DA chief refutes claim tying First Lady to rice cartel
AGRICULTURE Secretary Francisco P. Tiu Laurel, Jr. on Thursday dismissed claims of resigned Party-list Rep. Elizaldy S. Co that he shielded a rice cartel allegedly tied to First Lady Marie Louise Araneta-Marcos as “fabricated lies.”
In a press briefing on Thursday, Mr. Tiu Laurel refuted allegations that he halted a House inquiry into rice prices after showing a confidential report implicating the first lady.
“This is not true. He is completely lying. The first lady has never meddled in any Department of Agriculture (DA) matters. Her name does not appear in any report we submitted to Congress,” Mr. Tiu Laurel said in a mix of English and Filipino.
This followed the release of a video statement, in which Mr. Co accused Ms. Marcos of being involved in a scheme that has kept prices of the staple grain artificially high despite reduced import duties.
He said Ms. Marcos was “in charge of the rice importers” that lawmakers began looking into due to elevated rice prices despite the rice import tariff being cut to 15% from 35%.
Mr. Co alleged that congressmen prematurely ended their investigation after the Agriculture secretary presented a document linking Ms. Marcos to the rice trade, prompting then‑House Speaker Ferdinand Martin G. Romualdez and Ilocos Norte Rep. Ferdinand Alexander “Sandro” A. Marcos III to call for its termination.
Mr. Tiu Laurel also denied the ex-lawmaker’s allegations that the first lady’s brother, Martin Araneta, is involved in onion smuggling and market manipulation that led to the 2022 price spike. “In my two years as Secretary of Agriculture, he has never made a single importation request,” he said.
The Agriculture secretary also addressed claims that the DA favored certain companies in giving import allocations, saying it was Mr. Co who repeatedly sought massive allocations for his nominated companies.
“It was Zaldy Co himself who asked me for 3,000 containers of imported fish to be allocated to his nominated companies. It’s clear that I did not grant his request because we already have a fair and transparent system for everyone to level the playing field,” he said.
Mr. Tiu Laurel also alleged that in March 2024, Mr. Co personally approached him to secure an allocation of 200,000 metric tons (MT) of refined sugar for a major importer.
“Zaldy Co asked me if they could be given an import allocation of 200,000 MT of refined sugar for 2024. I was surprised by the size of his request. I just said I would look into it,” the DA chief said.
Mr. Tiu Laurel also debunked Mr. Co’s claim that he recommended importing 13 million MT of rice in 2024. “That volume would kill our farmers. It equals 20 million MT of palay, our entire national production.”
He added that Mr. Co had actually pushed for a zero-percent tariff on rice imports, a proposal rejected by both him and then-Finance Secretary Ralph G. Recto.
The DA secretary is considering filing cyberlibel charges against the former lawmaker. “I’m going to talk to my personal legal team. As in any case, we have to be very thorough to make sure everything is polished. Hopefully, this will happen in January next year,” Mr. Tiu Laurel said.
Despite the allegations, the DA remains optimistic about foreign investment in the sector.
“We will be breaking ground on a new plant with Korean investors in Cabanatuan to manufacture agricultural machinery. That clearly shows they are supporting the DA and still have confidence in the Philippines,” Mr. Tiu Laurel said.
READY TO TESTIFY
Meanwhile, Rep. Marcos, whom Mr. Co also accused of meddling with the national budget, told the independent body tasked to investigate the multibillion-peso flood control scam that he is willing to cooperate with its investigations.
Mr. Marcos said he is prepared to testify before the Independent Commission for Infrastructure (ICI) after he was accused of “inserting” about P50 billion into the national budget over the past three years by a resigned lawmaker at the center of the brewing political scandal. The younger Marcos had denied the allegation.
“I stand ready to cooperate, answer questions and provide any clarification needed to move this investigation forward,” he said in a letter addressed to ICI Chairman Andres B. Reyes, Jr. that was shared with reporters on Thursday.
Mr. Co, who previously headed the House Appropriations Committee, shared photos on Tuesday showing where the younger Marcos’ budget “insertions” appeared in annual national spending plan documents, detailing public works projects ranging from flood control and drainage to canals and roads nationwide.
“I extend my full respect to the work of the Independent Commission for Infrastructure and its efforts to uncover the truth behind the ongoing investigation on flood control projects,” the younger Marcos said.
“I welcome the opportunity to shed light on any matter that may assist your review.”
Upon receipt of the letter, the ICI on Thursday said it will convene to determine the schedule a formal hearing for the presidential son.
“We take note of his willingness to appear voluntarily before the commission, and we will wait for the commission to eventually set the date on when he will be coming,” ICI Executive Director Brian Keith F. Hosaka told reporters.
Mr. Hosaka said the commission could not speculate on the influence of Mr. Co’s video statements amid the ongoing probe, noting that Mr. Marcos’ willingness to cooperate would expand the information available to the inquiry.
“The commission, for its part, is open to any kind of information regardless of who that person is, [to] voluntarily appear and testify under oath, and that is a big thing for us,” he said.
He added that unless Mr. Marcos formally requests an executive session, the hearing will follow the commission’s default medium, with proceedings being livestreamed.
The commission has conducted multiple executive sessions with several congressional lawmakers as resource persons since the resumption of hearings this week.
These closed-door discussions, Mr. Hosaka said, focused on explaining how the flood control projects were funded and how the budget process was being conducted.
The ICI’s recent hearings have zeroed in on allegations raised by contractors Cezarah Rowena C. Discaya and Pacifico F. Discaya II, who earlier testified before the Senate Blue Ribbon Committee.
The Discayas said some lawmakers demanded kickbacks for flood control projects, submitting ledgers showing names, dates, and amounts, and those individuals are now being called to appear before the ICI.
The accused lawmakers have largely denied the allegations, calling them baseless, with some threatening to file libel or perjury charges against the couple.
Quezon City Rep. Patrick Michael “PM” Vargas, who appeared at the commission’s Thursday hearing, said there were no ghost projects in his district.
“We presented documents and other proof to the ICI showing that there are no ‘Discaya’ projects in District 5, and that there are no ghost projects in our district,” his statement read in Filipino.
Meanwhile, Quezon City Rep. Ma. Victoria “Marivic” Co-Pilar declined to face the media.
House Speaker Faustino “Bojie” Dy III on Thursday reiterated his chamber’s commitment to cooperate with the ICI, holding his earlier vow to confront corruption accusations that have tainted the chamber.
“Whatever happens, the House of Representatives remains committed to its duty to serve the nation,” he said in a statement in Filipino. “Accountability is part of being a public servant, and all members — whether under investigation or not — are ready to cooperate with any process while continuing to fulfill their role as legislators.”
Ombudsman Jesus Crispin C. Remulla on Wednesday said that 10% of the 318-member chamber are being investigated for suspected liability and conflict of interest in the widening flood control scandal.
Mr. Dy was elected as Speaker on Sept. 17, replacing Mr. Marcos’ cousin and ally Mr. Romualdez amid House efforts to sanitize its image that has been blemished by corruption allegations.
“Under my leadership, this House will change,” he said in a speech after being elected in September. “I will not defend the guilty, and I will not shield the corrupt.”
The Speaker said the chamber respects the ICI’s mandate to resolve the corruption scandal. “We believe that truth must never be concealed and that those responsible must be held accountable.” — Vonn Andrei E. Villamiel, Erika Mae P. Sinaking and Kenneth Christiane L. Basilio
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