NFA chief, 9 others face graft charges

National Food Authority (NFA) Administrator Arthur Yap, seven officials of the Department of Agriculture (DA) and two other people were charged with graft before the Ombudsman yesterday over the alleged illegal purchase of P432 million worth of fertilizers.

In a four-page complaint, DA resident Ombudsman Marlene Garcia Esperat alleged that Yap and the other respondents, along with two other private individuals, should be held accountable for graft, technical malversation and gross neglect of duty in conspiring to overprice the purchase of fertilizers.

Yap, on the other hand, said the charges filed against him were "malicious and baseless."

Yap, who takes over as DA secretary from Cito Lorenzo tomorrow, claimed the charges were part of the "orchestrated demolition job" to destroy his reputation as a government official.

"This project (purchase of fertilizers) occurred last year and yet, she only filed this case recently, coming so soon after the announcement of my appointment as DA secretary. Clearly, this is a case of political harassment," Yap said without elaborating.

Esperat claimed the respondents — along with Pepito Alvarez, owner of the Philippine Phosphate Fertilizer Corp. and businessman Jesus Varela — have conspired in overpricing the purchase of P400 per bag worth of fertilizers by as much as P100.

"It is P50 to P100 over and above the regular price in the market," Esperat revealed, in what she called "unlawful negotiated procurement."

She said the purchase is in violation of the DA bidding rules, aside from the department’s "programmed project" for such purpose for last year.

"Fertilizer procurement is a DA function," Esperat said. "A negotiated procurement instead of regular procurement by bidding is a violation of the law. Negotiated procurement is only applicable for emergency purposes."

Esperat argued that NFA should not have been given the authority to purchase the fertilizers since the agency’s function is merely to buy and sell grains.

In effect, the DA-NFA memorandum for "negotiated procurement" was illegal, she said.

Esperat claimed Yap was the implementor of the illegal project and Philphos became the "favored bidder," courtesy of Varela’s connections with a certain Chito Santos.

She said Santos and Varela were "classmates." Varela was a former DA assistant for finance and administration, she said.

Among those charged were DA Undersecretary Jocelyn Bolante, Assistant Secretary Edmund Sana, Assistant Secretary Ibarra Poliquit, Benjamin Tabios, DA legal service Eduardo Garcia. DA chief accountant Ophelia Agawin, Varela and Alvarez, as owners of Philippine Phosphate Fertilizer Corp.

Yap, for his part, defended the procurement, clarifying the P200 million of the P432 million funds came from the agriculture department. Of the P200 million, only P93.8 million was actually used in the procurement of fertilizers.

"The balance of the transfer was liquidated and returned to the coffers of the DA," he said.

Yap also insisted there was proper awarding and bidding of the procurement project.

"The NFA worked hard to ensure that only the price most advantageous to the government would be obtained in this project. I assure the public that the DA and the NFA are not only united in the cause of serving the farmer, it does so in a transparent and legal manner," Yap said.

Esperat said the project might have prejudiced other farmers who have been effectively "excluded in the program."

She said public funds were left wasted by the procurement project, which should have been used in other projects and "not for the commission of the key players in this transaction."