DA Imposes P81 Million in Penalties on Delinquent Suppliers and Contractors in 2025
The Department of Agriculture has imposed about P81 million in penalties on suppliers and contractors in 2025 for failing to meet delivery schedules and project timelines tied to government agricultural programs.
The sanctions were compiled by the agency’s regional field offices after Agriculture Secretary Francisco P. Tiu Laurel Jr. issued a directive on Feb. 18 requiring regional offices to submit a comprehensive report on liquidated damages resulting from violations of supply and infrastructure contracts.
Reports revealed a recurring pattern of delays in delivering key farm inputs such as fertilizers, seeds, farm machinery, and construction materials. Several infrastructure projects—including agricultural facilities and irrigation works—also experienced setbacks, potentially disrupting planting schedules and weakening initiatives aimed at improving farm productivity.
As a result, the department penalized more than 100 suppliers and contractors involved in the procurement of farm inputs and the construction of agricultural infrastructure across various regions.
Northern Luzon recorded the highest penalties, reflecting the large concentration of government-supported agricultural activities in the area. Regional Field Office II posted the largest total penalties at P28.5 million, followed by Regional Field Office I with P18.2 million and Regional Field Office III with P15.4 million.
In Region I, the largest individual penalty—P14.1 million—was imposed on La Filipina Uy Gongco Corp. for delayed delivery of 14-14-14 complete fertilizer, an essential input during planting seasons. Meanwhile, Leads Agricultural Products Corp. was fined P1.4 million for the late delivery of 29,278 bags of hybrid seeds.
Region II also recorded significant penalties related to farm inputs. Liquidated damages reached P20.1 million for delayed seed deliveries and P5.9 million for fertilizers. Companies cited included Farmex Corp., Jedeco Trading Corp., SL Agritech Corp., and fertilizer supplier Universal Harvester Inc..
In Region III, several infrastructure-related delays also drew sanctions. Verlin Konstrukt Inc. was penalized P1 million for delays in providing labor and materials for a biosecure swine finisher facility, while Agri Component Corp. faced P4.5 million in penalties for delays in two Rice Processing System projects.
Even smaller regions reported violations. In the Cordillera Administrative Region, Modern Times Enterprises Inc. was fined P643,490 after delivering only 39,575 of the 80,603 bags of inorganic fertilizer ordered by the government.
Except for Metro Manila and the newly formed Negros Island Region, all regional field offices submitted reports as instructed. Other recorded penalties included P3.1 million in Region IV-A, P5.8 million in Region IV-B, P1.0 million in Region V, P5.2 million in Region VI, P597,015 in Region VII, P295,187 in Region VIII, P3.9 million in Region IX, P1.8 million in Region X, P453,156 in Region XI, P7.1 million in Region XII, and P811,822 in Region XIII.
The affected contracts were linked to several flagship DA initiatives covering rice, corn, livestock, organic agriculture, the Quick Response Fund, and the Special Area for Agricultural Development program.
Tiu Laurel emphasized that stricter enforcement of procurement rules is intended to safeguard public funds and ensure that government assistance reaches farmers and fisherfolk without delay.
“Every peso entrusted to us must translate into real support for our farmers and fisherfolk,” he said. “Timely delivery of inputs and projects helps farmers improve productivity, increase income, and contribute to the country’s food security.”
NPO News Team | DA Press Office - PR
