Raps eyed vs traders in garlic cartel

MANILA, Philippines - The National Bureau of Investigation (NBI) is looking into the criminal liability for economic sabotage of businesswoman Lilia Cruz and several others tagged in the cartelization and collusion behind the recent huge increase in prices of garlic.

Justice Secretary Leila de Lima said among the charges being considered are economic sabotage and monopoly under Republic Act 7581 (Price Act) and Revised Penal Code.

Last June, the prices of garlic reached a high of P287 per kilo or a 74-percent increase from prices last year and double the current average prices.

“The NBI has already started its probe. They already secured informants with sworn statements,” she revealed in an interview yesterday.

De Lima, however, said she is not sure whether Cruz has cooperated with investigators.

She said the other traders and officials involved in the cartel were not identified in the DOJ report released last Wednesday due to the ongoing validation process.

De Lima added that the NBI would also consider the possible liability of other traders for economic sabotage.

“There is no specific provision in the law for the offense of economic sabotage, but it is incorporated in various penal laws relevant to the economy. So it would depend on circumstances. It could be considered in this case, but we really have to conduct further study,” she explained.

The NBI is conducting the fact-finding probe after investigation of the DOJ Office for Competition showed that the increase in garlic prices was caused by a group of importers who corner the supply to dictate the high prices.

The report showed that Cruz, alias Leah Cruz, cornered at least 75 percent of the total garlic importation in the country by virtue of import permits issued by the Bureau of Plant Industry (BPI).

The DOJ cited the problem in the garlic importation system, particularly involving the BPI and National Garlic Action Team (NGAT) of the Department of Agriculture (DA).

Under the current system, clearances from BPI serve as import permits for garlic traders.

But the DOJ stressed that the BPI has no authority to use the plant quarantine clearance effectively as an import permit and allocate the volume of garlic to be imported.

It explained that the primary mandate of the bureau is to restrict or control importation of plant products to prevent entry of plant pests.

The DOJ said BPI “should not be concerned with volume of imports or determining the financial capacity of importers,” recommending that the agency be stripped of its power to issue import permits.

It also pointed out that NGAT has been “unnecessary, unhelpful and actually contributed to the problem” and must therefore be abolished.

The DOJ came up with the report after 60 days of investigation and research upon orders of the President, she added.