Ex-Marinduque lawmaker indicted over P728-M fertilizer scam

MANILA, Philippines - The Office of the Ombudsman ordered the filing yesterday of graft and malversation charges against former Marinduque Rep. Edmundo Reyes for alleged involvement in the P728-million fertilizer fund scam in 2004.

Ombudsman Conchita Carpio-Morales also directed the filing of similar criminal cases against Department of Agriculture (DA) regional executive director Dennis Araullo, regional accountant Raymundo Braganza, regional technical directors Balagtas Torres and Rodolfo Guieb, legislative coordinator Lucille Odejar, cashier II Dory Iranzo, and Margie Tajon Luz, president and chairman of the board of trustees of the non-government organization (NGO) Gabaymasa Foundation Inc.

Records show that in 2004, the Department of Budget and Management (DBM) released P728 million for the implementation of the Farm Inputs and Farm Implements Program, otherwise known as the “Fertilizer Fund,” with the province of Marinduque as one of the identified beneficiaries of the same.

In its decision, the Office of the Ombudsman’s special panel on Task Force Abono Cases found that on March 10, 2004, a memorandum of agreement was entered into between the DA Regional Field Unit IV represented by Araullo, Reyes (representing the lone district of Marinduque) and Luz of Gabaymasa as project implementor for the procurement of fertilizers worth P5 million with B.T. Mangrubang as supplier.

In finding probable cause against Reyes and his fellow respondents, Morales said the selection of Gabaymasa as project implementor violated Commission on Audit (COA) Circular No. 96-003 that specifically provides for the process of accreditation, verification and validation of NGOs.

The Office of the Ombudsman said Gabaymasa is not based in the community where the project was implemented as its place of business is in Quezon City.

Also, only the 2003 financial statements were submitted by the NGO in violation of the COA circular which requires the submission of financial statements for the last three years to ensure that the NGO is in stable financial condition considering that based on the probe, Gabaymasa has no proven track record in the field of agriculture.

Morales concluded that “public officers Reyes, Araullo, Braganza, Torres, Guieb, Odejar and Iranzo, in conspiracy with Luz, consented or, through abandonment or negligence, permitted Gabaymasa to take the P5-million fund in the guise of lawful disbursement” exhibiting “a deliberate lack of care or diligence in the performance of their respective duties… to achieve a common design of defrauding the government.”

Meanwhile, the criminal charges against Gabaymasa representatives Concha Idica, Ma. Cristina Vizcarra, Caridad Tajon, Melencio Punzalan, Rodolfo Luz and Bernard Mangrubang of B.T. Mangrubang Enterprises were dismissed for lack of probable cause.

Insofar as the related administrative case is concerned, Araullo, Braganza, Torres, Guieb, Odejar and Iranzo were found guilty of serious dishonesty, grave misconduct and conduct prejudicial to the best interest of the service.

They were ordered dismissed from the service with accessory penalties of forfeiture of retirement benefits and perpetual disqualification from holding public office.