Hontiveros: 3 traders may take billions of 'super profits' from sugar importation

Senator Risa Hontiveros on Tuesday disclosed that three traders may gain billions from the supposed sugar importation.

In a press conference, Hontiveros once again questioned Agriculture Senior Undersecretary Domingo Panganiban’s “favored” sugar importers namely the All Asian Countertrade, Sucden Philippines Inc., and Edison Lee Marketing Corporation.

She said one industrial user of sugar went to Panganiban and asked if it might be able to import sugar from Thailand for its own use.

Hontiveros said the Agriculture official told the company that there are only three allowed importers and they will have to negotiate with them through All Asian Counter Trade.

She said the company followed Panganiban but All Asian quoted a wholesale price of P85 per kilo of sugar—a rate which the senator tagged as "appaling."

GMA Integrated News is seeking comments from Malacañang, the Department of Agriculture, and the three businesses. Their side will be published the comments become available.

"Selling it at P85 is nothing short of outrageous. Parang tumama ka ng 50 times sa Super Lotto nang hindi ka man lang tumataya," Hontiveros said.

“You can actually buy refined sugar wholesale for P25 per kilo in Thailand. Kung matino kang importer, you know that you would already get a decent profit if you sell sugar at P61, bayad na doon ang warehousing, duties, handling, at may maayos ka na na profit of P8 per kilo per industry standard at a wholesale price point of P61,” she added.

For the senator, the P85 asking price of All Asian imposes an additional P24  “super profit.”

“Multiplied by 440,000 metric tons, ang tubo mo na lampas sa normal ay P10.5 billion. Malaki kung para sa tatlong traders lang. Kung kasama ang normal profits, ang total ay P14 billion!” she said.

The senator said the three importers have agreed to sell the sugar at P80 per kilo, but still, the traders will get at least P7 billion if the sugar will be sold at P77 per kilo.

"Sa ganung tubo na pinaghahatian lang ng tatlo, di mahirap isipin kung magkano ang kickback diyan. Ang asukal mo, may sweetener," she said.

"This is not just a state-sponsored formation of a cartel. It is not a state monopoly a la NASUTRA of old that purported to generate public revenues for those would then be plowed back in favor of the sugar industry. It is a cartel that generates super profits, none of which will go to the National Treasury.  Hindi pa tayo, kahit kailan, nakaranas nang ganito kagarapal na monopolyo; walang ganito kahit noong panahon pa ng martial law dictatorship," she said.

Hontiveros then showed a photo of President Ferdinand “Bongbong” Marcos Jr. with Panganiban, Speaker Martin Romualdez and three sugar traders namely Edwin Lee, Ian Alvarado, and Michael Escaler.

"Nandyan si Michael Escaler ng All Asian Countertrade at 'yung kanilang asawa, si Patricia Escaler ng All Asian Countertrade din. So 'yung mga tao dito sa photo ay lahat nasa tatlong mukhang paboritong traders sa ngayon. Paborito ni Usec. Panganiban," she said.

"Sila ba ay idinala diyan ni Usec. Panganiban dahil sila 'yung pinili nila ni Usec. na favored di umanong most capable na importers kaya't natanong ko kung normal ba na dalhin ang mga sugar importers sa Malacanang," she added.

She questioned the timing of the traders' meeting with the President and floated the possibility that Marcos is "being manipulated by his underlings who handpicked the importers."

"Kailan ba kinuha itong photo na ito dun sa iba't ibang steps ng importasyon na nagkalabo-labo dito sa sugar smuggling fiasco. Kailan kinuha itong photo? Before or after na pinili ni Usec. itong tatlong pinaka-'capable'? Bakit siya nandiyan? Bakit sila nandiyan? 'Yun 'yung reasonable questions looking at this photo," she said.

The senator reiterated her call for the Senate blue ribbon committee to investigate the matter and ask the sugar farmers and processors about the real status on the ground.

Moreover, Hontiveros questioned Malacanang's supposed silence on the alleged government-sponsored smuggling despite statements of Panganiban implicating Executive Secretary Lucas Bersamin in the issue.

"I think it is well passed the time na manahimik lamang ang Palasyo lalo na sa kabila na idinadawit ang highest office at ang pangalan ng highest official sa pagdadahilan o pagjustify nitong sugar fiasco 2.0," Hontiveros said in a press conference.

"Hindi masama at hindi premature na magsalita si ES Bersamin dito, not just to clear the name of his office, the name of the Office of the President, o silang dalawa, bilang mga indibidwal, pero para iwasto ang halatang mali maling ginagawa ng DA at pag-usurp ng mandato ng SRA," she added.

GMA News Online has reached out to Malacanang for comment but it has yet to respond as of posting time.

In February, Hontiveros filed proposed Senate Resolution 497 seeking a Blue Ribbon committee probe into the entries of around 440,000 metric tons of sugar in Philippine ports ahead of the issuance of Sugar Order No. 6.

She earlier said the February 9 shipments could not have been covered by Sugar Order 6, as the allocation for this would only start on February 24. It was also not covered by earlier orders, as the earliest arrival date would be on March 1.

Hontiveros said  Panganiban, who represented Marcos in the Sugar Regulatory Administration Board, had a January 12 letter addressed to one of the alleged sugar importers of the questioned importation, saying the allocation was “per instruction of Executive Secretary [Lucas] Bersamin.”

Interpreting the memorandum issued by the Office of the Executive Secretary as an approval to proceed with the importation, Panganiban said he instructed “three capable and accredited companies to proceed with the importation of sugar provided that they agree to reduce the prices of sugar.”

On March 2, the Department of Agriculture (DA) has given its go-signal for the release of the imported sugar that was flagged by Hontiveros as not covered by earlier sugar orders.

The go-ahead signal was issued by Panganiban “considering that allocations under Sugar Order No. 6, Series of 2022-2023 had been duly awarded, and considering further the Memorandum from the Office of the Executive Secretary dated January 13, 2023, and the Memorandum from the Office of the Senior Undersecretary of the Department Agriculture on even date…”

Hontiveros said the executive department should have sanctioned Panganiban by putting him under preventive suspension following the "patently illegal" acts that he approved, including the issuance of a memorandum giving a go signal for the release of the imported sugar.

"I-preventively suspend si Usec. Panganiban para matigil na at least on his end 'yung damage na nagagwa na nila at this point in time. Imbestigahan na sila. Bakit hindi pa rin? Talagang nakapagtataka," she said.

The opposition lawmaker maintained that this is "nothing less than large-scale agricultural smuggling and economic sabotage."—AOL, GMA Integrated News