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Malacañang investigates “illegal” import order for 300,000 metric tons of sugar
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Probe focuses on malice or negligence by officials that led to SRA issuing import resolution with Marcos’ approval
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A finding of malice will lead to a determination of how many heads will roll, the Palace says
Malacañang said heads will roll after its probe of an illegal sugar import order is completed on Friday (August 12).
On Wednesday, Sugar Regulatory Administration (SRA) Sugar Order No. 4 allowing importation of 300,000 metric tons of sugar was signed by Agriculture Undersecretary Leocadio Sebastian on behalf of President Ferdinand Marcos Jr. The order was, however, not approved by Marcos, who is also the Agriculture Secretary and chairman of the SRA Board.
The investigation is reportedly focused on finding out whether the “illegal” resolution issued by Marcos’ own officials was issued out of negligence or malice.
Sugar Order No. 4 was uploaded Wednesday night on the SRA website. It was taken down by the time the Palace said it was illegal.
READ: Marcos rejects more sugar imports
“An investigation is ongoing to determine whether any acts that would cause the President to lose trust and confidence in his officials can be found or if there is malice, or negligence is involved,” Press Secretary Trixie Cruz-Angeles said in a press briefing on Thursday.
“In such a case, if such findings are made, then the only determination left would be how many heads are going to roll.”
Angeles did not specify which Palace office was conducting the probe, but said Sebastian and all officials who signed the resolution were “under investigation.”
“The resolution was issued in the President’s name; it was signed for the President by Undersecretary Sebastian. Such signing was not authorized by the President,” Angeles said.
Other signatories of the resolution, aside from Sebastian, were SRA Administrator Hermenegildo Serafica, the board’s vice chairman, and his board members Roland Beltran and Aurelio Gerardo Valderrama Jr., who represent the millers and planters, respectively.
“(Sebastian’s) assignment as the alternate of the President is merely to be present in those meetings where the President cannot attend. It is not a delegation of authority to call any meetings or to sign any resolutions in the absence of the President’s awareness that such a resolution is to be issued,” Angeles added.
“No. You don’t convene the Sugar Regulatory Board in the absence of the President and in the absence of any such approval on his part. He didn’t approve the convening. You can only convene the board with the explicit assent of the President and he didn’t make such an agreement,” she said.
Angeles discounted the possibility that the resolution was the result of a “miscommunication” since she said Executive Secretary Vic Rodriguez had earlier asked Department of Agriculture officials verbally to craft a sugar importation plan.
That was during a cabinet meeting sometime back when Marcos was asked whether the country would import more sugar due to a reported shortage and the President “did not assent.”
“It was the Executive Secretary who issued the [verbal] instruction for them to create an importation plan. In such importation plan, a determination has to be made about how this is going to affect the incoming harvest,” she said.
A memorandum dated July 15, 2022, issued by Rodriguez announcing Sebastian’s designation as DA undersecretary mentioned his additional authorities and functions such as signing contracts, memorandums of agreement, administrative issuances, and administrative and financial documents.
“We will wait today if a determination can be made if they can be issued preventive suspension orders while the investigation is ongoing. If the investigation is quick [and they are found liable], we can see replacements very soon,” Angeles said.
She confirmed that Marcos met with Sebastian on Wednesday night and that there was an opportunity for the latter to explain the matter informally, but, “with an investigation, he (Sebastian) has to formally answer.”
Angeles said importations, particularly those related to agriculture, are a “sensitive matter” and require a careful study.
In allowing the importation of additional sugar, the SRA order stated that as of July 31, the actual production of raw sugar was 1,792,102 metric tons and actual production of refined sugar was 737,254, lower by 16.18% and 2.84% year on year, respectively.
Raw sugar production was projected at 1.800 metric tons for crop year 2021-2022, down 16% from production of 2,143,018 metric tons last season, the order added.
According to the order, prevailing wholesale prices of sugar as of July 31 had risen to P3,250 per LKg (50 kilograms) for raw and P4,400 per LKg for refined. The higher prices were caused in part by the tightening supply, it said.
The order was meant to “specifically address the current sugar supply situation and its increasing prices.”
