Department of Agriculture (DA) Secretary Francisco Tiu Laurel Jr. sought to reassure stakeholders on Saturday amid controversy over fertilizer distribution, saying the agency is moving to penalize delinquent suppliers but dismissed allegations of "ghost deliveries" as baseless.
The row erupted after the Samahang Industriya ng Agrikultura (Sinag) alleged that some fertilizer shipments intended for Luzon farmers never arrived. Tiu Laurel countered that while delivery delays in Regions 1, 2, and 4B were "confirmed and documented," there was no evidence of outright fraud.
"We've already admitted before the Senate that there were indeed delays in fertilizer deliveries in Regions 1, 2, and 4B. That's confirmed and documented," Tiu Laurel said.
"But as far as ghost deliveries are concerned? At the moment, I consider that fake news -- completely baseless. If Sinag knows something concrete, they should come forward and help us go after these supposed ghost suppliers."
The DA is now weighing sanctions against three suppliers blamed for the delays, which they attributed to typhoons affecting shipments from China. Tiu Laurel said excuses would not be entertained and that penalties -- including fines or temporary blacklisting -- are on the table.
"The suppliers say recent typhoons delayed the arrival of fertilizers from China," he said.
"But for me that's not a valid excuse. We're considering sanctions, including temporary blacklisting in the areas affected by the delays."
The contractors were given until 15 September to fulfill outstanding deliveries, though higher penalties would apply. Canceling the contracts, Tiu Laurel explained, would force the DA to re-bid at higher prices, driving up costs for government procurement.
"Canceling the contracts would delay the deliveries even more. And new bidding would likely come at a higher cost to the government. We bought those fertilizers at a lower price," he noted.
The dispute underscores the financial and supply chain vulnerabilities of the country's fertilizer program, which is heavily reliant on imports from China and other suppliers.
For now, Tiu Laurel stressed that accountability measures will be pursued without derailing distribution.
"This isn't just about late deliveries," he said. "It's about trust. We are watching closely, and we will act."