Caraga fertilizer anomaly revealed

Congressmen and local officials in the Agusan-Surigao provinces, known as the Caraga Region, diverted more than P22 million in fertilizer funds to their favorite foundations.

The funds are part of the P2.8 billion in farm input money that Malacanang released to the Department of Agriculture (DA) shortly before the May 2004 elections and which was allegedly used for President Arroyo’s election campaign.

The agriculture department, principally the elusive former undersecretary Jocelyn "Joc-joc" Bolante, distributed the money to pro-administration members of the House of Representatives and local officials.

A report of the department’s Regional Field Office No. 13 based in Butuan City showed that Representatives Jesnar Falcon of Surigao del Sur, Glenda Ecleo of Surigao del Norte, Rodolfo Plaza of Agusan del Sur and Leovigildo Banaag of Agusan del Norte as well as several local officials gave the funds released to them by Bolante to three foundations.

Falcon gave P5 million to the People’s Organization for Progress and Development Foundation Inc. (POPDFI), Ecleo funneled P4.3 million to the Philippine Social Development Foundation Inc. (PSDFI), while Banaag allotted P3 million to Ikaw at Ako Foundation.

Another congressman, Prospero Pichay Jr., also of Surigao del Sur, was allotted P3.25 million, though the report does not indicate who received his funds. But while his colleagues’ funds were released shortly before the elections, Pichay’s money "was disbursed on Dec. 23, 2004" in two checks, according to the report of the DA regional office.

The report showed that PSDFI received an additional P5 million from Plaza.

But Plaza said he did not know about the money. "Ginamit lang nila Bolante ang pangalan ko, operasyon nila ‘yan (Bolante just used my name, that’s their operation)," he said.

Even governors and mayors who received millions in fertilizer funds from Bolante diverted the money to foundations.

Gov. Angelica Amante of Agusan del Sur gave P5 million to PSDFI, while the mayors of Cabadbaran and Bayugan in Agusan del Sur, Surigao City and Bacuag, Surigao del Norte allocated a total of P2.3 million also to PSDFI.

The National Organization for Agricultural Enhancement and Productivity, another foundation, received P900,000 each from the mayors of Carman, Dinagat and Burgos, all in Surigao del Sur.

The foundations were named in the report as "payees" of checks representing funds released to Caraga lawmakers and local officials who, in turn, were in were listed as "proponents." The report did not indicate where the funds were used.

The report is one of several documents that have come into the possession of the House good government committee, which has opened an inquiry into the fertilizer fund scam. The investigation was prompted by a privilege speech of Albay Rep. Edcel Lagman.

POPDFI and PSDFI appeared to be the favorite foundations of House members. The two foundations received tens of millions from lawmakers in Bicol, Central Visayas, the Lanao provinces, Caraga, and even from the party-list group Association of Philippine Electric Cooperatives.

In the Bicol Region, the two foundations used the funds it received from lawmakers by procuring liquid fertilizer that the Commission on Audit has found to be "excessively overpriced."

The overpriced ranged from 800 percent to 1,300 percent. Out of the nearly P61 million covered by the audit, P49 million, or 82 percent, was skimmed through overpricing.

Auditors tried to locate POPDFI and PSDFI at their common address in Bicutan, Taguig, Metro Manila that is indicated in documents on file with the DA, but they failed to find them.

The Senatecommittee on agriculture chaired by Sen. Ramon Magsaysay Jr., which had begun an investigation into the fertilizer fund scam middle of last year, has come up with an initial report tagging Bolante as the official who controlled the distribution of the funds.

In all, of the P728 million in fertilizer money that has been accounted for, at least P155 million was diverted to foundations.