Fertilizer overprice just tip of the iceberg – COA

The P36-million fertilizer overpricing that the Commission on Audit has uncovered in three congressional districts in the Bicol Region appears to be just the tip of the iceberg, COA officials said yesterday.

Copies of COA reports that The STAR has obtained showed that liquid fertilizer intended for six more districts in that region had been overpriced by 800 percent to 1,300 percent, the same extent of price padding discovered in the three districts. The manner of the alleged overpricing is also the same.

Yesterday, Malacañang backed an investigation into the alleged misuse of pork barrel funds by three Bicol congressmen and a party-list representative.

"That is something that needs to be looked into," Executive Secretary Eduardo Ermita told reporters.

The six districts are those of Representatives Emilio Espinosa, Narciso Bravo Jr. and Rizalina Seachon of Masbate, and Joey Salceda, Edcel Lagman and Carlos Imperial of Albay.

These districts were allocated a total of P13.5 million by the Department of Agriculture out of the billions in its GMA (Ginintuang Masaganang Ani) funds. Seachon’s district was given P5 million, while Espinosa and Bravo’s received P3 million each. Some P1.5 million was released for the towns of Guinobatan, Polangi and Libon in Albay’s area, while Bacacay in Albay’s district and Camalig in Imperial’s turf were given P500,000 each.

The agriculture department released the funds to two private groups that implemented the fertilizer distribution project. These were identified as Philippine Social Development Foundation Inc. (PSDFI) and People’s Organization for Progress and Development Foundation, Inc. (POPDFI), the same conduit of money for the previous fertilizer purchases that auditors found to have been overpriced by P36 million.

The COA said the brand of liquid fertilizer that was purchased was Prime EC Foliar Liquid. It was purchased at P800 per bottle when similar brands such as Bayfolan, Superharvest and Biogold were available on the market at P58.50 to P90.54 only, the COA found out.

"The money value for the excess (overprice) ranged from P11.9 million to P12.5 million," auditors said.

The P13.5 million given to the six districts is part of the nearly P3 billion in fertilizer and farm input funding that President Arroyo released to the agriculture department in the middle of last year’s presidential election campaign.

Mrs. Arroyo’s critics claim the money was used for her campaign, though her spokesmen have denied the accusation. The apparent mishandling of the money has come to be known as the "P3-billion fertilizer scam." The Senate is now investigating the irregularity and is seeking former agriculture secretary Luis "Cito" Lorenzo and his former undersecretary, Jocelyn "Jocjoc" Bolante, to shed light on the scam.

Reached by reporters, Salceda said he had no hand in, and in fact did not know about, the fertilizer purchases.

"That is beyond my knowledge. Obviously, the funds were released to the LGUs (local government units)," he said.

He was stunned by the extent of the alleged overpricing. He called for the Office of the Ombudsman to step in, do its own inquiry, summon all the officials involved, including suppliers, and file the appropriate charges.

He said it was the agriculture department that implemented the project.

"I do not know those foundations, and I do not know why they have to be used," he added.

In fairness to all the congressmen of the districts that were given funds, the COA did not specify who was involved in the alleged irregularity and who profited from the questionable deals.

The audit commission urged concerned agencies to file charges against those behind the transactions for violating the Anti-Graft and Corrupt Practices Act.

The P13.5 million is in addition to the P47.2 million that three Bicol congressmen and one party-list representative allocated for fertilizer purchases out of their priority development assistance fund or PDAF, the nomenclature for the congressional pork barrel.

The House members were Joseph Santiago of Catanduanes, who appropriated P12.2 million; the late Fausto Seachon Jr., P20 million; Renato Unico Jr. of Camarines Norte, P10 million; and Ernesto Pablo of the party-list group Association of Philippine Electric Cooperatives (APEC).

The same brand of liquid fertilizer, Prime EC, was purchased and the same fund conduits, PSDFI and POPDFI, were used.

"Audit disclosed that the cost of Prime EC Foliar Liquid of P800 per bottle per 300ml was 828 percent to 1,267 percent, or from P34.5 million to P36.4 million higher compared with other brands with the same specifications such as Bayfolan and Superharvest," the COA reports said.

The commission identified the supplier of Prime EC as Jo-Chris Trading. It did not give its address.

It said it could not locate the two fund conduit foundations at their common given address at the EP Housing Village, Western Bicutan, Taguig, Metro Manila.

In a statement, Santiago said neither he nor his office had anything to do with the alleged overpriced fertilizers delivered to the farmers of Catanduanes.

"The only role that my office had was to intercede, in good faith, for the farmers of Catanduanes and to request fertilizers from the Department of Agriculture," he said while urging the Ombudsman to look into the matter.

Meanwhile, Ermita said all fund releases to congressmen must be used for their intended purpose, subject to government auditing rules.

"So the House (of Representatives) should ask those congressmen to clear out (their names)," he said. "The congressmen involved should account (for the funds) properly and see to it that these funds were used for the purpose they were released."

Ermita said Malacañang should not be held responsible for the release of such funds supposedly to boost support for President Arroyo during the election season.

"I don’t know if you will call it ministerial, but it’s the DBM (Department of Budget of Management) that (issues) the Special Allotment Release Order," he said. — With Aurea Calica