Senate panel recommends changes to four laws, Senate contempt rule

The Senate blue ribbon committee today recommended five remedial measures aimed to make the government more effective in battling corruption as an offshoot from its investigation into the alleged P728-million fertilizer fund scam.

Independent Senator Richard J. Gordon made the recommendation as he formally submitted his committee's 130-page preliminary report after presiding over seven of eight public hearings on the controversial project.

These remedial measures seek to amend (1) the Anti-Money Laundering Act (AMLA) of 2001 and its Implementing Rules and Regulations, (2) the Procurement Act, (3) Secrecy of Bank Deposits Act, (4) the General Appropriations Act (GAA), and (5) Senate Rules of Procedure Governing inquiries in Aid of Legislation regarding Direct Contempt.

"We dread to see again the unleashing of packs of wolves feasting upon already-scarce resources of government," Gordon said, stressing the urgency to introduce amendments into the laws mentioned.

"The practice of allowing the appearance/insertion of 'lump sums' in budget, especially in re-enacted ones; the non-transparency of these items' usage especially as they refer to projects already completed during the year previous, will give a free rein to these sharks, sensing blood, turning into a feeding frenzy- especially during times of elections and natural disasters," he added.

The committee proposes that Section 10 of the AMLA be amended by extending the extension period of the freeze order from an additional six months to two years. The two year freeze should be applied for every six months to show that there is no grave abuse of discretion on the part of AMLC.

This amendment was deemed necessary after the committee was surprised to discover, without notification from the Anti-Money Laundering Council, that former agriculture undersecretary Jocelyn Bolante's alleged bank accounts had been unceremoniously unfrozen. Consequently, Bolante admitted during a hearing that he was able to access his alleged bank accounts.

In the AMLA rules, the panel suggests, as written by the Congressional Oversight Committee on the Anti-Money Laundering Law, to reinstate the provision allowing Congress some powers of inquiry relevant to its investigations.

In several instances during the fertilizer fund scam hearing, inquiries into the bank accounts of officials being investigated were thwarted with what was described as a blanket denial of access to information.

The committee also seeks amendment to Article 1, Section 4 of Republic Act 9184 or the Government Procurement Act. The proposed amendment seeks to include private institutions, NGOs, people's organizations and other private entities that receive government monies in the coverage of the Procurement Act.

The National Organization for Agricultural Enhancement and Productivity, Inc. was identified as the foundation used as proponent in the part of the scheme that was operated by witnesses Jimmy Paule, Marites Aytona, Leonicia Llarena, Marilyn Araos, Jose Barredo, Julie Gregorio and Reden Antolin.

The amendment seeks to prevent a repeat of the fertilizer fund scam, wherein a number of foundations, NGOs and associations become agents or conduits for money laundering transactions together with officials of the Department of Agriculture (DA).

Gordon said amendments to the Bank Secrecy Act are also necessary.. It should include in the exception public officers charged before the Courts for violations of Sections 3(b) and (c), under Corrupt Practices of Public Officers.

During the Senate's investigation into the alleged P728-million fertilizer fund scam, Section 2 of RA 1405 had been used to ward off moves to inquire into the questionable bank records of former government officials whose accounts had been frozen under the Anti-Money Laundering Act.

The bill also seeks to revise the bank secrecy law to declare that government officials and employees are "deemed to have given their permission to inquiry, examination or inspection to all their accounts that are subject matter of the litigation."

"Again and again we read or hear reports of graft here and corruption there. If we do not put a stop to corruption, we will be doomed to perpetual notoriety--a reputation most unfair to our people, millions of who, will be forced to find their future in foreign shores," Gordon said.

"The anger of the people is palpable in the streets and in the fields. A social volcano is smoldering and unless we do something soon, it is bound to explode," he added.

In the Senate Rules, Gordon said there is a need to include the provision on direct and indirect contempt and arrest in the rules of procedure governing inquiries in aid of legislation, because the lack of which has frustrated the Senate's power to immediately cite persons in contempt.

Meanwhile, in the GAA, the committee seeks to include a provision that will penalize officials and employees for failure to submit quarterly financial and narrative accomplishment reports.