NFA incurred P163-B debt during Arroyo administration — official

The National Food Authority had incurred a debt of more than P163 billion during the nine-year term of President Gloria Macapagal-Arroyo, the agency’s current administrator Lito Banayo revealed Thursday. "Lumalabas na sa loob ng siyam na taon ay P163.4 billion ang nadagdag sa utang ng NFA," Banayo said during the Senate finance committee hearing on the proposed budget of the Department of Agriculture for 2012. He explained that since the creation of the NFA in 1972 up to 2000, the NFA had incurred a debt of P12.329 billion. But he said President Benigno Aquino III was faced with a debt of P176.8 billion when he assumed office last year. Sen. Panfilo Lacson, a known Arroyo critic, asked Banayo whether he saw any anomaly in the transactions made by the NFA during that time. Banayo could not categorically answer the question. Instead, he explained that as of 2007, the NFA only had a debt of P54 billion, and that it only ballooned the following year when there was a world food crisis and a domestic rice shortage. He noted, however, that the Arroyo administration had bought 2.24 million metric tons of rice for $630 per metric ton while the Aquino administration managed to buy 200,000 metric tons of rice for only $480 per metric ton. He also said that it took them two years to dispose of the 2.24 million metric tons of rice purchased by the previous administration. Although the rice did not rot, its quality deteriorated over time. Banayo, meanwhile, assured the Senate that the NFA has enough rice stock. - Kimberly Jane Tan/KBK, GMA News