A national alliance of farmers has called for the filing of graft charges against Agriculture officials involved in the allegedly overpriced P1.8 billion fertilizer supply contracts approved last month under an emergency stimulus program amid the COVID-19 pandemic.
The Kilusang Magbubukid ng Pilipinas said the Department of Agriculture is not yet off the hook over the questionable supply contracts even as Secretary William Dar denied allegations of overpricing.
“We must get to the bottom of this matter and hold accountable those who are involved in the negotiated bidding for the emergency purchase of P1.8-billion worth of fertilizer,” KMP chairman emeritus Rafael Mariano said.
The Department of Agriculture, under its stimulus program Ahon Lahat, Pagkaing Sapat Kontra Covid-19 (ALPAS sa Covid-19), has allocated P5.69 billion for the procurement of urea fertilizer at P1,000 per bag – way higher than the average retail price of P850.
The DA in May issued notices of award to two suppliers amounting to P1.8 billion – to La Filipina Uy Gongco Corporation for P1.69 billion for supply contracts for Regions 4A, 6 and 3; and to Atlas Fertilizer for P96.74 million for a supply contract for Region 7.
Dar cited a survey by the department’s Fertilizer and Pesticide Authority which showed that the average price of urea was from P1,043 to P1,062 per bag from March to May.
“At less than P1,000 per 50-kg bag, we are already saving a lot for the government,” Dar said.
Farmers from Tarlac and Nueva Ecija rejected the P1,000 per bag price tag, saying they were able to buy urea fertilizer for only P830 to P850 per bag.
Mariano said the prudent thing to do aside from running after the DA officials involved in the initial P1.8 billion worth of urea fertilizer is to stop the bidding for the rest of the fertilizer contracts.
“The resolution of this issue is imperative especially since DA will procure another P3.8-billion worth of fertilizer. The next bidding must be put on hold until this matter on the P1.8-billion fertilizer contract is resolved,” he added.
For his part, Joseph Canlas, chairman of the Alyansa ng mga Magbubukid sa Gitnang Luzon, noted that recent purchases of urea fertilizer showed a bag could fetch for P830 in Tarlac, P810 in Pangasinan, and P840 in Nueva Ecija.
“There is even a promo for Buy 2 Take 2 for fertilizer extended by the DA. Farmers will just have to show their receipts and their empty sacks of urea fertilizer and they will be given two more sacks based on the Rice Resiliency Program of the DA for Region 3,” Canlas said.
Canlas earlier asked the Ombudsman to investigate the allegedly overpriced supply contracts.
“It is only right for the Ombudsman to start its probe, motu propio, to get to the bottom of this mess,” Canlas said.
For his part, Samahang Industriya ng Agrikultura (SINAG) chairman Rosendo So said the supply contracts were grossly disadvantageous to the government.
“The expectation of the industry was clear. Centralization of the bidding would mean a lower or a price similar to the prevailing market price of P880 per bag. Please also note that since the bidding was a bidding of importers, the bidding price should have been much lower,” So said in his letter to the Agriculture Secretary.
“We must remember that funds secured for this bidding process came from an emergency fund to help our farmers cope with the impact of the COVID-19 pandemic…The figures are embarrassingly high: May kumikita sa pandemya,” he added.