist, gumalaw talaga para hindi makawala yung nahuli natin.

SRH: Salamat Secretary. So kung yun yung mga pagbabago na kailangan, ibig niyo sabihin assessment niyo rin kung bakit nagfail yung batas ay kakulangan ng mga ito, baka yung kanina niyong binanggit na kakulangan sa human resources sa department?

LAUREL: Your honor, another one that I would like to suggest is or my plan to encourage yung mga legitimate importers, na makipagugnayan maigi sa legitimate importers para magkaroon tayo ng balanced and regular importation ano, not excessive of course, not to hurt the farmers and the fisherfolk.

Mahirap kasi yung nangyayari ngayon na yung nagiimport biglang pipigilin, tapos after a while kulang na, mataas na presyo, tsaka tayo magrereact. We have to have it balanced all year round, then we have stability. Pag meron tayo niyan wala na ring opportunity yung smugglers na magprofiteer kasi kagaya ng onion dati, P100, P150 naging P700 because somewhere along the line, may naipit eh. Hindi nairelease eh. It is basically managing the imports, your Honor.

SRH: Salamat Secretary. Kaugnay niyan yung sinabi ninyo kanina na yung planning process iimprove niyo, para to create that environment for balance and stability in terms of the food security. Salamat po.

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SRH: Mr. Secretary as we all know you are a renowned businessman prior to your appointment. Various stakeholders raised their concerns regarding supposed "conflict of interest" between ties with your companies and your new government position. On 06 November 2023, several news reports came out saying that you had already divested yourself from your interests from all of your companies, at hindi kakaunti - 62 po ba iyon - 68 business entities.

Pwede niyo po ba iconfirm, Mr. Secretary, sa komiteng ito kung aling mga kompanya kayo nagdivest ng shareholding at interes? Pwede niyo po ba iprovide sa komite sa pamamagitan ng aming chair yung mga instrument of divestment na tinender niyo sa mga kompanyang ito?

LAUREL: Yes, your honor, I have divested from all 68 companies through Deed of Donation or Deed of Sale. We will supply all relevant information or materials through the Secretariat. Thank you.

SRH: Maraming salamat. At paano niyo masisiguro at paano ninyo maassure na iyang mga kompanya na iyan, lalo na yung involved sa fishing sector, na ang DA, sa pamamagitan ng attached agencies niya ay nireregulate sa mga ganyang kompanya, na ang DA ay hindi magkakaroon ng kahit anong impluwensiya o preferential treatment sa pagkondukta ng negosiyo nila?

LAUREL: Your Honor, basically when I left the companies that I used to hold, we are already professionalized. So we have professional managers running the companies, and very transparent. Rules are there for a purpose, and it is also something that keeps the company stable, diba? Transparency is key and basically everybody has to observe the rules, especially that I am here now as a public servant.

Kagaya ng sinabi ko kanina ho, ang bilin bilin ng tatay ko ay hindi kami pwedeng mapahiya. Ang mukha namin ang pinakaimportante. There should be no special favors for my family's companies, no accommodation, my family will not allow that.

SRH: Salamat Secretary, panghahawakan po namin iyan. Huling tanong ko po para ngayong tanghali - yung resignation from private companies. Section 1 of Administrative Order No. 1, s. 1992 further requires cabinet officials, such as herein Appointee, to resign from private office immediately upon, but in no case later than thirty (30) days from assuming public office. The said requirement applies whether or not a conflict of interest exists between the Cabinet Officials' duties and their interests in such private corporations, partnerships or other business enterprises.

So maari po bang malaman from the good Secretary kung nakapagbitiw na po sa mga kompanyang ito?

LAUREL: Your Honor I have resigned from all of my companies and shareholdings, and any business entities.

SRH: Marami pong salamat sa inyo, Secretary, maraming salamat Mr. Chair.