"The agriculture sector’s solid growth in 2004 is perhaps the best proof that government support did indeed reach farmers and other legitimate agricultural beneficiaries, contrary to accusations that money for agriculture was diverted to that year’s presidential election campaign," she said.
Gonzales said that in 2004, agriculture, which makes up a fifth of the country’s gross domestic output, grew by 5.12 percent, compared to the 3.72 percent growth in 2003 when Luis Lorenzo was secretary of agriculture.
The agriculture sector posted one of its strongest growth spurts in 2004 despite unfavorable weather, she added.
Gonzales said amid the controversy, the DA received written testimonials from farmers saying they had indeed received farm inputs and implements that year.
"This just proves that, contrary to claims by some people from the farming sector of impropriety and alleged ‘ghost deliveries’ under the DA’s Farm Inputs and Farm Implements Program (FIIP), we have done our job," she said.
Gonzales said she hopes that a Senate investigation on the disposition of P728 million in FIIP funds would not lose sight of the positive and strong performance of the agriculture sector in 2004.
"Surely, the DA would have been grossly remiss if it had released the funds too late to be of any help to the farmers," she said.
Gonzales said the investigation has focused on the timeframe of the fund releases while ignoring the accomplishments of the program.
"It was mere coincidence that the funds were released during the campaign season, which happened to be the start of that year’s planting season," she said.
The bulk of the funds in question were covered by a memorandum of agreement between Lorenzo and former administrator Arthur Yap of the National Food Authority in May 2003.
In that agreement, the NFA was to procure fertilizers from the DA and the Fertilizer and Pesticide Authority, and distribute the products to farmers on the master lists of the DA and its regional field units.
The FIIP is only a part of the DA’s regular activities aimed at assisting local government units in boosting agriculture production and the incomes of their farmer constituencies.
The program involves the participation of local officials like congressmen, governors and mayors since they have firsthand knowledge of the needs of their respective communities.
Meanwhile, two leaders of the House of Representatives urged DA officials to explain how the P2.806 billion in fertilizer and farm input funds that Malacañang released before the May 2004 presidential election was used.
Majority Leader Prospero Nograles and Isabela Rep. Edwin Uy, agriculture committee vice chairman, said the officials should present their explanation, together with supporting documents, to the Commission on Audit (COA) and to the public so these could be scrutinized to "determine if there were indeed irregularities" in the use of the funds.
"This is the correct method to get to the bottom of this controversy, and not a haphazard Senate probe that simply accuses House members who have to answer through the media," the two said.
Nograles and Uy said the COA should have made a complete audit of all the P2.8 billion in fertilizer and farm input funds "before making public their raw information on the DA funds."
"As it now appears, administration congressmen who were allotted funds by the DA are being subjected to trial by publicity without hard evidence via the Senate probe," they added.
In fairness to COA auditors, they submitted a complete and thorough examination of P60.7 million in fertilizer money allotted to six congressional districts in Masbate and Albay in the Bicol Region.
They found that the liquid fertilizer that was purchased through two private foundations was overpriced by 800 percent to 1,300 percent. They estimated that of the P60.7 million, nearly P49 million, or 82 percent, was skimmed through overpricing.
The auditors also found out that many of the congressmen allocated fertilizer funds diverted the money to their favorite foundations.
In Bicol, they identified the conduits as the People’s Organization for Progress and Development Foundation, Inc. (POPDFI) and the Philippine Social Development Foundations, Inc. The auditors went to the extent of visiting the offices of the foundations at the common address listed in documents filed with the DA, but failed to locate the offices.
The same foundations received more than P30 million from congressmen in Region 10, Caraga and Cebu.
It was elusive former agriculture undersecretary Jocelyn "Jocjoc" Bolante who requested Malacañang for the fertilizer money on Feb. 2, 2004, three months before the election. He listed 110 congressmen, including Nograles and Uy, 53 governors and 26 town mayors to support his request.
Nograles was allocated P3 million, while Uy was given P5 million. They have not explained where and how they spent the money.
In a related development, POPDFI sent The STAR certification documents from the Securities and Exchange Commission to show they are not a bogus foundation. — With Jess Diaz