'Ghost' deals in ARMM happened under Ampatuans - official

MANILA, Philippines - Autonomous Region in Muslim Mindanao (ARMM) executive secretary Naguib Sinarimbo bared yesterday that the “ghost” deals worth P2.6 billion uncovered by the Commission on Audit (COA) happened during the time of the Ampatuans.

“The special audit that unearthed such questionable disbursements was conducted during our administration in 2010 but it covered the period 2008 to September 2009. In fact, we hosted the special audit team and facilitated its acquisition of all necessary data it required,” he said in an e-mail sent to The STAR.

The ARMM official was commenting on the report presented by COA chair Grace Pulido-Tan to the House appropriations committee.

The report contains “significant audit findings (for 2010),” some of which were on ARMM transactions. It did not indicate though whether the audit covered the year 2010 or previous years.

Members of the appropriations committee were of the impression that the financial examination covered last year’s transactions.

Reading from the report, Tan told the committee that the office of the regional governor (ORG) entered into “transactions amounting to P1.003 billion, which may not be considered valid and legitimate as they were supported with documents that may be considered spurious.”

“Funds received by the ORG for its operations were not properly utilized and managed, taking into consideration applicable laws, rules and regulations,” she said.

She said in Maguindanao, “transactions amounting to P856.887 million may be considered fictitious as these were either denied by suppliers or supported with spurious documents.”

“Likewise, 99 projects costing P873.448 million were found deficient by P841.925 million as these were either not implemented or implemented but validated accomplishments were way below the reported accomplishments,” she added.

Suspended ARMM Governor Zaldy Ampatuan and other officials from the Ampatuan clan were removed from office after the so-called Maguindanao massacre in November 2009.

Many of the members of the Ampatuan clan are now facing multiple murder charges in connection with the massacre.

The former governor along with his father, former Maguindanao governor Andal Ampatuan Sr., and his brother former mayor Andal Jr. of Datu Unsay, Maguindanao; and 194 others were charged for the killing of 57 people in Maguindanao on Nov. 23, 2009.

Among the dead were the wife of now incumbent Maguindanao Gov. Esmael Mangudadatu, who was then the vice mayor of Buluan, Maguindanao, and two of his sisters, two female lawyers and 30 media men who covered the supposed filing of certificate of candidacy of the vice mayor who would run for governor of Maguindanao and challenge a scion of the Ampatuan clan. Mangudadatu has since won the election.

Sinarimbo said as far as their administration was concerned, “all our fund allocations and schedule of disbursements, including public biddings, have been publicized through our online website and in major newspapers.”

The same e-mail quoted acting ARMM Gov. Ansaruddin Adiong as saying, “We have been observing utmost prudence in financial management not only because we are mandated to put things in proper order but also due to our burning desire to bring our poor region to greater heights amid challenges of unfavorable public perception of ARMM governance.”

The term of office of incumbent ARMM officials would expire on Sept. 30. After that, the law authorizes President Aquino to appoint officers-in-charge.

The President wants to introduce financial and political reforms in the autonomous region before its next set of officers are elected simultaneously with members of Congress and local officials in May 2013.

In a related development, Rep. Sherwin Tugna of the party-list group Citizens Battle Against Corruption urged authorities to file charges against those behind “ghost” deals in the ARMM.

“There must be a comprehensive investigation of these irregular transactions. The guilty must be held accountable and punished,” he said.

Meanwhile, COA had also recommended the filing of charges against former officials of the Department of Trade and Industry (DTI) of the ARMM who allegedly misused P3 million in public funds seven years ago.

The money was loaned to three non-government organizations for a so-called Tulong sa Tao Self-Employment Loan Assistance for the Poorest of the Poor program.

However, the loans were granted using deficient contracts, which did not conform to specific provisions of the Law on Obligation and Contract of the Civil Code.

In a 2010 report, state auditors said DTI-ARMM granted loans of P1 million each to the Canibungan Multi-Purpose Cooperative in Lantawan, Basilan; the Basak Multi-Purpose Cooperative in Sumisip, Basilan; and the Maguindanao Agri-Link Multi-Purpose Cooperative in Capiton, Datu Odin Sinsuat, Maguindanao.

COA said the guidelines provide for the payment of the loan within three years including the six months’ grace period with the principal and the 12-percent interest payable quarterly with additional 12 percent due to delayed payments.

State auditors said the Memorandum of Agreements (MOA) between the NGOs and DTI-ARMM failed to include provisions on how the principal loan, interest and penalty would be settled.

“So, the contract lacks one of the important elements, which is the ‘Cause or Consideration’ and therefore said contracts are all vitiated or defected, contrary to the foregoing provisions of law,” the COA report said.

Monitoring and investigation reports revealed that the reasons for the non-implementation of the intended projects by the NGOs were due to volatile peace and order situations in the target area.

“It also revealed that the NGOs could no longer be located as they ceased to operate. Because of the contract deficiencies, all NGOs failed to implement the intended programs because they are not obliged under the circumstances or contract,” COA explained. – With Michael Punongbayan