A complaint for graft and usurpation of authority was filed before the Office of the Ombudsman (OMB) on Monday, June 5, against Senior Agriculture Undersecretary Domingo F. Panganiban in the alleged anomalous release of “smuggled sugar.”
The complaint was filed by the National Congress of Unions in the Sugar Industry Agrarian Reform Beneficiaries' Council (NACUSIP-ARB Council) which is represented by its Chairperson Elisama Gregorio, President Zoilo de la Cruz IV, and General Secretary Anthony John Demisana as well as Elijah R. San Fernando from the Alternatiba ng Masa Partylist.
It was alleged that on Feb. 9, 2023, around 260 by 20 feet containers of sugar arrived at Batangas Port with All Asian Countertrade, Inc. as consignee.
On Feb. 13, 2023, Department of Agriculture (DA) Assistant Secretary for Inspectorate and Enforcement James A. Layug sent a letter to Bureau of Customs (BOC) Bienvenido V. Rubio and requested an Alert Order and Joint Inspection on the shipment because it is allegedly smuggled and lacked the necessary permits, it said.
It also said that on Feb. 15, 2023, Sugar Order No. 6 (SO6) was issued by the Sugar Regulatory Administration (SRA) with Panganiban as one of the signatories. It said that SO6 was not signed by President Ferdinand Marcos Jr., although the Office of the President received a copy of the order.
The complaint stated that SO6 allowed the importation of 440,000 metric tons of refined sugar and that the SRA will accept applications for importations five days after the effectivity of the order.
It pointed out that since SO6 was received by the UP Law Center on Feb. 15, 2023, it will take effect only three days after its filing -- particularly, on Feb. 18, 2023. If the timeline were to be followed, the complaint stated that the earliest date to bring in imported sugar would be on March 1, 2023.
But the complaint stated that on Feb. 27, 2023, Panganiban released a Memorandum to SRA Administrator David John Thaddeus P. Alba and ordered the latter to issue a Clearance for the Release of Imported Sugar by All Asian Countertrade Inc., Edison Lee Marketing Corporation, and S&D SUCDEN Philippines, Inc.
"This memorandum which was signed by respondent Panganiban even mentions the smuggled sugar which was imported by All Asian Countertrade, Inc., and specifically orders its inclusion and release!" the complaint stated.
"The indisputable fact is that there was no Sugar Order establishing a sugar importation program between the period of Oct. 20, 2022 and Feb. 14, 2023 or prior to the issuance of SO6," it stressed.
"This means that there was no Sugar Order to warrant the importation by All Asian Countertrade, Inc. of sugar that arrived in the Batangas Port on Feb. 9, 2023, making the imported sugar a smuggled agricultural product," it alleged.
The complaint stated that Panganiban performed an act pertaining to the SRA board. As senior DA undersecretary, it said that Panganiban “has no power under the law to unilaterally choose and direct only three traders to proceed with the importation of the sugar without the existence of a sugar order.”
It claimed that Panganiban knew that the shipment of All Asian Countertrade, Inc. already arrived in the Philippine ports without import permits, and yet he issued a "premature" memorandum that "purportedly cured the defect in the smuggling."
"This is a preposterous situation," the complaint alleged. "It would appear that he was in conspiracy with All Asian Countertrade, Inc. to commit large scale agricultural smuggling!" it added.
The complaint alleged that Panganiban's actions caused undue injury to the government since he allowed the smuggling of sugar. He reportedly gave unwarranted benefits, advantage, or preference to three importers only on the basis of the "3-page list" handed to him, it said.
It also alleged that All Asian Countertrade, Inc. has been tagged in a reported sugar smuggling case even during the administration of former President Joseph "Erap" Estrada, while SUCDEN Philippines, Inc. was reported to have negative equity in its audited financials.
"Based on the General Information Sheet submitted by Sucden to the Securities and Exchange Commission (SEC), the firm is 99.993 percent American owned," the complaint stated. "Rappler also found out from Sucden's latest financial statement that the company suffers from net capital loss and has no financial standing," it said.
"How can respondent Panganiban now say that SUCDEN and All Asian are among the most capable importers that's why he handpicked them when one has a history of smuggling and one has no financial standing to import sugar? This is clearly manifest partiality by a government official," the complaint added.
As of posting, neither Panganiban nor the two companies mention in the complaint could be contacted for comments.
Manila Bulletin will also publish their comment or answer to the complaint once filed with the OMB.