Ex-Arroyo budget chief denies issuing P200M allotment for ghost DAR projects

Rep. Rolando Andaya Jr. file photo

MANILA, Philippines — Budget officials in the Arroyo administration identified P200 million in government savings and channeled the amount  through the Department of Agrarian Reform for ghost projects in 40 municipalities administered by seven nongovernment organizations controlled by Janet Lim Napoles, the Inquirer has learned.

The Philippine Daily Inquirer obtained the SARO, or special allotment release order,  E-07-09283 for the P200 million agrarian reform fund disbursed in 2007 and 2008 that could prove crucial in the on-going investigation by a five-member Ombudsman panel.

A source from the DAR said that the document would prove that the DAR and its officials’ role in the fund scam were ministerial as they had no say in the amount, the source and the beneficiaries of the program except to sign the documents.

But even then Budget Secretary and now Camarines Sur Representative Rolando Andaya Jr. and Undersecretary Mario Relampagos  found the document “highly irregular” considering that the Department of Budget and Management (DBM) did not usually give out SAROs with the intended beneficiaries.

In a four-page document dated Dec. 4, 2007, addressed to the DAR Secretary, Andaya wrote: “Please be advised of the release of (SARO) amounting to (P200,000,000.00)… to cover fund support to agribusiness development under CARP (Comprehensive Agrarian Reform Program), in various municipalities, nationwide as shown in Annex A, consisting of two pages beginning with Aleria, Surigiao del Norte, and ending with Clavier, Surigao del Norte.”

In the SARO, the P200 million was classified as additional program funds to be generated by overall savings from the 2007 budget. The DAR Central Office was also named as the implementing agency.

“Even now, (the DBM) cannot implement a project  allocation for funding without the request of the implementing agency which is responsible for auditing or making sure the projects are fully implemented. We don’t usually give SAROs with breakdowns like that. That is highly irregular,” said Andaya in a phone interview.

Relampagos insisted that the DBM did not issue SAROs like the P200 million DAR allocation. “The SARO is based on the requesting agency, the request for funding. On our own, we cannot do that,” said Relampagos.

Both Andaya and Relampagos were still checking as of press time whether they got back records to validate the Inquirer’s documents.

Andaya said it was not true that an implementing agency had no choice when given a SARO because it also had the option not to spend it.

The 40 town beneficiaries that were given allocations of P5 million each were in Talacogon, Jbonga, Tubay in Agusan del Norte; Sta. Josefa, San Agustin, Esperanza, San Luis, Bunawan and Veruela,  in Agusan del Sur; Bacuag, Gigaquit, San Benito, Burgos, San Francisco, Tubajon, Claver, Aleria and Socorro in Surigao del Norte; Bayabas, Lianga, San Miguel, Marihatag, Madrid, and Cagwait  in Surigao del Sur; Divilacan and Tumauini in Isabela; Dona Remedios Trinidad and  Marilao in Bulacan; Esperanza in Masbate; Rosales and Mapandan in Pangasinan; Amadeo in Cavite; Barauen in Leyte; Pitogo in Zamboanga del Sur; Talusan in Zamboanga Sibugay; San Jose in Batangas; Sanchez Mira and Piat in Cagayan Valley.

Each town was supposed to be given  130 agricultural supplies packages (seeds, farming tools, and ergonomic knap sack sprayer) valued by the NGO  at  P36,558 each.

The Ombudsman panel is currently investigating the charges filed by its Field Investigation Office (FIO), which named as defendants former DAR  Secretary Nasser Pangandaman, Undersecretary Narciso Nieto, Director Teresita Panlilio, Chief Accountant Angelita Cacananta, Budget Officer Ronald Venancio, Cashier Nilda Baui, three notaries public, three certified public accountants, and 24 private individuals led by pork scam whistle-blower Benhur Luy.

The DAR officials have been charged with  grave misconduct, conduct prejudicial to the best interest of the service, gross neglect of duty, and serious dishonesty.

In its report, the FIO said the “projects appeared to have been delivered to certain municipalities in Cagayan, Pangasinan, Cavite, Dinagat Island, Surigao del Norte, Surigao del Sur, Agusan del  Norte and Agusan del Sur, but the supposed beneficiaries denied having signed or received anything.”

The seven NGOs implicated in the scam are Philippine Agri and Social Economic Development Foundation,  Agri and Economic Program for Farmers Foundation, Agricultura Para sa Magbubukid Foundation, Social Development Program for Farmers Foundation, People’s Organization for Progress and Development Foundation, Masaganang Ani para sa Magsasaka Foundation,  Countrywide Agri and Rural Economic Development Foundation,.

Luy, the principal whistle-blower who was a former personal assistant of Napoles, has claimed that these NGOs were controlled by his boss, who has flatly denied having any interest in these organizations and any dealings with the government.