The Anti-Red Tape Authority (Arta) sounded the alarm on price-fixing and extortion arising from port congestion in a major harbor in the Bicol region, stressing the need to streamline processes in the logistics sector.
In a news statement issued on Tuesday, the anti-red tape agency reported there are alleged fixers promising priority in on boarding of vessels in exchange of an exorbitant fee in Matnog Port, which is located in Sorsogon province.
Arta, citing reports by truck owners, said that fees as high as P8,000 are being collected so they can reserve a slot in the “priority list” to ensure quick loading of their vehicles in the port—one of the gateways to Mindanao.
A complainant said that the actual fee is only around P3,000 and the collected amount in excess of this goes to the fixers and corrupt officials. The alleged fixers, Arta said, also reportedly asked the passengers for money to buy coffee and snacks.
With this concern, Arta is aiming to open a one-stop shop at the port by June.
It hopes to eliminate extortion and price fixing with the establishment of a single place where stakeholders can process all the documents and permits required in shipping.
“More meetings will be conducted to identify which government agencies will be involved in the one-stop shop, but the initial list includes the Philippine Ports Authority [PPA], Philippine Coast Guard, and barge operators,” Arta said.
Arta Undersecretary Carlos Quita, in a recent meeting with the private stakeholders, said the agency coordinated with the Criminal Investigation and Detection Group and other concerned offices upon receiving information on the matter. The Matnog Municipal Police Station arrested three fixers in response in a recent entrapment operation.
Arta shared that officials of at least two shipping lines also flagged the intervention of a task force created by local government units (LGU).
The watchdog said the task force appeared to have bypassed the authority of the PPA in handling the operations and management of Matnog Port.
The Arta official said “LGUs have no jurisdiction over port operations and that cargo/hauling trucks should not be stopped or prevented from boarding vessels provided they have the necessary business permits, licenses, and pertinent documents.”
Citing the Joint Memorandum Circular 2021-01, Quita reminded that LGUs are prohibited from collecting fees and taxes on the transport of foods and products.
These fees include “charges for wharfage, tolls for bridges or otherwise, sticker fee, discharging fee, delivery fee, market fee, toll fee, entry fee, and/or mayor’s permit fee, or other taxes, fees, or charges in any form whatsoever upon such goods or merchandise.”
The Philippine Competition Commission is currently investigating potential price-fixing in the logistics sector amid surging freight charges due to shortage of container vessels.
Price-fixing is an anti-competitive practice wherein competing businesses agree to control the prices, which usually result in higher rates for the consumers. It is punishable by administrative fine and imprisonment according to the Philippine Competition Act.
In addressing the increasing freight fees, the Department of Trade and Industry submitted earlier this month to the Congress and the Economic Development Cluster the draft bill of the Philippine Shippers’ Act. The proposed measure, which is currently in deliberation, seeks to grant the Maritime Industry Authority power to oversee the freight charges being imposed by the logistics service providers.