Press Release
July 8, 2009

ROXAS SEEKS PROBE INTO OVERPRICED DA RICE DEAL WITH VIETNAM

Liberal President Senator Mar Roxas today called for an inquiry into the overpricing of 1.5 million metric tons (MT) of rice imported this year by the Philippine government from Vietnam in a government-to-government contract.

The senator said this deal should be unearthed and scrutinized, especially as the government, particularly the Department of Agriculture (DA), has been implicated in anomalous deals and controversial bidding.

"Naghihirap anga ang mga magsasakang Pilipino dahil mahal ang abono't patubig, dadagdagan pa nang pagnanakaw sa overpriced na bigas na ito. Hindi dapat pabayaang makalusot ang kalokohang ito lalo na't milyun-milyong Pilipino ang nagugutom at naghihirap dahil mahal ang pagkain," he said.

"Pang-ilang kontrobersya na ba ito na nasangkot ang gobyerno? Hindi pa nga nakikita ang hustisya sa mga naunang iskandalo, heto naman ang isa pa," he added.

In Senate Resolution No. 1163, Roxas pointed out that the DA had contracted the importation of 1.5 million MT of rice with a supplier named Vietnam Southern Food Corporation through a government-to-government bidding on December 16, 2008. But according to international wire agency Reuters, the rice importation deal was overpriced by 45%.

According to Reuters, the DA allegedly agreed to pay $549.50 per ton (cost and freight) for the 1.5MMT of long grain white rice with grades of 5%, 15% and 25% brokens. But Vietnam's 5% broken variety allegedly only cost $380 to $460 per ton on a free-on-board basis in January and February this year, while the 25% grade was pegged between $330 to $400 per ton, with freight cost estimated at between $25 to $35 per ton for shipments from Vietnam to Philippines.

In defense of the deal, DA Secretary Arthur Yap said the "government actually realized savings of P1.3 billion or $27.4 million for the rice deal."

"There is a great contradiction between the trade prices of the (DA) and the Reuters data... It is crucial for the government to explain and clarify the process that was undertaken by the Department of Agriculture in closing the government-to-government deal with Vietnam," Roxas said in the resolution.

The DA had targeted the importation of a total of 1.9MMT of rice this year. The remaining 0.4 million MT of rice yet to be imported will still be bidded-out.

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