Fertilizer firm reports P90-M loss|

By Ben O. Tesiorna
Monday, April 2, 2012
A FERTILIZER company reported a loss of P90 million due to the illegal operation of some of their distributors who
mix fertilizers with salt.
La Filipina Uy Gongco lawyer Wigberto Tanada Jr. said his client, manufacturer of Amigo Fertilizers, estimated their
loss to be about P90 million.
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He said other fertilizer companies are also affected by the proliferation of adulterated fertilizers, which have been
identified to have emanated from Davao City and Mindanao.
Lawyer Gavino Barlin of the Fertilizer and Pesticide Authority (FPA) said they have identified one Edgar Calledo as
having the biggest illegal operation in Mindanao.
He said in the Ma-a, Davao City warehouse alone, they confiscated more than 1,000 bags of adulterated fertilizers.
In other areas like Davao del Norte, North Cotabato and Sultan Kudarat, Barlin said there is only an average of 200
sacks per warehouse.
La Filipina Uy Gongco CEO Aileen Uy Gongco-Ongkauko estimated the amount of confiscated adulterated fertilizers
to be at least P50 million.
Tanada said they started receiving complaints from the farmers late last year. He said they started coordinating with
the authorities in gathering evidences against the perpetrators.
These all came about when La Filipina received complaints from the field regarding its fertilizer products few months
ago. Since this is the first since 1990 when the Amigo Fertilizers were first sold, they had the matter investigated.
From the initial reports, they learned that not only their products but other fertilizers as well were being altered. The
company decided to report the matter to the FPA and coordinated with the CIDG, Tanada narrated.
La Filipina decided to take the lead because this is quite a serious matter because it affects our fellow farmers. The
farmers get hit three times, when they purchased these altered fertilizers; they are made to pay amounts higher than
the original products. Secondly, it will cause damage to their products. Thirdly, in prolonged period of time it will affect
their rice fields and could no longer use their fields in the future. Lastly it will have an impact on our food security, he
added.
Retired general and special envoy on transnational crime Rex Piad said no less than President Benigno Aquino III
ordered his office to coordinate with the Criminal Investigation and Detection Group, Armed Forces of the Philippines,
FPA and the Department of Justice, to put a stop on the proliferation of adulterated fertilizers.
CIDG Superintendent Jack Malinao Jr. said based on their month-long monitoring, they identified the warehouse in
Maa rented by Edgar Calledo as having a huge operation. About 1,000 sacks of Amigo fertilizers alone were
confiscated.
He said other adulterated fertilizers from other companies were not included as it is not covered by the warrant.
Malinao said they are still monitoring other illegal operations in other areas in Mindanao and that they might secure
search warrants soon to confiscate more contraband.
Barlin, meanwhile, revealed that some of the arrested distributors do not have the license to sell fertilizers. For those
who have and are proven to have distributed adulterated fertilizers, Barlin said, they will cancel their license if they
are proven to be involved.
He admitted that adulteration of fertilizers is something new for them.
Ang dati naming problema is under-weighing lang, wala pang adulteration. Sa Mindanao lang nangyayari ang
adulteration (Before, our only problem is under-weighing, no adulteration yet. Adulteration only happened in
Mindanao), Barlin said.
Piad urged farmers to make sure that the fertilizers they buy come from accredited suppliers. He said they can also
communicate with the manufacturers themselves to ascertain the pureness of the fertilizers they buy in the market.
A representative of the La Filipina said they are ready to assist the farmers in ensuring that the Amigo fertilizers they
buy are authentic.
For now, Piad said, the suspects will be charged for violation of Section 168 in relation to Section 170 of RA 8293
(Unfair Competition); and Section 8, Paragraph D (Adulteration) and F (Mislabel) of Presidential Decree 1144,
otherwise known as Fertilizer and Pesticide Authority Act.
The retired general said the possible filing of economic sabotage against the suspects is not possible now as
adulteration of fertilizers does not fall under the said law.
Piad, however, said he will be recommending to the President for the crafting of a law to specifically address the
problem on adulteration of fertilizers, saying that such an activity will have a ripple effect and would affect the
economy ultimately.Published in the Sun.Star Davao newspaper on April 03, 2012.