MAbuse-prone G2G transaction
NFA Administrator Aquino, while against extending the deadline for imports under the MAV scheme, prefers government-to-government (G2G) rice importation.
He has argued that the process is simpler and will provide cheaper rice for Filipinos.
But G2G rice importation is also vulnerable to abuse. A risk unique to this mode of importation is the debt incurred by government in using it.
Each time the government imports rice from another government, it must get a loan from the Landbank.
Aquino wants to import one million metric tons of rice through government-to-government transaction, which, according to Valdez, amounts to a P24-billion debt from the Landbank.
This adds to the “legacy debt” of the government already at P211 billion, whereas, under the MAV scheme, private rice importers pay for the imported rice.
Valdez also argued that government-to-government transaction is less transparent and more prone to abuse than the private-sector-led MAV scheme.
“Government-to-government scheme is exempted from the Procurement Law. Thus, the NFA management has full control on how to import the rice, on who gets contracts to facilitate the importation,” she said.
One loophole is the choice of “logistics provider” or the boat company that will transport the rice. In government-to-government transactions, scheming Filipino officials and foreign officials can make deals to ensure a specific supplier is chosen.
For this reason, said Valdez, the costs of logistics tend to be very high.
Because they get to choose the boat supplier, there’s also nothing stopping the supplier from agreeing to take on more rice imports than the amount stated in the quota, leading to “overloading” of the boats.
This is how smuggled rice arrives in the Philippines through the government-to-government scheme.
Valdez, however, clarified that she and the NFAC “are not against government-to-government transaction.”
“We’re just saying, it’s not the right time. G2G is done to prepare for a calamity, if there is a shortage in rice, or for the NFA’s rice program,” she said.
NEDA Director-General Ernesto Pernia, whose agency is part of the NFAC, agrees that there is no need right now for the 1 million MT G2G Aquino is pushing for.
Support for local farmers
G2G transaction also means the government will be paying foreign governments and their farmers for rice, instead of supporting the produce of Filipino farmers.
Another reason why the NFAC does not want to go with G2G now is the good harvest reported by farmers, which means it makes more sense to just buy locally.
“There is no shortage, and the harvest of local farmers is good, so why not just buy rice from them?” said Valdez.
For buffer stock, the Philippine government can just buy rice from its own farmers.
For opposing G2G, Valdez said she, the NFAC, and Secretary Evasco are working in the best interest of local farmers, not the other way around.
She pointed out that before Aquino was appointed on December 29, 2016, the NFAC, under Evasco, was able to maintain the price of rice.
Evasco, who chairs the NFAC as Cabinet Secretary, is seeking to remove Aquino from his post for “actively refusing” to implement decisions reached by NFAC.
Valdez also said Aquino has refused to attend NFAC meetings, and has even cancelled some of them unilaterally, making it difficult for the council to discuss contentious issues.
Despite her unceremonious dismissal, Valdez still calls Duterte “my President” and only hopes he can look into the NFA issues more closely.
“I hope he will continue his fight against corruption. He should really talk to the NFA Council and the Cabinet Secretary and look closely at the syndicate inside NFA,” she said. / Rappler.com