Graft raps filed vs ex-DA chief

MANILA, Philippines - Graft charges were ordered filed yesterday against former agriculture secretary Luis Ramon “Cito” Lorenzo Jr. and officials of the state-owned firm Quedan and Rural Credit Guarantee (Quedancor) over a swine program in 2004.

In a decision dated July 12, Ombudsman Conchita Carpio-Morales said she found probable cause to indict Lorenzo for violation of the Anti-Graft and Corrupt Practices Act. 

Aside from Lorenzo, ordered charged were Quedancor president and chief executive officer Nelson Buenaflor and the firm’s board members and representatives identified as Wilfredo Domo-ong, Romeo Lanciola, Nellie Ilas and Jesus Simon. 

Also to be charged for causing undue injury to government are Quedancor regional assistant and vice president Rhomady Bernabe, Metro Livestock Inc. (MLI) general manager Joel Salazar, and MLI incorporators and directors Excel Salazar, Francis Edison Peña, Teresa Adille and Santiago Baldado.  Established in 2004, the Quedancor Swine Program (QSP) is a credit program aimed to support swine raisers in their swine fattening and breeding activities.

The program allowed farmer-borrowers to apply for a loan with Quedancor, which proceeds were not given in cash but in the form of input supplies like hogs, gilts, feeds, medicine and technical assistance.        

The ombudsman said the lack of public bidding for the project resulted in losses to the government as Quedancor lacked recourse against the supplier for late deliveries or non-deliveries.

The anti-graft court said the supplier was not made to post performance bond or contractor}s surety bond as provided under the Government Procurement Reform Act.          

The ombudsman described the procurement of swine inputs as a contract of sale between Quedancor and the private firm MLI, which should have been subjected to a bidding.    

The Office of the Ombudsman cited a report by the Commission on Audit (COA) in 2005 that classified the QSP as a “loan in kind” where the borrowers were not free to choose the supplier they wanted, as they did not have control over the supposed monetary proceeds of the loan.          

Graft investigators said MLI was allowed to participate in the QSP even if it allegedly failed to comply with the accreditation and eligibility requirements such as the two-year prior operation, and the necessary license from appropriate government agency such as the Livestock Development Division of the Bureau of Animal Industry.