Villar welcomes DOJ finding of 'Garlic Cartel'

Senator Cynthia A. Villar yesterday said she welcomes the Department of Justice (DOJ) recommendation to prosecute private individuals and public officials in an alleged "garlic cartel" resulting to the staggering increase in its prices in recent months.

"All those involved in the collusion to corner most of the garlic supply and to manipulate its prices should be held liable. They should be punished for burdening our people when the cost of garlic soared due to their illegal activities," stressed Villar.

She said our law enforcers, particularly the Department of Justice (DOJ) and the National Bureau of Investigation (NBI), should dig deeper into the alleged garlic cartel to determine its other members, and if other agricultural projects under under a cartel.

The 32-page report released by the DOJ- Office for Competition established that there is no real competition going on in the garlic industry particularly in the importation side since businesswoman Lilia M. Cruz aka Leah Cruz and three (3) other individuals are monopolizing the market by way of creation of dummy importers.

"This scheme stifled free competition among the legitimate and accredited garlic importers," said the report.

It also found out that the lack of transparency and clear-cut guidelines in the Bureau of Plant Industry (BPI) permit system abetted the establishment of a garlic cartel, possibly with the collusion of some BPI and Department of Agriculture (DA) officials.

In particular, Cruz cornered at least 75% of the total garlic importation in the country by virtue of such import permits.

Being the chairperson of the Senate Agriculture and Food committee, Villar said she conducted last July 3, 2014 senate hearing on the high prices of agricultural produce, particularly garlic.

The senate hearing branded "abusive the 900% profit margin on garlic that benefitted only foreign garlic producers to the detriment of Filipino garlic farmers and consumers.

During the hearing, Villar particularly pointed out that the high prices of garlic is due to manipulation because traders buy the import privilege (IP) from garlic cooperatives at a very low rate.

"We then urged all concerned government agencies to strike hard on garlic traders who are said to profit some P26 billion annually," said Villar.

The senator said she is happy her committee's findings on the issue of price manipulation jibe with those of the DOJ and the NBI.

"I hope this could serve as warning to others who are engaged in this kind of modus operandi to stop their illicit operations or face charges. No stone should be left unturned because we are all here to protect all industry players especially our garlic farmers," said Villar.

She said her committee also plans to review the mandate of the National Garlic Action Team (NGAT), which appears to be influenced by traders and cooperatives who are members of the organization.

NGAT is a multi-stakeholder body under the DA which was formed in 2012 to ensure stable garlic supply in the country. It said the NGAT had "failed to serve its primary purpose and to ensure a balanced representation from both government and private sectors.

Villar had earlier filed Senate Resolution No. 238 for the senators to inquire into the present policies and practices in the importation of garlic and onions due to allegations of monopolization.