NEWSBREAK

Almost half of PDAF goes to favored NGOs

BY ARIES C. RUFO
POSTED ON 07/26/2013 1:20 PM | UPDATED 07/30/2013 9:10 AM

MANILA, Philippines – It isn’t just alleged public fund syndicate head Janet Lim-Napoles and her dubious non-governmental organizations (NGOs).

There’s a bigger but seemingly exclusive network of groups outside government that have been cornering lawmakers' pork barrel in recent years.

In a continuing study of audit reports on the National Agri-Business Corporation (Nabcor) from 2007 to 2011, Rappler uncovered NGOs with interlocking
interests repeatedly getting solons’ funds despite unfavorable findings by state auditors.

Of the 26 NGOs that availed themselves of the Priority Development Assistance Fund (PDAF) through Nabcor, there were 7 that shared incorporators and
officers with 2 to 4 others in the list. These 7 favored groups included 2 that have been identified with Napoles.

These 7 “sister” NGOs cornered P611.03 million – almost half (45%) – of the P1.35 billion that the Commission on Audit (COA) found to have been
misappropriated or misused by 26 NGOs.

Nabcor is under the Department of Agriculture, tasked to ensure that the DA’s investments in livestock and agriculture enterprises are made sustainable
rather than as outright expense. It acts as a markethehing arm of the DA in the acquisition and distribution of farm outputs.

We have focused our research on this government-owned and -controlled corporation after whistleblower Benhur Luy identified it as one of at least 3
government entities through which alleged scam brains Napoles usually accessed the PDAF of senators and congressmen.

READ: Pork barrel 'queen' parties with solons

From 2007 to 2011, COA noted that a combined P1.35 billion of PDAF from at least 49 senators and congressmen went to NGOs that:

had no track record;

had no capability to put up counterpart funds;
had interlocking interests with other beneficiary NGOs;
did not comply with COA regulations;
failed to provide a list of beneficiaries for the PDAF-funded projects.
In a number of cases, NGOs got several PDAF releases – with one getting as many as 10 in an election season.

The NGOs got these from congressmen from districts that were not in the same regions, suggesting that their pork barrel might not have been used for
their constituents.

Of the 26 NGOs that state auditors questioned, only 11 were in existence – at least, on paper, according to their incorporation records at the Securities and
Exchange Commission – years before the 5-year period audited by COA.

Four do not have incorporation records at all, although 2 of them have names bearing big similarities with NGOs registered with the SEC.

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The rest of the NGOs were incorporated only shortly before they availed themselves of the lawmakers’ pork barrel.

The 7 NGOs with interlocking interests and the amount of PDAFs they received over 5 years were the:

Social Development Program for Farmers Foundation Inc – received 7 releases amounting to P225.28 million.
Kabuhayan at Kalusugan Alay sa Masa Foundation – 16 releases, totalling P179.74 million.
Kaagapay Magpakailanman Foundation Inc – 3 releases, totalling P63.12 million.
Kasangga sa Magandang Bukas Foundation Inc – 1 release, P56.55 million.
Gabay at Pag-asa ng Masa Foundation – 1 release, P52.87 million.
People’s Organization for Progress and Development Foundation – 1 release P24.25 million.
The Likhaan Group Inc – 2 releases, totalling P9.22 million.
Of these 7, Social Development Program for Farmers Foundation Inc and People’s Organization for Progress and Development Foundation have
whistleblower Benhur Luy as an incorporator and officer, indicating its link to Napoles.

The two other NGOs on the list that Luy said was created by Napoles (but didn’t have Luy as incorporator) are:

Masaganang Ani Para sa Magsasaka Foundation, which received two PDAF releases totalling P121.78 million.
Pangkabuhayan Foundation Inc – 2 releases, totalling P33.71 million.
In all, Napoles’ 4 NGOs got 12 PDAF releases through Nabcor totalling P405.02 million. They comprised 30% of the total released to questionable NGOs. In
fact, the amounts received by Social Development and Masaganang Ani were the first and third highest amounts, respectively, that went to NGOs.

The following names were listed as incorporators and officers of multiple NGOs questioned by COA:

Godofredo Roque
Kabuhayan at Kalusugan Alay sa Masa Foundation
Kaagapay Magpakailanman Foundation Inc
Kasangga sa Magandang Bukas Foundation Inc
Gabay at Pag-asa ng Masa Foundation Inc
Marilou Antonio
Kabuhayan at Kalusugan Alay sa Masa Foundation
Kasangga sa Magandang Bukas Foundation Inc
Gabay at Pag-asa ng Masa Foundation Inc
Marilou Ferrer
Kaagapay Magpakailanman Foundation Inc
Gabay at Pag-asa ng Masa Foundation Inc
Carlos Soriano
The Likhaan Group Inc
Kaagapay Magpakailanman Foundation Inc
Miraflor Villanueva
Kasangga sa Magandang Bukas Foundation Inc
Kabuhayan at Kalusugan Alay sa Masa Foundation

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Senators’ pork

Rappler also noted interesting releases during election seasons.

In 2007, PDAFs were released to NGOs less than two months before the May 14, 2007, polls, which was in violation of the election ban. A single release
amounted to P23 million just five days before the elections.

In the 2009-2010 audit, Kabuhayan at Kalusugang Alay sa Masa Foundation Inc got 10 releases amounting to P65.96 million.

Senators’ pork barrel releases carried interesting stories as well.

In 2009-2010, two senators – Edgardo Angara and Juan Ponce Enrile – allocated their PDAF of P20 million and P15 million, respectively, to an NGO that
was formed only in 2009.

The group therefore had no track record, in violation of COA rules.

Senator Jinggoy Estrada released a total of P9.7 million to the Quezon City-based MAMFI in two tranches in 2010. COA noted irregularities in the
transaction as well as project implementation.

The check issued for P8.245 million representing 85 % of the project cost was not submitted for audit. Two persons without authorization from the NGO
received the checks issued by Nabcor.

Senator Ramon “Bong” Revilla allocated P9.7 million – interestingly, the same amount requested by another group from Senator Estrada – to St. James
the Apostle Multi-Purpose Cooperative.

This was “despite its failure to comply with the requisites for entitlement to government funds,” the COA said. The audit agency also found out that the
money was deposited to a Land Bank account in Quezon City.

“However, there was no proof submitted that the said account belongs to the Cooperative.” Ninety percent of the total project was immediately released
to the cooperative shortly after signing of the MOA between the cooperative and Revilla’s office.

READ: Admin solons linked to pork barrel scam

Pattern of anomalies

A common anomaly cited by COA among Nabcor’s beneficiary NGOs was that they had offices outside the project sites. COA rules require that the NGO
should be based in the community where it is implementing a project.

For example, the office of Napoles’ Social Development Program for Farmers’ Foundation is located in Biñan, Laguna, but its supposed projects were based
in Sarangani, Agusan del Sur, Benguet, South Cotabato, Pangasinan, Lanao del Sur, and Masbate.

COA also found that checks issued by Nabcor to the same NGOs were deposited in different account numbers. This may corroborate claims by former
employees of Napoles that they deposited money to Napoles’s personal bank accounts.

Some of the NGOs failed to submit a list of beneficiaries.

READ: Palace: NGOs asking for PDAF to be vetted

As early as its 2008 audit report, COA found that “there were no list of beneficiaries” provided by 17 NGOs that received the pork barrel that year. There
were no inspection reports or certificates of project completion.

Despite these deficiencies, however, 8 NGOs continued to receive pork barrel for 2009 and 2010. Napoles’ Social Development and Masaganang Ani.

In its recommendations in the 2011 report, COA issued a “notice of suspension” to all the NGOs covered in the 2009-2010 audit. This was after all its
recommendations to address the deficiencies were not implemented by Nabcor and the NGOs. – with Reynaldo Santos Jr/Rappler.com

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 Related topics you can follow:
Benhur Luy • Carlos Soriano • Godofredo
Roque • Janet Lim Napoles • Marilou
Antonio • Marilou Ferrer • Miraflor
Villanueva • Nabcor • National Agribusiness
Corporation • PDAF • Priority Development
Assistance Fund • pork barrel scam • public
finance

Write a comment

33 Comments Sort Subscribe

Cox Alviso 67 days ago

Delete PDAF, not rename.
Reply Share 1 reply +4

Cox Alviso 67 days ago

Suspending NGOs is a tap in the wrist for stealing MILLIONS of taxpayers money. I say twist their arm and make them cough up our money, precious
taxpayers money.
Reply Share +3

Angelito Moral 52 days ago

Only in the Philippines ..huli na ayaw pang magseresign...sa Ibang Bansa madawit lang ang pangalan nag reresign na agad..sa atin PAKAPALAN ng MUKHAat
hiya..sabi nga mas makapal mas MATIBAY...motto of the day..AANHIN ko boto Kung WALANG isang libo..Di ko kayang magnakaw ng piso DAHIL GUSTO koy
BILLION...aanhin ko PISO..kung meron naman MILLYON...di na uso hiya akoy magugutom..yung mga MAKAKAPAL ang MUKHAdyan PUWEDE na uli kayong mag
APPLY ng Bogus na NGO sa GOVYERNO.. approaved na po agad at wala na pong requirements ..basta importante MAKPAL ang MUKHAat DI-TINATABLAN ng
HIYA,,,.at pinaka dabest...WALANG KONSENYAat BUDHI...bawal ang MATAPAT...disquilified agad..
Reply Share +3

Papi 55 days ago

Ung totoo... sa lahat ng reports na to, anong ginagawa ng gobyerno?
Bakit patuloy pa ring nasa pwesto ang mga nabanggit na politicians?

Meron na ba talagang nakasuhan at naparusahan dahil sa graft & corruption?

Reply Share +1

whengtek 66 days ago

This article would have caught fire if it headlined the 2 staunch allies of PNoy Dir. Gen Villanueva and Risa Hontiveros.

Now, it kind of gives the accused the benefit of the doubt that even the corruption buster lawmakers can get involved.
Reply Share 1 reply +1

Lisa Querijero 66 days ago

I think this is smoke ascreen compared to that of funds given to Napoles' NGO. Joel Villanueva, claims his anti-corruption party list CIBAC didnt receive any
pork barrel being a staunch critic of Gloria at that time. BUT HOW COME FUNDS WERE RELEASED WITHOUT HIM REQUESTING ANYTHING? My dear
Watson, Malacanang gives the green light, red light to realease PDAF (pork)!!!!! FG Mike Arroyo, you are just full of mess.

Opinion ko, Joel Villanueva or Riza, come on! They couldn't do this willingly.
Reply Share 0

ajchac 66 days ago

I really really really really hope they will convert PDAF into a jet fighter squadron.
Reply Share 1 reply +1

ajchac 66 days ago

In 1 term of a president, we can get around 6 squadrons if PDAF will be diverted.
Reply Share 0

Domingo Conde 67 days ago

If the President is determined in eradicating corruption in all levels, he must start by suspending releases of all PDAF! If he cannot or afraid of the ire of the
legislators, at least, suspend releases of PDAF for those named legislators involved in the scam! Mr. President do you want your countrymen to put justice into their

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 hands?

The investigation should not just focus on the NGO'S and supposed beneficiaries but to the sources, legislators! Moratorium on PDAF!
Reply Share +1

Geo Padilla 42 days ago

NGOs were meant to be the link when there are gaps between the government institution and the intended beneficiary. Now, they serve as "clearing houses" for
government funds to go to government officials and conspirators in the private sector. Before it was just "tongpats" that these people claim while the rest goes to an
actual project. Nowadays, its just outright "highway robbery" and the beneficiary was unaware that he was used for something he didn't even get a single centavo.
Reply Share 0

dailymanila 43 days ago

The COAaudit covered only 38% of the total PDAF funds released. It would be interesting to know what happened to the rest.
Reply Share 0

Leo Velasco 43 days ago

Enrile, Bong Revilla, Jinggoy, BongBong Marcos and Honasan ipamana nyo yan sa mga anak at apo ninyo..para may magpatuloy ng mga magandang
naumpisahan nyo.Si Napoles tapos na..kayo namamayagpag pa.
Reply Share 0

Randy Ganat 45 days ago

Estafadora el magnanakaw, magpakasarap k...................................................
Reply Share 0

Show more comments

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