PRESIDENT Ferdinand Marcos Jr. has ordered an investigation into the hoarding, smuggling, and price fixing of onions and other agricultural products, calling such acts “economic sabotage.”
“I have just given instructions to the [Department of Justice] and the [National Bureau of Investigation] to initiate an investigation into the hoarding, smuggling [and] price fixing of agricultural commodities,” said Marcos, the concurrent agriculture secretary, in a video message on Tuesday, July 4.
He said he based his order on the findings of a House of Representatives investigation earlier this year on the soaring prices of onions, which were allegedly orchestrated by a cartel.
Marikina’s Rep. Stella Quimbo, who led the probe, told Marcos that they had “substantial evidence” pointing to the existence of an onion cartel allegedly operating through the Philippine VIEVA Group of Companies, Inc. (PVGCI).
Malacañang, quoting Quimbo, said the firm had engaged in “various activities including farming, importation, local trading, warehousing, and logistics” and was supposedly behind the huge onion price hikes in 2022.
The lawmaker also noted that Lilia Lea Cruz, who had earned the monikers “Sibuyas Queen” and “Mrs. Sibuyas” due to her alleged involvement in the onion importation, was a majority PVGCI stockholder.
Cruz had appeared in the House hearings and denied being involved in the cartel and the hoarding of onions.
“President Marcos emphasized the significance of these findings as sufficient grounds to initiate an investigation, citing the need to address what amounts to economic sabotage,” the Palace added.
Marcos also said in his video message that his administration would be “very, very strict” in tracking down the people behind the onion cartel and “making sure that they are brought to justice.”
When the House began its probe, the onion inflation was initially attributed to a “perceived shortage of supply.”
“However, data from the Department of Agriculture Bureau of Plant Industry revealed only a modest shortage of approximately 7.56 percent in 2022, which could not justify the significant inflation rates reaching 87 percent in December of that year,” Malacañang said.
This, along with feedback from cold storage facility owners who said that there was an ample supply of onions last year, led solons to believe that a cartel had been behind the inflation.
“The cartel allegedly engaged in price-fixing through manipulation of stocks, leveraging control over cold storage facilities,” the Palace added.
Last February, the Philippine Competition Commission said it had been investigating the possible existence of an onion cartel since November 2022. (ABS-CBN News)
