COA - Mahigit 13-M bags ng bigas, paluging ibinenta ng NFA sa P25/kilo imbes na... | 24 Oras

GMA Integrated News
11 Dec 202403:10

Summary

TLDRThe Commission on Audit (COA) has reported a PHP 5 billion loss due to the National Food Authority (NFA) selling rice at a significantly lower price than market value between 2019 and 2023. Despite having substantial funds, the NFA's rice buffer stock was insufficient, falling short by over 80%. The agency faced challenges in rice procurement due to competition with private traders and regulatory constraints. As a result, 139 NFA officials were suspended, and new guidelines are being developed to prevent future losses. The NFA aims to improve its stockpiling and support local farmers.

Takeaways

  • 😀 The Commission on Audit (COA) flagged a loss of over 5 billion pesos due to the National Food Authority's (NFA) sale of rice below cost between 2019 and 2023.
  • 😀 The NFA sold over 13 million bags of rice at Php5 per kilogram instead of the recommended Php3 per kilogram, leading to significant financial losses.
  • 😀 The NFA's defense was that the rice was near its expiration date and needed to be sold off, but this was questioned by experts.
  • 😀 The Rice Tariffication Law prohibits the NFA from selling rice in this manner, and some of the rice sold was of good quality, further raising concerns.
  • 😀 Despite high rice prices in the market (over Php50 per kilogram), no evidence was found of rice being sold at Php30 per kilogram by retailers.
  • 😀 The NFA's mandate includes stockpiling rice for emergencies and purchasing rice from local farmers, but in 2023, its rice buffer stock was critically low.
  • 😀 Even with a Php9 billion fund for rice procurement, the NFA only managed to utilize about Php1.4 billion, resulting in a shortage of 84.1% in buffer stock.
  • 😀 Local farmers preferred to sell to private traders offering higher prices, contributing to the NFA's difficulty in purchasing rice from them.
  • 😀 The NFA's procurement issues were attributed to competition with private traders, poor quality of some rice crops, and high prices due to India's export ban on non-basmati rice.
  • 😀 The NFA has pledged to follow the recommendations of the COA and aims to maintain a 300,000 metric ton buffer stock of rice for emergencies.

Q & A

  • What was the Commission on Audit’s observation about the National Food Authority's (NFA) rice sales from 2019 to 2023?

    -The Commission on Audit (COA) observed that the NFA incurred a loss of over 5 billion pesos due to the below-market sales of rice, selling over 13 million bags at 5 pesos per kilo instead of 3 pesos per kilo.

  • Why did the NFA sell rice at a loss according to their defense?

    -The NFA defended the sales by stating that the rice was nearing expiration, and they needed to sell it to avoid losses. However, COA pointed out that selling rice at a loss was not appropriate given the legal restrictions.

  • What law restricts the NFA from selling rice below market value?

    -The Rise Tarrification Law prohibits the NFA from selling rice below the market value, and COA highlighted this issue in their report.

  • How did the NFA justify the sale of good-quality rice during the price hike?

    -Despite some rice being of good quality, the NFA was criticized for selling it during a period when rice prices surged to over 50 pesos per kilo, which was contrary to the interests of the consumers and local farmers.

  • What was the consequence for the NFA officials involved in the rice sale scandal?

    -The Ombudsman ordered the six-month suspension of 139 NFA officials due to their involvement in the below-market rice sales.

  • What is the NFA's mandate in terms of rice procurement and storage?

    -The NFA's mandate is to store rice for emergencies (calamities) and buy palay from local farmers. However, the agency has faced challenges in meeting its procurement and storage targets.

  • Why did the NFA fall short in its rice buffer stock in 2023?

    -Despite having a budget of 9 billion pesos for rice procurement, the NFA only utilized 1.4 billion pesos, leading to an 84.1% shortfall in the buffer stock. Farmers preferred selling to private traders offering higher prices.

  • What role do private traders play in the NFA’s rice procurement challenges?

    -Private traders have aggressively purchased rice from farmers, offering higher prices, which has led to the NFA's inability to compete in procuring enough palay for its buffer stock.

  • How did the NFA address the issue of competition with private traders in rice procurement?

    -The NFA acknowledged the strong competition from private traders and indicated that it would work to improve its procurement strategies and storage capacity to ensure a sufficient buffer stock.

  • What is the NFA’s plan to address the understocked rice situation in the future?

    -The NFA plans to follow the recommendations of COA and continue efforts to maintain a 300,000-metric ton buffer stock of rice. Additionally, they are drafting new guidelines to prevent further issues with below-market rice sales.

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Etiquetas Relacionadas
NFA RiceCOA ReportPhilippinesFood SecurityGovernment LossesRice ProcurementBuffer StockPrice TariffsNFA SuspensionPublic AccountabilityPhilippine Economy
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