‘Shell’ firm used to launder money in swine scam -- Madrigal
By Gil C. Cabacungan Jr.
Philippine Daily Inquirer
First Posted 21:22:00 08/02/2008
Filed Under: Graft & Corruption, Politics, Banking
MANILA, Philippines -- The management consultancy firm that she has linked to the brother of House Speaker Jose Nograles is a “shell company'' designed to launder hefty commissions from the P5 billion swine loan deal between the Land Bank of the Philippines and the Quedan & Rural Credit Guarantee Corp. (Quedancor).
This is what Senator Ana Consuelo Madrigal alleged on Friday.
Madrigal said the financial statements of ONL Consultants Inc. "clearly showed that it was put up specifically as a shell company to distribute the P114.6 million in arranger’s fees, lawyers fees, and notarial services for the swine loan.''
The senator has alleged that ONL was represented by Philippine Deposit Insurance Co. president Jose Nograles, who was the LandBank senior vice president and treasurer when the swine loan was signed in March 2004.
The documents, which Madrigal said she obtained from the Securities and Exchange Commission, showed that ONL had a windfall in 2004, its biggest profit since its incorporation in 2002.
The company had gross revenues of P122 million which were spent as follows: donations and contribution (P30.7 million), consultation fees (P20 million), Christmas giveaways (P15 million), meetings and conferences (P13. 29 million), contractors' fee (P11.69 million), research and development (P11 million), representation and entertainment expenses (P5.47 million), and stationery and office supplies (P3.9 million).
Madrigal noted that the huge blip in ONL's 2004 revenues and the size of its expenses in the same year raised suspicions on the purpose of the company.
“We have reason to believe that these data showed that ONL was used to distribute the swine loan commissions and fees through these questionable expenses. That all of these were made in the election year of 2004 showed that it was intended for a questionable purpose,'' she said.
The senator said Nograles, whom she alleged to have been the representative of ONL during the signing ceremonies for the swine loan, should appear before the Senate blue-ribbon committee to justify the collection of commissions between two government financial institutions (Landbank and Quedancor) and to shed light on his connections with ONL.
The Senate blue-ribbon committee is investigating whether the funds intended for swine loans were diverted to President Gloria Macapagal-Arroyo's election campaign in 2004.
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