Sugar industry stakeholders are calling Hermenegildo Serafica and other board members of the Sugar Regulatory Administration to disclose their participation in the hiring of an allegedly overpaid consultant that led to the resignation of SRA Administrator Ana Rosorio Paner.
A reliable source within the government agency told reporters Sunday that Serafica, who is the top choice to replace Paner as the new SRA administrator, in fact played a role in the hiring of the consultant, which reportedly earned the ire of President Rodrigo Duterte.
“The hiring of the consultant is above board,” said the SRA source, who requested anonymity. “If Paner was criticized because of that, then Serafica should be kicked out. They looked for a loophole [against Paner] and are involved in taking her out, if ever they find that very illegal.”
The board, including Serafica, had resolved to authorize Paner “to sign the Contracts of Services for and in behalf of” the SRA for the consultant—who would be paid P1.2 million for six months—and three project assistants.
A paper signed on Dec. 27, 2016 by lawyer Arvin Beñas, the SRA Board’s Secretary, showed that the board approved Resolution 2016-332 during the meeting at the SRA Conference Room in Bacolod City.
A disbursement voucher dated December 16 showed that the agency paid for Serafica’s per diem for his attendance during the meeting when the hiring was approved.
But with Paner’s resignation due to the questionable hiring of personnel, Agriculture Secretary Emmanuel Piñol is now pushing for the appointment of Serafica as the new administrator of SRA.
“The legitimacy of the hiring isn’t in question, the payment to the consultant is in question by Digong (President Duterte),” Piñol told reporters.
Piñol also denied any knowledge over the board’s decision to hire the consultant, saying: “It is up for them to explain to the President.”
The resolution approved the project entitled “Formulation of Disaster Risk Reduction Management Program (DRRMP) for the Sugarcane Industry” with a project duration of six months from December 16, 2016 to June 15, 2017 with a total cost of P3 million.
It also approved the hiring of a lead DRRMP expert or consultant with a compensation of P20,000 per hour for 60 hours or a total of P1.2 million for six months, which included a 15-percent tax, and three expert assistants with monthly salaries of P52,000, each inclusive of 10 percent tax, for that seven-month period.
“Deliverable is one year. In fact, no payment (should be made) until they have complied with deliverable. Walang monthly. It was just divided for whatever reason,” the source explained.
Under the SRA’s manual of corporate governance, the administrator is mandated to carry out the board’s responsibilities and duties, which means Paner cannot forego a contract or project absent the approval of the board, which Serafica was part of.
The hiring of the consultant was also approved by Commission on Audit (CoA), emphasizing the need for the creation of a DRRMP.
“We recommended that Management develop pertinent policies and strategies on the implementation of the DRRMP and allocate corresponding annual budget to ensure non-disruption on the production of sugarcanes and sugar in case of calamities and disasters,” read COA’s letter dated June 15, 2016.