OPENING STATEMENT OF SENATOR RISA HONTIVEROS ON SUGAR SMUGGLING HEARING
Senate Blue Ribbon Committee

Magandang umaga po sa ating lahat.

This whole fracas is about the government, through DA Undersecretary Usec Panganiban, granting import allocations to only 3 importers: All Asian Countertrade Inc, Sucden Philippines and Edison Lee Marketing Corp, covering a total import volume of 440,000 metric tons of sugar.

At this point, I wish to express my serious disappointment that Undersecretary Panganiban is not here. Gusto kong ipaliwanag nila kung bakit nila napili ang tatlong importer na ito. Gusto kong sabihin niya sa harap ng sambayanan kung bakit nila naisip na pwedeng mag-angkat na walang sugar order. Gusto ko malaman kung bakit, matapos sabihin ng Senado na ang isang Sugar Order ay dapat hindi defective, dapat hindi basta-basta pumipirma ang Usec ng walang malinaw na pahintulot ng Pangulo, na dapat dumaan sa board ng management ng SRA ang mga importation, bigla-biglang at the behest of an UNDERSECRETARY, pwede na basta mag pasok ng asukal sa kanyang mga PINILING importer? At pwede silang mag act in HASTE without facing any consequences in the civil service?

Higit sa lahat gusto ko sana matanong si Usec Panganiban: Saan sila humuhugot ng tapang? Sino ang nagbibigay ng go-signal? May mga mataas na opisyal ba na dapat managot dito? O may nagbibida-bida lang at gumawa ng sariling desisyon?

And I want to ask these questions, Mr. Chair, in full view of the public, sa harap ng sambayanang Pilipino, the way we did for the first sugar hearing.

They will tell you there were good reasons for choosing the three. Maglalabas sila ng mga Resolution of Support, statements of confidence, at kung anu-ano pa para sa All-Asian, Sucden at Edison Lee.

All-Asian Countertrade that had a history of smuggling during the period of 1998-2000. Sucden that, according to an independent audit report dated 2022 has a capital deficiency of $394,103 and $35,784 "resulting from continuing losses", which according to the report "raises doubt on the Company's ability to continue as a going concern." I have a copy of this Audit Report and I am ready to flash this and provide copies to all of you.

Friends, in previous SOs, there were always several importers given import allocations. Malimit, mga bente. Even more. And there was a clear basis for the allocation. Pero ngayon po TATLO LANG. For a total import of of 440,000 Metric Tons. Para namang sila lang ang mga anak ng Diyos.

You know how crazy big this is, Mr. Chair? Ang kailangan nila bunuin na performance bond ay bilyong bilyong piso. But wait there's more, para di naman siguro masyado pawisan itong ating tatlong importer, the performance bond was WAIVED for them. A performance bond - which guarantees that providers will deliver goods to the Filipino people in timely and satisfactory fashion - was waived for them. I cannot remember the last time that the performance bond was waived.

It is bad enough that this huge amount of sugar is to be handled only by three importers, three hand-picked importers. This would already have raised eyebrows from a policy perspective. What is worse is that a portion of this shipment was allowed in even before a sugar order.

This is so irregular that it was even flagged by the Department of Agriculture through Assistant Secretary James Layug, here is the letter and by the Bureau of Customs issued a Warrant of Seizure and Detention.

So, these three points are clear, Mr. Chair:

1. The undeniable truth is that there was no Sugar Order establishing a sugar importation program between the period of October 20, 2022 and February 14, 2023.

2. A sugar importation program reposed in a Sugar Order is a necessary prerequisite to importation. That was established in the first Blue Ribbon hearing in which the issue was only whether or not an SO is defective for not having been signed by the President. Ito wala talaga.

3. Any sugar importation above PhP1,000,000 without a sugar order is considered large-scale agricultural smuggling in violation of Republic Act No. 10845.

Kung mismong opisyal ng gobyerno ang nagpapasimuno ng padrino at favoritism — gaya na lang ng pagpili lamang ng tatlong kumpanya para mag-import ng 440,000 metric tons ng asukal bago pa mailabas ang lehitimong sugar order — paano pa tayo magtitiwala na ang ginagawa nila ay para sa kapakanan ng bawat Pilipino?

But the larger policy issues should not remain uninterrogated. Ginawang tatlo lang ang maaaring mag-angkat ng asukal, giving them not just super profits but an opportunity to control sugar prices. Imbes na binuksan sa madaming players, hinayaang pakyawin ng tatlo. Imbes na fair competition, monopolyo. Unregulated private monopolies are given the power over what used to be competitive markets. Imbes na mag-mura ang presyo ng asukal, baka tayo ang mapamura sa paglipad ng presyo at sa napakalaking kita ng mga gahamang ito. Bakit konsyumer ang magtitiis? Bakit ang ordinaryong Pilipino ang matatamaan?

Mr. Chair, friends, I would like to close by quoting from the Committee Report of the Blue Ribbon, which was approved in plenary and presumably bears the wisdom of the Senate. The Senate recommended measures to and I quote "prevent collusion between SRA, importers and other unscrupulous persons" (page 56 of the transcript). Dahil ang pagtingin po ng ating Senado, hindi talaga maganda ang collusion, o ang sabwatan. Kaya ang pinakamahalaga ko sigurong tanong: totoo ba ang photo na ito? At kung totoo, kailan ito kinuha?

Mr. Chair, I really hope that we get to the bottom of the issues in this hearing. From the evidence I have seen so far, it seems to me a case of ignorance or violation of our laws by government implementors at best, and state-sponsored smuggling at worst.