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Thursday, April 03, 2008

 

Officials order police to arrest rice hoarders


The government on Wednesday ordered police to arrest rice hoarders and illegal traders as the country struggles to cope with rising prices of the key food staple.

Police will be deployed to warehouses owned by the National Food Authority (NFA), the state rice-importing agency, to prevent any pilfering by rogue traders, Silverio Alarcio, the operations chief of the Philippine National Police said in a statement.

The move is aimed at preempting the “impact on peace and order of price rises not only in rice but other basic commodities,” the statement added.

President Gloria Arroyo this week said she will negotiate for more rice shipments from Thailand and other neighboring countries to avert a possible supply crisis during the lean months from July to September.

Analysts and farmer groups have said traders hoarding rice could also force the retail price of the grain to artificially rise. Experts have warned of social unrest if prices soar amid the supply crunch.

Alarcio also ordered regional commanders to work closely with local governments to fight the illegal rice trade and said police would follow delivery trucks to ensure that government rice did not “end up in illegal warehouses.”

“We will do that and hit hard on the hoarders who are causing this artificial crisis,” he said.

The Department of Justice joined the drive by forming a five-man Anti-Rice Hoarding Task Force.

In creating the task force, Justice Secretary Raul Gonzalez said he wanted rice hoarders charged with “economic sabotage,” a non-bailable offense. The group will be armed with Presidential Decree 4, which penalizes “unlawful acts or omissions inimical to the preservation and protection of the country’s rice supply.”

The task force is led by Senior State Prosecutor Roberto Lao as chairman and Senior Prosecutors D.C. Galvez, Philip de la Cruz and Nestor Lazaro, and Public Attorney Ma. Rhodora Salazar as members. It is authorized to seek assistance from law-enforcement and administrative agencies.

Under Department Order 190 that created the group, the National Bureau of Investigation will gather evidence against suspected rice hoarders.

Gonzalez said they are initially targeting the owners of the 111 warehouses in Bocaue, Bulacan province, north of Manila. The warehouses were storing 25,000 to 40,000 sacks of rice each, for a total of some 400,000 sacks, roughly worth P400 million at P1,000 per sack.

“There’s no report yet [from the National Bureau of Investigation]. We will be able to know if a syndicate is behind it if we would be able to identify the owners of the warehouses,” he said. The bureau, he added, is also investigating in Cebu.

Gonzalez admitted the task force will not solve hoarding, but that “it can help certainly” as hoarders are faced with the threat of prosecution.

He said President Arroyo had ordered the use of Army trucks to carry the rice and palay purchased by the National Food Authority in far-flung areas to spare private rice haulers from paying the P500 asked by local government units along the way.

He said Defense Secretary Gilbert Teodoro had already pledged 200 trucks or one-half of the needed 400 trucks.

The President, Gonzalez added, had also ordered the release of P20 billion for irrigation during a recent meeting with Catholic bishops.

President asks for help

Also on Wednesday, Mrs. Arroyo appealed to the private sector to help the government implement and monitor its food programs amid worries of a food shortage.

“To ensure cheap food supply, the government, local government units, the private sector, and all other organizations must band together,” the President told a Cabinet meeting that she convened last night shortly after her arrival from a three-day visit to Hong Kong.

As an initial move to meet the government’s objective, she also ordered state corporations and institutions to utilize their P5-billion surplus—representing 5 percent of last year’s combined budget surplus of P100 billion—to subsidize farmers and ensure steady rice supply. The surplus will fund the “Green Pasture” program of Filipino farmers.

Mrs. Arroyo said the local government units have around P32 billion in surplus last year.

The National Food Authority has started selling its regular milled and premium rice directly to heavily populated and depressed areas in Metro Manila and neighboring Rizal province to provide ordinary consumers a chance to avail of the good-quality but low-priced government rice on a regular basis.

Its spokesman, Rex Estoperez, said they have begun selling rice through rolling stores, which also sell other basic commodities.
--Angelo S. Samonte, William B. Depasupil, Ira Karen Apanay And AFP

   

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