The money came from the President’s Social Fund as assistance under the "Isang Bayan, Isang Produkto, Isang Milyong Pisong Programa ni Pangulong Arroyo" in support of President Arroyo’s goal of generating at least one million jobs a year.
Under the program, local governments availed themselves of a P1-million soft loan which they, in turn, used to help small and medium-scale enterprises. Nueva Vizcaya got its loan last year.
Lawyer Epifanio Galima, provincial legal consultant, said the investigation was prompted by allegations that the release of the P1-million fund to a group called United Persons Differently Able Association violated the guidelines of the Palace-initiated program.
Galima cited documents showing that a P1-million check was released to one Horcolino Sampang, the association’s president, last June 9 after he entered into a memorandum of agreement with former governor and now Rep. Rodolfo Agbayani.
Galima said the qualifications of Sampang’s group as a beneficiary of the fund are now being questioned.
For one, he said the group is not on the list of groups accredited by the Sangguniang Panlalawigan for priority financial or technical assistance.
The group, he said, is also not registered with the Securities and Exchange Commission.
Galima added that Sampang issued an official receipt under the name of a different group, the Provincial Federation of Persons with Disability of Nueva Vizcaya Inc., with which it reportedly partnered to utilize the fund.
Earlier, Gov. Luisa Lloren Cuaresma said she only discovered the P1-million fund when the Commission on Audit sought a progress report on how it was utilized.
"It’s the provincial government and the people who will pay for its amortization and interest. We cannot manage just sitting here with our poor constituents suffering economically while a few are enjoying our hard-earned money," she said.
Galima said a COA report furnished them noted alleged defects or violations in the release of the fund.
Agbayani could not be reached for comment. His cellular phone was turned off when reporters tried to call him.