17 local officials face graft charges for fertilizer funds scam

Man applying liquid fertilizer (Photo courtesy of Flickr/IRRI Photos)

MANILA – Seventeen local government officials are facing graft charges for the alleged misappropriation of P728-million fertilizer funds supposedly intended for agricultural programs but were use instead to fund former president Gloria Macapagal-Arroyo’s 2004 campaign.

Officials facing criminal charges on the controversial project are Maasin town in Iloilo mayor Mariano Malones Sr., municipal accountant Cecilio Montefrio, officer-in-charge of the accounting office Jimmy Borra, Tuburan town in Cebu former mayor Rose Marie Suezo, accountant Virgilia Undag, agricultural officer Victoria Verano, bids and awards committee members Chito Armecin, Nicodemus Montecillo Jr., Elsa Yosalina, and Himamaylan city in Negros Occidental accountant Efren Dela Rose.

Also indicted are Feshan Philippines, Inc. representative Jose Barredo Jr., Sikap-Yaman Foundation representative Marc Gulle, and other village officials Nile Nelson Arroz, Jeremias Ban, Raymund Vincent Besa, Danilo Lamason, Jonalyn Lauron, Adelino Plansa, and Manuel Tancinco.

Forgone public bidding

In 2004, the Department of Agriculture (DA) granted Maasin town and Himamaylan city the purchase of fertilizers as part of its agricultural programs.

Maasin mayor Malones, for his part, purportedly ‘dispensed public bidding and gave Feshan unwarranted benefit by directly contracting it as the municipality’s fertilizer supplier.’ He then purchased 666 bottles of Bio-nature liquid organic fertilizers costing P1,500 each.

Himamaylan accountant Rose also had irregularities in its city’s purchase of 666 bottles of organic fertilizers also from Feshan.

The other officials then ‘conspired with one another to facilitate the transaction favoring Feshan.’

According to the Office of the Ombudsman’s 15-page resolution, Malones has acted ‘with manifest partiality’ and violated administrative policies by directly contracting Feshan. It also noted that there are cheaper substitutes available in the market.

Malones, for his defense, claimed that Feshan was endorsed to them by the DA as sole supplier.

Overpriced fertilizers

According to the Ombudsman, the purchased fertilizers were overpriced by 426 percent as the average price of organic fertilizers in the market was only at P180 per bottle.

Feshan’s 666 bottles of fertilizers amounted to P999,000, whereas the same number of bottles in the market would only cost P119,880.

Sikap-Yaman also supplied the region 250 bottles of Fil-ocean liquid fertilizer costing P1,000 each and amounting to P250,000, whereas the same number of bottles in the market would only cost P31,250 at P125 per bottle.