Even the dead got fertilizers, COA reports

[explorer]

Even the dead got fertilizers, COA reports

April 08, 2006
Updated 01:12am (Mla time)
Philip C. Tubeza
Inquirer

WHAT use would the dead have of fertilizers?

According to the final Commission on Audit report on the P728 million fertilizer fund scandal, even the non-living and the non-farming were among the listed beneficiaries of fertilizers bought with the funds of the Ginintuang Masaganang Ani (GMA) program.

The COA also discovered that some of the 15 non-government organizations (NGOs) that received a total of P150.6 million in fertilizer funds were "ghost'' organizations. They were either not registered with the Securities and Exchange Commission or could not be found in their declared addresses.

The audit body's consolidated report, dated March 31, 2006, was prepared by six auditors who conducted a special audit and ocular inspections nationwide.

The report, which was submitted to the Senate last Tuesday, said the fertilizers bought with the P728 million fund were overpriced by 682 percent, or by P128 million.

The 33-page report said the Department of Agriculture did not set up any system of rules or guidelines to rationalize the distribution of the farm inputs.

"The lack of basic rules resulted in a hazy accountability for the government funds,'' the report said.

It said "deceased persons'' and people who were not engaged in farming were included in the list of beneficiaries in the Ilocos region.

In Magsingal, Ilocos Sur, 103 listed recipients who were supposed to receive 366 bottles of fertilizers worth a total of P549,000 were not residents of the municipality.

Also in the Ilocos, out of 1,332 names in the list of farmers-beneficiaries, 38 were listed twice while two barangay chairs signed confirmations but could not recall the number of bottles they received.

The documents also showed "blatant falsifications," according to COA.

"There were instances when intended beneficiaries were not identified at the outset and neither was any list of recipients attached to provide a mechanism for verification,'' it said.

Random sampling

The COA auditors conducted random sampling in three regions-Ilocos, Central Visayas and Northern Mindanao. They discovered that 42 percent of the 4,437 bottles of fertilizers for distribution in these regions "were not received either by the farmers themselves or by the barangay chairmen.''

There were 1,841 bottles of fertilizer worth P2.72 million that did not reach their recipients, the report said.

In both Ilocos and Northern Mindanao regions, it was found that some of the beneficiaries only received their fertilizers in November 2005 although the funds for their purchase were provided in 2004.

The report noted that those who implemented the GMA program did not coordinate with the city and municipal agriculture offices (MAOs) and barangay chairs, which they needed to do "to identify qualified beneficiaries.''

This was apparently not provided for in the memorandums of agreement that the DA's regional field units signed with the local government units or the NGOs for the distribution of the farm inputs.

Dubious NGOs

The auditors found that some of the 13 NGOS that received funding were of "dubious legitimacy."

"Of the 13 NGOs, only five were holding offices in their addresses of record in Metro Manila, five NGOs and one supplier could not be located, and four NGOs had no certificates of registration filed with the (SEC)," the report said.

The four NGOs without SEC registration papers were: the National Organization for Agricultural Enhancement and Productivity (it received P27 million from the DA, not including the fertilizer funds given by LGUs); the Ikaw at Ako Foundation of Barangay Binanuan, Talisay, Camarines Norte (P8 million); the Kabus nga Mag-uuma ug Mangat Foundation in Cebu City (P.5 million); and The Workers' Cooperative of the Philippines in General Santos City (P5 million).

The report said the following NGOs could not be found in the addresses they gave: the Gabaymasa Development Foundation in Quezon City (P32 million); the Las Marias Foundation (P.5 million) in Caloocan and Quezon City; Sikap Yaman Foundation (P4.9 million); the Philippine Environment and Ecological Development Association (P1.95 million); and the Bukid Tanglaw Livelihood Foundation (P10 million).

These same NGOs also disregarded the requirement of conducting a public bidding for the purchase of fertilizers, the COA said.

Exclusive distributors

"Not being government entities, they were not bound by the procurement reform law despite the fact that they were spending public funds,'' the report said.

It said a canvass of the prices of the foliar fertilizers that the NGOS bought "disclosed that the other brands of foliar fertilizer were available in the market and sold at lower prices than those paid by NGOs/POs.''

"This availability only proved that foliar fertilizer was a common item and that it was readily available in the market so that awards of purchase contracts through negotiation with so-called exclusive distributors was not justified,'' the report said.

The Philippine Social Development Foundation, which received P28 million, bought P5 million worth of fertilizers in Misamis Occidental and distributed these "without [a] list of beneficiaries.''

The auditors found 169 vouchers for disbursements, amounting to P487 million, that were approved by regional executive directors and DA regional field unit signing officers "despite the fact that the individual amounts disbursed exceeded their signing authority."

Split payments

"Some 149 check payments totaling P116 million appeared to be split in order to keep the amounts within their signing authority, thereby avoiding action by a higher authority,'' it added.

The COA report also found that the DA regional field unit in Southern Tagalog bought 14 units of fabricated mechanical equipment for P14 million "without the benefit of public bidding.'' It noted that these were not classified as farm implements under the GMA program.

Six of the 14 units were found to have been overpriced by P2.75 million.

"While all 14 units were found during field visits, only eight were operational,'' the report said.


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COA releases damning report on fertilizer fund scam

First posted 04:14am (Mla time) April 07, 2006
By Philip C. Tubeza
Inquirer

AS OPPOSITION senators prepare to go a nationwide campaign to force President Gloria Macapagal-Arroyo to resign, the Commission on Audit has released to the Senate a damning final report on the P728 million fertilizer fund scandal.

In a 33-page report released after a "special audit," the COA said the funds were used to buy fertilizers overpriced by 682 percent, or by P128 million, for the Department of Agriculture's Ginintuang Masaganang Ani (GMA, Golden Bountiful Harvest) rice program.

COA auditors said there was "no system at all in the distribution of the fertilizers to establish accountability," resulting in "a hazy accountability for the government funds."

Administration critics have claimed that the GMA rice program was used to help the President win the May 2004 presidential elections, noting that the funds for it were released three months before the polls.

The COA report recommended that the DA coordinate with the Office of the Ombudsman in the prosecution of "officials involved in irregularities."

"There was no system at all in the distribution of the fertilizers to establish accountability and neither was there a simple coordination with proper local authorities," the report's executive summary read.

"These were evident from documents that appeared to be obviously falsified," it added.

The consolidated report, dated March 31, 2006, was prepared by six state auditors and was submitted to the Senate last Tuesday.

It was the result of a nationwide special audit conducted by a composite audit team from the COA central office and audit team leaders assigned to the 15 DA regional field offices (RFUs).

This was different from an ongoing special audit that COA is conducting on the P100 million from the Marcos ill-gotten assets that were also allegedly used for the GMA farm inputs program.

The report said the DA-RFUs bought foliar and organic liquid fertilizers from "so-called exclusive distributors" although the item was "readily available in the open market."

The DA's own Bureau of Soil and Water Management also does not recommend the use of foliar fertilizers under its "Tipid Abono Bawas Gastos, Saganang Ani [Reduced Fertilizer, Less Cost, Bountiful Harvest] " program, the report added.

"A canvass of prices disclosed lower prices than those paid. The prices paid by the RFUs exceeded the lowest price obtaining by an average of 682 percent or a total of P128 million," the report said.

It said two RFUs purchased fertilizers totaling P54.74 million from suppliers who were exclusive distributors of certain manufacturers "although other brands of fertilizers with equivalent composition could be obtained at lesser prices."

"Moreover, three brands of fertilizers submitted for tests revealed chemical compositions that fell short of representations printed on their labels," it added.

The report also did not spare former Agriculture undersecretary Jocelyn "Joc-joc" Bolante, who has refused to attend the Senate investigation into the alleged fund scam.

[explorer]

Mike Arroyo linked
to P728-M agri scam
Posted: 2:36 AM (Manila Time) | May 27, 2004
By Armand N. Nocum and Christine Gaylican
Inquirer News Service

'Amended complaint'

STILL smarting from the "Jose Pidal" exposé, First Gentleman Jose Miguel "Mike" Arroyo was linked Wednesday to the alleged diversion of P728 million in agricultural funds to bankroll the election campaign of President Gloria Macapagal-Arroyo and her allies.

Former solicitor general Frank Chavez claimed that friends of the First Gentleman at the Department of Agriculture reportedly pocketed about P142 million of the total amount earmarked for DA's "Ginintuang Masaganang Ani" (Golden Bountiful Harvest) program.

In an "amended complaint" to the plunder case he earlier filed, Chavez, a losing senatorial candidate also included Agriculture Secretary Luis P. Lorenzo Jr. as one of the respondents to the case.

Chavez earlier filed a graft case in the office of the Ombudsman against the President and three officials of the Department of Budget and Management (DBM) for the "systematic plunder of the nation's coffers."

"I don't believe that he made money, but he knows the story," Chavez later said of Lorenzo in a press briefing after filing the amended complaint. He said he would ask Lorenzo to turn state witness in the plunder case.

Lorenzo, who is currently in the United States, could not be reached for comment.

But in a statement, Lorenzo clarified that the funds were meant to benefit all local government units (LGUs) regardless of the political affiliations of their leaders.

Press Secretary Milton Alingod and Presidential Spokesperson Ignacio Bunye have also refused to comment.

The P728 million was released by the DBM a week before Feb. 10 for the purchase of fertilizers and other farm inputs.

In his new complaint, Chavez did not name the DA official close to Mr. Arroyo, but he identified DA Undersecretary Jocelyn I. Bolante as one of those who signed the pertinent papers relative to the release and disposition of the funds.

"There is a ranking official in the DA who is linked to Ms Macapagal-Arroyo's husband, Jose Miguel Arroyo. This DA official has 'runners' who approach local government officials who will extract a commitment from the local government officials that they should get these 'fertilizers' in a liquid state from them," he said.

This DA official, Chavez said, then sets the sharing for the funds this way: DA officials close to Mike Arroyo get 25 percent; mayors, governors, and congressmen (30 percent); suppliers of the fertilizers and farm inputs (20 percent); and the DA official's runners, 25 percent.

Chavez claimed he had documents and checks from DA, DBM, agricultural suppliers and elective officials indicating that the P728 million released for the purchase fertilizers did not reach their intended beneficiaries -- 105 congressmen, 53 governors and 23 mayors.

He said many of those who received money did not really buy fertilizers but allegedly used them in the election campaign.

[explorer]

COA confirms Marcos money used in fertilizer scam

First posted 02:45am (Mla time) Mar 25, 2006
By Philip C. Tubeza
Inquirer

THE Commission on Audit has found that part of the P100 million in recovered Marcos wealth intended for the government's controversial farm inputs program was used to buy fertilizer overpriced by a total of P42.4 million, Senate President Franklin Drilon said yesterday.

Drilon said preliminary results of the COA's "special audit" on the use of the Marcos funds for the Department of Agriculture's Ginintuang Masaganang Ani (GMA) program showed overpricing in at least four regions-Ilocos, Western Visayas, Northern Mindanao and Davao.

The P100 million is part of the P544 million in Marcos funds that the administration released weeks before the May 2004 elections to buy seeds and fertilizer for the GMA hybrid rice program.

It came from the P35-billion Marcos Swiss banks deposits that were recovered in late 2003.

The COA also discovered that no public bidding was conducted, and that the majority of the purchases was made through "direct contracting" although the fertilizer could be "obtained from many sources," he said.

"The COA report showed the grossly overpriced purchase of fertilizer in at least four regions [by an] average of 700 percent," Drilon said in a statement.

"The DA, through [its] regional field units (RFUs) and [local government units], paid P48 million for fertilizer worth only P6 million, or an overprice of P42 million," he said.

The P100 million was distributed to 13 regions, but the Audit Observation Memorandum prepared by DA supervising auditor Flerida Jimenez on Feb. 23 showed overpricing in at least five regions.

The fertilizer purchases-whether made by RFUs (in the Ilocos and Davao), LGUs (in Western Visayas and Northern Mindanao), or nongovernmental organizations (in Central Visayas and Northern Mindanao) were overpriced by a total of P42,431,400, the COA report said.

"[They] purchased fertilizers from exclusive distributors when substitute products are available in the market at lesser prices," it said, adding:

"A previous canvass of similar items from the same suppliers disclosed an excess cost of P42,431,400."

Padded costs

In the Ilocos, the fertilizer was overpriced by P4.005 million. (The purchase price was P4.5 million, but a canvass by the COA showed that it should have been only P495,000, the report said.)

In Davao, the overprice reached P2.55 million. (Purchase price: P3 million; market price, according to COA canvass: only P450,000.)

The overprice in the Western Visayas amounted to P2.760 million. (Purchase price: P3 million; market price, according to COA canvass: P240,000).

In Northern Mindanao, the fertilizer was overpriced by P7.253 million. (Purchase price: P9 million; market price, according to COA canvass: P1,746,500.)

The COA also reported that three NGOs purchased fertilizer that was overpriced by a total of P25.59 million. (Total purchase price: P28.851 million; market price, according to COA canvass: P3,256,850).

In Northern Mindanao, the "validity of the delivery and distribution of fertilizer could not be established" because of insufficient information, like the address of farmer-beneficiaries, the report said.

The list provided contains only the names and the quantity of the fertilizer received, it said.

Delayed distribution

The report also said the Davao-RFU's distribution of foliar fertilizer worth P3 million was not effectively monitored, "resulting in the delayed distribution of 1,501 bottles for about 10 to 16 months, while 2,249 bottles remained undistributed."

"The delayed distribution and the failure to distribute the remaining bottles of fertilizers deprived the farmers of benefits in time for the cropping season. The undistributed bottles may be susceptible to loss or damage if not immediately disposed of," the report said.

It also said only 14.35 percent of the recipients of foliar fertilizer were agrarian reform beneficiaries (ARBs).

The law requires that ARBs should comprise 80 percent of the recipients in agrarian reform programs funded by recovered Marcos funds.

"Since the source of the funds emanated from the Agrarian Reform Fund, it is understood that the intended recipients are [ARBs]," the report said.

It noted, however, that the DA-Office of the Secretary "made no mention of specific activities to be undertaken utilizing" the funds in its memoranda of agreement with the RFUs for the fund transfers.

"As a result of the failure of the DA-Osec to specifically mention the intended uses of the release, funds were treated as regular release[s] for the implementation of the banner program of the department, which is the GMA program," the COA report said.

It added that "almost all the funds were used to purchase fertilizers and other farm implements including shredders."

No clear basis

Another Audit Observation Memorandum prepared by the DA supervising auditor on Jan. 30 said there was "no clear basis for the distribution of the funds by region and by municipality."

"Although the memoranda of agreements made no mention of the fund to be transferred to LGUs, the DA-RFUs downloaded [the money] to the LGUs within their regions..." the report said.

The report also said that of the P100 million, the RFUs had liquidated only P90,703,829.25.

It said that the unliquidated amount stood at P8 million, and that around P1.2 million had not been released to the Caraga Autonomous Region.

There were added "deficiencies," based on Feb. 23 Audit Observation Memorandum.

DA-Region IV paid P3 million for five fabricated shredders and other machines through direct contracting and without patents as required by law, the COA report said.

But two of the shredder chippers were overpriced by about P452,625. The other units were a shredder, a hammerhill/shifter and a pelletizer, which were "donated by the Robison Homes Association Inc." in Antipolo City, the report said.

It said one of the shredder chippers was found in the farm of Rep. Victor Sumulong in Antipolo. It was overpriced by P303,680 (purchase price: P750,000; market price, according to COA canvass; P226,320).

Request, purchase same date

The report also said the five machines were not included in the list of equipment provided in the GMA rice program as certified by its national coordinator, Frisco Malabanan.

It noted that the resolution of the Bids and Awards Committee, the purchase request and the purchase order bore the same date of May 5, 2004.

It said this was "irregular" because a purchase request was usually made before the BAC resolution and the purchase order.

The COA report also noted that the Municipal Agriculture Fishery Council chair of Libertad, Antique, charged farmers P100 per gallon of liquid fertilizer, "contrary to the intention of the program."

"Farm inputs and implements, as provided in the guidelines, should be given free to beneficiaries," it said.

The report recommended further investigation of the farm inputs purchases, "to determine the persons liable in the purchase of fertilizer and farm implements on the level of the RFUs, LGUs and NGOs and file legal action if warranted," and of "the excess costs" of the shredders and other implements.

[chua_riwap]

Huwag nang magtaka.........baka nga yung sa PI, pati patay pumirma.....

[Isuzoom]

Mga Kawatan!!!

[empy]

the dead ARE fertilizer :D

[falken]

The SOBs behind this scam should themselves, be turned into fertilizer.

[Isuzoom]

lintek na mga kawatan!

[konde]

siempre, kailangang bigyan ng fertilizers mga patay. eh di hindi sila ibinoto nung mga yon!

[Isuzoom]

walang patawad basta pera...mga buwaya!!!