MANILA, Philippines—A special panel of the Office of the Ombudsman has directed the filing of plunder charges in the Sandiganbayan against former agriculture officials led by former Secretary Luis Ramon “Cito” Lorenzo and then Undersecretary Jocelyn “Joc-joc” Bolante in connection with the P728-million fertilizer fund scam.
Graft and corruption cases were also directed filed against a number of congressmen and governors in the resolution issued five years after a complaint was filed in the Office of the Ombudsman by civil society groups and after a field investigation report was released.
The fund intended to benefit farmers was said to have been diverted to the campaign kitty of then President Gloria Macapagal-Arroyo in 2004.
The 134-page joint resolution was approved by Overall Deputy Ombudsman Orlando Casimiro. It was signed on Thursday by the five members of the special panel led by Aleu Amante and released to the media Friday.
Ombudsman Merceditas Gutierrez, who is to face an impeachment trial at the Senate in May, inhibited from the deliberations “because of delicadeza (propriety),” according to Assistant Ombudsman Jose de Jesus.
He pointed out that the fertilizer fund scam was among the articles of impeachment submitted to the Senate by the House of Representatives’ justice committee.
Commenting on the matter, Bayan Muna Representative Teodoro Casiño said the recommendation to file plunder and other charges against Bolante et al. was “obviously part of [Gutierrez’s] defense strategy at the impeachment trial.”
“Unfortunately for her, her long-overdue acts will not cover for her gross and inexcusable inaction for the last five years,” Casiño said.
“She’s too late the hero. Her acts only bolster the fact that she deliberately sat on the case and wouldn’t have acted if not for the impeachment. She has dug herself a deeper grave,” he said.
Masterminds
The Ombudsman’s special panel said Lorenzo, Bolante and former Assistant Agriculture Secretary Ibarra Poliquit should be charged with plunder along with private fertilizer suppliers Jaime Eonzon Paule, Marilyn Araos, Joselito Flordeliza, Marites Aytona, Jose Barredo and Leonicia Marco-Llarena.
It named Bolante and Paule, chief of Feshan Philippines Inc., as the masterminds of the scheme to enrich themselves using government funds and commit “a clear case of deceit and theft.”
Lorenzo, Bolante and about 30 government officials and private individuals involved in the diversion and misuse of the fertilizer fund were also recommended charged with falsification, malversation of public and private funds, and violations of the Anti-Graft and Corrupt Practices Act.
Those included in the graft charges were regional agriculture directors, members of the House and governors.
Delegation of power
According to the Ombudsman’s special panel, the indicted parties amassed a total of P265.6 million from the P728-million fund.
“The explanation of the respondents’ liability … and the eventual completion of the scam as shown in different RFUs [Regional Field Units] nationwide comprise the combination of the series of overt acts that lead to the amassing of P265,642,930.45 million, more or less, from the coffers of the government,” part of the resolution read.
The special panel said Bolante, who had signed the vouchers for the release of the funds to local governments, failed to properly account for the money, resulting in its misuse.
It said Poliquit also approved the disbursement of the funds.
Lorenzo was deemed to have shared the liability for plunder because he deputized Bolante to handle the fund released by the Department of Budget and Management about a year before the 2004 elections.
“This delegation of plenary power and grant of absolute control of the funds to … Bolante negated a review/check by [Lorenzo] of the transactions on the project, which amounted to approval or confirmation by the latter of all the overt and criminal acts of the former,” the special panel said.
There were also the questionable purchases of fertilizer from Feshan and Akame, another company, using funds still unaccounted for, the panel said.
It said Bolante and his associates diverted about P153 million from the government and Feshan through fictitious sales of fertilizer to local government executives.
“This clearly indicates connivance between and among respondent Bolante and other private respondents,” it said.
3-percent commission
The Ombudsman’s special panel reminded the regional executive directors (REDs) of the Department of Agriculture that they were also liable for fund diversion and for violating procurement laws for favoring certain fertilizer sellers.
Records show that the REDs approved the channeling of about P56 million for liquid fertilizer to the National Organization for Agricultural Enhancement and Productivity Inc. on Bolante’s instruction.
Bolante was said to have promised the REDs a 3-percent commission. They were also told to buy the liquid fertilizer from Feshan.
The method skirted government bidding rules, making it illegal, the Ombudsman’s special panel said.
By following Bolante, the REDs “caused undue injury to the government through gross inexcusable negligence in the exercise of their duties of disbursing the said funds,” it said.
It reminded the local bureaucrats that the disappearance of the funds was “prima facie evidence of their conversion.”
The REDs recommended charged with malversation and violations of the Anti-Graft and Corrupt Practices Act were: Gumersindo Lasam of Tuguegarao City, Cesar Rodriguez of San Fernando City, Dennis Araullo of the DA Central Office, Ricardo Obleta of Cebu City, Leo P. Caneda of Tacloban City, Oscar Parawan of Zamboanga City, Roger Chio of Davao City, Sumail Sekak of Cotabato City and Eduardo Lecciones of Dumaguete City.
Lawmakers, governors
The others recommended charged with the same offense and technical malversation were: Quezon City Representative Nanette Daza, former Navotas Rep. Federico Sandoval, former Batangas Rep. Oscar Gozos and former Governors Carmencita Reyes (Marinduque) and Leonardo Verceles (Catanduanes).
According to the Ombudsman’s special panel, these officials failed to account for the fertilizer and the amount of money they paid for it.
The local executives and the DA officials also colluded to pad the number of beneficiaries, the panel said.
It also wondered about Daza and Sandoval’s fund requests, noting that they had no agricultural lands in their jurisdiction.