Quimbo tags group of companies as ‘core of onion cartel theory’

Marikina Rep. Stella Quimbo has tagged a group of companies involved in the farming and sale of vegetables as the core of her "onion cartel theory."

At a hearing of the House Committee on Agriculture and Food, Quimbo asked the Department of Agriculture to look into her theory.

"At the core of my onion cartel theory is the Philippine Vieva Group of Companies, a fully vertically integrated corporation, an SEC-registered corporation established in 2013," Quimbo said.

"Sa enforcement unit sa DA, under kay Usec. Layug, masusi sana nilang imbestigahan ang theory ng cartel na inihahain ko," she added.

At the continuation of the hearing on the sudden increase in onion prices in the fourth quarter of 2022, Quimbo said PhilVieva controlled the onion supply, both local and imported, in the country.

Based on the General Information Sheet (GIS) obtained by Quimbo's office, PhilVieva is a fully vertically integrated Securities and Exchange Commission-registered corporation established in 2013. Its incorporators are corporations that are involved in local trading, importation, cold storage warehousing, and trucking.

“Its majority owner who appears to be Lilia or Leah Cruz also described the corporation as involved in the 'farming of vegetables'," Quimbo said.

"Sa madaling salita, hawak sa leeg ng PhilVieva ang buong supply chain mula umpisa which is farming hanggang dulo which is retail,” she added.

(In other words, PhilVieva controls the entire supply chain from the start which is farming to the end which is retail.)

Cruz said PhilVIEVA was no longer involved in onion trading after getting blacklisted in 2018.

She admitted that her trucking business served companies involved in onion trading.

“I am not involved [in onion trading] anymore since we were blacklisted in 2018 during the time of [then Agriculture] Secretary [Manny] Piñol,” Cruz said.

Quimbo's staff provided a matrix of several companies involved in the production of vegetables, trading, freight forwarding, exportation, and importation, and their respective owners.

“Dahil sa PhilVIEVA at ilang dummy companies, kayang kaya ni Leah Cruz i-dikta ang magiging presyo ng sibuyas sa merkado at kung saan niya nais magbagsak ng supply, kung saan man whether sa Divisoria man o sa supermarkets,” Quimbo said.

“Kayang-kaya din nyang diktahan ang farmgate price dahil hawak niya ang isang malaking cold storage at pwede rin naman mag-reserba ng espasyo sa mga cold storage," she added.

"Dahil alam natin na ‘pag hawak mo ang storage, pwede mong palabasin na puno na ito kahit hindi pa talaga siya puno. Sa puntong ito, nagiging desperado ang mga magsasaka at napipilitan magbenta nang mura,” Quimbo said. —NB, GMA Integrated News