‘I call you and raise you’

DOF Secretary Ben Diokno recently issued a statement where he pointed out that as far as the recurring high rate of inflation is concerned, the monetary authorities have all done their part and it is now time for “the Executive department as well as the LGUs to do their part to control inflation.”

Secretary Diokno added that instead of restricting the flow of goods, the Bureau of Customs should facilitate the release of food-related imports “with the same sense of urgency that they had in releasing the much needed vaccines at the height of the Covid pandemic.”

Two contrasting sources recently gave me updates on the same afternoon regarding developments at the Bureau Of Customs. Rumor has it that the game now in play is BOC poker, where certain officials “Call You and Raise You” – meaning brokers, shipping agents and operators have all been “called” and told that the new rates have gone up from P180K and is now P200K to P250K per container, inclusive of duties and taxes.

If what the two sources say is true, then the possibility that the flow of goods through the BOC can be expected to speed up while generating a respectable revenue for government – but blind or unmindful of the open season and unchallenged smuggling that is about to happen. It’s like creating an Express Lane for smugglers. The problem this poses is that operators will also shift to high value items and drugs instead of food and vegetables.

Aside from the BOC, Sec. Diokno pointed out that  “local authorities should facilitate, not impede, the movement of essential food items to the intended markets. Restricting free movement of essential food items is one sure way of prolonging inflationary pressures.”

The LGUs do more than impede the flow of goods, Mr. Secretary. They add to the handling costs, disruption of operating schedules, delays in shipping and transport and increase the volume of spoilage or lost opportunities.

In the same statement, Diokno pointed out that “monetary policy is not the only game in town” and that he is planning to organize a Technical Working Group to study what are the problems and possible solutions that affect food inflation. The TWG will include the DOF, DA, DBM, NEDA and DTI.

I really appreciate the fact that for once, a high ranking official of the PBBM administration has publicly pointed out an area of concern that generates a big part of the food inflation in the Philippines: the Executive Department and local government units (LGUs). How easily we forget that the Department of Agriculture, which is under the President of the Philippines, has been solely and directly responsible for the different shortages in sugar and onions, among others, because they failed to call the orders in ahead of time.

There is nothing political in Sec. Ben Diokno’s statement because in spite of the ARTA Law and the policy of ease of doing business in the Philippines, the fact remains that nothing much has changed in the environment of corruption and inefficiency that transport operators, shippers and companies have to work through.

The plan of putting up a Technical Working Group is a start but once again, the principal players are not first of mind. The DILG, the DOTr and the DPWH can make a major contribution to aligning local business and productivity with transport and mobility. They should be at the front of the class, explaining to the other departments why their areas of concern have become the center of inefficiency and corruption that now cause high inflation in the Philippines!

Even without the active participation of the DA in this anti-inflation endeavor, the private sector can carry on producing the necessary agricultural products, but what the private sector cannot stop is the unwarranted and unreasonable imposition of charges, unnecessary services or inspections required by LGUs all over the country. What businesses are complaining about is the corrupt and mismanaged port facilities, delays in shipping schedules and public transport that only move when full or “Alas Puno” – all on top of lousy internet connectivity and mobile connections.

To this date I have not heard anything from Secretary Benhur Abalos on the need to audit and investigate many LGUs, beginning from barangays that impose “acceptance certificates,” “barangay clearance” and barangay permits to establish a farm, load chicks on a poultry farm or transport hogs or piglets.

The DA had never really audited and reviewed the different inspection areas and sanitary checkpoints put up by LGUs, whether they are really equipped and run by personnel trained in quarantine management. The excuse is that the LGUs are devolved. Incidentally, does the BIR have any role in monitoring the issuance of receipts for such inspections and checkpoints or does all these add-ons go to the pocket of corrupt officials?

Yes, I support Secretary Ben Diokno’s views but please push the envelope further towards PBBM because to quote his recent speech: “Efforts to grow the economy would only go to waste if fruits of growth are not enjoyed by the people.”

No businessman in his right mind would openly speak against local government officials. Secretary Ben Diokno and the TWG have to put up mobile numbers and hotlines and complaint centers to report the various forms of impositions and delays that LGUs and government agencies make.

Yes, there are many NGO and sector leaders who can easily summarize these for the President and Sec. Diokno, but it is often refreshing and infuriating to learn firsthand what ordinary citizens and job generating firms have to endure.

I think it was US Senator Bob Dole who once said after retirement: If I only knew how much trouble people had to go through just to put up a business, I might have written more laws to solve the problem!

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