An alliance of farmers' groups in Central Luzon has called on President Rodrigo Duterte to crack the whip on Agriculture officials involved in the alleged overpriced supply contract for fertilizers under the government's emergency response program during the COVID-19 pandemic.
Joseph Canlas, chairman of the Alyansa ng mga Magbubukid sa Gitnang Luson, also urged Agriculture Secretary William Dar to rescind the questionable P1.8 billion fertilizer contract and file appropriate charges if the allegations of overpricing are proven.
"This issue must go all the way up to the leadership of the Department of Agriculture so he can take to task his subordinates involved in this. We have very limited funds as it is now because of the pandemic yet these unscrupulous people still dipped their hands into these funds," Canlas said.
The Agriculture department conducted a series of bidding for the procurement of 1,811,090 bags of urea fertilizers for P1.8 billion, or a price tag of P1,000 per bag.
However, two Central Luzon-based farmers earlier said that the prevailing average retail price in the market of urea fertilizer is pegged at only P850 per bag—which would mean that the deal was overpriced by at least P271.66 million.
"The President should look into this and take action. He has promised to be unforgiving when it comes to officials who would commit corruption during this pandemic. Cases must be filed against those involved in this," Canlas said.
Farmers William Laureta of Tarlac and Ernesto Agustin Domingo of Nueva Ecija said the anomalous purchase was part of the DA’s stimulus program Ahon Lahat, Pagkaing Sapat Kontra Covid-19 (ALPAS sa Covid-19) that was intended to help farmers cope during this crisis.
In the terms of reference released by the DA when it sought a request for quotation, the agency noted that achieving food sufficiency is crucial as the country continues to battle the spread of the novel coronavirus disease.
"Pursuant to this direction, the department is implementing a stimulus program named Agri 4Ps—Plant, Plant, Plant Program otherwise known as Ahon Lahat, Pagkaing Sapat Kontra Covid-19 (ALPAS sa Covid-19) Program to improve the country's food adequacy. Highlighting the significance of rice to local food security and price stability, being a major source of calorie intake for Filipinos, one of the projects under Agri 4Ps is the Rice Resilience Project which aims to increase local rice production to combat global uncertainties and put the country in a more food-secure position."
Laureta said it was ironic that the DA, which was in a position to negotiate for a lower contract price as it was buying in bulk, approved a deal that pegged the price of urea fertilizer at levels higher than the prevailing market price.
Recent purchases of urea fertilizer showed a bag could fetch for P830 in Tarlac, P810 in Pangasinan, and P840 in Nueva Ecija.
The DA issued on May 5 a Notice of Award to La Filipina Uy Gongco Corporation for the delivery of 97,615 bags of urea at P990 per bag or a total amount of P96,638,850 for Region 4A, and 694,904 bags at P995 per bag or P691,429,480 for Region 6, or a combined amount of P788,068,330.
The DA also issued on May 8 another Notice of Award to La Filipina Uy Gongco for 911,073 bags of urea fertilizers at P995 per bag for Region 3 for a total of P906,517,635.
A separate Notice of Award was also issued to Atlas Fertilizer for the delivery of 107,498 bags of urea at P900 per bag or a total of P96,748,200 for Region 7.
The agency reportedly disqualified another bidder that offered a tender for P850 per bag, well within the prevailing market prices, claiming it did not have available local supply.
However, the winning bidder La Filipina does not also have available stocks of urea fertilizers nor it has shown any bill of lading to prove that it had incoming supply of urea fertilizers and yet it still bagged the contract.