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NBI sues garlic traders, gov’t officials for price surges
(Updated 2:30 p.m.) The National Bureau of Investigation on Wednesday sued more than 100 public and private individuals who were supposedly behind the surge in garlic prices last year.
In a media briefing at the NBI headquarters, Justice Secretary Leila de Lima said charges would be filed before the Office of the Ombudsman against 119 officials of the Bureau of Plant Industry (BPI), the Department of Agriculture (DA), members of the National Garlic Action Team (NGAT), and supposed "dummies" of importer Lilia Cruz, alias Leah Cruz who reportedly cornered at least 75 percent of the total garlic importation in the country by virtue of BPI import permits.
Among those to be charged is former BPI Director Clarito Barron, De Lima said.
De Lima said there would be two sets of charges to be filed. The first set would be filed before the Office of the Ombudsman, and included charges of direct bribery and violation of the Anti-Graft law.
The second set to be filed with the Department of Justice included charges for violation of of the Price Act, Monopolies and Combinations in restraint of trade under the Revised Penal Code; using fictitious name and concealing true name, also under the RPC; and Obstruction of apprehension and prosecution of criminal offenders under Presidential Decree No. 1892.
Just like the time when the government filed cases involving the controversial pork barrel scam, NBI officials showed members of the media piles of documents and voluminous annexes as part of the complaint that will be filed before the Ombudsman.
Caused by collusion
Caused by collusionAs early as September last year, the Justice Department confirmed that the spike in garlic prices was caused by collusion between government officials and a garlic importer who allegedly cornered nearly all of the commodity's supply.
In a report, the DOJ Office for Competition found out there was no shortage of garlic and that the Agriculture Department's National Garlic Action Team should be abolished for being "unnecessary, unhelpful" and for supposedly contributing to the problem.
"The price of imported garlic, considering all incidental costs in its shipment, should not reach as high as P350 per kilo, even factoring in the increase in trucking charges and related costs," according to the report.
The DOJ discovered the majority of import permits for garlic were given to a preferred group of four individuals and allied interests through a web or network of dummy entities duly accredited by the Plant Industry Bureau.
Seventy-three percent of the demand for garlic comes from imports and 27 percent from local producers. The process of importing the commodity requires an import permit from the Plant Industry Bureau.
Last June, De Lima tasked the National Bureau of Investigation to look into reports of hoarding, profiteering and cartel activities that may have caused prices of basic goods to soar. – VS, GMA News
