Paule and Araos may be cited in contempt--Gordon

The Senate blue ribbon committee will decide tomorrow if they would cite in contempt and detain Jaime Paule and Marilyn Araos for refusing to tell the truth about their involvement in the alleged anomalous P728-million farm input-farm implement project.

Independent Senator Richard J. Gordon, committee chair, said both Paule and Araos had refused to tell everything they know about the anomalous project despite documentary and testimonial evidence put forward by several witnesses.

"Paule might be declared in contempt because the members of the committee agreed that he has been very evasive. There is an overwhelming number of testimonial evidence that he was the one behind this," he said.

"It is the same with Araos. There are documentary and testimonial evidence against her. We could see here that she was the one who opened the bank account but she doesn't want to take the responsibility for it," he added.

The pending motion to cite Paule and Araos in contempt and detain them was earlier raised by Senators Panfilo Lacson and Jinggoy Estrada, respectively. Gordon said he will move that the two be detained at the Pasay City Jail.

At the hearing, Paule has repeatedly denied any involvement in the planning and implementation of the project, even when Araos, alleged runner Marites Aytona, and alleged financier Leonicia Llarena all point to him as the one giving out orders to them.

Aytona told the senators that it was Paule who would tell which foundations would be accredited for the project and that other instructions in its implementation would come from him.

Llarena also testified that it was Paule who approached him to seek assistance in issuing checks for the project. Both Llarena and Paule and their respective families had been friends for some time.

Meanwhile, in her initial testimony, Araos admitted that she was ordered by Paule to open a bank account for Feshan Philippines, the biggest supplier in the project, and sign blank checks for the company, threatening her that she would lose her job if she would refuse to do so.

Racquel Paz, former manager of Landbank Elliptical branch, confirmed that the account was opened on March 9, 2004 by Araos, Aytona and Feshan President Julie Gregorio, but was closed on July 2006, all funds withdrawn.

Araos, who received one percent commission from the transactions for three local government units in Region III, said that while she is the signatory of the account, she does not know who withdrew the fund of about P153 million contained in the account.

However, Araos later refused to divulge more information invoking her right to remain silent as advised by her counsel, earning the ire of some senators present.

Gordon said she cannot invoke the right to remain silent because she had already testified and that specific right can only be invoked in a custodial investigation. He reminded Araos that she could be cited in contempt if she continues to give evasive answers.