Palace inaction on sugar row hit

Opposition Sen. Risa Hontiveros says she is baffled by the silence and inaction of Malacañang on the purported “state-sponsored” formation of a sugar cartel that stands to profit by as much as P14 billion from the alleged smuggling of 440,000 metric tons of sugar. The Senate blue ribbon committee has yet to hold a hearing on the alleged illegal importation of sugar.

Opposition Sen. Risa Hontiveros on Tuesday said she was baffled by the silence and inaction of Malacañang on the purported “state-sponsored” formation of a sugar cartel responsible for the alleged smuggling of 440,000 metric tons (MT) of sugar.

By allowing the unauthorized importation, Malacañang’s apparent inaction seemed to bolster suspicion that it handpicked the three importers that were poised to corner the sugar shipments, Hontiveros said.

With the three chosen importers set to sell the smuggled sugar at P85 a kilo in the country after buying it for P25 a kilo in Thailand, they are set to rake in profits of as much as P14 billion, the senator noted.

“With that kind of profit that is to be shared by the three importers, it’s hard to imagine how much kickback it will generate. It’s like having sugar with sweetener,” she said at a press briefing.

Hontiveros made the disclosure as the Senate blue ribbon committee has yet to hold a hearing on Senate Resolution No. 497, which sought an investigation into the alleged illegal importation of sugar that was supposedly meant to favor three importers: All Asian Countertrade Inc., Sucden Philippines Inc. and Edison Lee Marketing Corp.

Palace guests

The senator said she wondered whether the three companies were handpicked by Malacañang, as she showed photos of President Marcos, Speaker Martin Romualdez, Agriculture Undersecretary Domingo Panganiban, and the firms’ three owners at a meeting reportedly at the Palace.

“The caption in that Facebook post of Digicast Negros names those in the photo: Edwin Lee of Edwin Lee Marketing; Ian Alvarado of Sucden Philippines; Michael Escaler with his wife Patricia, both of All Asian Countertrade,” she said.

“These are from three separate importers together in one photo with Undersecretary Panganiban. What could they be smiling about in this photo?” Hontiveros added.

The photo raises a number of questions relative to the controversial sugar importation, the senator said, such as whether the three importers, who are said to have been chosen as the “most capable,” were brought to Malacañang for a meeting with the President.

“So I asked if it is normal to bring the sugar importers to Malacañang. Or the question may also be: When was this photo taken during the various steps of the importation that got embroiled here in this sugar smuggling fiasco?” she said.

According to Hontiveros, Panganiban supposedly decreed that any local industrial sugar user would have to transact with either of the three importers if they wanted to get their share of the imported sugar.

One industrial user purportedly dealt with All Asian for possible purchase of imported sugar and was reportedly quoted a price of P85 a kilo.

At P85 a kilo, the chosen importers of the 440,000 tons would rake in a profit of up to P14 billion, or P10.5 billion if they decide to sell the sugar at a “more conservative” P61 a kilo, the senator pointed out.

She urged Malacañang to come clean on the issue, as Mr. Marcos is starting to get dragged into the fiasco.

Senate hearing

“I think it’s well past time for the Palace to keep quiet, especially despite the fact that the name of the highest office and the name of the highest official are implicated in the excuse and justification of this sugar import fiasco 2.0,” Hontiveros said.

She said she felt the need to voice her concerns even before the Senate could conduct its hearings on the issue as the sugar importation was a “time-sensitive issue.”

She noted that the first shipments in 20 containers, intended for All Asian, had already arrived in the country.

“They arrived before a sugar order could even be signed. I have unconfirmed reports that further shipments have arrived in Subic (Freeport in Zambales) and shipments arrived at the MICT (Manila International Container Terminal) as early as December,” Hontiveros said.