THIRTEENTH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES Second Regular Session SENATE COMMITTEE REPORT NO.

Submitted by the Committees on Agriculture and Food and Accountability of Public Officers and Investigations (Blue Ribbon) on PSR !"#
$

&RESOLUTION 'IRECTING THE COMMITTEE ON

AGRICULTURE AN' FOO' TO CON'UCT AN IN(UIR)* IN AI'

!

R"SO#$%IO& 'IR"C%I&( %)" CO**I%%"" O& A(RIC$#%$R" A&' FOO' %O CO&'$C% A& I&+$IR, I& AI' OF #"(IS#A%IO& O& %)" A##"("' *IS*A&A("*"&% A&' $S" OF %)" F"R%I#I-"R F$&' OF %)" '"PAR%*"&% OF A(RIC$#%$R".S (I&I&%$A&( *ASA(A&A&( A&I PRO(RA* %O %)" '"%RI*"&% OF FI#IPI&O FAR*"RS /I%) %)" "&' I& 0I"/ OF C)AR%I&( "FF"C%I0" PO#ICI"S A&' PRO(RA*S FOR %)" A(RIC$#%$R" S"C%OR /hereas one of the hallmar1s of the !234 Phili55ine Constitution is the 5rominence of declarations aimed at 5reventing 6astage of government resources through the institutions of so7called 8sunshine la6s9 vi:; Section <4 Article II stating 8=t>he State shall maintain honesty and integrity in 5ublic service and ta1e 5ositive and effective measures against graft and corru5tion?9 Section <3 Article II 5roviding 8=s>ub@ect to reasonable conditions 5rescribed by la6 the state ado5ts and im5lements a 5olicy of full 5ublic disclosure of all its transactions involving 5ublic interest?9 Section 4 Article III mandating 8=t>he rights of the 5eo5le to information on matters of 5ublic concern shall be recogni:ed? Access to official records and to documents and 5a5ers 5ertaining to official acts transactions or decisions as 6ell as to government research data used as basis for 5olicy develo5ment shall be afforded the citi:en sub@ect to such limitation as may be 5rovided by la6?9 Section ! Article AI declaring 8=5>ublic office is a 5ublic trust? Public Officers and em5loyees must at all times be accountable to the 5eo5le serve them 6ith utmost res5onsibility integrity loyalty and efficiency act 6ith 5atriotism and @ustice and lead modest lives?9

/hereas the Ginintuang Masaganang Ani ((*A) Program of the 'e5artment of Agriculture is envisioned to generate em5loyment increase farmers. income and achieve greater food securityB /hereas the fund resources of the Program are meant for the 5rocurement and distribution seeds (inbred and hybrid) and fertili:er 5rovision of other location s5ecific intervention research and 'evelo5ment (R C ') to im5rove 5roductivity and farmer.s income and &ational "D5ansion of Farmers Field Schools revitali:ation of national eDtension systemB /hereas the Phili55ine Center for Investigative Eournalism (PCIE) in a re5ort revealed that the 'e5artment of Agriculture released fertili:er funds during the <FFG 5residential cam5aign and records 6ould bear that the 'e5artment of Budget and *anagement authori:ed the release of Seven )undred %6enty7eight *illion Pesos (P 4<3 FFF FFF?FF) for the 5urchase of farm in5uts and im5lementsB /hereas farmers and farm organi:ations declared that they never received a single7centavo 6orth of fertili:ers or farm in5uts intended for their res5ective district and accordingly some of those districts 6ithout agricultural lands 6ere re5ortedly given

OF LEGISLATION* ON THE ALLEGE' MISMANAGEMENT AN' USE OF THE FERTILI+ER FUN' OF THE 'EPARTMENT OF AGRICULTURE,S GININTUANG MASAGANANG ANI PROGRAM TO THE 'ETRIMENT OF FILIPINO FARMERS -ITH THE EN' IN .IEOF CHARTING EFFECTI.E POLICIES AN' PROGRAMS FOR THE AGRICULTURE SECTOR/ 01 Sena2or Ra3on Magsa1sa1* 4r.

Recommending the ado5tion of the recommendations contained herein;

*r? President; %he Committees on Agriculture and Food and Accountability of Public Officers and Investigations (Blue Ribbon) have conducted an inHuiry in aid of legislation into P? S? Resolution I<4 by Senator *agsaysay Er? SiD (J) 5ublic hearings< and a series of dialogues 6ith farmer organi:ations have been conducted? A substantial number of 6itnesses a55eared braving the threats on their lives ; career service officers local government officials ordinary farmers and farm 6or1ers affiliated 6ith res5ectable farmer organi:ations and res5onsible men and 6omen of the Commission on Audit? /itnesses 6ho ans6ered the summons of the committees corres5onding dates are listed belo6 ;
<

6ith

a55ro5riation for fertili:ersB

/hereas the truth in this 5articular issue must be resolved considering that the agriculture sector 5articularly our farmers are s6eating it out to ma1e both ends meet and are in dire need of government su55ort; &o6 therefore be it R"SO#0"' B, %)" S"&A%" AS I% )"R"B, R"SO#0"' %O 'IR"C% %)" CO**I%%"" O& A(RIC$#%$R" A&' FOO' %O CO&'$C% A& I&+$IR, I& AI' OF #"(IS#A%IO& O& %)" A##"("' *IS*A&A("*"&% A&' $S" OF %)" F"R%I#I-"R F$&'S OF %)" '"PAR%*"&% OF A(RIC$#%$R".S (I&I&%$A&( *ASA(A&A&( A&I PRO(RA* %O %)" '"%RI*"&% OF FI#IPI&O FAR*"RS /I%) %)" "&' I& 0I"/ OF C)AR%I&( "FF"C%I0" PO#ICI"S A&' PRO(RA*S FOR %)" A(RIC$#%$R" S"C%OR? Ado5ted SiD (J) 5ublic hearings have been conducted on the follo6ing dates ; October J and <J <FFKB &ovember !4 and <G <FFKB 'ecember !< <FFK and February < <FFJ?


<

October 6, 2005 Assistant Commissioner Sofronio Flores Director %obias P? #o:ada Ms. Flerida Eimene: 7 Commission on Audit (COA)B Ms? Che Che #a:aro 7 ABS7CB& Channel < Probe %eamB Secretary General 'anilo Ramos L Milusang *agbubu1id ng Pili5inas (M*P)B Secretary General "nrico Cabanit 7 Pambansang $gnayan ng mga &agsasariling #o1al na Organisasyon sa Manayunan ($&ORMA)B Advocacy Officer "merson Perucho 7 Partneshi5 for Agrarian Reform and Rural 'evelo5ment Services (PARR'S)B Executive Director Arce (li5o 7 Integrated Rural develo5ment Foundation (IR'F)B Eose5h Canlas L Alyansa ng *agbubu1id sa (itnang #u:on October 26, 2005 Commissioner (uillermo Carague, Assistant Commissioner Sofronio Flores Assistant Commissioner "mma "s5ina 7 Commission on Audit (COA)B President Raymond Ilustre L Fertili:er Industry Association of the Phili55ines (FIAP)B Secretary General 'anilo Ramos L Milusang *agbubu1id ng Pili5inas (M*P)B Atty. Fran1 Chave: L %aD5ayerB Mr. 0illano7 #eague of ProvincesB Ma FeliD Pa: L M*P Bicol RegionB National ice C!air"erson Imelda #acanda:o L M*P Southern %agalog November 17, 2005 #ormer Secretary "milia Boncodin L 'e5artment of Budget and *anagement ('B*)B Atty? Fran1 Chave:B *r? Antonio Salas L Asst? Provincial %reasurer "astern SamarB *r? Alfonso "s5osa L President Provincial Irrigations AssociationsB *r? 'anilo Ramos L Milusang *agbubu1id ng Pili5inas (M*P)B Prof? Cesar *amaril L farmer $P#B Program and IRRI s5ecialist in fertili:er and food managementB Secretary General &ilo Arado LPahag5ong
I

sa

mga

*ag7uuma

sa

Panay

(PA*A&((AS Panay

Iloilo

A1lan

Ca5i:

(uimaras)B C!airman

(uillermo Bautista LMati5unan ng Samahang *agbubu1id ng %imog Matagalugan (MASA*A7%M)B Eose5h Canlas L Central #u:onB Romulo %a5ayan L Mali5unan ng mga *aliliit na *agniniyog sa Pili5inas (M**P) B C!air"erson Fernando )ica5 L Pambansang #a1as ng Milusang *amamala1aya ng Pili5inas (P#M*)B "rnesto %aNedo L Mati5unan ng Samahang *agsisibuyas? November 24, 2005 Atty. Fran1 Chave: L Chave: *iranda AssocB Assistant Commissioner "s5ina 7 Commission on Audit (COA)B Provincial Agriculturist Eesus Agda L Borongan "astern SamarB Provincial Accountant 0ener 'ulfo L Borongan "astern SamarB Mayor Antonio B? Rivera 7 *unici5ality of 'olores "astern SamarB President Raymond Ilustre L Fertili:er Industry Association of the Phili55ine (FIAP)B 'r? Araceli Ale@ar L Fertili:er "D5ertOConsultant C "valuator of Registered Plant (ro6th Regulators and Foliar Fertili:ersB National President A5olinario PacardoB Secretary General "nrico Cabanit 7 Pambansang $gnayan ng mga #o1al at &agsasariling Organisasyon sa Manayunan ($&ORMA)B Secretary General #ito (acusan 7 Samahan ng (ugti ng mga Parag7uma 7 Sinirangan Bisaya (SA($PA 7SB) B Mr? Eose %ico L SA($PA7SB7&orthern SamarB $Nanay% Carmen Buena 7 &ational Federation of Peasant /omen (A*I)A&)B Mr. Eose Barredo L %aD5ayerO6itness December 12, 2005 $ndersecretary Eocelyn Bolante 6as invited as lone resource 5erson but he fled the same morning for the $nited States of America evading the Senate hearing? Official communication from his la6yers confirming his de5arture and eD5laining his absence 6as sent to the committee?

February 2, 2006 &oard mem'er Rebecca AHuino of the Province of SorsogonB *s? Flerida Eimene: *r? Eose5h Anacay and 'elfin Aguilar "D5loitation7IlocosB *amaril Commission on AuditB 'r? Cesar Milusang Citi:en Eose Barredo Er?B Avelino 'acanay Solidarity of Peasant Agaiant %onying Flores FA'C 'avao CityB *ay Faustino 'anilo Ramos and Pedro Arnado PhilRice7#os BanosB chic1en and 5oultry

su55lier from %arlacB

*agbubu1id ng Pili5inasB Alfredo RonHuillo Aaron Foundation

Preli3inaries

%he story of one is the story of all? %his old saying remains to be true for Carmen Buena a JF7year7old mother and farmer from Sta? Ana Pam5anga and head of the 6omen farmers. grou5 called Ami!an? $Ma!ira" ang 'u!ay magsasa(a. Sa 'u(id, i)an at datnan (a ng ara) at ulan. Di tulad ng i'ang em"leyado, may mga 'ene"isyo. *aming mga magsasa(a, talagang )ala, (undi sa(it sa 'aga o di (aya rayuma. May "ag(a(ataon "a ngang inaali"unga ang a(ing suso sa mag!a"ong "ag(a'a'ad sa "uti(an (a"ag nagtatanim 9 said BuenaI 6hose tale of hardshi5 as a farmer is shared by many in the agriculture sector? 8Ma!ira" ang 'u!ay magsasa(a. +indi talaga (asya ang (ini(ita (ung susuma!in mo.% %he mother of five revealed that during the harvest season they usually 5roduce !JF cavans of rice sold for a little more than Ph5
I

Oral testimony given by Carmen Buena A*I)A& to the Committees on Agriculture and Food Accountability of Public Officers and Investigations

KG FFF?FF? Of this amount

Ph5 J 4KF?FF goes to the so7called thresherB

Ph5 IJ <KF?FF goes to loan 5ayments for farm in5uts and the remaining Ph5 !! F!F?FF is to be shared by the lando6ner and the family 6ho tilled the land? /hat is left to the ha5less farmer is a meager P K FKF?FF 6hich 6hen com5uted against the length of time for rice 5roduction (usually four months) gives him a net income of Ph5 ! I4J?FF a month or Ph5 GK?34 a day? It is unimaginable ho6 a family of five (K) to seven (4) 6hich is the si:e of a normal agricultural family can subsist on such a miserable income? In some countries the farmers are among the 6ealthiest and most 5rolific? Sadly in the Phili55ines our farmers can hardly 5ut enough food on their table and are in fact at the bottom of the social and economic strata? Aggravating their situation is the systemic corru5tion 5er5etuated by a fe6 unscru5ulous 5eo5le in government 6ho have the temerity to rob them of the little assistance earmar1ed for them? It is ironic that our 5rinci5al su55liers of food have been reduced to becoming the 5rinci5al victims of hunger? /e must 5ut a sto5 to this in@ustice?

T5e P5ili66ine Agricul2ure7 Being an agriculture7based country the !234 Phili55ine Constitution mandates 85romoting industriali:ation based on sound agricultural develo5ment and agrarian reform as 5art of the country.s main economic thrust9? But 6hy has our agriculture 5olicy failed so badlyPK As early as the !4FFs it has already been recorded that the agriculture sector much less the farm 6or1ers had not been receiving enough government su55ort?

G K

&ationalist Im5erialism Boo1 of Ale@andro #ichauco and the Fili5ino )eritage "ncyclo5edia %a1en from the )ighlights of the Re5ort and Recommendations of the Congressional Commission on Agricultural *oderni:ation entitled; *oderni:ing Agriculture 55!

8After inde5endence

nationalist 5olicyma1ers favored industry over

agriculture L seeing agriculture as 8bac16ard9 and industry as 8modern9? Successive governments used the dollars earned from the eD5ort of co5ra and sugar to build u5 national industry? agriculture?9J %he agricultural sector 6hich traditionally 6as eDclusively reserved for the Fili5ino farmers 6as eventually o5ened to international agri7mar1et? Our local mar1et started com5eting 6ith im5orted agricultural 5roducts right in our o6n bac1yard? In order to successfully im5lement the Im5ort #iberali:ation as 6ell as the (A%%7/%O $ruguay Round Agreement that o5ened7u5 the country.s mar1et to foreign agri75roducts among others the Agricultural %ariffication Act 6as 5assed? %his la6 re5ealed earlier la6s 5rohibiting the im5ortation of onion 5otato garlic cabbage and coffee? It also re5ealed the *agna Carta for Small Farmers and the Seed Industry 'evelo5ment Act? /hat 6as envisioned to enhance the agri7industry by o5ening the trade mar1et 6ithout government.s full assistance to the sector and safety nets set in 5lace actually turned the life of the 5easants from 6orse to 6orst? As 5er the Milusan ng *agsasa1a ng Pili5inas farmers are 5aying higher 5rices for their farm in5uts but they have to sell their 5roduce at chea5 5rices caused by the mono5oly 5osition of big traders and food 5rocessing conglomerates? *oreover chea5 subsidi:ed im5orts from the industriali:ed countries are no6 5ushing the 5rices even lo6er? %he situation have 5ushed and de5rived lots of barrio farmers from their single source of livelihood? #ess than a million @obs in agriculture have been lost 6hich increased unem5loyment rate in the 5rovinces to about !?I million in !223? And the high tariffs and an overvalued 5eso that nurtured these 8infant industries9 stunted the gro6th of

Ibid

/hat used to be self7sufficient and self7reliant farmers tilling their o6n lands are no6 regular 6or1ers in large farms o6ned by landlords? %hey earn only about bet6een JF to 2F 5esos 5er day? Based on statistics released by the government 6age and salary earners in farms and 5lantations increased !I 5ercent bet6een !22I and !224? Based on the statistics of the &ational Statistics Office Phili55ine ,earboo1 <FFK the average daily 6age rate of farm 6or1ers 6ithout meals from !22J to <FFI is !G4 5esos? On the other hand the number of farmers 6ho 6or1 on lands they o6n continuously decrease by about F?K 5ercent annually during the same years? 8%6o7thirds of the Fili5ino 5oorQ6ho altogether number almost K million familiesQlive in rural areas? *ost of them subsist as farmers fishers and gatherers of forest 5roducts? %he 5oorest of them are landless 6or1ers on sugar7cane corn rice and coconut farmsB and fishers on our coastal 6ater?94 %he colonialism in the agri7industry that thrives u5 to the 5resent brought the sorry state of farmers being im5overished de5endent eD5loited and o55ressed?

Ginin2uang Masaganang Ani 8GMA9 Rice and Corn Progra3: Tracing i2s His2or1

%he *arcos Administration Former Agriculture *inister Arturo R? %anco Er? under the *arcos administration launched the innovative Masagana ,, rice 5roduction 5rogram during his term of office from !243 to !23G? self7sufficient 6hite7corn 5roducer?3 %he 5rogram revolutioni:ed the rice industry and made the Phili55ines a rice7eD5orter and

%a1en en toto from the )ighlights of the Re5ort and Recommendations of the Congressional Commission on Agricultural *oderni:ation entitled; *oderni:ing Agriculture 55< 3 )istory of Phili55ine Agriculture 666?da?gov?5hOaboutOhistory?htm

%he *inistry of Agriculture became the *inistry of Agriculture and Food (*AF) in !23G under "?O? 2J4? Assemblyman Salvador )? "scudero III 6as then a55ointed *inister of *AF? $nder his ste6ardshi5 the Intensive Rice Production Program (IRPP) 6as launched? %he AHuino Administration In !23J after the "'SA revolution Ramon 0? *itra 6as a55ointed *inister of *AF by President Cora:on AHuino? %he *AF then im5lemented 5olicy and institutional reforms that freed the agriculture mar1ets enabling farmers to en@oy farmgate rates? After *inister *itra *AF 'e5uty *inister Carlos (? 'omingue: 6as a55ointed *inister? On Eanuary I !22F President %his 6as 6hen the 'A AHuino a55ointed Senen Bacani as Secretary?

im5lemented the Rice Action Program (RAP) 6hich led the country to eD5ort rice in !22<? %he Corn Production "nhancement Program (CP"P) 6as li1e6ise launched 6hich moved the country to be corn7sufficient?2 %he Ramos Administration In !22< Roberto S? Sebastian became the Secretary of 'A under the leadershi5 of President Fidel 0? Ramos? Secretary Sebastian introduced the 1ey 5roduction a55roach (MPA) 6hose guiding 5rinci5le 6as 5lanting the right cro5 at the right 5lace and time? It 6as during this time 6hen the *edium %erm Agricultural 'evelo5ment Plan 6as formulated? /hen 'r? Salvador )? "scudero III 6as rea55ointed as Agriculture Secretary he launched the Gintong Ani Programs? %his 6as to ensure food security and to hel5 organi:e subsistence farmers into functional grou5s?!F %he "strada Administration 'r? /illiam '? 'ar 6as designated Acting Agriculture Secretary on Eune IF !223 during the term of President Eose5h "@ercito "strada? %he %en7Point Agenda in agricultural and fisheries 6as introduced? After a year former
2 !F

Ibid )istory of Phili55ine Agriculture 666?da?gov?5hOaboutOhistory?htm

Senate President "dgardo E? Angara 6as a55ointed as Secretary of Agriculture in !222? Being the 5rinci5al author of the AF*A of !223 he 5ut into action the visions of the la6? %he AF*A 6hich 6as a55roved into la6 on 'ecember << !224 has t6o 5rinci5al ob@ectives namely; !? to moderni:e the agriculture and fisheries sectors by transforming these sectors from a resource7based to a technology7based industryB and
<? to 5ursue a mar1et7driven a55roach to enhance the com5arative

advantage of our agriculture and fisheries sectors in the 6orld mar1et?!!

%he *aca5agal7Arroyo Administration Secretary #eonardo +? *ontemayor a55ointed on February !< <FF! during the P(*A Administration led the 'A in the im5lementation of AF*A? %he (inintuang *asaganang Ani Country6ide Assistance for Rural "m5loyment and Services ((*A7CAR"S) 6as im5lemented? %his is the 5recursor of the 5resent day Ginintuang Masaganang Ani Rice and Corn Program? %he 'e5artment of Agriculture ('A) is the main agency tas1ed to 5romote agricultural gro6th and develo5ment? Reorgani:ed under "Decutive Order !!J dated Eanuary IF !234 the 'A is mandated to 5rovide the 5olicy it 5rovides the su55ort frame6or1 and hel5 direct 5ublic investments in agriculture and fishery? In 5artnershi5 6ith local government units (#($s) services necessary to ma1e agriculture and agri7based enter5rises 5rofitable and hel5s s5read the benefits of develo5ment to the 5oor 5articularly those in the rural areas?!<
!! !<

Ibid Ibid

!F

T5e P5P#"; Million GMA Rice and Corn Funds: FERTILI+ER FUN'S SUPPOSE'L) FOR FARMERS

%he Ph5 4<3 million fertili:er fund inHuiry commenced 6hen the farmers started to loo1 for the fertili:er and other farm im5lements subsidy and found none? 8/here are the millions of 5esosP9 8/here are the subsidiesP9 8/here are the fertili:ersP9 %hese are @ust some of the Huestions raised by the 5easant farmers and their families in the countryside? %he Phili55ine Center for Investigative Eournalism (PCIE) 5ublished a re5ort follo6ing 8a trail of nearly PI billion released by the 'e5artment of Agriculture ('A) during the <FFG 5residential cam5aign? Its investigation found 8that big chun1s of that money 6ere diverted to congressmen mayors and governors 6ho are allies of President Arroyo9? %he same yielded the conclusion that 8a 5ortion of the money mysteriously ended u5 in the hands of obscure 5rivate foundations and com5anies9 and eventually 8si5honed to the Arroyo cam5aign9?!I %he Probe team led by *s? Cheche #a:aro!G also 5resented the issue and em5hasi:ed that the farmers as beneficiaries did not receive a single centavo from the said fertili:er funds? %he follo6ing are the factual bac1dro5 of the Ph5 4<3 fertili:er fund 5er the testimony of former 'e5artment of Budget and *anagement Secretary "milia Boncodin!K;

!I

Phili55ine Center for Investigative Eournalism 666?5ci@?org? %he document and the attachment dossiers of the PCIE re5ort 6as submitted as evidence by Atty? Francisco Chave: %S& October <J <FFK !G %he Probe re5ort on the 8fertili:er fund scam9 6as 5resented in the very first hearing of the @oint committees serving as 5rimer for the issue sub@ect of inHuiry? 'uring the hearing *s Cheche #a:aro 5resented and annotated the re5ort? %S& October J <FFK? !K %ranscri5t of Stenogra5hic &otes of &ovember !4 <FFK 5ublic hearing? #i1e6ise Secretary "milia Boncodin eDecuted a de5osition for the @oint committees in the &ational Midney and %rans5lant Institute?

!!

One? %he 'B* released the amount of Ph5 4<3 million for the 5urchase of farm in5uts to the 'e5artment of Agriculture Office of the Secretary under S5ecial Allotment Release Order or SARO under "7F!7FF!JG dated February I <FFG? %his release 6as charged against the Agriculture and Fisheries *oderni:ation Program (AF*A) as a continuing a55ro5riation under Re5ublic Act &o? 2<FJ? T<o? On the same day 'B* released the amount of Ph5 <2!?< million to the #and Ban1 of the Phili55ines for the account of the 'e5artment of Agriculture Office of the Secretary? %his amount of Ph5 <2!?< million re5resents forty 5ercent (GF R) of the allotment released under the AF*A? T5ree? %he releases 6ere made by the 'B* u5on the reHuest of the

'e5artment of Agriculture based on a formal reHuest submitted to the 'B*? In that reHuest the attachment that is reflected as AnneD A of the SARO 6as incor5orated and that same schedule or attachment contains a listing of !FK congressional districts KI 5rovinces and <I munici5alities? Four? SubseHuent releases for the &CA 6ere made also u5on the reHuest of the 'e5artment of Agriculture either as a se5arate &CA or as 5art of the common fund that is usually authori:ed the agencies on a regular basis? Fi=e? %he release made by the 'B* 6as for farm in5uts 6hich could incor5orate fertili:ers seeds and even insecticides? But the actual 5ur5ose for 6hich the same 6ill be used 6ill de5end on the 'e5artment of Agriculture? Si>!J? In the case of the Ph5 4<3 fertili:er fund the reHuest for release 6as made by $ndersecretary Eocelyn Isada Bolante? Accordingly from the time of Secretary *ontemayor $ndersecretary Bolante has been given the authority to ma1e reHuest in behalf of the Secretary of Agriculture and has never been revo1ed u5 to the time of Secretary #uis #oren:o?

!J

%S& &ovember !4 <FFK <;G3 5?m? %his 5ortion is not 5art of the affidavit of Secretary Boncodin but is given in re5ly to the Senate President.s Huestion?

!<

#astly 6hen as1ed if the fertili:er fund reHuest made by $ndersecretary Bolante for the 'e5artment of Agriculture 6as u5on the instruction of the President Secretary Boncodin re5lied 6ith 8I 6ould imagine so?9!4

T5e P56 #"; 3illion Fund is ?us2 a Por2ion o@ a Larger Fer2iliAer Fund Released during 25e Elec2ions o@ "BB7

%he Ph5 4<3 million fertili:er fund is @ust 5art and 5arcel of the huge fund releases to the 'e5artment of Agriculture totaling Ph5 <?3FJ billion intended for the 5urchase of farm in5uts and im5lements in <FFG before the *ay !F <FFG elections? Its brea1do6n as follo6s ; all made @ust

&ature of FundOProgram

SARO &umber and 'ate

Amount

(*A Farm In5uts and Im5lements

"7FG7FF!G February I <FFG

Ph5

4<3 million

(*A Rice and Corn and

"7FG7FF<2G February !! <FFG

Ph5 !?!F< billion

*arcos /ealth for CARP

"7FG7F!F2F A5ril <3 <FFG

Ph5 KGG million

!4

%S& &ovember !4 <FFK I;<3 5?m?

!I

(*A Rice Program And Fertili:er Procurement And 'istribution Com5onent

From Agency Budget *atriD (regular budget)

Ph5 GI< million

777777777777777777777 %O%A# Ph5 <?3FJ billion SSSSSSSSSSSS

In a document submitted by the 'e5artment of Agriculture!3

the Ph5 4<3

million fertili:er fund forms 5art of the Farm In5uts and Farm Im5lements Program in <FFG to assist #($s in boosting their agricultural 5roduction and increasing farmers. income?

T5e Mec5anics o@ 25e Fer2iliAer Fund Sca3 #a6yer Francisco Chave: testified that the fertili:er fund is a modus o"erandi that involves a ran1ing official in the 'A 6ho is lin1ed to *rs? (loria *aca5agal Arroyo.s husband Eose *iguel Arroyo? %his official de5loyed runners 6hose @ob 6as to a55roach local government officials and eDtract a commitment from these officials to 5urchase fertili:ers in liHuid state from them?!2 "ssentially the sharing system in the fertili:er fund scam is as follo6s;

<KR for the 'A official (referring to *r? Eocelyn Bolante)B IFR for the mayors governors and congressmen concernedB <FR for the su55lier of the farm in5uts and <KR for the 'A official runners?<F

!3

#etter of Secretary 'omingo Panganiban to the Committee dated &ovember !J <FFK 6ith attachments 5ertaining to the fertili:er fund !2 SPO% Re5ort of the Committees %S& October <J <FFK <F %S& October <J <FFK

!G

/itness Eose Barredo 6ho admitted to being one of the runners in the fertili:er scam 5resented in detail ho6 they o5erated?<! )is revelations made under oath 6ere substantiated by the follo6ing assertions; !? Barredo 6or1ed 6ith a certain *aritess Aytona in the mar1eting of liHuid fertili:ers to local government units and congressional districts beginning Eanuary <FFGB

<!

Affidavit of Eose Barredo 6hich 6as read in full %S& February < <FFK? %he same is re5roduced here in full teDt for a55reciation;
R"P$B#IMA &( PI#IPI&AS ) TTTTTTTTTTTTTTTTTTTTTT )S?S? SI&$*PAA&( SA#A,SA,

A1o si EOS" B? BARR"'O ER? Pili5ino may asa6a may sa5at na taong gulang at may tirahan sa !FK )anglid St? President RoDas Ca5i: mata5os manum5a ayon sa batas ay nagsasalaysay ng mga sumusunod; !? Milala 1o si *aritess 8%ess9 A? Aytona mula 5a noong mga taon ng !224 dahil sa naging 1atrabaho 1o siya sa 5agbebenta ng mga medicina sa mga #ocal (overnment $nits (#($s)? &atigil iyon bago mag <FFG? <? &oong mga "nero <FFG a1o ay muling inalo1 ni %ess Aytona na ma1atrabaho niya? Ang 5ro@ect ay ang 5agbebenta ng liHuid fertili:er sa mga #($s and Congressmen? Ang 5undo ay galling sa 'e5artment of Agriculture ('A)? Ang fertili:er ay mangagaling sa isang 1om5anya na may 5angalan na F"S)A& P)I#S? I&C? (F")A&) may tangga5an sa !J Sgt? "sguerra Avenue South %riangle +ue:on City? Ang 5residente nito ay si Eulie (regorio? Ang nagbibigay ng ca5ital na ibinibili ng fertili:er ay isang babae na nagngangalan na &e:y na siyang may7ari ng 'ayna Publishing isang su55lier sa 'e5artment of "ducation? I? Ang nalaman 1o ay ang F"S)A& ay siyang may connections 1ay $sec? Eocelyn 8Eoc7Eoc9 Bolante at itong 1om5anyang ito ang binigyan ng 1ara5atan ni $sec Bolante na magsu55ly ng liHuid fertili:er sa mga #($ officials Congressmen at sa1a (overnors bago magele1syon ng <FFG? (umamit ang F"S)A& maraming bro1ers at runners 5ara mahi1ayat sa mga nasabing official ng gobierno 5ara gamitin ang mga 5undong nilaan ng 'A 5ara 5ambili ng fertili:er sa F"S)A&? G? Ang sabi ni %ess Aytona sa a1in ay samahan 1o siya sa 1anyang 5gbebenta ng fertili:er una sa Bula1an? Ang sabi niya sa a1in ay mayroong 5undo galling sa 'A na ibinibigay 5ara sa mga #($s 5ara ibili ng fertili:er? Ayon 1ay %ess ang nangangasi6a ng 5undo na ito ay si 'A $sec Bolante? Ma5ag may 5undo na gaya ng 5ara sa Bula1an ay da5at 5untahan ang mga namumuno sa #($s na 5inili ng 'A? (ina6a naming ito ni %ess at 1inausa5 ang *ayor ng Pulilan Bula1an na si *ayor Castillo? Pumunta rin 1ami ni %ess 1ay *ayor Pagdanganan ng Malum5it Bula1an at 1ay Congress6oman &eneng &icolas? K? Isa7isa naming 1inausa5 ni %ess ang mga nabanggit na local officials at sinabi naming sa 1anila na mayroong 5undo na na1alaan 5ara sa 1anila 5ara i5ambili ng fertili:er na manggagaling sa F"S)A&? Inalo1 naming sila ni %ess ng tinata6ag na SOP o commission ng IFR ng 5undong ibibigay sa 1anila ng 'A? Para 1ay *ayor Castillo ang 5undo ay PK *illionB 1ay *ayor Pagdanganan ay PI *illionB at ang 1ay Congress6oman &icolas ay PI *illion? Si Congress6oman &icolas ay hindi 5umayad na tangga5in ang fertili:er dahil 5inili niya na cash ang tangga5in niya? &alaman 1o na 1ung ang buong 5undo halimba6a ay PI *illion ang SOP ay P2FF FFF (IFR ng PI

!K

<?

%he local government units and congressional districts 6hich 6ill be the reci5ient of the fertili:er fund 6ere already identified? %he funds on the other hand 6ere to sourced from the 'e5artment of AgricultureB

I?

%he liHuid fertili:ers 6ere to be su55lied by Feshan Phili55ines Inc? A com5any 6ith business address at !J Sgt? "sguerra Avenue South %riangle +ue:on CityB

*iliion) at ang P<?! *illion naman ay ang 1au1ulang biniling fertili:er? J? Ma5ag 5umayag na ang #($ official ay ginaga6a ni %ess ang isang *emorandum of Agreement (*OA) at 5a5i5irmahin niya ito sa 1ainuu1ulang #($ official at sa1a 5i5irma naman 5ara sa 'A ng Regional 'irector ng Region na sumasa1o5 sa nasabing #($? Ang sam5le ng *OA na iyon ay inila1i5 ditto bilang A&&"A 8A9? Ang *OA na ito ay dadalhin sa R' at 1anyang 5i5irmahan at i5a7nonotaryo ni %ess at sa1a 1anyang i5alalabas ang 5undo sa u5isina ni $sec Bolante 5atungo sa nasabing R'? Ang 5aglalabas ng 5undo ay dala6ang ulit ang una (First %rance) ay JKR ng na1alaang 5undo 5ara sa #($? Ang sunod na 5aglalabas ng 5undo (<nd %rance) ay IKR ng na1alaang 5undo? Mung ang nasabing 5undo ay nasa 1amay na ng R' 1o1onta1in na ni %ess ang F"S)A& at i5adedeliver sa bumiling #($ ang biniling liHuid fertili:er na nasa bottleyas? Ang alam 1o ay P! KFF ang 5resyo na i5ina5asa ni %ess sa lahat ng #($s? 4? Pini5irmahan ng #($ ang 'elivery Recei5t at Sales Invoice na galling sa F"S)A& 1a5ag na1a

5agdeliver na ng fertili:er? Ang sunod ditto ay maglalabas ng che1e ang R' sa 5angalan ng #($ alinsunod sa na5ag1asunduan nila sa *OA? Pag1ade5osito ng #($ ng che1e galling sa R' ang nasabing #($ ay magbibigay ng 1au1ulang bayad na che1e sa F"S)A&? Ang gaga6in ni %ess ay sasabihan ang F"S)A& na ide5osito na sa ban1 account 1o ang 1alahatang SOP ng #($ official? 3? Sumama sa a1in sa ban1o ang re5resentative ng #($ official at sa 1anya 1o inibinigay ang SOP? Ang 5a1inabang 1o bu1od sa bu6anang s6ledo 1o na P!F FFF?FF ay 5inanga1uan a1o ni %ess na bibigyan niya a1o ng IR to KR ng SOP 5ara sa 5agod 1o? 2? Ang 5inatraba@o sa 1in mismo ay ang Region J dahil a1o ay isang Illonggo? Ang nagbibigay ng utos sa a1in ay si %ess? Isa sa mga 1inausa5 1o ay si (overnor 0icente Berme@o sa 1a5itolyo ng RoDas City? Sinabi 1o sa 1anya na may 5undo ang 'A na na1alaan sa 1anya 5ara 5ambili ng fertili:er? %inanong niya 1ami ni %ess 1ung mag1ano ang SOP niya at ang sagot ni %ess ay <KR? Sinabi ni (overnor ay mayroon ng nagoffer sa 1anya na su55lier at ang offer ay GFR SOP? Inutusan niya si %ess na 1onta1in si $sec Bolante sa 5hone and na1ita at narinig 1ong nagusa5 sina (overnor Berme@o at $sec Bolante sa tele5ono? A1o ang nagbigay ng SOP ni (ov? Berme@o galling sa first chance na 5inadala ng 'A sa R'? !F? Pinuntahan 1o rin sa Bacolod si Congressman *onico Fuentebella at sinabihan 1o siya na may 5undo siya na PK *illion mangagaling sa 'A 5ara 5ambili ng fertili:er? Pumayad siya 5ero ang gusto niya ay <KR lamang ang fertili:er at 4KR ay cash? Masama 1o noon si %ess Aytona? !!? &ag5unta rin a1o 1ay (overnor Florencio *iraflores sa Malibo A1lan? Sabi sa a1in ni %ess bago a1o na1i5ag1ita 1ay (ov? *iraflores na nagusa5 na sina $sec Bolante at (ov? *iraflores 1aya 6ala na a1ong masyadong i5alili6anag sa 1anya? 'inala 1o 1ay (overnor ang *OA 5ara 5irmahan niya 5ero hindi niya 5inirmahan hanggang hindi niya natangga5 ang 1anyang SOP na P!?K *illion isang ara6 bago ang *ayo <FFG ele1sion?

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G? K?

Feshan

Phili55ines

Inc?

is

lin1ed

and

connected

6ith

$ndersecretary Eocelyn BolanteB Barredo along 6ith Aytona negotiates 6ith local government officials and congressmen informing them of the fund a55ro5riated to the #($s or congressional district 5romising local government officials or congressmen of getting thirty 5ercent (IF R) re5resenting 8SOP9 or 8commission9? %he 8SOP9 or 8commission9 can go higher de5ending on the 8reHuest9 or arrangement made by the 5ro5onent local official or congressmenB J? 4? $5on a55roval of the transaction by the local government official a memorandum of agreement is eDecutedB In the case of *r? Barredo he identified several munici5alities and congressional district in Bulacan and #($s and legislative districts in Region J as his area of o5eration?
!<? Pinuntahan 1o rin si *ayor Reymar Recaldo ng Malibo at sinabihan 1o siya na ang 5undo niya galling sa 'A na 5ambili ng fertili:er ay PI *illion? *ay dala a1o na PJFF %housand 5ero hindi niya tinangga5? %ina6agan 1o si %ess sa *aynila at sinabi 1ong magdala 5a ng 1aragdagang 5era 5ara 1ay Rebaldo at *iraflores? Asa6a 1o ang nagdala ng 5era isang ara6 bago magele1syon noon *ay <FFG at dinala naming ang 16arta sa bahay ni *ayor Rivaldo? Ang asa6a ni *ayor at mga 1a5atid ang nagbilang ng 5era sa loob ng 1u6arto ni *ayor? !I? )indi tumangga5 ng 5undo galling sa 'A si Congressman Arthur 'efensor? Pinabigay na lamang niya ang allo1asyon niya galling 'A sa tatlong *ayors na sina *ayor AleD Centena ng Calinog *ayor *ariano *alones ng *aasin at *ayor Ramire: ng #ambunao? !G? Si Congressman Oscar (arin ay tumangga5 din ng SOP mga dala6ang lingo bago magele1syon ng <FFG? Ang bigay na5 undo sa 1anya ng 'A ay PK *illion? Ang SOP ditto ay P!?<KF *illion at 4KR ng PK *illion ay fertili:er na ideniliber sa 1anya? !K? Si Congressman "dgar "s5inosa ng (uimaras ay tumangga5 din ng PI *5ondo galling sa 'A? Ang SOP niya ay IFR !J? Bago mag ele1syon ng <FFG ay na1i5agusa5 din 1ami 1ay Congressman #acson Cong? *aranon at (ov? *aranon 5ero hindi natuloy ang 5agtangga5 nila ng 5ondo galling sa 'A dahil sa nagli5at sila ng su5orta 1ay FPE? (ayundin din ang nangyari 1ay Cong? Fredinel Castro? %inanggihan nila ang 5ondo na inaalo1 ng 'A dahil sabi niya 8alam 1o na ang mangyayari diyan9 at sa1a lumi5at ng su5orta 1ay FPE? !4? *aaring hindi 1o nasabi lahat ang mga detalye at lahat ng mga taong na1ahara5 at na1ausa5 1o sa 5anahong binabanggit 1o ditto sa a1ing salaysay 5ero na1ahanda naman a1ong sabihin lahat iyon sa mga susunod na 5ag1a1ataon?

!4

T5e Missing Ce1 Pla1ers 8Bolan2e* LorenAo* PoliDui2* e2.al.9

Eocelyn I? Bolante 6as the first a55ointee of *s? (loria *aca5agal7Arroyo in the 'e5artment of Agriculture as $ndersecretary (Finance and Administration)? )e 6as already in office 5rior to the a55ointment of then agriculture secretary #eonardo *ontemayor? Citing 5rovisions from the Administrative Code of the Phili55ines Bolante as $ndersecretary is guided by the follo6ing duties and functions ; a? Advise the Secretary in the 5romulgation of 'e5artment Orders Administrative Orders and other issuances 6ith res5ect to his area of res5onsibilityB b? "Dercise su5ervision and control over the Offices services

o5erating units and Officers or Officials and em5loyees under his res5onsibilitiesB c? Promulgate rules and regulations consistent 6ith 'e5artment

5olicies that 6ill efficiently and effectively govern the activities of $nits under his res5onsibilityB d? Coordinate the functions and activities of the $nits under his res5onsibility 6ith those of other $nits under the res5onsibility of other $ndersecretariesB e? "Dercise delegated authority on substantive and administrative

matter related to the functions and activities of $nits under his res5onsibility to the eDtent granted by the Secretary through Administrative IssuancesB
!3

f? Perform other functions as may be 5rovided by la6 or assigned a55ro5riated by the Secretary?

But $ndersecretary Bolante.s 5o6er over the agriculture de5artment 6as 6idely 1no6n?<< And it encom5asses more than 6hat the Administrative Code 5rovided? In fact at the time that he 6as $ndersecretary Eocelyn Bolante 6as

concurrently a55ointed by the President in other 5o6erful 5ositions; as Acting Chairman of the &ational Irrigation Administration as Acting Chairman of the #ivelihood Cor5oration and as Acting Chairman of the Strategic Investments and 'evelo5ment Cor5oration? At the same time he 6as 'irector of the &ational Po6er Cor5oration and #and Ban1 of the Phili55ines?<I It is significant that even 6ithout bac1ground 5rinci5ally on agriculture Bolante 6as a55ointed by the President (at the time she herself 6as acting Agriculture Secretary) and holding a sensitive 5osition at that $ndersecretary for Finance and O5eration? In the fertili:er fund scam $ndersecretary Bolante is the declared architect? )e designed it? )e 6as its brains? It 6as he 6ho 6or1ed 6ith the 'B* for the immediate release of the fund? It 6as him 6ho 5re5ared and submitted names 6ho 6ould become the fertili:er fund.s 5ro5onents? It 6as $ndersecretary Bolante 6ho sent letters to various congressmen and local officials informing them of the availability of funds under the 'A.s (*A Pro@ect? It 6as him 6ho directed these officials to coordinate 6ith his office to discuss all the reHuirements to facilitate the said 5ro@ect fund? $ndersecretary Bolante in the 6ords of his then Chief of Staff Ibarra PoliHuit had a hand in determining ho6 the (*A Pro@ect fund 6or1s and 6ill be s5ent? And that although the 'A has a list of officials 6hose
<< <I

as

PCIE Ibid Portfolio of $ndersecretary Eocelyn Bolante as filed in the records of the 'e5artment of Agriculture

!2

85ro5osed 5ro@ects9 6ere to be funded by the fertili:er fund Bolante 6as given the authority to dro5 them and re5lace them 6ith others?<G In the Committee of the /hole 5ublic hearing of Eanuary I! <FFJ $ndersecretary Belinda (on:ales s5ecifically mentioned that it 6as the Office of $ndersecretary Eocelyn Bolante 6ho ordered the release of funds to the reci5ients stated in the list? UI got instructions from $sec Bolante that this 7777 P !FF million 7777 6ill be be transferred to the different regional offices?U<K Secretary #uis #oren:o and $ndersecretary Belinda (on:ales served as co7 signatories of *r? Bolante in transferring the money from the 'e5artment of Agriculture to the regional field units (RF$s) and to local governments? Assistant Secretary Eose FeliD *ontes served as the 5rogram.s s5o1es5erson? In the case of Secretary #oren:o 6hile indeed he did sign a memorandum<J that designates $ndersecretary Eocelyn Bolante as the a55roving authority of the fertili:er fund the fact remains that he 6as a6are of the 5rogram and acted as co7signatory in the transaction?<4 Former $ndersecretary Ibarra PoliHuit 5er the records submitted by the

Commission on Audit <3 assisted $ndersecretary Bolante in the a55roval of 5ro@ects that 6ould be accorded the fertili:er fund? A substantial number of reHuests for the a55roval to issue sub7allotment advise (SAA) 6ith corres5onding cash allocation to 'A7RF$s for the im5lementation of the (*A Farm In5uts and Im5lements Program 6ould indicate $ndersecretary PoliHuit as the reHuesting 5arty?
<G <K

In one hearing

from the documents

PCIE Ibid Belinda (on:ales 6as sub5oenaed four times and eDtended an invitation once to attend the @oint committees? She 6as absent in all those hearings citing "O GJG? But in the Committee of the /hole Eanuary I! <FFJ she cannot abscond inter5ellations given to her and thus 6as forced to divulge some information? <J *emorandum from the Secretary *arch !J <FFG signed by Secretary #uis #oren:o addressed to $ndersecretary Eocelyn Bolante 6here he directed the latter 8in order to eD5edite the im5lementation of the Farm In5uts and Im5lements Program 6ith #ocal (ovenrment $nits all reHuests for fund assistance under the 5rogram shall be sub@ect to your assessment evaluation and a55roval?9 %he memorandum 6as reHuested during the Committee of the /hole hearing of 'ecember J <FFK and is reflected in the %S&? <4 A document 5resented to the Committee dated A5ril IF <FFG signed by #oren:o and Bolante in 6hich they are allo6ing the debitOcredit of the amount of P G?K million for the 'A RF$ Region III7Butuan City and the same covered by the fertili:er fund? <3 'ocuments submitted by the Commission on Audit Eanuary <J <FFJ

<F

submitted by the COA

it 6as noted that Ibarra PoliHuit then Assistant

Secretary for Field O5erations reHuested for the transfer of P 32 million in Region I0 aloneB PK million in Region 0B and P << million in Region 0II? BUT NO ONE RECEI.E' THE FERTILI+ERS. T5e Far3ers, .oices. T5e Peasan2s, -oes.

In all 5ublic hearings conducted the farmer grou5s 6ere its most active and coo5erative 5artici5ants? Farmers and 5easant leaders from as far as the Ilocos region and /estern *indanao aired their collective grievances? %heirs are the voices of des5eration? One of the largest farmer organi:ations in the country the Milusang 'anilo

*agbubu1id ng Pili5inas (M*P) through its national leaders

Ramos said that not one among their JG 5rovincial cha5ter farmer members from the !K regions nation6ide had received assistance from the so7called fertili:er fund? *r? Ramos lamented about their 5light that for every bag of urea fertili:er they 6ould loan they 6ould 5ay an eHuivalent of three (I) KF7 1g bag of "alay during harvest adding that the system of usury is still 6ides5read because farmers have not received any su55ort 6hatsoever from the government? %he M*P em5hasi:ed that the meager amount of fertili:er that they should have received during the year <FFG seemed to 5oint to the direction of the election fund cam5aign of *s? Arroyo? In the 6ords of res5ected farmer leader %atay (reg Rivera $Ni isang 'util na a'ono !indi (ami na(atangga"% In their consultations 6ith other farmer organi:ations the M*P grou5 of

*r? Ramos confirmed that other farmers grou5s 6hich ha55ened to be 6ithin their alliance also indicated not having received fertili:er assistance?

<!

Pa30ansang Ugna1an

ng 3ga Nagsasariling Organisas1on sa

Cana1unan 8UNORCA9. $&ORMA through its Secretary7(eneral "nrico Cabanit declared that not one of their members received any form of assistance from the 5rogram? %hey li1e6ise stated that another fund covered by the Presidential Agrarian Reform Council (PARC) Resolution &o? <FFI L 2I 7FG Ph5 KGG million has been a55roved for the (*A Rice Program? And @ust li1e the fertili:er fund no assistance 6as given to them? %hey said they 6ere not included in the master list of beneficiaries 5re5ared by the 'AR and 'A based on the guidelines they have signed? Farmers from Iloilo re5orted that no fertili:ers or rice seeds managed to reach them and they have not felt the su55ort of the 'A? If ever there 6ere farm in5uts the 'A 6ould sell them to the farmers? Farmer re5resentatives from 'avao del &orte in *indanao told the committees that the farmers have not felt the so7called su55ort services of the government es5ecially the one involving the P4<3 million fertili:er assistance?

Pa30ansang LaEas ng Cilusang Ma3a3alaEa1a ng Pili6inas 25roug5 its President Fernando )ica5 informed the committees that PA*A#AMA,A consulted their members from the 'arangay level to the regional level and from their !FF FFF membershi5 no one signified having received any su55ort from the said government fund?

Cali6unan ng 3ga Malilii2 na Magnini1og sa Pili6inas through its President Romulo %a5ayan informed that in terms of fertili:er assistance or subsidy their ran1s have not felt the assistance?

<<

Ca2i6unan ng Sa3a5ang Mag0u0uEid sa Ti3og Ca2alugan 8CASAMA% TC9 through its Secretary7(eneral (uillermo Bautista informed that in a survey made to their members from the !F 5rovinces of the Southern %agalog Region 6ith reference to the Ph5 4<3 million agricultural fund no one has ever received even a single granule of the said agricultural in5uts? %heir grou5 aired out their sentiments that from the information they have gathered PJ2 million 6as released to their congressmen governors and mayors and they 6ould be interested to 1no6 6ho the reci5ients 6ere? Pa5ag6ong sa 3ga Mag%uu3a sa Pana1 8PAMANGGAS9.? *r? &ilo Arado said that his organi:ation covers the 5rovinces of (uimaras Iloilo A1lan and AntiHue? )e informed the committees that their grou5 held a consultation among their leaders and members and not one from among their farmer7members has ever received the farm in5uts assistance? Ca2i6unan ng Sa3a5ang Magsisi0u1as 8CASAMNE9 is a federation of !2 5rimary coo5eratives covering K to6ns and ! city based in &ueva "ci@a? %hey are rice farmers and gro6 onions after rice? %he federation through its President *r? %anedo stated that their farmer members have not received any subsidy or assistance from the P4<3 million farm in5ut 5rogram? Al1ansa ng Mag0u0uEid sa Gi2nang LuAon through its re5resentative

Eose5h Canlas informed the Body that their grou5 6ent around the 5rovinces of Central #u:on to find out 6hat really ha55ened on the fertili:er fund and 6hether the same 6as given to them and recalled that every farmer member they as1ed res5onded in the negative? CMP%Sou5ern Tagalog Chair5erson Imelda #acanda:o gave her testimony that farmer7members of the M*P Southern %agalog have not received any fertili:er or farm in5uts assistance? Sa3a5an ng Gug2i ng 3ga Parag%u3a % Sinirangan Bisa1a 8SAGUPA% SB9. *r? (acusan the Secretary (eneral of the Samahan ng (ugti ng mga Parag7uma L Sinirangan Bisaya informed the committees that the farmer
<I

from "astern Samar and their members did not receive any assistance from the fertili:er fund? SAGUPA% SB* Nor25ern Sa3ar. Eose %ico a farmer from &orthern

Samar testified that farmers from his area have not received the alleged farm in5utsOfertili:ers 6hich emanated from the national government meaning 'e5artment of Agriculture? %hey have only read about the information from ne6s5a5ers that there are lots of fertili:ers being given out by the government but the same had never reached them? Na2ional Federa2ion o@ Peasan2 -o3en 8AMIHAN9. $Nanay% Carmen Buena informed the committees that their federation com5rised of I< 5rovinces? She is a farmer herself and has not received any fertili:er assistance along 6ith any of her members? CMP* Bicol. *r? 8%atay9 FeliD Pa: the overall chairman of M*P7Bicol said that his farmer7members have not received any assistance 6hether in the form of fertili:ers or agricultural fund assistance 5articularly in Albay 6here he resides?

T5e O25er Courageous -i2nesses %he hearings of the @oint committees 5roduced valiant 6itnesses among ordinary farmers government units? Antonio Andag Salas<2 is the Assistant Provincial %reasurer in "astern Samar? A crusader of truth he declared boldly and amid threats to his life that contrary to the liHuidation re5ort submitted identifying his 5rovince as a
<2

government em5loyees and 5ublic servants in local

/itness Antonio Andag Salas a55eared before the 5ublic hearing of the committees during the third 5ublic hearing? )e eDecuted an affidavit detailing his 1no6ledge of the issue and 5rovided the committees relevant dossiers to 5rove his allegations? %he %S& of &ovember !4 <FFK fully contained *r? Salas. testimony?

<G

reci5ient of the fertili:er fund there 6ere no actual deliveries made? Another fearless 6itness Alfonso Cainto "s5osa IF 5resident of the Pinamalutan /ater Im5ounding Irrigators Association corroborated the no7actual7 delivery case as a microcosm of the fertili:er fund scam? Rebecca #? AHuino is a Bo1al a member of the Sangguniang Panlala6igan of the Province of Sorsogon? %he feisty but heroic AHuino testified on the 8gross over5ricing of fertili:ers using 5ublic funds9 in her 5rovince? In her oral testimony she 5resented COA.s audit observation for Sorsogon 6hich cited that the Bio &ature liHuid fertili:er 6hich 6as actually sold in the mar1et at Ph5 !3F?FF to IKF?FF had been over5riced at Ph5 ! KFF?FF 5er bottle? She further cited COA.s findings that the said liHuid fertili:ers 6ere not a55ro5riate for rice and corn the 5rinci5al cro5s of the Bicolandia but for hanging 5lants li1e orchids and other ornamental 5lants?

T5e Legi2i3a2e Pla1ers in 25e Fer2iliAer Indus2r1 Are No2 Su66liers in 25e Transac2ion %he largest grou5 of legitimate 5layers in the fertili:er industry the Fertili:er Industry Association of the Phili55ines (FIAP) through its 5resident Raymond Ilustre stated that it has seventeen (!4) com5anies 6hich are basically into su55lying fertili:ers by bul1? /ith a mar1et share of 2K 5ercent FIAP is res5onsible for su55lying about !?K million tons of fertili:ers to farmers on an annual basis? Ilustre 5ointed out that FIAP did not 5artici5ate in the fertili:er 5ro@ect 6hich is the sub@ect of the inHuiry? So3e Congress3en Si36l1 Used in 25e Fer2iliAer Fund 'is2ri0u2ion

IF

/itness Alfonso Cainto "s5osa attended the hearing of the committees on &ovember !4 <FFK? )e submitted an affidavit and his testimonies in the %S& of the 5ublic hearing of the same date?

<K

In an im5rom5tu testimony former Secretary Florencio AbadI! denied that he made a reHuest or 6as a 5ro5onent in the Ph5 4<37million fertili:er fund? Accordingly his name and congressional district 6ere included in the list 5re5ared by $ndersecretary Bolante as an attachment for the release of SARO and &CA under the fertili:er fund? Abad stressed that he never reHuested for any allocation or received fertili:ers or farm in5uts for his legislative district? )e added that he had demanded eD5lanation from the 'A but to date the latter failed to satisfy his Huery? )e even made a conclusion that his name 6as merely used? Abad further mentioned that among the members of the )ouse of Re5resentatives 6hose names 6ere used in the fertili:er fund scam 6ere Re5resentatives &oynoy AHuino of %arlac and *iguel -ubiri of Bu1idnon? Senator Bia:on added to the list *untinlu5a Re5? Ruffy Bia:on as not among the 5ro5onents of any 5ro@ect under the fertili:er fund?

T5e Ra6e o@ 25e Na2ion: Ten Reasons -51 T5e Fer2iliAer Issue is a Sca3 %he fertili:er fund as covered by the Farm In5uts and Im5lements 5rogram is a 5remeditated systematic and grand agricultural theft? In the 6ords of farmers and taD5ayers the fertili:er fund scam is the ra5e of the nation? In all indications it 6as 5urely ado5ted to suit electoral 5ur5ose? %he mismanagement of the fertili:er fund is novel in its method and astounding in its shamelessness? In fact it is an ob@ect lesson in the abuse of 5o6er and the misuse of 5eo5leVs money by some officials of the 'e5artment of Agriculture and some local leaders?

I!

Secretary Florencio Abad 6as not invited in the 5ublic hearing? )e attended the &ovember !4 <FFK hearing in su55ort of a friend and fello6 5ublic servant "milia Boncodin?

<J

%en reasons are advanced 6hy this fertili:er fund mismanagement is considered the grand agricultural theft (grand theft agro); Firs2* as confirmed by Secretary Panganiban himself during the budget hearing nobody in the 'e5artment of Agriculture 1ne6 of the eDistence of the Farm In5uts and Im5lements 5rogram? 5rogram?I<
I<

In the files of the 'e5artment

itself there is no single document that 6ould su55ort the eDistence of such

%he relevant details of the transcri5t of records Committee of the /hole 'ecember J <FFK !!;GJ a?m?; %he Chairman; &o6 let me go through someWFirst @ust for some information? Can 6e have a co5y of your Farm In5uts and Im5lements Program for <FFGP *r? Panganiban? /e got a brea1do6n of that ,our )onor? %he Chairman? %he Farm In5uts and Im5lements 5rogram for <FFGP ,ou mentioned in your submission to the Senate that you im5lemented the Farm In5uts and Farm Im5lements 5rogram in <FFG to assist the #($s boost their agricultural 5roduction and to increase the income of farmers? %his is 6hat you have submitted to us? /e have a co5y of this 5rogramP *r? Panganiban? %hese 6ere submissions they reHuested 6hen they ta1e over ,our )onor from $ndersecretary Belinda (on:ales and Assistant Secretary Eose *ontes? %he Chairman? I am sorryP *r? Panganiban? %he one I submitted for the Senate ,our )onor? %he Chairman? ,es you have submitted this to us? And your re5resentation in your submission to us is that there 6as a 5rogram that you im5lemented a farm in5uts and farm im5lements 5rogram in <FFG to assist the #($s boost their agricultural 5roductionand to increase the income of farmers? I assume this 5rogram is in eDistence? %his is your submission? Is there no such 5rogramP *r? Panganiban? %his is only in <FFG ,our )onor that.s 6hy this is a 5rogram crafted by former Secretary #oren:o andW %he Chairman? All I.m as1ing is is there a co5y of this 5rogram that you mentioned hereP Because your said you im5lemented a 5rogram? /hat does this777is this a 5rogram that is submitted by or that is in eDistence in your files in the 'A or 6hatP *r? Panganiban? %his 6as 5romulgated only in <FFG? *r? Chairman? O1ayP 'o you have a co5y of thatP *r? Panganiban? /e shall loo1 for that ,our )onor? /e don.t have a co5y of it right no6? %he Chairman? O1ay? ,ou don.t have a co5y of this? ,ou mean you im5lemented a 5rogram 6ithout having seen a co5y or at leastWI.m sorry? I 1ee5 on referring to you? ,ou mean your de5artment im5lemented a 5rogram or is this @ust a777you im5lemented a 5rogram 6ithout any reference 5oint a s5ecific 5rogram that you have cited hereP *r? Panganiban? &obody in the 'e5artment of Agriculture 1ne6 about this 5rogram ,our )onor?? %hat.s 6hy inW %he Chairman? /hatP *r? Panganiban? Wmy Huest for getting the true 5icture ofW %he Chairman? &obody 1ne6 of the farm in5uts and farm im5lements 5rogramP

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Second* 6hile agricultural and fisheries moderni:ation has been a sta5le of the agriculture budget every year since the AF*A enactment in !224 the fertili:er fund 6as a single a55ro5riation meant only for <FFG? %his huge eD5ense has not been re5eated since? /hy it 6as im5lemented only in <FFG in the months of the election season in 5articular is an indication of its intended 5ur5ose and illicit ob@ective? T5ird* even the design and im5lementation of the fertili:er fund scam manifest the height of scandalous corru5tion? %he gross over5ricing as re5orted by the Commission on Audit is absolutely abominable 6ith the ordinary foliar fertili:er (6hich 6as allegedly su55lied in almost all transactions) over5riced from almost 4FF to ! <KF 5ercent? %he Commission on Audit through an Audit Observation *emorandum dated Eanuary <F <FFJ submitted its re5ort to the committees? Its observations are all indicative of massive irregularities including over5ricing frontal violations of the Procurement #a6 and 6anton 6astage of scarce government resources? In Region 0 for eDam5le the COA cited the over5ricing of fertili:ers to be from a range of 43I?K2 5ercent to as much as 5ercent of the actual mar1et 5rice of foliar fertili:ers? Canvass made by the A%#s of 'A7RF$s I and AII to determine 5rice rationale revealed that the 5rocurement of foliar liHuid fertili:ers totaling Ph5 KG 4GG <FF?FF 6as over5riced by a total amount of Ph5 G3 FJ4 !FF?FF or 4<F 5ercent? Based on the canvass made by the A%#s on Foliar #iHuid Fertili:er of eHuivalent 5roducts available in the locality the 5rocurement of &(Os 6as over5riced by a total amount of Ph5 42 J4G JG2?<J (out of the total Ph5 2< million)?
%he Chairman? "Dce5t the 5ossibility of 'irector Belinda (on:ales and Assistant Secretary @oey *ontes ,our )onor?

<3

In the acHuisition of shredders and chi55ers (6hich most congressmen in *anila acHuired using the (*A 5ro@ect fund eDce5t ParanaHue 6here 8urban gardening9 is a55arently being 5racticed) the observation of over5ricing characteri:ed the fertili:er fund im5lementation? In the case of to6able shredders and chi55ers over5ricing 6ent as high as II! 5ercent 6hile for small shredders and chi55ers it 6as <FJ 5ercent? %he 5urchases 6ere found to be eDcessive as 5rovided for in the COA Circular &o? 3K7KK 6hich states that eDcessive eD5enditure signifies unreasonable eD5enses or eD5enses incurred at an immoderate and eDorbitant 5rice? It also includes eD5enses 6hich are unreasonably high and beyond the @ust amount and those in eDcess of reasonable limits? Four25* the fertili:er fund 6as released in the months of February to *ay the traditional harvest season in the country or 8ga5asan9 months 6hen fertili:ers are of no use because the 5lanting time starts in &ovember? Fi@25* ghost and Huestionable su55liers and deliveries haunt the fertili:er fund scam? AMA*" *ar1eting is the identified su55lier of a substantial number of transactions in the Ph5 4<37million fertili:er fund? registration? Process servers of the Senate failed to locate its business address indicated in its %acloban Star a regional ne6s5a5er in #eyte and Samar re5orted that its tele5hone number corres5onds to a 8gulayan% stall in Maloocan City?II Another com5any named Castle Roc1 Construction 6as a6arded multi5le contracts under the same fund? COA in its audit memoranda noted that 8no co5ies of the documents from the 'e5artment of %rade and Industry 6as available that can sho6 that Castle Roc1 Construction can engage or do business relative to the trading of fertili:ers?9IG /itness Eose Barredo stated that F"S)A& Phili55ines Inc? one of the largest su55liers is originally a medical su55lier and started to su55ly fertili:er only in <FFG? Its office address as submitted to the 'A is a non7eDisting address?

II IG

Affidavit of Antonio Salas %S& Audit Observation *emorandum Folder < Commission on Audit February < <FFJ

<2

Si>25 a document identifying the fertili:er reHuirements for <FFI submitted by Frisco *alabanan 'irector (*A Rice Program indicated that it only needed Ph5 <3?J!I million for the entire Phili55ines? If the said document is to be ado5ted and corres5onding ad@ustment made allocations 6ill not be as huge as the Ph5 <?3FJ billion released for the year <FFG? %his is a classic case of gross dis5ro5ortion bet6een 6hat is needed by the farmers and 6asteful utili:ation of the farmers. fund? Se=en25 foliar fertili:er 6hich is a55ro5riate for ornamental 5lants and not for rice 6as su55lied? %echnical eD5erts invited by the Committees are one in saying that generally rice 6ould reHuire solid fertili:ers 6hich include urea ammonium sulfate ammo5hos com5lete fertili:ers and muriate of 5otash de5ending on the situation of the soil? Furthermore foliar fertili:er is advisable for use in high value cro5s ()0C) because it is relatively eD5ensive if it 6ill be a55lied to rice? Besides it is not effective in rice mainly because of the stature of the leaf of rice 6hich is u5right? %hus s5rayed foliar fertili:er 6ill @ust slide do6n and could not be absorbed by the 5lant? %he most effective 6ay of a55lying these nutrients to the rice 5lant is by the soil?IK Eig525* the 6rong and over5riced 1ind of fertili:er for rice 6as even diluted 6ith 6ater? Call it a case of 8double corru5tion?9 In the testimonies 5resented during the 5ublic hearings the fertili:ers over5riced by almost

! FFF R are not even 5ure fertili:ers but 6atered do6n fertili:er? Nin25* $ndersecretary Eocelyn Bolante cunningly congressmen release of the fund? 6ittingly listed !FK

KI governors and <I mayors to @ustify the immediately It s5ecifies uniform amounts regardless of 6hich

congressional districts or local units the 5ro5onents re5resent 6hether the same are rice or corn75roducing #($s or not? Bolante is not even mindful that the locality or legislative district from 6here the 5ro5onent came from is
IK

'r? *amaril $niversity of the Phili55ines College of Agriculture %S& &ovember !4 <FFK <;K3 5?m?

IF

5art of the farm7absent *etro *anila? From this list it can be deduced that it 6as an intended fla6ed 5rogram using 5ublic funds? Ten25* Bolante made the list attractive by including a number of 5oliticians as 5ro5onents but in truth and in fact their names 6ere @ust used to lend credence to the 5ro@ect? And 6hen as1ed to eD5lain the 'A cannot even @ustify 6here it 6as a55ro5riated by 6hom and 6ho disbursed it? Again it 6as a manifestation of 5ure scam?

RECOMMEN'ATIONS

!? A la6 institutionali:ing assistance to farmers through a voucher system must be set in 5lace? %he farmers and those in the agriculture sector must be accorded the right to determine their needs and acHuire the tools and other farm in5uts based on actual need? %he voucher system 6ould be more effective in terms of 5roviding timely assistance to farmers than a centrali:ed fla6ed system under the current setu5? In the absence of a la6 and considering immediate reforms that must be effected a s5ecial 5rovision to this end should be introduced in the <FFJ (eneral A55ro5riations Act? It should be noted that a similar 5rogram 6as ado5ted during the time of President Cora:on AHuino under then Agriculture Secretary Carlos 'omingue: 6hich 5roved to be successful? Reviving and reintroducing the mechanism 6ill serve the agriculture sector 6ell and efficiently? <? Administratively the 'e5artment of Agriculture must set u5 an internal 85re7audit9 service immediately? %his is to 5revent the large7scale illegal disbursement of resources and funds earmar1ed for farmers? A5ro5os all la6s guidelines rules and regulations and orders have been 5ut in 5lace
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5ertinent to the institution of an internal audit systemB 6hat is needed is its earnest im5lementation? I? A la6 that 6ould tighten the registration and regulation of foundations &(Os associations and 5eo5les. organi:ations must be introduced? In the case of the fertili:er fund scam a number of foundations POs &(Os and associations have become agents for money laundering transactions together 6ith the &ational Agricultural and Fisheries Council a regular attached agency of the 'A? %he nobility and s5irit of charity are the hallmar1s 5aving the birth of foundations &(Os POs and associations 6hich must be em5hasi:ed and embedded in the 5ro5osed la6? G? %he entire bureaucracy must adhere to the Procurement #a6? Former Budget Secretary "milia Boncodin and COA (after finding serious violations in a substantial number of transactions as observed in their AO*s) recommended that in future 5rocurements the 'e5artment of Agriculture and the regional field units (RF$s) must ensure com5liance 6ith RA 2!3G and obtain the most advantageous 5rice for the government? K? %he committees recommend the total overhauling of the 'e5artment of Agriculture? At 5resent the de5artment 6or1s in such a 6ay as a mafia or syndicate is o5erating it? %here is a substantial number of 5ro@ects being im5lemented by the 'e5artment 6ith huge a55ro5riation but its honest enforcement is not being seen and most of them are being Huestioned by its direct constituents agriculture sector? J? Strong 5robable criminal cul5ability is established hence criminal and administrative charges must be filed against; a? $ndersecretary Eocelyn Bolante
I<

the farmers

the farm6or1ers and those in the

b? Secretary #uis #oren:o c? $ndersecretary Ibarra PoliHuit d? $ndersecretary Belinda (on:ales e? and f? all Regional 'irectors of the 'e5artment of Agriculture 6ho 5artici5ated in the illegal transactions or dissi5ation of the Ph5 4<37 million fertili:er fund scam %hey must be charged for violating the #a6 on Plunder and violating the Anti7(raft and Corru5t Practices Act (Section I =e> Re5ublic Act IF!2)? In the investigations conducted from the testimonies of the 6itnesses 6ho a55eared before the committees and the records of the Commission on Audit there a55ears massive misa55ro5riation diversion of funds malversation of 5ublic funds and raids of the farmers. money? In the case of *r? Bolante testimonies to the effect that he received directly or indirectly commission and 5ercentage of 5ecuniary benefit from su55liers in connection 6ith the contracts and transactions 5ertaining to the fertili:er fund have been adduced during the 5ublic hearings? %he #a6 on Plunder states U=a>ny 5ublic officer 6ho by himself or in Assistant Secretary Eose FeliD *ontes

connivance 6ith members of his family

relatives by affinity or

consanguinity business associates subordinates or other 5ersons amasses accumulates or acHuires ill7gotten 6ealth through a combination or series of overt or criminal acts as described in Section ! (d) hereof in the aggregate amount or total value of at least Fifty million 5esos (PKF FFF FFF?FF) shall guilty of the crime of 5lunder and shall be 5unished by reclusion 5er5etua to death? Any 5erson 6ho 5artici5ated 6ith the said 5ublic officer in the commission of an offense contributing to the crime of 5lunder shall li1e6ise be 5unished for such offense? In the im5osition of 5enalties the degree of 5artici5ation and the attendance of mitigating and eDtenuating circumstances as 5rovided by the Revised Penal Code shall be considered
II

by the court? %he court shall declare any and all ill7gotten 6ealth and their interests and other incomes and assets including the 5ro5erties and shares of stoc1s derived from the de5osit or investment thereof forfeited in favor of the State? %he relevant 5rovision of the Anti7(raft and Corru5t Practices Act s5ecifically violated is Section I (e) U=c>ausing any undue in@ury to any 5arty including the (overnment or giving any 5rivate 5arty any un6arranted benefits advantage or 5reference in the discharge of his official administrative or @udicial functions through manifest 5artiality evident bad faith or gross ineDcusable negligence?U *alversation of funds as defined by the Revised Penal Code must li1e6ise be studied in the case of the several of diversion of funds committed? 4? "vidence submitted by the Commission on Audit and the affidavits and s6orn testimonies of Antonio Salas and board *ember Rebecca AHuino statements of Atty? Francisco Chave: and all farmers 6ho a55eared before the committees indicate the involvement of certain local government officials including members of the )ouse of Re5resentatives on the misuse and abuse of the fertili:er funds 5ur5ortedly for their o6n benefit? It is therefore recommended that the Ombudsman together 6ith the Anti7*oney #aundering Council scrutini:e the voluminous documents and trace its flo6 from the Regional Field $nits of the 'e5artment of Agriculture to the local officials and file charges against them 6hether elected or a55ointed for violation of the Anti7(raft and Corru5t Practices Act? A criminal com5laint under the same Act and the 5rovisions of the Revised Penal Code on 5er@ury should be filed against *r? Eesus Agda the Provincial Agricultural Officer of the Province of "astern Samar on the basis of his false testimony?

IG

3? Similarly the 5artners su55liers or subordinates in the 5rivate sector 6ho 6or1ed in cahoots 6ith the above7mentioned officials of the 'e5artment of Agriculture 6ho 5artici5ated in over5ricing su55lying substandard and diluted fertili:ers should be charged as co7cons5irators under the Plunder #a6 and Anti7(raft and Corru5t Practices Act must be filed? %he Ombudsman is advised to chec1 the various records 6hich 6ould indicate their names and the com5lete 5a5er trail of their res5ective transactions? Considering the enormous 5rofits these 5rivate entities and individuals amassed the Bureau of Internal Revenue should li1e6ise investigate these 5rivate entities for 5ossible taD evasion? 2? Although this is the Final Committee Re5ort the fertili:er fund scam

6ill never be closed 6ithout the testimony of its brains and im5lementor7 Eocelyn Bolante? %hus the order of contem5t against Eocelyn Bolante must be enforced? In addition contem5t; Secretary #uis #oren:o $ndersecretary Ibarra PoliHuit %he rationale for the enforcement of contem5t order against Bolante and the issuance of contem5t against #oren:o are anchored on their continuous defiance of the Senate committees? Four sub5oenas and one invitation had been sent to Bolante? An eHual number of sub5oenas and invitation had been eDtended to #oren:o? Both of them absconded by leaving for the $nited States avoiding the 5ublic hearings for the 5ur5ose? %he uneD5lained hurried flight of both Bolante and #oren:o in a number of instances may as a general rule be ta1en as evidence having tendency to establish their liability? the follo6ing individuals must be held in

IK

Flight strongly indicates guilt and betrays the eDistence of a guilty conscience? For the 6ic1ed fleeth even 6hen no man 5ursueth 6hereas the righteous are as brave as a lion?IJ In the case of *r? PoliHuit his being 0ice President of the (SIS is not But

6ithin the contem5lation and coverage of "Decutive Order GJG? himself to be 6ithin its ambit and 5rotection? hearings of the fertili:er mismanagement issue?

PoliHuit sought refuge in the o55ressive "Decutive Order and clothed It should be stated that PoliHuit 6as served four sub5oenas and one invitation relevant to the

!F? %he Committees recommend that President (loria *aca5agal7Arroyo must be held accountable in the mismanagement of the fertili:er fund and ta1e it u5on herself to institute measures to correct the fla6s in her administration? It bears 1no6ing that a number of testimonies adduced during the hearings 6ere that the fund 6as indeed used to assure her victory in the <FFG elections? Statements of la6yer Francisco Chave: the various farmer organi:ations led by the *ilusang Mag'u'u(id ng Pili"inas and the 5ositive declaration of Secretary "milia Boncodin that the President may have 1no6ledge on the Bolante reHuests for fertili:er funds stand and remain uncontested in the legislative records? Cogni:ant of the 5residential immunity and res5ect accorded to the Chief "Decutive the accusations against her in the fertili:er fund scam is so serious that it 5laces the 5osition of the Presidency in the balance? %he Palace loo1s at the issue as a mere 5olitical tool? Its refusal to coo5erate violates the s5irit of democracy 5romotes tyranny and breeds the ground for instability it has in fact stirred? Failure to dis5rove the charges even resorting to shield those directly res5onsible for sHuandering taD5ayersV money suggest her cul5ability and involvement in this unforgivable act
IJ

Peo5le v? Orio IIF SCRA K4J (<FFF)

IJ

made against our 5oor farmers? )er obvious indifference to eDamine the matter further and identify the irregularities surrounding the disbursement of the farmersV fund is eHuivalent to breach of official duty by nonfeasanceI4 and ineDcusable negligence of s6orn obligation? In sum the same may be labeled as betrayal of 5ublic trust in addition to the violations committed under the Anti7(raft and Corru5t Practices Act and the #a6 on Plunder? Before ta1ing on her official functions the President ma1es a symbolic act before the nation and declares a solemn 5ledge to the 5eo5le that the Constitution reHuires; UI do solemnly s6ear (or affirm) that I 6ill faithfully and conscientiously fulfill my duties as President of the Phili55ines 5reserve and defend its Constitution eDecute its la6s do @ustice to every man and consecrate myself to the service of the nation D D DU /ith this in mind the committees urge the President to heed the clarion call of 5ublic service enca5sulated in the dignity of this oft7re5eated maDim that Ua 5ublic office is a 5ublic trust?U %he 5eo5le should be given the o55ortunity of seeing the truth in U=t>he State shall maintain honesty and integrity in the 5ublic service and ta1e 5ositive and effective measures against graft and corru5tion?U %he committees challenge the President to brea1 her silence and 5ut together the 5ieces of the unfinished 5u::le? %o this date no effort on her 5art has been made no categorical denial 6as even heard? But all allegations and testimonies 5oint to her benefiting the most in an intricate scheme of dece5tion and fraud? Only this much the committees of the Senate 1no6; that the fertili:er fund 6as misused? It 6as corru5ted? It 6as intended to assure her victory? *rs? President could it be trueP %he committees demand the truth? %he Fili5ino farmers deserve no less?
I4

'efined as the omission of an act 6hich a 5erson ought to do (Blac1s #a6 'ictionary)

I4

E6ilogue %he history of our race and each individualVs eD5erience are so6n thic1 6ith evidence that a truth is not hard to 1ill and that a lie told 6ell is immortal?I3 It is unfortunate that the inHuiry on the P4<37million fertili:er funds has been tagged as one of the Senate7initiated 8destabili:ation9 moves aimed at unseating President (loria *aca5agal7Arroyo? Adamant on its 5osition the Palace via the dictatorial "O GJG refused to give the go7signal to Agriculture de5artment officials and others in the "Decutive de5artment including those in the government7o6ned and7 controlled cor5orations (li1e PoliHuit) to testify in the Senate hearings 6hich it dubbed as a legislative underta1ing 8in aid of destabili:ation?9 Pathetically it is a 5olitical inter5retation reflecting the current turmoil hounding the legitimacy of the incumbent and disres5ectful and insensitive about the 6ay democratic 5rocesses function? %ruth is the only safe ground to stand on? %he Senate 5ursued the inHuiry in search for truth L the hidden facts about 5ublic funds distributed shortly before the <FFG Presidential elections L in aid of legislation destabili:ation? Section 4 Article III of the Constitution guarantees the 5eo5leVs right to information on matters of 5ublic concern in this manner; Sec? 4? %he right of the 5eo5le to information on matters of 5ublic concern shall be recogni:ed Access to official records and to documents and 5a5ers 5ertaining to official acts transactions or
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not

*ar1 %6ain 8 Advice to ,outh9

I3

decisions as 6ell as to government research data used as basis for 5olicy develo5ment shall be afforded the citi:en sub@ect to such limitations as may be 5rovided by la6? %he State 5olicy of full trans5arency in all transactions involving 5ublic interest reinforces the 5eo5leVs right to information on matters of 5ublic concern? %his State 5olicy is eD5ressed in Section <3 Article II of the Constitution; Sec? <3? Sub@ect to reasonable conditions 5rescribed by la6 the State ado5ts and im5lements a 5olicy of full 5ublic disclosure of all its transactions involving 5ublic interest? In Chave: v? Public "states Authority the Su5reme Court ruled; %hese t6in 5rovisions of the Constitution see1 to 5romote trans5arency in 5olicy7ma1ing and in the o5erations of the government as 6ell as 5rovide the 5eo5le sufficient information to eDercise effectively other constitutional rights? %hese t6in 5rovisions are essential to the eDercise of freedom of eD5ression? If the government does not disclose its official acts transactions and decisions to citi:ens 6hatever citi:ens say even if eD5ressed 6ithout any restraint 6ill be s5eculative and amount to nothing? %hese t6in 5rovisions are also essential to hold 5ublic officials at all times D D D accountable to the 5eo5le for unless citi:ens have the 5ro5er information they cannot hold 5ublic officials accountable for anything? Armed 6ith the right information citi:ens can 5artici5ate in 5ublic discussions leading to the formulation of government 5olicies and their effective im5lementation? An informed citi:enry is essential to the eDistence and 5ro5er functioning of any democracy? As eD5lained by the Court in almonte v. &elmonte, -r. L UAn essential element of these freedoms is to 1ee5 o5en a continuing dialogue or 5rocess of communication bet6een the government and the 5eo5le? It is in the interest of the State that the channels for free
I2

5olitical discussion be maintained to the end that the government may 5erceive and be res5onsive to the 5eo5leVs 6ill? ,et this o5en dialogue can be effective only to the eDtent that the citi:enry is informed and thus able to formulate its 6ill intelligently? Only 6hen the 5artici5ants in the discussion are a6are of the issues and have access to information relating thereto can such bear fruit?UI2 At the onset it 6as em5hasi:ed that the inHuiry 6as called to allo6 the Senate to se5arate truth from fiction either Huashing or confirming the re5ort of the Phili55ine Center for Investigative Eournalism 6ith the end vie6 of recommending a55ro5riate measures? %he resolution 6as filed and the inHuiry commenced to honor trans5arency 6hich is vital to good governance because 5ublic office is a 5ublic trust? Peo5le deserve the right to be informed of ho6 effective the government has im5lemented 5rograms such as the 8Ginintuang Masaganang Ani Program9 or (*A Program 6hich envisioned a subsidy for farmers in the form of farm im5lements and 5roduction in5uts 5ursuant to the Agriculture and Fisheries *oderni:ation Act (AF*A)? Furthermore it is the constitutional duty of the Senate to eDercise its functions according to its 5o6ers enabling a system of chec1s and balances in government? Eustice Isagani Cru: em5hasi:ed this conce5t; /hat ma1es the doctrine of se5aration of 5o6ers es5ecially 6or1able is the corollary system of chec1s and balances by means of 6hich one de5artment is allo6ed to resist encroachments u5on its 5rerogatives or to rectify mista1es or eDcesses committed by the other de5artments? %he eDercise of this authority is not itself an arrogation inasmuch as it is the Constitution itself that 5rovides for this system of counteraction? %he theory is that the ends of the government are better achieved through the eDercise by its agencies of only the 5o6ers assigned to

I2

Francisco I? Chave: v? Public "states Authority et?al? (?R? &o? !II<KF Euly 2 <FF<?

GF

them sub@ect to reversal in 5ro5er cases by those constitutionally authori:ed?GF %o brand the Senate.s Huest for truth trans5arency as 5art of an orchestrated destabili:ation 5lot smac1s of irres5onsibility rooted on an insecure stance dis5layed by the current administration due to its lingering crisis of legitimacy? #i1e6ise the 5remeditated and methodical abuse of the chec17and7balance function of the Senate by *alacanang is chilling and needs to be sto55ed? %he absence of remedy to correct the blatant and eD5loitative acts of the current administration is severely hurting the country and itself? %he main cul5rit for the country.s current 5olitical 6oes is the shelving of truth instead of digging it in order to 5rotect the seat of 5o6er 6hich has long been eD5osed to be un6orthy? %hose 6ho ma1e 5eaceful revolution im5ossible 6ill ma1e a violent revolution inevitable?G!

GF G!

Isagani Cru: Phili55ine Political #a6? +ue:on City; Central #a6boo1 Publishing Co? Inc? <FF< 5?4? Eohn F? Mennedy in s5eech at the /hite )ouse !2J<

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