MANILA — Ombudsman Conchita Carpio Morales said on Friday they found probable cause to indict former Reps. Rizalina Seachon-Lanete (Masbate), Samuel Dangwa (Benguet), Rodolfo Plaza (Agusan del Sur) and Constantino Jaraula (Cagayan de Oro City) for allegedly misusing Priority Development Assistance Fund (PDAF) in the total amount of Php244.29 million.
Also facing criminal indictments are Janet Lim Napoles, John Raymund De Asis, Department of Budget and Management (DBM) Undersecretary Mario Relampagos and DBM officials Rosario Nuñez, Lalaine Paule and Marilou Bare.
Likewise, impleaded as co-accused are officers/ representatives of the following Implementing Agencies (IAs):
* Technology Resource Center (TRC) Director General Antonio Ortiz, Deputy Director General Dennis Cunanan, Department Manager Francisco Figura and Chief Accountant Marivic Jover.
* National Agri-Business Corporation (NABCOR) President Alan Javellana, Paralegal Victor Roman Cacal, General Services Unit Head Romulo Relevo, Bookkeeper Maria Ninez Guañizo, Chief Accountant Ma. Julie Villaralvo-Johnson and Director for Financial Management Services Rhodora Mendoza.
* National Livelihood Development Corporation (NLDC) President Gondelina Amata, Division Chief Gregoria Buenaventura, Director Emmanuel Alexis Sevidal, Chief Financial Specialist Sofia Cruz and Department Manager Chita Jalandoni.
* A number of officers/representatives of the non-government organizations (NGOs), namely: the Countrywide Agri and Rural Economic and Development Foundation (CARED), Masaganang Ani para sa Magsasaka Foundation Inc. (MAMFI), Philippine Social Development Foundation Inc, (PSDFI) and the Social Development Program for Farmer Foundation Inc. (SDPFFI).
The cases arose from the separate complaints filed by the National Bureau of Investigation (NBI) and the Field Investigation Office (FIO).
In the joint resolution, Morales noted “many of the names appearing on the lists as farmer-recipients were neither residents nor registered voters of the place where they were listed as beneficiaries, were fictitious or had jumbled surnames, while others were already deceased. In other words, these livelihood projects were ghost projects.”
Morales also referred the cases to the Anti-Money Laundering Council for action on possible violations of the Anti-Money Laundering Act.
Former Rep. and now Masbate Gov. Seachon-Lanete, Lanete’s chief of staff Jose Sumalpong, Napoles and De Asis were charged with plunder in connection with the anomalous utilization of Lanete’s Php112.29 million PDAF from 2007 to 2009.
Likewise, Lanete, Sumalpong, Napoles, Relampagos and several others face multiple counts of violation of Section 3(e) of Republic Act No. 3019, or the Anti-Graft and Corrupt Practices Act.
Field investigation conducted by Ombudsman investigators showed that the Php112.29-million PDAF was never used for the intended agricultural and livelihood projects as the documents submitted such as Disbursement Vouchers, Progress and Accomplishment Reports, Fund Utilization, Inspection and Delivery Reports, and Certificates of Acceptance were all fabricated.
The joint resolution said the “findings in the 2007-2009 COA Report jibe with the whistle-blowers’ testimonies and are validated by the results of the FIO on-site field verification.”
Witnesses Benhur Luy, Marina Sula and Merlina Suñas claimed that the four foundations endorsed by Lanete were all dummies of Napoles.
They described the payoffs for the kickbacks usually took place at the JLN office in Ortigas with Sumalpong receiving the money.
They added Lanete’s commissions were sometimes deposited to her personal bank account in Metrobank Fairview branch.
The joint resolution said “Luy’s ledger indicates that from 2004 to 2010, Seachon-Lanete received total commissions or kickbacks in the amount of Php108,405,000 which included Php73,065,000 received from 2007 to 2009.”
Plaza faces indictment for five counts of malversation and five counts of violation of Section 3(e) of RA No. 3019.
Included as co-accused in multiple counts of malversation and violations of Section 3(e) of RA No. 3019 are Plaza’s chief of staff Jasper Kapunan, Napoles, Relampagos, Nuñez, Paule, Bare and 21 others.
Plaza also faces two counts of direct bribery, while Napoles was also charged with two counts of corruption of public officials and five counts of violation of Section 4(b) of RA No. 3019.
The PDAF of Plaza for the years 2008 and 2009 amounting to Php27.5 million covered by five SAROs engaged NABCOR and NLDC as IAs with MAMFI and SDPFFI as NGO-partners in supposedly implementing projects like agricultural production packages, livelihood packages, training, livelihood kits for food processing, hair dressing, and reflexology.
Upon field verification, the FIO determined that the livelihood and agricultural production kits and packages never reached the intended beneficiaries, for either there were no projects or the goods were never delivered completely.
The joint resolution said “the mayors and municipal agriculturists, who reportedly received the livelihood assistance, kits and packages never received anything from the Office of Plaza, the IA or any of the project partners,” as “none of the mayors, vice mayors or municipal agriculturists/technologists were even aware of the projects.”
Per Luy’s records, Plaza received total commissions, rebates, or kickbacks amounting to at least Php42.1 million from his PDAF-funded projects from 2004 to 2010, with payoffs usually taking place at the JLN office in Ortigas or in Plaza’s house in Alabang Hills.
Facing indictments for malversation and six counts of violation of Section 3(e) of RA 3019 are Dangwa, Dangwa’s chiefs of staff Erwin Dangwa and Carlos Lozada, Napoles, Relampagos, Nuñez, Bare and Paule.
Also indicted for malversation and violation of Section 3(e) of RA No. 3019 are Ortiz, Cunanan, Jover, Noel Macha and several others.
Dangwa also faces five counts of direct bribery, while Napoles also faces five counts of corruption of public officials and six counts of violation of Section 4(b) of RA No. 3019.
From 2001 to 2010 Dangwa received Php54 million as PDAF released by the DBM through seven SAROs coursed through SDPFFI, CARED and People’s Organization for Progress and Development Foundation Inc. (POPDFI), with TRC, NLDC, and NABCOR as IAs.
Dangwa’s PDAF was anomalously used for financial assistance, grants, livelihood projects for jewelry-making, aromatic candle making, wellness and massage, farm inputs/implements and other livelihood packages.
Out of the Php44 million funds released and transferred to the IAs and the Napoles NGOs, Php11 million remained unliquidated by the TRC and CARED.
Similar to the cases of Lanete and Plaza, Dangwa’s PDAF was never used for the intended projects as shown by dubious and fabricated documents.
According to Luy, at least Php26.7 million representing commissions, rebates or kickbacks were received directly by Dangwa or through his representatives Erwin Dangwa, Carlos Lozada and Evelyn De Leon.
The whistle-blowers testified that they saw Napoles hand over the money meant for Dangwa.
Charges for three counts of malversation and three counts of violation of Section 3(e) of RA No. 3019 were slapped on Jaraula, Napoles, Relampagos, Ortiz, Cunanan and several others.
Jaraula was also indicted for three counts of direct bribery, while Napoles faces three counts of corruption of public official and three counts of violation of Section 4(b) of RA No. 3019.
The joint resolution said Jaraula used his Php50.5-million PDAF from 2004 to 2007 supposedly for financial assistance, technical assistance through video courses and printed materials, with TRC as IA and CARED as NGO-partner.
The FIO submitted an affidavit of non-operation dated April 20, 2007 executed by then CARED president Encarnacion stating that CARED had not conducted any business activity from the date of incorporation until 2007.
The COA special audit findings disclosed that the projects were “ghost” projects as they were never implemented in the lone district of Cagayan de Oro City.
Morales noted “certainly, these repeated, illegal transfers of public funds to Napoles’ control, purportedly for projects which did not exist, and just as repeated irregular disbursements thereof, present quantifiable pecuniary losses to the Government.”