Press Release
January 26, 2009

Paule has lost what little credibility he had - Gordon

Independent Senator Richard J. Gordon today said businessman Jaime Paule, a key figure in the P728-million fertilizer fund scam the Senate blue ribbon committee he chairs is investigating, has lost whatever little credibility he had.

Gordon said Paule was obviously lying under oath before his committee as can be gleaned from a photograph where he (Paule) posed with other key witnesses whom he denied he knew personally.

"Paule lied under oath. The photo showed that he has been lying here. Your (Paule's) credibility is totally destroyed here because we have established that you are lying," he said at the 8th hearing of the Senate investigation into the fertilizer fund mess.

Gordon showed a photograph of Paule with his wife and daughter, along with Leonicia Llarena, Marilyn Araos, and Julie Gregorio and Reden Antolin, respective president and vice president, of Feshan Phils, the largest supplier of fertilizer for the project.

The photograph was taken in August 2004 during the 50th birthday party of Llarena, owner of Dane Publishing and the alleged financier of the alleged anomalous farm inputs-farm implements project.

Apart from Araos, the sole signatory of the bank account with Land Bank for the Feshan Phils., Gordon explained that the photo also refuted Paule's oft-repeated claim that he does not know Gregorio and Antolin.

At the Jan. 20 hearing, it may be recalled that Paule denied he knew Araos whom he purportedly ordered to open a bank account on behalf of Feshan Philippines at the Land Bank of the Philippines - Elliptical Road in Quezon City.

He also denied he threatened Araos with loss of her job if she would not comply with his orders. Araos claimed Paule hired her for the said project for the local government units in Regions III and IV, where she gets one percent commission for every transaction.

Paule also denied knowing Gregorio and Antolin, adding that he was never introduced to them. Antolin acted as Feshan's corporate secretary and signed in the Memorandum of Agreement between Gregorio and Araos for their roles in the opening and handling of the Land Bank account.

The Senate blue ribbon committee is expected to decide on a pending motion earlier raised by Sen. Panfilo Lacson to cite Paule in contempt and detain him outside the Senate.

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