Seizure of 7,000 MT sugar in Subic confirms reports scrapped SO-4 could have served as cover for smuggling

THE seizure of some 7,000 metric tons of sugar at the Subic Port in Zambales is a confirmation of reports reaching the Office of the Executive Secretary (OES) that Sugar Order No. 4 (SO-4), which was disapproved by Malacanang, could have been used to cover for sugar smuggling.

But since SO-4 was scrapped, those behind the attempted smuggling of 140,000 bags of sugar in Subic have resorted to using “recycled import permits,” which refer to permits for old allocations such as those issued by the Sugar Regulatory Administration (SRA) for Sugar Order No. 3 approved last February.

Executive Secretary Victor Rodriguez earlier raised suspicion on why the SRA could not account for the 63,000 MT of sugar, which was the balance from the 200,000 MT under SO-3 approved by the Sugar Regulatory Board.

Reports reaching the OES indicated that a similar modus using “recycled import permits” resulted in the smuggling last week of a shipload of imported sugar in the Subic Port.

The report from the OES identified several persons who allegedly control Subic Port including a certain “Buboy” and “Reggie” who both use “Kysse Lish” and “Foxxie” as consignees.

“This is clearly economic sabotage and this crime is non-bailable,” the report from OES said.

Press Secretary Trixie Cruz-Angeles said that heads may roll at the Bureau of Customs (BOC) if evidence shows that any of the bureau’s port personnel are in connivance with smugglers using recycled sugar import permits.

She further said at least one of the warehouses inspected yesterday in Bulacan and Pampanga were not registered with the SRA.

“Suspicions were raised when the owner claimed that the stockpile was the result of slow sales. ‘Matumal’ daw,” Cruz-Angeles said.

“Dun pa sa hinarang na shipment, gamit pa daw ang permit from Sugar Order No. 3. Kung totoo ito, lalong nagiging suspicious ‘yung madaliang paglabas ng Sugar Order No. 4,” she added.

On orders from President Ferdinand “Bongbong” Marcos Jr., the executive secretary had ordered law enforcement authorities to visit and inspect all customs bonded warehouses to check the inventory of imported agricultural products with the aim of finding out if there is sugar hoarding.

Rodriguez also directed law enforcers to investigate the possibility that the alleged “locally procured” sugar seized in the two warehouses in Bulacan were actually imported sugar but were repacked using sacks of local brands.

It can be recalled that Rodriguez told Manila Times columnist Rigoberto Tiglao that his office is investigating reports that the 300,000 MT importation being pushed aggressively by certain traders intend to use it as a “cover” for them to release the sugar they had hoarded but couldn’t release as this would depress prices.

“One report said this could result in windfall profits for them of at least P300 million, and a part of this amount has been mobilized as lobby money,” Tiglao wrote in his Aug. 17 column.

“The surprise visits in the Pampanga and Bulacan warehouses should serve as a warning to unscrupulous traders who are currently hoarding their stocks of sugar in order to profit from the current artificial sugar shortage situation,” Rodriguez said.

Last Thursday afternoon, Customs personnel in the Port of Subic averted the possible smuggling of 7,021 MT of sugar from Thailand after they learned that the import permit used for the cargo was “recycled.”

Presently under custody at the Subic Port are the 19 crew members of the cargo vessel MV Bangpakaew, which was found to be loaded with 7,021 MT of Thailand white refined sugar equivalent to 140,000 bags and with total tax payment valued at P45,623,007.51. By ANCHIT MASANGCAY