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ERC sees 239 power users eligible for Mindanao RCOA

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AT LEAST 239 end-users are potentially eligible for the Retail Competition and Open Access (RCOA) scheme in Mindanao, according to the Energy Regulatory Commission (ERC).

In a statement on Thursday, the ERC said it has approved the eligibility thresholds for participation in the RCOA on Wednesday, which are consistent with the thresholds in force in Luzon and the Visayas.

RCOA allows participants to choose their electricity suppliers.

Mindanao consumers with an average monthly peak demand of at least 500 kilowatts for the 12 months preceding March 26 will be allowed to contract with any licensed/authorized electricity supplier on a voluntary basis.

The ERC said only 102 end-users in Mindanao would qualify if the threshold were set at one megawatt or higher.

“The Commission views the commencement of RCOA in Mindanao with immense optimism,” ERC Chairperson and Chief Executive Officer Monalisa C. Dimalanta said.

“We will continue to support and ensure that customers in Luzon, Visayas and Mindanao are able to exercise meaningfully their power to choose suppliers as a way to realize reasonable price of electricity,” she added.

The Department of Energy recently announced the start of RCOA commercial operations, as well as the Green Energy Option Program, on March 26.

Ms. Dimalanta said that the ERC will conduct an “aggressive information campaign” to capacitate contestable customers with the ability to “effectively transact” in the retail market and “properly discern” the best terms of power supply suited to their needs. — Sheldeen Joy Talavera

FDI attraction efforts seen hampered by shortage of qualified workers, weak infra

Bangko Sentral ng Pilipinas main office in Manila. — BW FILE PHOTO

ATTRACTING foreign direct investment (FDI) remains hampered by ease of doing business issues, the limited supply of skilled workers, and inadequate infrastructure, the Bangko Sentral ng Pilipinas (BSP) said in a blog post.

Attracting FDI “remains a challenge for policymakers in the Philippines,” it said in the blog post dated March 18.

The post, written by Marie Edelweiss G. Romarate, Ferdinand S. Co, and Hazel C. Parcon-Santos, also discussed the results of the business climate survey conducted by the BSP Research Academy in 2023.

The survey found that respondents “time spent in securing necessary business permits” as a key challenge to establishing their businesses.

It also cited concerns like red tape, finding workers with appropriate skills, arranging for utility connections, and corruption.

“The responses suggest that a significant portion of the challenges encountered by businesses in establishing themselves in the Philippines is associated with the inherent costs of regular business operations,” it said.

It cited these costs as including land, utilities, labor, permits, raw materials, and logistics.

“Additionally, certain challenges are linked to procedural and regulatory aspects, reflecting the country’s legal, political, and regulatory environment. Examples include delays in obtaining essential permits/licenses, instances of corruption, and the legal framework,” it said.

The post also noted that the survey results showed that businesses found it difficult hiring workers with the requisite skills as well as retaining them.

“This suggests that the existing labor pool in the Philippines does not possess the skill sets required by these companies,” it said.

“Furthermore, businesses highlight that the quality of infrastructure, including roads, bridges, ports, shipping, and warehouses, can impact their operations.”

The post also cited a previous discussion paper in 2021 that noted the Philippines’ low ranking in terms of FDI inflows compared to its neighbors.

“The Philippines, meanwhile, has faced challenges in improving its ranking, consistently landing at the 4th or 5th position in total FDI inflows per decade since the 1990s,” it said.

“Notably, among the ASEAN-5 nations, only the Philippines has never secured the top position in FDI inflows throughout past decades, with its highest ranking being 2nd in 1998.” — Luisa Maria Jacinta C. Jocson

PHL adult book readership declines to 42%

People browse piles of books at an event at The World Trade Center in Pasay City, Feb. 17, 2020. — PHILIPPINE STARMIGUEL DE GUZMAN

ADULT BOOK readership in the Philippines declined to 42% in 2023 from 54% in 2012, according to a survey conducted by the Social Weather Stations (SWS) and the National Book Development Board (NBDB).

The National Readership Survey (NRS) found that only 42% of adults (aged 18 and above) have read non-school books in the past year, while 47% of children (aged 8-17) did so.

Social media played a significant role in the decline of the readership of Filipinos, the NBDB concluded.

 “There are many distractions for the decline — social media, devices, environment,” according to NBDB Division Chief Officer in Charge Kevin Ansel S. Dy.

 “There has been a steady decline in the readership of Filipinos, and we find it very alarming,” he added.

 The survey found that adults and children still prefer reading printed materials over digital. Some 74% of adults preferred reading print books, followed by newspapers (21%) and magazines (17%).

 Meanwhile, 75% of children preferred reading printed books, followed by printed picture books  (27%), and printed comic books (16%).

 Adults and children also indicated a preference  for the works of Filipino authors. — Chloe Mari A. Hufana

Peso rebounds as Fed affirms rate cut view

BW FILE PHOTO

THE PESO climbed against the dollar on Thursday as US Federal Reserve Chair Jerome H. Powell said they remain on track to cut benchmark interest rates within the year.

The local unit closed at P56.03 per dollar on Thursday, strengthening by 10 centavos from its P56.13 finish on Wednesday, Bankers Association of the Philippines data showed.

The peso opened Thursday’s session stronger at P56.01 against the dollar. Its weakest showing was at P56.075, while its intraday best was at P55.888 versus the greenback.

Dollars exchanged dropped to $1.32 billion on Thursday from $1.54 billion on Wednesday.

“The peso strengthened after Fed Chair Powell explicitly mentioned the case for eventual US policy rate cuts while keeping the hawkish Fed’s policy stance,” a trader said in an e-mail.

Mr. Powell said on Wednesday recent high inflation readings had not changed the underlying “story” of slowly easing price pressures in the US as the central bank stayed on track for three interest rate cuts this year and affirmed that solid economic growth will continue, Reuters reported.

Speaking after a policy meeting at which officials left the benchmark overnight interest rate in the 5.25%-5.5% range and held onto their outlook for three cuts in borrowing costs this year, Mr. Powell said the timing of those reductions still depends on officials becoming more secure that inflation will continue to decline towards the Fed’s 2% target even as the economy continues to outperform expectations.

Inflation reports at the beginning of the year showed price pressures remained “elevated,” in the Fed’s view, but “haven’t really changed the overall story, which is that of inflation moving down gradually on a sometimes bumpy road to 2%,” Mr. Powell said at a press conference.

“It’s appropriate for us to be careful,” the Fed chief said, reiterating a go-slow approach to rate cuts that has been buttressed by the economy’s ongoing strength, with officials saying they are in no rush to ease monetary policy while the economy and the job market continue to grow.

The Fed’s affirmation of its plan to ease policy boosted the peso as rate cuts in the US could be matched by the Bangko Sentral ng Pilipinas, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Mr. Powell’s comments also caused the dollar to weaken, Mr. Ricafort added.

The dollar index was little changed at 103.24 on Thursday after having slid more than 0.5% on Wednesday, Reuters reported.

For Friday, the trader said the peso could strengthen further amid “reinforced views” of monetary policy easing this year.

The trader sees the peso moving between P55.90 and P56.15 per dollar on Friday, while Mr. Ricafort expects it to range from P55.90 to P56.10. — A.M.C. Sy with Reuters

PSEi rises to 6,900 level on Fed rate cut hopes

BW FILE PHOTO

THE MAIN INDEX climbed to the 6,900 level anew amid positive investor sentiment as the US Federal Reserve chief said they remain on track to cut rates within the year.

The Philippine Stock Exchange index (PSEi) rose by 1.55% or 106.45 points to end at 6,963.22 on Thursday, while the broader all shares index went up by 1.2% or 43.14 points to close at 3,615.24.

“Philippine stocks surged well above the 6,900 level as the Fed reaffirmed its plan for three interest rate cuts this year. The central bank kept borrowing costs unchanged after its crucial two-day March meeting, signaling a clear direction,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Federal Reserve Chair Jerome H. Powell said on Wednesday recent high inflation readings had not changed the underlying “story” of slowly easing price pressures in the US as the central bank stayed on track for three interest rate cuts this year and affirmed that solid economic growth will continue, Reuters reported.

Speaking after a policy meeting at which officials left the benchmark overnight interest rate in the 5.25%-5.5% range and held onto their outlook for three cuts in borrowing costs this year, Mr. Powell said the timing of those reductions still depends on officials becoming more secure that inflation will continue to decline towards the Fed’s 2% target even as the economy continues to outperform expectations.

Inflation reports at the beginning of the year showed price pressures remained “elevated,” in the Fed’s view, but “haven’t really changed the overall story, which is that of inflation moving down gradually on a sometimes bumpy road to 2%,” Mr. Powell said in a press conference.

Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio said in a Viber message that the PSEi ended higher as US markets climbed following Mr. Powell’s statement after the Fed’s meeting.

“Boosting the sentiment was Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr.’s statement saying that the BSP may even cut rates faster than the Fed,” Mr. Plopenio said.

Mr. Remolona on Wednesday said the BSP is “closely” watching the Fed, but noted their own policy decisions will not be dependent on the US central bank.

All sectoral indices closed higher on Thursday, led by services, which rose by 4.98% or 91.30 points to 1,922.28. Industrials went up by 1.37% or 121.99 points to 8,983.90; property climbed by 1.23% or 34.54 points to 2,836.03; mining and oil increased by 0.75% or 61.63 points to 8,213.01; financials added 0.45% or 9.26 points to end at 2,054.61; and holding firms gained 0.28% or 18.51 points to close at 6,455.30.

Value turnover went down to P6.34 billion with 976.7 million issues switching hands from the P8.78 billion with 786.83 million shares traded on Wednesday.

Advancers outnumbered decliners, 124 against 77, while 43 names ended unchanged.

Net foreign buying rose to P433.4 million on Thursday from P391.41 million on Wednesday. — R.M.D. Ochave with Reuters

Nations that ‘talk down’ on China to miss out on opportunities, says envoy

Chinese Ambassador to the Philippines Huang Xilian — PHILSTAR FILE PHOTO

NATIONS that misjudge China risk missing out on opportunities as it sets an ambitious economic expansion target of about 5% this year, according to its top envoy in Manila.

“Talking down on China will only backfire, and misjudging China will only squander opportunities,” Chinese Ambassador to the Philippines Huang Xilian told a forum on Philippine-China relations in Quezon City on Thursday, based on a copy of a speech sent by the Chinese Embassy via Viber.

His remarks come just days after US Secretary of State Antony Blinken visited Manila to reaffirm America’s “ironclad” commitments to defend the Philippines against an armed attack in the South China Sea.

Philippine President Ferdinand R. Marcos, Jr. on Tuesday said the threat from China’s expansive claims in the South China Sea is growing, and that his country must do more to defend its territory.

Chinese Premier Li Qiang first announced the growth target early this month to boost confidence in China’s economy as it deals with deflationary pressures, a struggling property sector, an exodus of foreign capital, a stock market rout and a record-low birth rate.

The Chinese Embassy on Wednesday said the US should stop stirring up trouble by taking sides in the sea dispute between China and the Philippines. It also opposed the “groundless accusations made by Secretary Blinken about China’s legitimate and lawful actions in the South China Sea and his thinly veiled threat to invoke the so-called Mutual Defense Treaty obligations.”

In his speech, Mr. Huang said China’s expected growth target this year “far exceeds” the International Monetary Fund’s growth forecast for the US and the European Union (EU). Its economy will have become twice the size of that of the Philippines by yearend.

He said the Chinese economy has been showing positive signals since the start of the year, including a 7.7% increase in domestic tourist spending during the Chinese New Year to 632.6 billion yuan (P4.9 trillion) from 2019.

In the first two months this year, China’s total trade in goods rose by 8.7% from a year earlier to 6.61 trillion yuan.

“As China’s economy grows with a sound momentum, stability and confidence will be injected into the development of the world economy,” Mr. Huang said.

He added that despite different national conditions and systems, China and the Philippines pursue similar development goals, complement each other’s strengths and have “enormous potential for mutually beneficial cooperation.”

The Chinese envoy said China has been the Philippines’ biggest trading partner for eight straight years, and one of its biggest sources of foreign investments.

“The Chinese and the Philippine economy are both part of the global value, industrial and supply chains,” he said. “We have formed a deeply intertwined pattern of interests.”

“The government needs to continue protecting its political sovereignty in the West Philippine Sea,” Leonardo A. Lanzona, who teaches economics at the Ateneo de Manila University, said in a Facebook Messenger Chat, referring to areas of the South China Sea within the Philippines’ exclusive economic zone.

He said the Marcos government should break its trade dependency on China for political pressure to be more effective. “We need to revive our manufacturing sector and attract more foreign investments. All this posturing against China and publicized negotiations with other countries will be useless unless we strengthen our domestic economy, which up to now remains hallow.”

China’s warning on missed opportunities is “a frank and straightforward pacifist encouragement for other countries like the Philippines to not engage in China-bashing and US/Western-praising,” Bienvenido S. Oplas, Jr., founder of think tank Minimal Government Thinkers, said in via Viber.

He said the economic performance of G7 (Group of Seven) last year was mediocre except for Canada and the US. “That means developing countries like the Philippines can’t expect much from them in terms of export absorption. Whereas China and India’s growth would be high — 5% and 7%, respectively.”

“The Chinese ambassador was talking economics and business, while the US State secretary was talking about militarism and war mongering,” he added. — Norman P. Aquino and John Victor D. Ordoñez

French participation in war games may keep world’s eye on China

FILE PHOTO | PHILIPPINE STAR/WALTER BOLLOZOS

By Kyle Aristophere T. Atienza, Reporter

INCLUDING France in the Philippines’ joint sail with the United States as part of the two treaty allies’ annual military drills next month could draw more international attention to China’s aggression at sea, political analysts said on Thursday.

The three-way sail is among the key activities in this year’s Balikatan (shoulder-to-shoulder) exercise, which will be held beyond the Philippines’ 12-nautical-mile territorial waters in the South China Sea for the first time since it started in 1991.

“Including France in this activity is a sign of the Marcos administration’s drive to expand and deepen its defense partnerships, and to draw more international attention to China’s incursions in the West Philippine Sea,” Raymond M. Powell, a fellow at Stanford University’s Gordian Knot Center for National Security Innovation, said in an X message.

Balikatan executive agent Michael Logico on Wednesday said a group sail is a combination of division tactics, search and rescue, and board and search and seizure exercises.

Group sails have been held in past Philippine-American war games, but only inside the 12-nautical mile territorial waters of the country, he told a news briefing.

“We will be utilizing the western side of Palawan, extending beyond our 12 nautical miles so this is also a new thing,” he said. “In previous exercises, we’ve been limited to just 12 nautical miles, now… we are venturing outwards.”

Mr. Powell said holding combined naval exercises outside a nation’s territorial sea is a normal military activity and should not be seen as provocative. “Even so, it deserves notice as a sign of Manila’s concern over the erosion of its maritime security and Beijing’s growing aggression.”

At least four ships from the Armed Forces of the Philippines and one from the French Navy are expected to join the sail, while the US has yet to say how many of its Navy ships will participate.

The Philippines and US have a visiting forces agreement, which is the basis of their military exercises.

The Southeast Asian nation and France have yet to finalize a similar deal, but Paris could join the sail since it will be held outside the territorial waters of the Philippines, Mr. Logico said.

Tensions between the Philippines and China have worsened, and a Chinese envoy earlier this year said their relations were at a crossroads.

A United Nations-backed arbitral tribunal in 2016 favored the Philippines in its case against China, as it ruled Beijing’s expansive claims in the South China Sea were illegal.

Chester B. Cabalza, founder of Manila-based International Development and Security Cooperation, called the upcoming sail among Manila, Washington and Paris a “collective deterrence from like-minded democratic countries upholding a rules-based order in the maritime domain.”

“It will send a united message on the need to uphold the principle of a free and open Indo-Pacific,” he said in a Facebook Messenger chat.

Mr. Cabalza said group sailing beyond a country’s 12-nautical mile exclusive economic zone is acceptable “in the spirit of freedom of navigation operation.” “This is not a violation of the UNCLOS (United Nations Convention on the Law of the Sea) as the Constitution of the seas.”

“It’s not wrong to sail in international waters,” Raymond M. Palatino, secretary-general of Bagong Alyansang Makabayan, said in a Facebook Messenger chat. “It’s not wrong to assert our claim to our maritime borders, but we do not want to be aligned with war-obsessed and genocide-enabling governments like the US and France.”

Joshua Bernard B. Espeña, who teaches international relations at the Polytechnic University of the Philippines, expects more bullying from China in the South China Sea because of these security deals.

During his visit to Manila on Tuesday, US Secretary of State Antony Blinken said Washington’s commitment to the 1951 Mutual Defense Treaty with the Philippines was “ironclad,” noting that it was updated last year to cover armed attacks on the Philippine armed forces, public vessels and aircraft anywhere in the South China Sea.

“While guarantees for the worst-case scenario are there, it is delightful to see that there are also promises on the economic front,” Mr. Espeña said. “I expect the Philippines to be in a good spot for the US’ Indo-Pacific Economic Framework for Prosperity, made robust with needed infrastructure in the digital and maritime economy.”

A trade mission from the US led by Commerce Secretary Gina Raimondo last week unveiled a plan to invest more than $1 billion in the Philippine technology sector.

Chinese President Xi Jinping earlier this month called on his country’s armed forces to coordinate preparations for military conflicts at sea and help in the development of China’s maritime economy.

Philippines posts more than 400 whooping cough cases

TAYLOR BRANDON-UNSPLASH

THE PHILIPPINES has posted hundreds of whooping cough cases this year, the Department of Health (DoH) said on Thursday, as the country’s largest city declared an outbreak.

More than 400 cases of pertussis have been recorded in the first 10 weeks of the year mainly due to disruptions to routine immunization at the primary-care level during the pandemic, Health Secretary Teodoro J. Herbosa said in a statement.

Quezon City has declared a pertussis outbreak after logging 23 cases as of March 20.

Pertussis or whooping cough, a highly contagious bacterial respiratory infection that can be treated by antibiotics, causes influenza-like symptoms such as mild fever, colds and coughs seven to 10 weeks after exposure.

In typical cases, it may develop into a “characteristic hacking cough,” the DoH said. Pertussis is locally known as ubong-dalahit or tuspirina.

There were only dozens of confirmed pertussis cases in the first 10 weeks of 2019 and 2022, and at the height of the pandemic, cases fell to seven in 2021 and to two in 2022, the agency said.

There were 23 whooping cough cases in the first 10 weeks of 2023, when pandemic restrictions had been lifted, it said.

“Disruptions in routine immunization at primary care during the pandemic are seen to be the main reason why, for the first 10 weeks of 2024, there already are 453 reported cases of pertussis,” it added.

The latest tally for Quezon City is high considering that no pertussis cases were logged during the same period last year, the Quezon City Epidemiology and Surveillance Division said in a Facebook post.

The DoH said vaccination is the best protection against whooping cough.

The Health department had recorded 569 measles and rubella cases as of Feb. 24, 163 of which were reported between Feb. 11 and 24 — 3% higher two weeks earlier.

It said cases in all regions except Bicol and Central Visayas had increased in the past month.

“Epidemiologic profile shows that those under five years of age and who are unvaccinated are the most affected,” the DoH said.

Measles spreads from infected people through the air, especially through coughing or sneezing, the agency said. Symptoms include high fever, cough, runny nose and rashes.

“It affects all age groups, but is more common in children,” it said. “There is no specific treatment for the virus that causes measles; however, vaccination protects against it.” — Kyle Aristophere T. Atienza

Senator wants lack of textbooks investigated

BW FILE PHOTO

By John Victor D. Ordoñez, Reporter

A PHILIPPINE Senator has filed a resolution seeking to probe the Department of Education’s (DepEd) failure to procure enough textbooks for students leading to lower scores in such subjects as Mathematics and Writing.

Under Senate Resolution No. 972, Senator Sherwin T. Gatchalian said Filipino students are forced to share textbooks due to a lack of learning materials provided by DepEd, which has led to their lackluster academic performance.

Based on a report by the Second Congressional Commission on Education (EDCOM II), DepEd had only procured 27 out of the 90 textbook titles required for Grades 1 to 10 since the K to 12 program was introduced in 2013.

The report showed that between 2018 and 2022, only P4.47 billion out of the P12.6 billion allocated for textbooks were obligated, but only P951.9 million was disbursed for the textbooks.

Mr. Gatchalian also cited the Southeast Asia Primary Learning Metrics 2019, which said that 8 in 100 Grade 5 Filipino students shared their language and mathematics textbooks, leading to lower scores in reading, writing and mathematics.

He said EDCOM II had consulted with the DepEd, the National Book Development Board and groups of private textbook publishers that cited insufficient development time and a prolonged review process as hurdles to procurement. They had also cited high participation costs and pricing issues that contributed to low procurement.

The Education department earlier committed to deliver 80% of textbooks for Grades 1,4, and 7 by July.

“In the middle of efforts to raise the quality of education in the country, it is important for us to ensure that every student has enough textbooks,” Mr. Gatchalian said.

Marcos couple sick, told to rest

Philippine President Ferdinand R. Marcos, Jr. arrives in Melbourne on Sunday afternoon for a three-day summit between Australia and the Association of Southeast Asian Nations (ASEAN). — PPA POOL PHOTO

PHILIPPINE President Ferdinand R. Marcos, Jr. and his wife had been advised on Thursday to continue to rest in their residence after experiencing flu-like symptoms, according to the presidential palace.

“The President and the First Lady continue to experience flu-like symptoms but with improvements, maintaining stable vital signs,” it said in a statement. “They are advised to continue medications, rest, and hydration for full recovery.”

On Wednesday, the President canceled his appointments after developing the flu-like symptoms following his busy schedule. He has also canceled his participation in a March 22 luncheon organized by journalists from foreign media outfits, which the palace said will be rescheduled. 

“The President continues to work in his residence, handling correspondence and directives within medical advice,” the palace said on Thursday.

“He anticipates resuming full public engagements soon, per his physician’s clearance.”

Mr. Marcos visited other countries in recent weeks, including Germany and the Czech Republic from March 11 to 15. — Kyle Aristophere T. Atienza

NLEX expects 10% traffic surge

VEHICLES approach the NLEX Balintawak toll plaza, May 18, 2021. — PHILIPPINE STAR/ MICHAEL VARCAS

TRAFFIC volume along the North Luzon Expressway is expected to spike by around 10% during the Holy Week, prompting NLEX Corp. to deploy the full force of its personnel to assist motorists.

J. Luigi L. Bautista, NLEX president and general manager, said in a media release on Thursday that 1,500 of its toll and systems personnel will be on duty and that some decongestion projects have been in place for the Holy Week.

“NLEX has implemented decongestion projects in Meycauayan Northbound designed to help ease the expected traffic surge,” said Mr. Bautista. “We are hoping that these decongestion projects, alongside with other measures, will contribute to a more manageable traffic flow.”

Still, the unit of Metro Pacific Tollways Corp. (MPTC) appealed to motorists for cooperation and patience, particularly when traveling to the NLEX-SCTEX-NLEX Connector this Holy Week.

MPTC is the tollways unit of Metro Pacific Investments Corp., one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose

Farmers expose NFA rice sales

PHILSTAR FILE PHOTO

A TOTAL of 9.6 million sacks of rice were allegedly sold by the National Food Authority (NFA) to private rice retailers without proper bidding in the years 2021 and 2022, a farmers organization said on Thursday.

“The alleged sale of around 75,000 bags of aging NFA stocks to private traders in early 2024 is just the tip of the iceberg,” Raul Q. Montemayor, national manager of the Federation of Free Farmers (FFF), said in a statement sent to BusinessWorld. “Much larger transactions occurred in previous years, with buyers paying only P25 per kilo without going through bidding.”

He said this disposal of rice stocks by the NFA in 2021 and 2022 resulted in the agency depleting its rice stocks to only three-and-a-half days’ worth of national consumption by end-2022 — a violation of Republic Act No. 11203 (Rice Tariffication Law) which mandates the NFA to maintain buffer stocks equivalent to 15 to 30 days of national rice consumption. 

The NFA faced scrutiny earlier this month after a report surfaced that it allegedly disposed of 75,000 bags of “aging and deteriorating” buffer stocks of rice worth P93.75 million without undergoing the proper bidding process.

The FFF said that in 2021 alone, almost 5.6 million bags of rice were allegedly sold to traders, with 4 million more sold the same way the following year.

Mr. Montemayor said that they based their rice sale report on inventory and sales data from the 2022 NFA report. “We got the breakdown of (rice stock) sales by buyers from insiders,” he said.

Sought for comment, the NFA said: “We cannot comment on this since the Department of Agriculture and the Ombudsman are already conducting a parallel investigation on the matter.”

Albay Rep. Jose Maria Clemente S. Salceda said he already instructed the Department of Agriculture (DA) to investigate not just the initial alleged anomalous sale of “75,000 (rice) sacks but the full 2019 to 2024 period.”

“The critical matter is that NFA minimizes its losses from being low-balled on its sales of stocks so that it will be able to absorb losses from the retail sector,” Mr. Salceda, who is vice chairman of the House Agriculture and Food Committee, told BusinessWorld in a Viber message.

Mr. Montemayor said the DA should quickly resolve the alleged irregularities in rice stock sales so the NFA can resume its mandate of stockpiling rice supplies meant to be used for emergency and calamity purposes. “Harvests are already peaking, and the NFA must intensify its palay procurement in order to replenish its depleted buffer stocks,” he said.

“It cannot move with so many of its top officials suspended for six months, and some warehouses reportedly padlocked, pending the results of the investigations,” he added. — Kenneth Christiane L. Basilio