‘Heads may roll’ in recalled sugar imports fiasco–palace

MALACAÑANG said “heads may roll” over the unauthorized importation order for 300,000 metric tons (MR) of sugar issued by the Sugar Regulatory Administration (SRA) last Wednesday.

Press Secretary Beatrix “Trixie” Cruz-angeles reiterated the supposed Resolution No. 4 of the Sugar Regulatory Board was invalid since it was not authorized by President Ferdinand “Bongbong” R. Marcos, Jr., who sits as chairman of the Sugar Regulatory Board (SRB).

“As such chairman, he sets the date of any meetings or convening of the Sugar Regulatory Board and its agenda. No such meeting was authorized by the President or such a resolution likewise, was not authorized,” Angeles said in a press conference on Thursday.

Lacked authority

IN the resolution posted on the SR A website, Agriculture Undersecretary Leocadio S. Sebastian signed on behalf of the President.

The issuance would have allowed the importation of 150,000 MT of sugar for industrial users and another 150,000 MT for producers and traders to help lower the soaring price of sweetener in the local market due to supply issues.

Angeles stressed that Sebastian lacked authority to convene the SRB on his own.

“His (Sebastian) assignment as the alternate of the President is merely to be present in those meetings that the President cannot attend. It is not a delegation of authority to call any meetings or to sign any resolutions in the absence of the President’s awareness that such a resolution is to be issued,” Angeles explained.

The Palace official said the matter may have already been discussed by Marcos and Sebastian, when they met on Wednesday evening.

“There was an opportunity for him to answer it all, be it informally. So, with an investigation, he has to formally answer,” Angeles said.

Opportunity to explain

ASIDE from Sebastian, SRA Board Vice Chairperson Hermenegildo R. Serafica, SRB Miller’s Representative Roland B. Beltran, and SRB Planter’s Representative Aurelio Gerardo J. Valderrama, Jr., also signed the document.

Angeles said all of those who signed the controversial resolution are now also under investigation.

“An investigation is ongoing to determine whether any act that would cause the President to lose trust and confidence in his officials can be found, or if there is malice or negligence involved. In such a case, if such findings are made, then the only determination left will be how many heads are going to roll,” Angeles said.

In a Viber message, Beltran said he welcomed the probe, as it will give him the chance to explain his side.

“This will give me the opportunity to clear my name in accordance with due process of law, and to punish those responsible for the fiasco,” Beltran said.

For his part, Valderrama declined to comment on the matter.

Businessmirror also tried to get the side of Sebastian and Serafica on the matter, but as of press time both have yet to issue any reply.

Angeles assured that all of those involved will be given due process.

“We will look at the reason why it appeared to be rushed. They convened without the knowledge of the President. They will be given the chance to explain their side,” Angeles said.

She said the investigation may result in the preventive suspension of those involved or their immediate replacement.

Balancing act

ANGELES explained that Marcos decided to defer additional importation of sugar until the harvest season next month to protect the interest of all concerned stakeholders.

“It is a balancing act. The importation has to be carefully studied to protect both the consumer against the rising prices of basic commodities while ensuring at the same time, that we do not destroy the local industry,” Angeles said.

She claimed the government already imported sugar in May to help address the local sugar supply concerns.

“We just imported last May. Now, we have to determine if an importation, supposedly to address the critical levels that are approaching at the end of the month, will affect the harvest season which opens in September,” Angeles said.

However, latest SRA data showed that as of end-july 172,016.9 MT of refined sugar or about 86 percent of the 200,000-MT importation program under Sugar Order (SO) 3 has arrived in the country.

SO 3, which was approved in February, is currently the only import program for sugar this year.

SRA data also showed that 45,680 MT of the imported refined sugar has been consumed locally.

Serafica, who is also the SRA administrator, earlier told the Businessmirror that the SRA board approved last August 2 the reclassification of some 62,826.6 MT of imported refined sugar from “C” or reserved sugar into “B” or domestic sugar.

Importation plan

EXECUTIVE Secretary Victor D.

Rodriguez already ordered the crafting of an importation plan in case the yield from the harvest season will not be sufficient to cover local demand, according to Angeles.

“It was a directive actually. It was verbally issued [by Rodriguez] so that the President can make a determination later on, whether or not the importation is actually warranted,” Marcos said.

Citing data from the Department of Agriculture (DA), Businessmirror earlier reported sugar production in crop year 2021 to 2022 is expected to settle only at 1.8 million Mt--the lowest in 22 years.

The already existing shortfall in local sugar supply has already caused the price of the sweetner to rise.

As of August 5, 2022, the SRA price monitoring showed the price of sugar in Metro Manila supermarkets was at P93.01 per kilogram, while those being sold in public markets in the region was at P95 per kilogram.

The price of refined sugar in Metro Manila was even higher, reaching P115 per kilogram in supermarkets and P100 per kilogram in public markets.