DOJ, NBI told to curb hoarding, price fixing, economic sabotage
President Ferdinand Marcos Jr. on Tuesday ordered an investigation into the smuggling of onion and other agricultural products, saying such acts were tantamount to economic sabotage.
“I have just given instructions to the DOJ and the NBI to initiate an investigation into the hoarding, smuggling (and) price fixing of agricultural commodities. And this is stemming from the hearing that we’ve conducted in the House, specifically by Congresswoman Stella Quimbo and the findings that they came up with,” Mr. Marcos said.
Upon the directive of the President, the Department of Justice will form a task force to investigate and prosecute onion smuggling in the country.
“The DOJ is one with the President in its commitment to eradicate onion smuggling in the Philippines,” the DOJ said in a statement.
“The Department is not only focused on investigation and prosecution but also on enhancing the regulatory framework and strengthening border controls to prevent future incidents,” the department added.
President Marcos emphasized the significance of these findings as sufficient grounds to initiate an investigation, citing the need to address what amounts to economic sabotage.
“And that is why we are going to be very, very strict about finding these people and making sure that they are brought to justice,” Mr. Marcos said.
In a memorandum to the President, Quimbo, who led the Committee on Agriculture and Food hearings at the House of Representatives, said substantial evidence has been uncovered pointing to the existence of an onion cartel as she shed light on the causes behind the surge in onion prices in 2022.
Quimbo said the cartel, operating primarily through the Philippine VIEVA Group of Companies Inc. (PVGCI), has engaged in various activities including farming, importation, local trading, warehousing, and logistics.
The hearings highlighted the sharp increase in onion prices starting in July 2022, attributed to a perceived shortage of supply.
However, data from the Department of Agriculture Bureau of Plant Industry revealed only a modest shortage of approximately 7.56 percent in 2022, which would not justify the significant inflation rates reaching 87 percent in December of that year.
Quimbo also presented an “Onion Matrix” which involves several companies engaged in the trading and importation of onions and other vegetables, acting in connivance with owners of cold storage facilities.
Apart from onion smuggling, the DOJ task force will investigate violations of Republic Act No. 10845, the Anti-Agricultural Smuggling Act of 2016, among other laws.
“This law specifically targets the illegal importation of agricultural products, including onions, and imposes severe penalties on offenders,” the DOJ said.
It also said it will be “pursuing cases related to crimes of profiteering, hoarding, and smuggling, which are recognized as acts of economic sabotage.”
With the Presidential directive, the DOJ said it will “collaborate closely with other government agencies, including the Bureau of Customs and the Department of Agriculture, among others.”
“Together with these agencies, the Department will create an Anti-Agricultural Smuggling Task Force along with a Special Team of Prosecutors primarily focused on protecting the entire agricultural sector, not only the Onion Industry,” it said.
It also said the task force will include as members the Office of the Prosecutor General (OPG) headed by Chief State Prosecutor Richard Fadullon and the National Bureau of Investigation (NBI) headed by Director Medardo De Lemos.
“Our team of investigators will be working to collect evidence, conduct interviews, and analyze data to uncover the intricate web of onion smuggling networks,” it said.
“The shared objective is clear: to dismantle these smuggling networks and ensure that those responsible are brought to justice,” the DOJ added.
The department said it is “diligently conducting its case build up against individuals and organizations involved in onion smuggling.”
“Once these cases are ready, the DOJ will file charges, ensuring that those responsible face the full force of the law.”