Monday, December 26, 2005

Magsaysay Committee: P2.8B Farm Fund

Diverted to Gloria Election Campaign

By Joan Dairo

THE Senate committee on agriculture and food Sen. Ramon Magsaysay Jr. chairs concluded that P2.8 billion for agricultural programs was diverted to the campaign chest of President Arroyo in 2004.
"The release of the funds was timed with and had as a focal consideration the national elections of 2004. It is even claimed that the release of the fertilizer fund actually assured the victory in the polls of a number of incumbents in the government," the committee report said.
"Until disputed by a substantial and convincing evidence to the contrary are submitted by the Department of Agriculture and/or other relevant offices and officials, the funds released on February 3, 2004 amounting to P728 million; the funds released on February 11, 2004 amounting to P1.1 billion; the funds released on April 28, 2004 amounting to P544 million from the DAR and intended for the Hybrid Rice Production Program; and the P432 million released by DA to the National Food Authority, were all utilized to assure the victory of the administration in the electoral polls of 2004," it said.
The report named former Agriculture Undersecretary Jocelyn "Joc-Joc" Bolante as the alleged "master architect" of the fund diversion.
Magsaysay said "based on documents and testimonies gathered by the joint committees, Bolante, may be referred rightly to be the master architect of the fertilizer scam, the so-called "grand theft agro" as opposed to grand theft alto in the video games."
"The testimony of Mr. Bolante is crucial in the hearing, being the first person appointed as undersecretary of the DA in 2001 by the incumbent leadership. Mr. Bolante is being trumpeted by his lawyers as a responsible citizen whose passion for verity is a commitment. But his actions prove otherwise, citing his apathy and utmost disregard for authority. His is a distorted sense of truth," Magsaysay said.
Magsaysay said other officials who should be held liable and accountable are former DA Secretary Cito Lorenzo, DA undersecretary Belinda Gonzales, then DA assistant secretary and now presidential adviser Ibarra Poliquit, assistant secretaries Jose Felix Montes and Edmund Sana, all DA regional directors; and former NFA Administrator Arthur Yap.
The committee also concluded that the identification of the beneficiary non-government organizations, people’s organizations and foundations and the naming of the suppliers of the liquid fertilizers "were done systematically and was orchestrated by some top officials of the (DA)."
"It appears that NGOs, POs and foundations were utilized as laundering agents for and in behalf of a syndicate working in the DA. Evidence clearly indicated that contrary to the claims made by the DA…the NGOs, the POs and foundations used as their conduits were not nominated, requested and identified by the so-called proponents and/or the supposed beneficiaries," the report said.
It said: "It was unmistakable that the DA favored certain NGOs, POs and foundations. An originally purely charitable organization has become an agricultural foundation in a day’s time, following its designation as a conduit for fertilizer fund."
Magsaysay said the committee has yet to resolve the veracity of the list of identified project proponents submitted by the DA to the budget department to justify the release of the funds.
Magsaysay admitted they have yet to obtain direct evidence to back up their findings, but he said his panel has a pile of circumstantial pieces of evidence in its possession.
Magsaysay said they were:
* Releases for the funds were done within the election period (between February to April 2004).
* The farm modernization funds fall within the realm of "social services." Under the Omnibus Election Code, government is banned from releasing funds for "social services" during the election period.
* No farmer organization has admitted receiving fertilizer fund assistance.
* The 2003 fertilizer fund requirement by the DA was only P28 million. If the computation used for the 2003 financial requirement was adopted and updated for 2004, "adjustments can be made but it will not be as costly as P2.8 billion or a hundred times of the needed amount.
* No delivery of fertilizer has been verified and validated and no substantial liquidation and auditing have been completed 18 months after the fund had been released.
In his committee’s preliminary report, Magsaysay said the disparity between the 2003 and 2004 farm modernization funds was "a classic case of gross disproportion between what is needed by farmers as scientifically studied and the wanton wasteful actual release of fund to support the cause."
"It may be that the project is a giant ghost project involving big-time crooks in the government or may have been padded because of excessive pricing," he said as he noted the absence of physical reports and financial liquidation, including the submission of delivery receipts, acceptance certifications and documents to prove receipts by the farmer-beneficiaries of farm inputs.
Magsaysay said more witnesses are willing to testify. He said one of them is a Jose Barredo, reportedly one of Bolante’s runners.
Also in the list of prospective witnesses are a former secretary, an undersecretary, and a governor whose identities would be made known in the next hearing in January. /MP mailto:madyaas_pen@yahoo.com

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