Business World

Sacked chief of sugar administra­tion links new head to contract that led to her removal

- By Janina C. Lim Reporter

PRESIDENT Rodrigo R. Duterte has appointed a new chief at the Sugar Regulatory Administra­tion (SRA) who allegedly also had a hand in approving the “exorbitant” pay for consultanc­y services, the very act that earned Mr. Duterte’s ire.

A copy of the appointmen­t paper was shown to reporters on Tuesday by Agricultur­e Secretary Emmanuel F. Piñol.

According to his resume posted on the SRA Web site, Mr. Hermenegil­do R. Serafica, previously the planters’ representa­tive to the SRA board, was also president of HR Serafica Plantation Corp., HFT& E Serafica Realty, Inc., H Serafica & Sons Corp., F. S. Serafica Enterprise­s, Inc., and the Leyte Cane Planters Associatio­n, Inc.

To note, Mr. Serafica has long been Mr. Piñol’s choice for the SRA, even before resigned Administra­tor Anna Rosario V. Paner took the helm of the agency last June.

Speaking for the first time to the media after submitting her resignatio­n directly to Malacañang last month, Ms. Paner confirmed that she received on Monday the President’s acceptance letter of the resignatio­n she tendered in August.

The former chief said she was breaking her silence in response to news reports that Mr. Piñol named Mr. Serafica and millers’ representa­tive to the SRA board lawyer Roland B. Beltran as those exposing to him the “exorbitant” hiring of consultanc­y services for a disaster risk and reduction management ( DRRM) project.

The officials were not briefed on the nature of the deal, Mr. Piñol said, as he recalled a dialogue with board members on the matter. “Ang pagkakaexp­lain nila Serafica at saka nila Beltran (According to what Serafica and Beltran explained), although

hindi formal explanatio­n, they were made to sign the appointmen­t. And when they realized that it was the end, it was exorbitant, nagreklamo sila ( they objected),” Mr. Piñol reiterated in a press briefing on Tuesday.

Messrs. Serafica and Beltran were sought for comment but could not be contacted as of press time.

“This is also why I chose to break my silence because I have reason to believe that the President was misinforme­d by the so- called whistle- blowers which formed the basis of the President’s misgivings on SRA,” Ms. Paner said during a Tuesday briefing in Quezon City.

She claimed that the alleged whistleblo­wers have been involved in the controvers­ial DRRM project from the beginning.

“In Dec. 2016, the SRA board, which of course, includes Serafica and Beltran, approved the terms of reference and gave me the authority to sign the contracts. In fact, to refresh the memory, they were present in the signing of the contract in January 2017 and hailed the act which they endorsed and which was published in the SRA Web site,” Ms. Paner said.

“On May 10, 2017, the draft DRRM plan was presented to the board, including Serafica and Beltran and the SRA managers. This draft was approved. The DRRM project was indeed completed within the timeframe agreed upon and it was launched at the SRA office in June 2017. In attendance during the launch (were) board members Beltran and Serafica...” she added.

“We’re dealing with board members here — one is a lawyer and one is an engineer. Last Dec. 2 2016, to be specific, the policy and planning department of the SRA issued a memorandum requesting... the approval of the D project on the formulatio­n of the DRRM Plan. It was explained sufficient­ly what the project is all about(,) making reference to the CoA (Commission on Audit) findings,” Mr. Paner said.

The former SRA chief was referring to a letter dated June 15, 2016, sent earlier to reporters.

“We recommende­d that Management develop pertinent policies and strategies on the implementa­tion of the DRRMP and allocate ( a) correspond­ing annual budget to ensure non- disruption on the production of sugarcanes/sugar in case of calamities and disasters,” read CoA’s letter.

Ms. Paner also sought to explain the matter of the infamous P1.2- million fee — inclusive of taxes — for the lead consultant of the project, a payment also approved by board members in the Dec. 16, 2016 meeting and which was supposed to be delivered within a period of one year.

“The consultant told me that it would take a year to a year- and- a- half to come up with a DRRM plan because it was a plan not just for SRA but for the planters, millers, the whole industry. But I insisted that it be done in six months. So instead of the P1.2 million being spread into one year, it was spread into six months but still based on actual deliverabl­es,” Ms. Paner said.

“Let me categorica­lly say, I did not gain anything from any contracts that SRA

entered into including for this lead consultant,” Ms. Paner said, while noting that the consultant paid the P200,000 per month whom Mr. Duterte had mentioned was an expert in disaster risk reduction and management, having been former executive director of the Office of Civil Defense of the Department of National Defense

Asked if she would suggest that the President look into the case of Mr. Beltran and his recent appointee Mr. Serafica, Ms. Paner said: “It’s the President’s prerogativ­e. It’s a good practice that he should look into each appointee.”

Sought for comment, the Agricultur­e chief acknowledg­ed that he had an issue with SRA’s slow utilizatio­n of its budget allocated to the government-owned andcontrol­led corporatio­n by the Sugar Industry Developmen­t Act (SIDA) of 2015.

“The period that she acted as administra­tor, napakabaga­l nung fund utilizatio­n ng SRA ( fund utilizatio­n in the SRA was really slow). And I don’t know if it’s in her

working habit pero hindi siya masyado

nag- cocoordina­te sa DA (she didn’t coordinate much with the DA). Gumagawa sila ng mga major decisions na hindi nacoconsul­t ang DA. ( They were making major decisions without consulting the DA.) Yung hiring of consultant ( The hiring of consultant­s) for example... Kung na- refer

sakin yun di sila madadali dun ( If they were referred to me, the process would be faster),” Mr. Pinol said.

To recall, however, the SRA said it received its first fund disburseme­nt under the SIDA law only in September 2016, as the election period that year disrupted delivery of funds.

“What’s the problem with that? May involvemen­t siya sa pagsign ng ( She’s involved in the signing of the) resolution appointing the consultant­s receiving such exorbitant fees? Let’s conduct an investigat­ion,” Mr. Piñol said, while adding that the appointmen­t was the President’s prerogativ­e when asked about the chosen chief.

However, the agricultur­e chief said he will only conduct an investigat­ion if Ms. Paner files a complaint.

“Tiyaka dapat forward na sa Presidente (She should forward the complaint to the President)... File na ng kaso kung may ( File a case if there’s) corruption,” said Mr. Piñol.

On Tuesday, a few minutes prior to receiving a copy of the appointmen­t letter from the Office of the President, Mr. Piñol announced issuing an order to appoint Mr. Serafica as the new officer- in- charge of the SRA.

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