Sandiganbayan junks graft case vs ex-agriculture chief, 5 others

Sandiganbayan building facade. INQUIRER FILE PHOTO

MANILA, Philippines–The Sandiganbayan First Division has dismissed the graft case against former Agriculture Secretary Luis Ramon “Cito” Lorenzo Jr. and several others in connection with the P48.6 million swine program meant to support hog raisers in the country.

In a 14-page ruling, the anti-graft court also ordered the dismissal of the case against officials of Quedan and Rural Credit Guarantee Corporation (Quedancor) President and CEO Nelson Buenaflor, Quedancor Governing Board members/representatives Wilfredo Domo-ong, Romeo Lanciola, Nellie Ilas and Jesus Simon.

The anti-graft court also invalidated the arrest warrant issued against the six and lifted the hold departure order against them.

The swine program, according to the anti-graft court, is “noble and pro-poor.” It noted that it was in the implementation stage of the program that problems had risen like the high financial charges, late or non-deliveries of feeds and medicines, untimely or non-payment of guaranteed income, high mortality rate because of poor quality of piglets, among others.

“These consequent glitches in the execution and implementation of the program, to the Court’s mind, cannot be blamed on the accused…The inadequacy in the provisions of the program which may have resulted to these drawbacks may have been complemented or remedied by some implementing rules or regulations as safeguards which was already the task of the regulators and district offices…,” the anti-graft court said.

The anti-graft court also said the Ombudsman merely speculated when it said that the Consolidated Guideline-Quedancor Swine Program (CG-QSP) bars farmers and Quedancor from running after suppliers for delayed or non-delivery of swine inputs.

It also noted that it was impossible for all the accused to favor a particular supplier when there is still no supplier accredited yet.

There was also no violation of the Procurement Act because Quedancor is a government financial institution “and the subject transaction was done in the ordinary course of its business.”

In July last year, the Ombudsman indicted Lorenzo and the other accused for violation of the Anti-Graft Law.

Established in 2004, the QSP is a credit program intended to support swine raisers in their swine fattening and breeding activities.  Under the program, a farmer-borrower may apply for a loan with Quedancor, the proceeds of which were not given in cash but in the form of input supplies like hogs, gilts, feeds, medicines and technical assistance which were to be claimed through a purchase order issued by a Quedancor district office and presented to one of the accredited Input Suppliers.

The Ombudsman resolution stated that the non-compliance with the required public bidding resulted in damages because Quedancor lacked recourse against the suppliers for late deliveries or non-deliveries since the suppliers were not made to post a performance bond or contractor’s surety bond which is required under R.A. No. 9184 (Government Procurement Reform Act).

The anti-graft court issued a warrant for their arrest. Early this year, the accused filed a motion for reconsideration. The anti-graft court, however, in its recent ruling reversed its decision finding probable cause against Lorenzo and the other accused.

“Every court has the power and indeed the duty to review and amend or reverse its findings and conclusions when its attention is timely called to any error or defect therein. To do otherwise would be tantamount to an abrogation of its solemn duty to do justice to every man,” the anti-graft court said in its ruling.

The resolution is concurred in by Associate Justices Efren De la Cruz, Rodolfo Ponferrada and Rafael Lagos