Nothing irregular in selling of rice stocks, says suspended NFA chief

THERE are no irregularities in the alleged improper selling of rice stocks by the National Food Authority (NFA) because the agency followed regulations at its disposal, NFA Administrator Roderico R. Bioco told a congressional hearing on Thursday.

“There is no irregularity in our disposition of this (rice stocks),” Mr. Bioco said as he explained that the sale of NFA rice to commercial traders was done by the book.

He said the NFA follows a “6-3 rule” when it comes to the selling of rice buffer stocks to private rice millers.

“We have a general 6-3 rule as the general guideline when we buffer (rice stocks) for relief,” Mr. Bioco said to the House panel in mixed English and Filipino. “Rice is stocked in palay form for six months, after six months it is kept in milled rice form for three months as reserve for calamity relief.”

The House panel had called for the inquiry to scrutinize the alleged “disadvantageous sale” of rice stocks to private rice millers as a report surfaced that some “75,000 bags” of “aging and deteriorating” rice were sold without following the proper guidelines.

NFA Assistant Administrator for Operations Lemuel B. Pagayunan said that the sale of rice stocks was “irregular” as it did not follow bidding procedures nor had the approval from the NFA council.

Mr. Bioco said that the disposal of rice does not require bidding “because this is a regular function of disposal.” He added that rice for disposal is exempted from the procurement law.

He added that the rice being stocked by the NFA is ranked accordingly into “excellent, very good, good, fair, and poor” conditions. He added that rice falling under “fair” conditions should have to be disposed before it further deteriorates into “poor conditions” and no longer be fit for human consumption.

To prevent losses in rice stocks, NFA resorts to disposing of rice stocks to requesting government agencies before considering private rice millers, he said.

“We try to dispose it to various programs of the government while ensuring that it is safe for human consumption,” Mr. Bioco said. “We try to give it to government agencies if the quality of the rice is okay, if not we sell it.”

NFA has to resort to selling rice to rice traders and retailers as the government cannot shoulder all deteriorating rice stocks.

A total of 139 NFA officials were placed on preventive suspension by the Office of the Ombudsman over allegations of improper disposal of rice stocks to private millers.