Press Release
February 3, 2006
Drilon dares Ombudsman to file graft charges versus execs in
fertilizer scam
Senate President and Liberal Party head Franklin Drilon today
challenged the Office of the Ombudsman to initiate its own
investigation and file graft charges against Department of
Agriculture (DA) and local government officials involved in the
P728-million fertilizer scam.
In a statement, Drilon asked Ombudsman Merceditas Gutierrez to start
her own investigation on the anomaly, saying that documents and
testimonial evidence gathered by an ongoing Senate congressional
investigation can be made available to government anti-graft
prosecutors for scrutiny and evaluation.
The Senate President made the call after government auditors
confirmed on Thursday that the fertilizer used in the Ginintuang
Masaganang Ani (GMA) program was overpriced by at least P127
million.
The DA fund was reportedly managed by controversial former DA
undersecretary Jocelyn "Jocjoc" Bolante, the alleged chief architect
of the fertilizer fund program and a close associate of First
Gentleman Mike Arroyo.
The opposition claimed the Arroyo administration allegedly diverted
the fertilizer funds to ensure the victory of President Arroyo in
the May 2004 elections. Documents from the COA showed that more than
100 House of Representatives members, 53 governors and 26 town
mayors received between P3 million and P10 million each in
fertilizer funds from the DA shortly before the May 2004 elections.
During the Senate hearing Thursday, the Commission on Audit (COA)
confirmed that the overpricing was noted specifically in the
P97-million fund for the purchase of fertilizers from suppliers and
the P160-million budget allocated for non-government organizations
and peoples organizations.
"Considering the gravity of this mind-boggling corruption scheme and
the reckless paper trail it left behind for everyone to see, I think
it is now incumbent upon the Office of the Ombudsman to take over
this case," Drilon said. "The evidence is overwhelming. The COA
itself said there was massive overpricing of fertilizer at the
expense of our poor and starving farmers."
Drilon said he was confident the Office of the Ombudsman would
prosecute those responsible for pulling off the fertilizer scam. "I
remember that when Ombudsman Gutierrez assumed office, she vowed
that she will spare no one in the campaign against corruption in
government. I am confident she will be true to her word," Drilon
noted.
During the hearing, a broker also exposed an alleged conspiracy
between DA officials and local politicians to skim off the fund for
liquid fertilizer. Witness Jose Barredo Jr. said he met with
congressmen, governors and mayors in their homes to persuade them to
avail themselves of the DA fund by dangling an offer -- a 30-percent
commission.
Barredo said that between January and April 2004, he worked with one
Maritess "Tess" Aytona, believed to be one of the owners of medical
supplier Feshan Philippines Inc. and an "agent" of Bolante. He said
it was Aytona who took care of getting the required papers signed,
and having the necessary funds as well as the commissions released.
Citing a summary of the audit observation memorandum, COA auditor
Flerida Jimenez said there was an overprice of P48.67 million from
the purchases made from the P97-million fertilizer fund and P79.674
million from the P160-million NGO fund.
Jimenez told the Senate Committee on Food and Agriculture, chaired
by Sen. Ramon Magsaysay, that P643 million of the P728-million fund
allotted to the GMA project were allocated to the regional field
units of the Department of Agriculture.
Malacañang
, upon the request of Bolante, made available to the
agriculture department a total of P2.8 billion, including P544
million that came from sequestered Marcos family assets which, under
the law, should be used for agrarian reform. The funds were released
between February and April last year.
Drilon explained that the Office of the Ombudsman need not wait for
the Senate to finish its congressional probe on the fertilizer scam
before conducting its own investigation on the matter. "It is the
principal mandate of the Ombudsman to look into cases like this,"
Drilon said. |