Favila says he is getting threats from traders, merchants

MANILA, Philippines – Resistance to the government imposition of price ceilings on basic commodities has turned violent with Trade Secretary Peter Favila receiving threats and some of his personnel being harassed by angry traders and merchants.

“Our people are being physically attacked,” Favila told a news briefing at Malacañang yesterday.

Favila, however, stressed the threats would not deter him and the Department of Trade and Industry personnel from imposing the price cap on basic food commodities and inspecting stores and supermarkets for compliance to the price ceilings.

According to Favila, Undersecretary Angel Pelayo, who heads the DTI’s National Capital Region office, was attacked last Saturday after ordering the arrest of some storeowners overpricing their goods in Guadalupe market in Makati City.

Favila said Pelayo was spared after policemen came to her rescue.

Upon returning to her office in Makati City later in the day, Pelayo found the windows of her car smashed.

The incidents prompted President Arroyo to order the Philippine National Police (PNP) to provide security to DTI personnel in their inspection tours.

Mrs. Arroyo said Favila could have been stabbed during one of his inspections had it not been for the timely intervention of one of his aides.

Favila also told the news briefing that he has been receiving threatening text messages.

“Better watch your back or we might just catch up with you,” Favila quoted one of the text messages he received on his cellphone.

Favila suggested some big business groups, particularly those in the retail sector facing huge losses in the price ceilings, were behind some of the death threats.

“It could be those who can’t do any good. There are many possibilities but the important thing is even the President advised me to take the necessary precautionary measures,” he said.

Last week, the President issued Proclamation 1898 imposing a price ceiling on basic food commodities under a state of calamity in the aftermath of storms “Ondoy” and “Pepeng.”

Under the Price Act or Republic Act 7581, the President may impose a price ceiling on any basic necessity or prime commodity for not more than two months whenever an area is placed under a state of calamity, among other specified emergencies.

Favila said the government would go after suppliers that are being blamed by major supermarkets owners.

Favila noted supermarket owners and retailers are forced to increase their prices because of the suppliers jacking up the price of their products often above the mandated price ceilings.

Favila, however, said this would not be a reason to allow supermarket owners and retailers to continue violating the law.

This developed as police yesterday charged two storeowners and a saleslady in Makati City for allegedly selling overpriced sardines.

Chief Inspector Alex Dilag said the storeowner Fulgar Leonardo Japos, and saleslady Angel Sumayang were arrested during a buy bust operation. Another suspect Rose Damiar was able to escape.

Favila, on the other hand, also dismissed claims of some supermarket and business owners that they were not consulted on the price ceiling order.

He said the government was not remiss in informing the public of the provisions of Republic Act 7581 through publication in major dailies.

“I met some of them (businessmen) one time and I brought copies of newspapers like The Philippine STAR. I don’t think these big people don’t read the newspapers or watch TV. We were not remiss informing the public,” he said.

Favila warned the DTI will make no distinction in prosecuting profiteers.

“The President instructed us to observe zero-tolerance with respect to implementation of the price ceilings,” he said.

Favila said the government would continue to impose price ceilings on prime commodities until the state of calamity is lifted.

He said it would be premature to recommend the lifting of the price ceiling just yet because of several violations being committed by retailers across the country.

“Based on what I’m seeing right now, the behavior in the market, I hope if people will avoid unscrupulous activities and violations, then you know it will not be difficult for us to recommend a lifting,” Favila said.

Several business groups including the Makati Business Club, the Employers’ Confederation of the Philippines and the Federation of Philippine Industries have raised concern about the state of calamity that could last for one year.

The business groups stated that holding prices for one year is not possible, as this would cause more economic problems.

Favila said the DTI is continuously reviewing the situation. He gave assurance the price ceiling could be lifted if the market behavior has normalized.

For the meantime, Favila appealed to the industry to swallow the bitter pill for the moment.

“I myself believe in what is good economics. I prefer a free market, but there is a law and the law is very clear: when there is a declaration of a state of calamity, we will have to impose the price control for basic commodities and mandated price control for prime commodities. There’s nothing much I can do, that’s the law,” he said.

The DTI initially placed 14 goods and commodities under price watch. Favila said the President might expand the list.

Apart from the basic food products, Mrs. Arroyo included construction materials, medicine, liquefied petroleum gas, lubricants, funeral services and auto repair services.   -–Paolo Romero (The Philippine Star) with Marvin Sy, Jose Rodel Clapano