DA slaps ‘underperforming’ suppliers, contractors with P81M in fines
The Department of Agriculture (DA) on Wednesday imposed a total of P81 million in fines on more than 100 contractors and suppliers for causing delays in government interventions last year.
The erring contractors and suppliers had been contracted by DA regional offices to procure farm inputs and construct agricultural infrastructure, but they fell short of their commitments.
“Every peso entrusted to us must translate into real support for our farmers and fisherfolk,” Agriculture Secretary Francisco Tiu Laurel Jr. said in a statement. “Timely delivery of inputs and projects helps farmers improve productivity, increase income and contribute to the country’s food security.”
The DA penalized these entities after its regional offices submitted a detailed accounting of liquidated damages linked to violations of supply and infrastructure contracts.
Majority Luzon-based
“The submissions revealed a recurring pattern of late deliveries of fertilizers, seeds, farm equipment and construction materials, as well as delays in building agricultural facilities and irrigation works,” the DA said.
Most of the penalized suppliers and contractors are in Luzon. In particular, the DA’s regional office in Cagayan Valley logged the biggest fine of P28.5 million, followed by Ilocos Region with P18.2 million and Central Luzon with P15.4 million.
Also in Ilocos region, the DA levied the largest single penalty of P14.1 million on La Filipina Uy Gongco Corp. for the delayed shipment of complete fertilizer 14-14-14, a critical farm input during planting periods.
On the other hand, Leads Agricultural Products Corp. incurred P1.4 million in penalties due to the late delivery of 29,278 bags of hybrid seeds.
The DA also recorded P20.1 million in losses for seed deliveries and another P5.9 million for fertilizers in Cagayan Valley. The erring companies included Farmex Corp., Jedeco Trading Corp., SL Agritech Corp. and fertilizer supplier Universal Harvester Inc.
In Central Luzon, the agency imposed a P1-million penalty on Verlin Konstrukt Inc. for delays in providing labor and materials for building a biosecure swine finisher facility.
Incomplete delivery
The DA levied Agri Component Corp. with a P4.5 million penalty for the delays in two Rice Processing System projects.
In the Cordillera region, Modern Times Enterprises Inc. was fined P643,490 for delivering only 39,575 out of 80,603 bags of inorganic fertilizers procured by the government.
In other areas of the country, Calabarzon recorded liquidated damages amounting to P3.1 million; Mimaropa (Mindoro Occidental and Oriental, Marinduque, Romblon, Palawan; P5.8 million; Bicol, P1 million; Western Visayas, P5.2 million and Central Visayas (P597,015).
Underperforming suppliers in other regions were penalized as well: Eastern Visayas (P295,187), Zamboanga Peninsula (P3.9 million), Northern Mindanao (P1.8 million), Davao Region (P453,156), Soccsksargen (South Cotabato, Cotabato, Sultan Kudarat and Sarangani, and General Santos City) (P7.1 million) and Caraga (P811,822).
