Fire hits DBM building; officials say no fund scam cover-up

An hour-long fire hit the office of the Department of Budget and Management (DBM) near Malacañang in Manila early yesterday morning, triggering speculation that the fire was deliberately set to cover up the P728-million fertilizer fund anomaly under investigation by the Senate.

Budget Secretary Romulo Neri denied any cover-up and claimed no controversial files were destroyed in the fire that hit a computer server room of the DBM.

Neri stressed the damage caused by the fire was limited only to DBM’s computer server room located at the rear right portion of the first floor of its two-story building.

"We have backup files so no data were lost. Our networking capability (was) temporarily damaged, other physical files (were) water damaged but recoverable," Neri said.

Arson investigator Senior Fire Officer 1 Rodelio Nelvis said the blaze started at the DBM’s computer room located at the ground floor of the two-story building at J. P. Laurel street and Ayala Boulevard in San Miguel, Manila.

Nelvis said the guards earlier noticed smoke emanating from the rear right portion of the building.

The fire was finally placed under control at 7:39 a.m. yesterday. No one was reported hurt during the fire but the property damage was initially estimated at P150,000.

A DBM official said the computer servers that were razed by the fire were expensive and it might take some time to replace them owing to their cost. The same official said the building also housed the bureau offices.

Opposition lawmakers, however, were quick to claim that the fire was intentional to cover up the alleged scam involving the fertilizer fund under investigation by the Senate.

"Burning (the) DBM office has all the earmarks of a cover-up through arson," opposition Sen. Aquilino Pimentel Jr. said.

Pimentel claimed the fire occurred two days after resigned budget secretary Emilia Boncodin testified before the Senate implicating President Arroyo and other officials in the fertilizer fund anomaly.

Opposition congressman Iloilo Rep. Rolex Suplico also claimed the fire was "highly suspicious."

"The DBM is in Malacañang and is tightly guarded with troops. Thus it is safe to conclude that vital documents and the truth in connection with the 2004 fertilizer scam have gone up in smoke as planned," he said.

Suplico pointed out the fire occurred after Boncodin made a statement implicating her former boss and other officials in the scam.

The opposition claimed the money was used to finance Mrs. Arroyo’s campaign kitty during the 2004 presidential election.

Boncodin, who is confined at the National Kidney Institute, issued a deposition to the Senate committee on agriculture led by Sen. Ramon Magsaysay Jr. claiming there was mismanagement and misuse of the fertilizer funds for the Ginintuang Masaganang Ani (GMA) program.

Boncodin claimed irregularities over the release of P728 million for the purchase of farm inputs to the Department of Agriculture under special allotment release order (SARO) under E-01-00164.

She said the SARO was dated Feb. 3, 2004, barely a few months before election day.

Boncodin stated that during her term, the DBM authorized the release of P291.2 million to the Land Bank of the Philippines for the account of then Agriculture secretary Cito Lorenzo and former undersecretary Jocjoc Bolante.

She explained the amount of 291.2 million represents 40 percent of the allotment release under the Agriculture and Fisheries Modernization Program.

Boncodin added that the releases were made by the DBM upon the request of the Agriculture department. "Also, I would like to state that the release made by the DBM was for farm inputs which, in our understanding, could incorporate fertilizers, seeds and even insecticides. But the actual purpose for which this is used will, of course, depend on the DA," Boncodin said.

Notwithstanding the absence of the DA officials involved in the scam, Magsaysay said the committee is duty-bound to come out with a report on the issue. Lorenzo and Bolante left for the United States hours before they were supposed to appear before the Senate inquiry last Tuesday. — With Christina Mendez, Delon Porcalla