‘NFA lost P112 million after rice sale to traders’

MANILA, Philippines — The National Food Authority (NFA) has incurred losses of at least P112 million after the sale of 150,000 bags of rice at only P25 per kilo to some traders, according to a farmers’ group.

Jayson Cainglet, Samahang Industriya ng Agrikultura executive director, noted that while corruption at the NFA is an open secret, officials have become more daring in their illegal activities.

“What happened was very glaring. Before, the anomalies we heard at the NFA underwent bidding or auction. In this recent incident, there was no bidding. Traders were chosen, only two (traders) benefited. That was a red flag already,” Cainglet pointed out.

He noted that the NFA bought palay from local farmers at P23 per kilo and sold some of its stocks to the traders at only P25 per kilo.

“It was OK if the rice was sold to the agencies of government, like the Department of Social Welfare and Development and Kadiwa, as it will benefit the ordinary people. But it was sold to private traders,” Cainglet said.

Noting that the NFA spends between P13 and P14 per kilo for the milling of palay, Cainglet explained that this meant the agency “incurred losses of P12 to P13 per kilo.”

“If it involved 150,000 bags (of rice), then it means P112 million in losses to the NFA,” he said.

He added that the NFA could have, at the least, sold the rice at P40 per kilo.

“We expect that with the investigation of the DA (Department of Agriculture), the Office of the Ombudsman, the House of Representatives and the Senate, those liable will be made accountable,” Cainglet said.

The NFA Council has appointed Piolito Santos, NFA assistant administrator for finance and administration, as officer-in-charge amid the six-month preventive suspension of administrator Roderico Bioco and 138 other officials and employees amid the questionable sale.

Santos said he would prioritize the resumption of operations of NFA warehouses, noting that the “peak harvest season has already started.”

He said the NFA has a total budget of P17.2 billion for palay procurement.

Meanwhile, Cainglet said a P4-per-kilo drop in the retail prices of rice is to be expected amid the peak harvest season of palay, which runs until