DA fines suppliers P81M over delayed projects

More than 100 contractors and suppliers working with the Department of Agriculture (DA) were penalized in 2025 after delays in delivering farm inputs and completing infrastructure projects disrupted government agricultural programs.

Data compiled by the agency’s regional field offices showed that liquidated damages imposed on erring firms reached about P81 million nationwide.

The penalties followed a directive issued on 18 February by Agriculture Secretary Francisco P. Tiu Laurel Jr., requiring regional offices to report violations tied to supply and construction contracts.

Investigations revealed repeated delays in delivering fertilizers, seeds, farm equipment and construction materials, as well as setbacks in building agricultural facilities and irrigation systems. The DA said such delays can affect planting schedules and weaken programs aimed at raising farm productivity.

Northern Luzon faced the largest penalties, with RFO II recording P28.5 million. Major fines included La Filipina Uy Gongco Corp.’s P14.1 million for late fertilizer delivery and Agri Component Corp.’s P4.5 million for Rice Processing System delays.

Every centavo counts

Other regions also reported violations, including Modern Times Enterprises in the Cordillera Administrative Region, fined P643,490 for undelivered fertilizer.

The penalties cover projects under DA programs such as rice, corn, livestock, organic agriculture, the Quick Response Fund and the Special Area for Agricultural Development.