MEMBERS OF THE HOUSE OF REPRESENTATIVES HAVE ASSAILED Sen. Jamby Madrigal’s allegation of a financial irregularity on the part of the brother of Speaker Prospero Nograles, even as Madrigal alleged the consultancy firm she had linked to banker Jose Nograles was a “shell company” that was used to launder hefty commissions from a P5-billion loan deal.

An-Waray party-list Rep. Florencio Noel said Madrigal had disrespected the Office of the Speaker and her accusation, which he called “very reckless and irresponsible,” was an affront to the entire House.

“Madrigal’s action is not fit for her stature as a senator of the Republic. Public hearings are not barber shops and sari-sari store drinking bouts where people can just exchange gossip based on hearsay and speculation,” Noel said.

Noel said Madrigal should have checked her facts before alleging that Jose Nograles had pocketed some P100 million in “legal fees” for facilitating a P5-billion loan from the Land Bank of the Philippines and the Equitable-PCIBank to the Quedan and Rural Credit Guarantee Corp. in 2004 (Quedancor).

Administration Rep. Rodolfo Antonino challenged Madrigal to produce on Monday documentary evidence of Jose Nograles’ purported receipt of P114 million from Quedancor and his alleged connection to ONL Consultants, the firm that packaged the loan facility.

“She should produce and make public these documents that she claims she has. She should do this not later than Monday to prevent any fabrication of documents,” said Antonino, chair of the House committee on public order.

“Otherwise, I have every reason to believe that Senator Jamby is having periodic bouts of hallucination and needs to see her psychiatrist at Makati Medical Center more often than she does. Anyone of her stature should be more circumspect before mouthing accusations,” he said.

Another minority party-list congressman, Anak Mindanao Rep. Mujiv Hataman, said Madrigal was mistaken in accusing Jose Nograles, the president of the Philippine Deposit Insurance Corp., of having pocketed attorney’s fees from the transaction because he wasn’t even a lawyer.

“[Sen. Juan Ponce] Enrile was correct when he described Senator Madrigal as a purveyor of falsehood. Now she’s at it again, making accusations without a speck of evidence to prove her claim,” said Hataman.

“Her attack on the family of Speaker Nograles is another Jamby mardi gras, a mere spectacle to get media attention,” he said.

Deputy Majority Leader Crispin Remulla said Madrigal violated inter-chamber courtesy when she mentioned Speaker Nograles’ name as she was making unverified allegations of wrongdoing.

“I believe that it was very reckless of her to mention the name of Speaker Nograles in a public hearing by the Senate without even bothering to spend some time to research on what she was talking about,” Remulla said.

Remulla, a lawyer, said Madrigal could have easily checked the Internet to find out if there was an “Attorney Jose Nograles” on the roll of attorneys that is readily accessible on the website of the Integrated Bar of the Philippines.

Jose Nograles is an investment banker. He is now president of the Philippine Deposit Insurance Corp. which he joined early this year. He was senior vice president in charge of Landbank’s treasury and investment banking group at the time of the transaction.

Remulla said Madrigal should have realized it was impossible for Nograles to ask for attorney’s fees or a notarial fee because he was not a member of the bar.

“She stepped over the line of the time-honored protocol on inter-parliamentary courtesy. Speaker Nograles represents the House of Representatives and it is very irresponsible for a senator to be dragging his name into a Senate investigation without checking her facts first,” said Remulla.

“You cannot just destroy somebody’s name based on speculations under the cover of parliamentary immunity,” he added.

In her latest allegation, Madrigal said the financial statements of ONL Consultants “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.”

Madrigal has alleged that ONL was represented by Jose Nograles, who was a Landbank executive when the Quedancor loan intended for swine growers was signed in March 2004.

The documents, which Madrigal said she obtained from the Securities and Exchange Commission, showed ONL received a windfall in 2004, the biggest profit it made since its incorporation in 2002.

The company had gross revenues of P122 million which it 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 stationary and office supplies (P3.9 million).

Madrigal noted that the huge blip in ONL’s 2004 revenues and the size of its expenses the same year raised suspicions about 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,” said Madrigal.

She said Jose Nograles, who she alleged represented ONL at the signing ceremony 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 blue ribbon committee is investigating whether the funds intended for swine loans were diverted to President Macapagal-Arroyo’s election campaign in 2004.