Manila Bulletin
Philippines
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Bersamin insists sugar imports under SO No. 6 legitimate, not considered 'cartelization'
Philippines
National
Bersamin insists sugar imports under SO No. 6 legitimate, not considered 'cartelization'
Bersamin insists sugar imports under SO No. 6 legitimate, not considered 'cartelization'
Published May 23, 2023 07:07 am
Executive Secretary Lucas Bersamin on Tuesday, May 23, told Senate probers that the importation of 440,000 metric tons (MT) of sugar is legitimate and fully authorized by the government.
Executive Secretary Lucas P. Bersamin attends the Senate Blue Ribbon Committee hearing on the entries of sugar shipments in the Philippines ports ahead of Sugar Order No. 6. (Senate PRIB Photo)
Bersamin pointed this out during the Senate Blue Ribbon Committee’s hearing on the alleged irregular importation of 440,000 MT of sugar from three favored importers ahead of the release of Sugar Order No. 6. “This was not an effort for cartelization. This was undertaken by the government to address inflation in the months leading to January 2023. The Administration made sure that there was buffer stock as a measure to regulate price increases. In a large way, the objective was realized,” Bersamin told the committee, headed by Sen. Francis Tolentino, during the hearing. Bersamin recalled that when the Sugar Regulatory Authority (SRA) was created in 1986, the Philippines was a net exporter of sugar. He said the SRA became part of sugar importation regulation process in 2002 when a memorandum order expressly stated that no sugar will be imported without an SRA clearance. Those without a clearance would be referred to the Bureau of Customs (BOC) for duties and charges; SRA, on the other hand, will perform market classification for its disposition pursuant to rules and regulations. Bersamin said this is why “a sugar order is not needed prior to importation.” The Executive Secretary urged the Senate to look at the rules and adopt amendments to the SRA policy. He said a sugar order is not absolutely necessary before the commodity can be released, “because this is a point of law: We were aware that the sugar order was not absolutely necessary for the importation to be made.” Nevertheless, he said a sugar order is still necessary as it would be the basis for the issuance of clearances by the SRA, “because the clearances would still be required by the Bureau of Customs (BOC).” “That is the context that the sugar order and clearance should be differentiated,” he added. “To us in the Office of the President, we committed no irregularity or violation of law,” Bersamin stressed. Sen. Risa Hontiveros, who pushed for an investigation into the issue had questioned the need for the government to allow the sugar importation from three sugar importers ahead of the release of SO No. 6. Hontiveros grilled Agriculture Senior Undersecretary Domingo Panganiban, who was present in the hearing, on his actions regarding the importation, and asked him to recall the exact words of President Ferdinand “Bongbong” Marcos Jr. Panganiban insisted that the President affirmed the need to import sugar during a meeting with him and several sugar importers: “The President said, ‘let’s import.’ Tell the public that we should be importing.” “The President did not say ‘Let’s do it ourselves.’ The President said, ‘let’s import’,” he said. Hontiveros eventually said she will leave it to the committee to determine if “prior to importations means merely prior to release it, but the wording appears clear.” “If this Committee, even after the hearings of 2022 where much ado was made about mere signatures on SO No. 3, so decides that a sugar order is not necessary in order to import a regulated commodity, then that’s a legal debate can be contrive,” Hontiveros said. “But the question remains: Bakit po namili ng tatlo lang? (Why only three importers?) Who handpicked these 3 importers and what are the reasons?” Hontiveros pointed out. “This is really a matter of policy, Mr. Chair. If we don’t require sugar orders anymore, we allow unfettered importation even on regulated commodities. If we allow the unilateral handpicking of importers, we allow the possible thriving of cartels and monopolies, contrary to the interests of the Filipino people,” she stressed.
Executive Secretary Lucas P. Bersamin attends the Senate Blue Ribbon Committee hearing on the entries of sugar shipments in the Philippines ports ahead of Sugar Order No. 6. (Senate PRIB Photo)
Bersamin pointed this out during the Senate Blue Ribbon Committee’s hearing on the alleged irregular importation of 440,000 MT of sugar from three favored importers ahead of the release of Sugar Order No. 6. “This was not an effort for cartelization. This was undertaken by the government to address inflation in the months leading to January 2023. The Administration made sure that there was buffer stock as a measure to regulate price increases. In a large way, the objective was realized,” Bersamin told the committee, headed by Sen. Francis Tolentino, during the hearing. Bersamin recalled that when the Sugar Regulatory Authority (SRA) was created in 1986, the Philippines was a net exporter of sugar. He said the SRA became part of sugar importation regulation process in 2002 when a memorandum order expressly stated that no sugar will be imported without an SRA clearance. Those without a clearance would be referred to the Bureau of Customs (BOC) for duties and charges; SRA, on the other hand, will perform market classification for its disposition pursuant to rules and regulations. Bersamin said this is why “a sugar order is not needed prior to importation.” The Executive Secretary urged the Senate to look at the rules and adopt amendments to the SRA policy. He said a sugar order is not absolutely necessary before the commodity can be released, “because this is a point of law: We were aware that the sugar order was not absolutely necessary for the importation to be made.” Nevertheless, he said a sugar order is still necessary as it would be the basis for the issuance of clearances by the SRA, “because the clearances would still be required by the Bureau of Customs (BOC).” “That is the context that the sugar order and clearance should be differentiated,” he added. “To us in the Office of the President, we committed no irregularity or violation of law,” Bersamin stressed. Sen. Risa Hontiveros, who pushed for an investigation into the issue had questioned the need for the government to allow the sugar importation from three sugar importers ahead of the release of SO No. 6. Hontiveros grilled Agriculture Senior Undersecretary Domingo Panganiban, who was present in the hearing, on his actions regarding the importation, and asked him to recall the exact words of President Ferdinand “Bongbong” Marcos Jr. Panganiban insisted that the President affirmed the need to import sugar during a meeting with him and several sugar importers: “The President said, ‘let’s import.’ Tell the public that we should be importing.” “The President did not say ‘Let’s do it ourselves.’ The President said, ‘let’s import’,” he said. Hontiveros eventually said she will leave it to the committee to determine if “prior to importations means merely prior to release it, but the wording appears clear.” “If this Committee, even after the hearings of 2022 where much ado was made about mere signatures on SO No. 3, so decides that a sugar order is not necessary in order to import a regulated commodity, then that’s a legal debate can be contrive,” Hontiveros said. “But the question remains: Bakit po namili ng tatlo lang? (Why only three importers?) Who handpicked these 3 importers and what are the reasons?” Hontiveros pointed out. “This is really a matter of policy, Mr. Chair. If we don’t require sugar orders anymore, we allow unfettered importation even on regulated commodities. If we allow the unilateral handpicking of importers, we allow the possible thriving of cartels and monopolies, contrary to the interests of the Filipino people,” she stressed.