Corruption, Customs, And Rice: How Smugglers Get Away With It

[Medic Mike]

MANILA - Rice smuggling continues to proliferate in the Philippines due to a complex web of connivance between the smugglers and corrupt officials of the Bureau of Customs.

A Senate inquiry earlier revealed several names of suspected importers who could face charges for violations of the Tariff and Customs Code. However, nothing came out of the investigation.

Several newspaper reports also revealed that a certain "Mr. T" is controlling rice smuggling in the Philippines, which was confirmed by a former Customs official.

The name of the alleged smuggler was included in the February 2013 report submitted by the Senate Committees on Agriculture and Food, Ways and Means, Trade and Commerce, and Accountability of Public Officers and Investigations.

A farmer leader in Bulacan said Mr. T was able to corner a 1.2 million ton shipment of rice worth over P1 billion that was auctioned off by the Customs bureau. The same person also allegedly got another shipment of smuggled rice worth P350 million that was auctioned off in Bicol.

"Yung sa Port of Legazpi, nagkakahalaga ng P340 million, isang tao lang ang naka-kopo nun. Dyan sa Cebu. 1.2 million tons, kahit [National Food Authority] hindi nakabili dahil very restrictive ang ginawang rules, isang tao din ang nakabili," said Simeon Sioson of SM Agri-Ventures Farmers Cooperative.

Sioson said the scheme to bring in large volumes of rice is done through technical smuggling wherein large-scale importers are allowed to import rice sans a permit from Customs.

He said requirements for these large-scale importers to secure Customs permits are relaxed while stricter rules are imposed on small cooperatives.

"Yung technical smuggling, nagpaparating ang mga smugglers ng bigas. Binibigyan sila ng 30 days ng BOC na makapag-submit ng requirements samantalang yung mga farmers, 3 days lang," he said.

He also said the actual worth of the imported rice is not declared properly so that the importer will pay less for Customs duties.

A former Customs official, meanwhile, said technical smuggling would not be allowed without a go-signal from top officials of the bureau.

Rice cartel

In its February 2013 report, four Senate committees led by Senators Ralph Recto (ways and means), Francis Pangilinan (agriculture and food), Teofisto Guingona III (accountability and public officers) and Manny Villar (trade and commerce) recommended to the Ombudsman and the Bureau of Customs to investigate the possible filing of graft charges against National Food Authority Administrator Angelito Banayo and several NFA officials.

The charges were connected to the botched smuggling of 420,000 sacks of Indian white rice at the free port in April 2012.

No less than President Aquino tipped off the Bureau of Customs about the illegal rice shipment, which was unloaded at the SBMA sans permit from the NFA.

The committees also recommended the filing of charges against SBMA senior deputy administrator Stefani Sano for violation of the code of conduct and ethical standards after he allegedly name-dropped Sen. Juan Ponce Enrile to facilitate the release of documents in favor of an Indian rice importer.

In the report, the committees said testimony and documents pointed to a certain "Danny Ngo" and a certain "David Tan" as the alleged financiers of the anomalous shipments. It urged the Department of Justice, Ombudsman and the National Bureau of Investigation to investigate the two including a certain Danilo Garcia and Willy Sy of Montevallo Enterprises.

It also said testimony and documents submitted by the BOC, NFA and the Department of Trade and Industry "strongly reveal that there is a rice cartel which involves certain government officials who allow transactions to be consummated regardless of the irreparable injury it would cause to the government."

The Senate directed the BOC and the National Bureau of Investigation to investigate 26 cooperatives and trading companies for "strong probability of culpability of violations of the Tariff and Customs Code."

With report by David Dizon, ABS-CBNnews.com

 

http://www.abs-cbnnews.com/focus/12/26/13/corruption-customs-and-rice-how-smugglers-get-away-it