Senator’s expose on sugar fiasco signals media to do own probe

THE SUGAR crisis in this country has left a bitter taste for most Filipinos, with only one public official so far expressing alarm over the numerous points sugar imports have violated government rules. 

Last February, Sen. Risa Hontiveros called attention to a “government-sponsored smuggling,” revealing that a shipment of sugar was flagged by the Bureau of Customs, six days prior to the issuance of Sugar Order No. 6 — the actual import order directing the shipment of 440 thousand metric tons. She filed a resolution seeking a probe into this issue.

News recorded the response of Department of Agriculture (DA) Undersecretary Domingo Panganiban, who said he interpreted the memorandum issued by then Executive Secretary Lucas Bersamin as a “sugar order” – an obvious bypass of the Sugar Regulatory Administration (SRA) which has sole authority to issue sugar imports.” He admitted he selected three “most capable” importers for the shipment, without saying that he was told to do so.

Hontiveros raised the issue again on March 21, revealing in a Senate briefing the alleged “super profits” to be shared by three sugar importers: All Asian Countertrade Inc., S&D Sucden Philippines, Inc. and Edison Lee Marketing Corp. Citing “sources,” Hontiveros said a manufacturer heavily reliant on sugar was directed by the DA to negotiate with the three companies that sell sugar at PHP 85 per kilo.

Based on this price, Hontiveros claimed that the profit gain from the 440 thousand metric tons distributed among the three traders could go as high as PHP 14 billion. She also shared with the media a photo of President Marcos with the heads of the three trading companies. Newscasts showed the photo as presented by Hontiveros in a single slide, with a list of the names of the company heads beside the picture.   

This is not the first scandal over sugar under the Marcos Jr. administration and the President’s self-appointment as concurrent DA Secretary. The first involved a controversial importation that broke in the news on August 11, 2022. The Palace initially denied that Marcos Jr. knew about it, but days later, on August 17, the President approved the importation of sugar.

Media followed all official statements and proceedings then. The last update early this year reported that officials of the DA and SRA involved in the importation were “absolved” by the Office of the President (OP). The OP said the issuance of Sugar Order No. 4 without Marcos’ signature was “done in good faith.” Mid-January, Marcos recognized the need for a buffer stock of sugar for 2023.

Hontiveros said she was waiting for the Senate Blue Ribbon Committee to discuss the new importation issue, but as recent developments entailed “large-scale agricultural smuggling” and “economic sabotage,” she felt compelled to speak immediately.

What can be expected about the revelations made by Hontiveros? 

Among Manila-based print, Hontiveros’ briefing was only picked up by Philippine Daily Inquirer, The Philippine Star and Manila Standard. ABS-CBN’s TV Patrol, GMA-7’s 24 Oras and TV5’s Frontline Pilipinas reported the development on primetime, but it was not the top story. These reports mostly echoed Hontiveros’ computation of the profit and her description of the pricing as “outrageous,” without the supplementary information on possible violations committed by concerned agencies.

News coverage did not get any further information from these offices. Instead, some reports followed government’s lead and publicized the Palace’s approval to sell confiscated, smuggled sugar in Kadiwa stores at PHP 70 per kilo; a distraction that should have been connected to the expose about a sugar cartel making profits from imported sugar.

Columnists Winnie Monsod who is an economist, Jarius Bondoc and Val Villanueva all wrote that importation before the issuance of a permit violated laws and regulations, detailing the restrictions. These also pointed to smuggling, economic sabotage and graft and corruption as offenses involved in the action. Bondoc said outright that it was a case that the Ombudsman should look into should there be need to file a case.

But it is the photo of Marcos with the executives of the three importers in Malacañang that raises the most questions. In his opinion piece on March 24, economist JC Punongbayan posed the difficult but important question: “Is Marcos condoning sugar smuggling and cartels?”

News accounts on TV, print and online also reported that David Thaddeus Alba, acting SRA chief administrator, resigned his post on March 22 due to health reasons. In an interview with The Star, Pablo Luis Azcona, SRA board member and planters’ representative, confirmed that Marcos accepted Alba’s resignation, but denied that Alba was the “sacrificial lamb” in the importation mess. Such recording of statements does not do much about establishing the truth.

Hontiveros ended her Senate briefing with the appeal, “Please, pigilan natin ito habang maaga pa (let us stop this immediately), before the unmoderated greed can do even more damage.”

This is heavy stuff. But it will slide off the veneer that seems to have coated the Marcos presidency. All the Palace has to do is to ignore the current heat, and wait for it to go away. 

The efforts of politicians to share information so government agencies can do the checking are unfortunately dismissed easily as so much opposition noise. This is why the media are called upon to investigate on their own. 

Unfortunately at this time, the media seems bereft of the capacity or the will to fulfill its assigned task as watchdog of power, especially as held by President Ferdinand Marcos, Jr.