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  • Romualdez warns agricultural cartels: Tough prison terms for smugglers, price manipulators
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Romualdez warns agricultural cartels: Tough prison terms for smugglers, price manipulators

admin September 6, 2024
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SPEAKER Ferdinand Martin G. Romualdez on Friday issued a stern warning to agricultural cartels, vowing that those involved in price manipulation and smuggling of essential goods—acts considered economic sabotage—will face not only massive fines but will also be thrown behind bars.

“Economic sabotage is a crime of the highest order. The law demands life imprisonment for large-scale agricultural smuggling, and we will make sure those responsible face the full force of justice. These cartels are not just committing fraud; they are endangering our food security and destroying the livelihoods of our farmers,” the Speaker declared.

The warning comes after the recent identification of 12 key members of an onion cartel in the Philippines, now facing a staggering P2.4 billion in fines as an offshoot of a House of Representatives investigation initiated by Speaker Romualdez.

According to the Enforcement Office of the Philippine Competition Commission (PCC), it had filed charges and recommended penalties amounting to P2.4 billion against 12 onion traders and importers for allegedly operating as a cartel since 2019.

Named respondents by PCC were Philippine Vieva Group of Companies Inc., Tian Long Corp., La Reina Fresh Vegetables and Young Indoor Plants Inc., Yom Trading Corp., Vegetable Importers, Exporters and Vendors Association of the Philippines, and Golden Shine International Freight Forwarders Corp.

PCC said the individual respondents are Vieva vice president and Golden Shine president Lilia Cruz; Vieva board member, Golden Shine corporate executive officer and Tian Long corporate secretary Eric Pabilona; Vieva board member, La Reina president and Yom Trading chair and president Renato Francisco Jr.

These cartel members were found to have orchestrated large-scale smuggling and hoarding operations, which artificially inflated onion prices to record highs, squeezing consumers and devastating local farmers.

Romualdez made it clear that hefty fines are only the start, with criminal charges and long-term imprisonment guaranteed for these offenders.

“The imposition of P2.4 billion in fines is just the opening salvo. Smugglers and price manipulators will face not just financial repercussions, but serious jail time. We will not tolerate the sabotage of our economy and the exploitation of Filipino families,” he declared. 

The leader of the 300-plus-strong legislative chamber pointed to Republic Act No. 10845, or the Anti-Agricultural Smuggling Act of 2016, which classifies large-scale smuggling as economic sabotage—a non-bailable offense carrying life imprisonment, alongside asset forfeitures and hefty fines. 

The Speaker assured that the investigation would lead not only to fines but also to full prosecution.

“The P2.4 billion in fines is just the start. The law is clear—those who manipulate agricultural prices will face long prison terms. Smuggling, hoarding, and price manipulation will receive the toughest penalties,” he stressed.

Romualdez assured the public that the House will maintain its aggressive stance against agricultural cartels, in close collaboration with agencies like the Department of Agriculture and the Bureau of Customs, to prevent a recurrence of these illegal activities.

“We are fully committed to wiping out these cartels,” the Speaker pointed out. “This is not just about onions—this is about safeguarding our food supply and ensuring that every Filipino has access to affordable agricultural products. Today, we struck a blow against one cartel, but this is only the beginning.”

The House chief also pushed for stronger legislative reforms to ensure that the penalties for agricultural smuggling are even more severe. 

“We will strengthen the laws, ensuring that those who sabotage our economy with price manipulation and smuggling face longer jail terms and harsher penalties. The days of leniency are over,” he declared.

The crackdown on the onion cartel comes after months of soaring prices caused by artificial scarcity through hoarding and manipulation. 

The P2.4 billion fine levied on the cartel members is a significant step in the government’s broader campaign against agricultural smuggling, but Speaker Romualdez made it clear that the consequences for those responsible would extend beyond financial penalties.

“The House will not stop until these cartels are dismantled and those responsible for hurting our farmers and consumers are behind bars. This is a fight we will win—for the farmers, for the consumers, and for the entire Filipino nation,” the Speaker concluded.

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