Ex-SRA chief Serafica says he didn't consult board on draft SO 4

Resigned Sugar Regulatory Administration chief Hermenegildo Serafica on Tuesday told the Senate blue ribbon committee that he did not consult the board on the draft Sugar Order No. 4 which would have allowed the importation of 300,000 metric tons of sugar.

During the Senate hearing on the "fiasco" on SO 4, Senate President Juan Miguel Zubiri said draft sugar orders should be consulted with the deputy administrators.

"On SO Number 4, I did not consult them. In the past, any board member, Mr. Chair, can craft a sugar order. There is no rule that only the regulations department can endorse a sugar order," Serafica explained.

Zubiri pointed out that in the past, the draft sugar orders were routed to deputy administrators then it will be recommended to the SRA board.

"In this case, you did not do that, you drafted it yourself and you had the members of the board signed without the knowledge of the deputy administrators," he said.

"Do you think this is highly out of order?" the Senate president asked.

Serafica then cited the directive to craft an importation plan.

The order for the crafting of the importation plan was mentioned by Executive Secretary Victor Rodriguez at the early part of the hearing.

"In this case, since it was a directive to craft an importation plan, we did not want to let anybody know until such time that it will reach the Office of the President," Serafica explained.

But Zubiri questioned this move, pointing out that importation of such a large volume of sugar should be consulted with the stakeholders.

"Why did you not want anybody to know? Because this is a very important matter. You do not import, your honor, with due respect, such a large amount of sugar without consulting the industries involved together with the stakeholders," he said.

"You just said it now. You do not want anyone to know. Why is the secrecy of such a transaction...and we want to put this on record that this has not been done. The practice is that you consult your colleagues in the Sugar Regulatory Administration," he added.

Serafica then gave a presentation, where he showed the senators that they have conducted a consultation with various stakeholders, including Confederation of Sugar Producers Association, NFSP, among others.

Still, Zubiri was not convinced, saying the stakeholders, except Confed, "disputed" Serafica's presentation.

He also questioned the provision in the draft SO 4 where the authority to reclassify sugar products was solely given to Serafica.

The Senate leader noted that in previous sugar orders it is the board that decides the reclassification of sugar.

He explained that this is very important because the imported sugar cannot be released for domestic use if it is not reclassified to class "B."

"The board will decide to make it [class] "B" which is domestic para mailabas 'yan. The power is vested on the board including the acting secretary but not under this very document, it is designated to the administrator himself. Now, is that the correct assumption that you have the sole authority to reclassify the sugar?" Zubiri asked.

Serafica responded: "If the board would authorize me, Mr. Chair."

Zubiri pointed out that this provision is not included in Sugar Order No. 3.

The former SRA administrator explained that "this would expedite the availability of sugar for the local market."

The senator insisted that this is a "very powerful" position to take.

Senate blue ribbon chairman Francis Tolentino also pointed out that Serafica is not the entire board and he is only a "mere executor" of the body's decision.

Serfaica said that would have been up to the board if they would have commented on that particular provision on the draft SO.

With the board signing the draft SO, Serafica said it means they have no objection.

"But then the board has to clarify this because it is a very important and powerful position to be able to be a sole authority to be classifying sugar. There's a price difference in all of these and it's a very powerful position because all the traders will go to you and papa-reclassify sila kung ano gusto nila pa-reclassify. Isang tao lamang hindi na 'yung board ang magdedesisyon nito," Zubiri said.

"I just want to put on record that in previous sugar orders wala ito. Itong Sugar Order No. 4 na unang-una sikreto ang pagkagawa. Pangalawa, iisa lang ang nagbibigay kapangyarihan para mag-reclassify ang asukal from reserve to domestic use. Very, very important function of the board actually given to him, now delegated to him," the Senate chief added.—AOL, GMA News