PopTrendZ eSSeNTiaLS

PH SONA 2013

2013-07-22T10:07:00.003-07:00

$30M MRT Extortion - Palace asks Czech envoy to prove extort claim

2013-07-21T18:20:00.004-07:00

Palace asks Czech envoy to prove extort claim

July 19, 2013 11:15 pm

by Catherine S. Valente and Rosalie C. Periabras Reporters

Malacañang on Friday urged Czech Ambassador Josef Rychtar to prove his claims implicating Department of Transportation and Communications (DOTC) officials in an extortion attempt on a Czech company who was trying to land a contract with the Metro Rail Transit (MRT).

News reports, first published by The Manila Times, revealed that officials of the DOTC, MRT and the Czech firm met during the time of secretary Manuel Roxas.

The Czech ambassador said Roxas’ men asked from $2 million to $20 million from Inekon, a Czech train-manufacturing company and a bidder for the supply of trains for the MRT 3.

In a press conference, Palace spokesman Edwin Lacierda said that the government is ready to probe the alleged extortion try if evidence is presented.

Unsubstantiated reports had earlier linked the President’s sister Ballsy to the extortion attempt, all because she and her husband had gone on vacation in the Czech Republic. The reports were eventually proven to be false.

”Our standard response is, give us the evidence we will investigate,” Lacierda said. ”If you look at the story there are no quotes. There are no quotes from the Czech ambassador that’s why it’s important to say—there was a mention of the meeting on July.“

”We are asking the Czech ambassador to—as in any accusation—present us evidence and we will investigate,” he said.

Lacierda denied that Czech-based Inekon was blacklisted in MRT project.

In April, Lacierda said Transportation Secretary Emilio Abaya met with Rychtar and encouraged the Inekon group to bid for the 40 coaches for the MRT-3.

But he said the group purchased bid documents but did not submit their bid.

”The first issue alone was Inekon blacklisted is already not true. Inekon was not blacklisted,” he said.

”There is no reason for us to doubt that this administration purpose is to level the playing field,” Lacierda said, noting that all the transactions are transparent.

”You can always ask the Cabinet secretaries of all the transactions and, like I said, Secretary Jun Abaya is willing to answer,” he said. “I think it’s fairly obvious that their department is being dragged. So it behooves them to issue on their own.”

”The DOTC projects are transparent. You can ask Secretary Jun Abaya. Jun Abaya is a very transparent Cabinet Secretary,” Lacierda added.
Abaya confirmed that Inekon has not been blacklisted.

“There is no blacklist. There is simply no truth to the claim,” said Abaya.
In fact, when Rychtar met with the transport chief in April 2013, Abaya requested him to relay to Inekon that the DOTC was encouraging the firm to participate in the bidding for the MRT project.

During that meeting, Rychtar also raised some concerns regarding the bid, and even requested Abaya to be cautious about the issue.

“We at the DOTC express in the strongest possible terms our commitment to fight corruption at all levels. We will take all the necessary steps to uncover the truth behind these allegations, which remain unsubstantiated at the moment,” Abaya said.

Fight corruption
“Opening the project to bidding erases doubts as to any favoritism. I personally felt that the Inekon proposal—which was never formally submitted to the DOTC and which amounted to around $3 million per LRV—could make it appear that favors were being made,” Abaya said.

Notably, the approved estimate for DOTC’s bid was only $1.8 million per LRV, around $1.2 million per LRV less than the indicative amount in the Inekon proposal.

Abaya said he always had authority from President Benigno Aquino 3rd to bring in his own people to DOTC, but that he has found no need to replace the existing team when he came aboard last year.

“Having worked with the current DOTC Undersecretaries, Assistant Secretaries, and members of our Bids and Awards Committees, I vouch for their integrity and good work ethic,” he said.

Ambassador dared to show proof of extortion

July 21, 2013 9:57 pm

by CATHERINE S. VALENTE
REPORTER

Malacañang is confident that allegations of extortion surrounding the government’s Metro Rail Transit 3 (MRT) project will not affect the public’s perception on the Aquino administration’s purported campaign against corruption.

Palace spokesperson Edwin Lacierda over the weekend said that the exposé of the Czech Ambassador Josef Rychtar would not tarnish the government’s “tuwid na daan” (straight path) advocacy.

“Why should it? Every time there is an issue on corruption we have always asked the party to present us evidence,” Lacierda said.

“It is no different just because an ambassador said it,” he added.

The Palace spokesperson urged anybody who has any charge or claim of corruption to present evidence so that Malacañang could investigate.

“We have embarked on a campaign against corruption and, therefore, we will investigate all allegations of corruption provided that there’s evidence that will be submitted to the investigating body,” he said.

”That’s the only request that we have always maintained. That’s the standard request that we have always maintained,” Lacierda added.

He also maintained, “There are men and women in government; the President, foremost among them, is determined in this fight against corruption.”

Rychtar earlier revealed that there were irregularities involving a Metro Rail Transit 3 (MRT) project.

The ambassador accused Transportation Undersecretaries Jose Lotilla, Rene Limcaoco, Catherine Gonzales and Assistant Secretary Jaime Feliciano of demanding $30 million in exchange for the approval of the Czech proposal.

The allegation initially included President Benigno Aquino 3rd’s eldest sister, Maria Elena “Ballsy” Cruz, and her husband Eldon. The Palace had denied this.

Meanwhile, Lacierda official asked the ambassador to cooperate with the Department of Transportation and Communications (DOTC) led by Secretary Emilio Abaya, who initiated investigations on the said allegations.

”It requires every person, including the Czech ambassador, to submit allegations of corruption—to submit evidence to prove these allegations, and that’s what due process is all about, and that’s the reason why we urge the Czech ambassador to cooperate,” he said.

”We are asking the Czech ambassador . . . as in any accusation, present us evidence and we will investigate, “ Lacierda added.

The Palace earlier allowed the DOTC to probe the allegations. Documents had also been forwarded to the Ombudsman by former DOTC secretary Manuel Roxas 2nd to allow further investigations.

$30M MRT Extortion - Czech Envoy Lying?

2013-07-21T18:16:00.003-07:00

Palace, DOTC officials out to discredit Czech envoy

July 20, 2013 11:35 pm

by Rene Q. Bas editor in chief

For 3 years now, DOTC has ignored formal Czech govt letters supporting Inekon bid

THE most remarkable feature of the press conference Transportation and Communications Secretary Emilio Abaya held on Friday was his effort to discredit the Czech Republic’s Ambassador Josef Rychtar.

This effort was markedly noticeable in the President’s spokesman Secretary Edwin Lacierda’s words on the subject to Malacañang reporters.

What impressed our reporter who attended the Abaya presscon was the Secretary’s insistence that the Czech Ambassador was, in effect, lying when he told first The Times that that the Czech company Inekon, which has been bidding to supply MRT3 coaches and modernization technology and systems, had been blacklisted as a DOTC supplier.

The absence of a blacklist against Inekon or the Czech Republic was also highlighted to Palace reporters by Secretary Lacierda.

The Times special report of three parts by our Chairman Emeritus Dante A. Ang did not have the word “blacklist” or “blacklisted.”

But it appears obvious that Inekon would never be entertained by the authorities in the DOTC – and is therefore the subject of a practical blacklist – because the Czech government over the last three years has sent more than ten official letters to the
DOTC supporting the Inekon proposal and “submitted to the Department of Transportation and Communication (DOTC) booklets of extensive technical plans and financial proposals in order to comply with Philippine Procurement Procedures.”

These words come from a letter dated June 29, 2013 to President Benigno S. Aquino 3rd by Czech Ambassador Josef Rychtar. See complete text of that letter elsewhere on Page 1.

Until now, Inekon and the Czech Republic’s Ministry of Trade and Foreign Affairs are still waiting for a response to the letters.

However, as detailed in Dr. Dante Ang’s 3-part special report, the Inekon proposal was the subject of conversations between the Czech Ambassador, MRT General Manager ______ Vitangcol and his friends.

Some of these conversations involved an effort to get Inekon to pay bribe money as much as $30 million and at last lowered to $2.5 million.

Is it because the Palace officials and Secretary Abaya want to clear not only Mr. Vitangcol but its supervisory agency, the DOTC, from any involvement in the shameless extortion attempt on the Czech Republic?

Nevertheless, that Secretary Abaya at his Friday presscon announced that he is initiating a probe on the MRT General Manager’s possible involvement in the extortion attempt indicates two things.

1. That the expose authored by Dr. Ang, and supported by documents and interviews with persons who affirmed having witnessed and heard the extortion attempt, has moved the Aquino administration to do the right thing.

2. That there is hope in the President’s Daang Matuwid growing into more than a dream.

$30M MRT Extortion - Govt Probe Begins

2013-07-21T18:02:00.000-07:00

MT chairman emeritus touches raw nerve

Manila Times July 20, 2013 10:55 pm

The subject, first taken up by our chairman emeritus, Dante Ang, has apparently touched a raw nerve.

In a three-part series in The Manila Times, Mr. Ang divulged the extortion attempt by high-ranking officials of the Metro Rail Transit, with the important players depicted and their role in it explained.

Now a probe is set to be conducted on the matter.

The author described what is contained in a document made available to him, specifically the conversations, during a series of meetings between MRT general manager Al Vitangcol 3rd and Czech Ambassador to the Philippines Josef Rychtar, and other characters who played supporting roles in the drama.

In one of the meetings someone suggested that Inekon officials give Mr. Vitangcol and his group “a $30 million gift”, apparently as a precondition for the firm to be given the P3.769-billion MRT contract.

Inekon is a Czech company interested in supplying trains under the MRT 3 Capacity Expansion Project.

The ambassador was aghast, reminding everyone that commission, especially of such magnitude, was impossible under a government-to-government contract.

Mr. Ang wrote the article to set the record straight.

A few days before, one newspaper ran a story alleging that Ballsy Aquino Cruz, the President’s sister, and her husband, Eldon, asked Inekon for $30 million in exchange for an outcome of the bidding favorable to the company. The report also stated that husband and wife traveled to Prague, along with two trusted friends, for that purpose.

As Mr. Ang saw it, Ballsy and Eldon were innocent, and yet the story revolved around them, while it was silent about people in the document—people who may have tried to make a fast buck, if there was indeed an attempt.

The report was an all-too-transparent ploy to deflect attention from people at MRT and the Department of Transportation and Communications.

Our chairman emeritus made it clear that he was not defending the Presidential relatives or anybody for that matter. He only wanted an investigation to be conducted into the matter, with the government, if it is at all interested in the truth, focusing on the people who may be guilty.

The document that was made the basis of then an exclusive report is complete with names, dates, places, and snippets of conversation. The information it contains is so detailed it could only have come from an insider.

Ambassador Rychtar confirmed what Mr. Ang had said about Ballsy and Eldon, which was that they were innocent of the charge leveled against them. He did say, however, that he had had several meetings with the group, again as Mr. Ang depicted it.

An honest-to-goodness investigation need only follow the strands to arrive at the truth.

$30M Extort - Czech Envoy Clears Ballsy

2013-07-21T17:58:00.000-07:00

Czech envoy write to President Aquino

July 20, 2013 11:29 pm

Embassy of the Czech Republic

30/F Rufino Pacific Tower, 6784 Ayala Avenue,

Makati City, Metro Manila, Philippines

Tel.: +63-2-8111155, +63-2-8111156,

Fax: +63-2-811020

Email: manila@embassy.mzv.cz

Web: http://www.mzv.cz/manila

BENIGNO S. AQUINO III

President

REPUBLIC OF THE PHILIPPINES

Malacañang Palace

Manila

Your Excellency,

Last 29 June 2013, the Czech Company Inekon, and members of your family were the subjects of inaccurate and nasty press reports pertaining to the MRT3 capacity expansion. On both a personal and official capacity, please allow me to make the following statements:

1. I wish to state that the allegations that members of your family were involved with discussions with Inekon on any projects in the Philippines are simply untrue and malicious. I have had the pleasure of meeting Eldon and Ballsy Cruz and other members of your family and former Secretary Pete Prado who was a member of your late mother’s official family and I hold all of them in the highest esteem. Neither Secretary Prado nor any member of your family has offered their any assistance in any of the projects that my country is pursuing in the Philippines. Your family is well known not to involve themselves on governmental affairs most especially in the area of procurement.

2. The Czech proposal for the MRT3 capacity expansion and modernization is a government-to-government deal, which cannot contain any provisions for commissions. Over the last three years, we have transmitted more than ten official letters from our Ministry of Trade and Foreign Affairs supporting this proposal and submitted to the Department of Transportation and Communication (DOTC) booklets of extensive technical plans and financial proposals in order to comply with Philippine Procurement Procedures. We continue to wait patiently for a response from the DOTC.

3. In early April 2013, I was able to secure a meeting with Secretary Emilio Abaya to report an incident between some officials of his department and myself, together with the top management of Inekon. While I still have yet to discern who are behind these terrible press releases, I had hoped that Secretary Abaya would have dealt with this issue in a swift and judicious manner before it reached this embarrassing and untenable state of affairs.

Your Excellency, should you find it worthwhile, we are prepared to come out with a public statement to clear members of your family whose honor have been besmirched by these malicious press reports and to declare the Czechs government’s continued interest in participating in your government’s development program.

We remain in support of your administration and the Filipino People.

Josef Rychtar

Ambassador of the Czech Republic

$30M MRT Extort - Real Culprits?

2013-07-21T17:50:00.006-07:00

An attempt to silence this paper or just plain Filipino culture?

July 10, 2013 9:41 pm

by DR. DANTE A. ANG
CHAIRMAN EMERITUS, THE MANILA TIMES

Part three

I want to thank my readers for their enthusiastic response to my article, “$30 Million Extort Try: Fact or Fiction?” It registered the highest hits for articles and stories for the day’s issue of the Manila Times.

One of the readers, a certain Rose, posed several questions. For lack of space, I will try to briefly address her questions. Again, I must emphasize that I was not at all defending the presidential relatives when I wrote the report. It was based on documents I received from someone who has direct access to the DOTC records, and from my interviews of one of the major players in that shameful event.

Rose asked why the Aquino administration did not deny that the Cruz couple did indeed travel to Prague in 2011. My answer is, I don’t know. I did not bother to ask Lacierda or any Palace functionary.

She also asked: If the Prague visit was a “social gathering” why were Czech businessmen in attendance? “Does this mean that Ballsy is specifically authorized to speak for and in behalf of the Philippines? And why not send government officials concerned with trade and business in the Philippines and not civilian people like Ballsy and Eldon Cruz?”

My informant said that the couple was invited by the Czech Ambassador to the Philippines for a purely social visit to Prague and that while they were there, the Czech government made arrangements for some businessmen to attend the affair. Ballsy and Eldon as private citizens are not and cannot speak for and in behalf of the government.

“Why was Inekon specifically mentioned in this alleged ‘extortion try?’ “Well, because Inekon is the Czech company that had shown interest in and submitted its proposal for the MRT modernization program.

I also agree with Rose that, “if Vitangcol is the main suspect in this botched extortion try” he won’t dare do it without someone higher in rank “instructing him to do so.”

Lastly, the Czech Ambassador figured prominently in the MRT-Inekon negotiations only because the Czech company’s proposal was for a Government-to-Government (G-G) contract. And because it is supposed to be G-G, it is the Ambassador of the proposing country who, by law, is authorized to speak for the foreign proponent with the Philippine authorities.

So, there. I hope I have answered Rose’s questions satisfactorily. Now to the issue of the day.

On Monday, July 1, four days before my scheduled meeting with MRT General Manager Al Vitangcol, a certain Jun Alano called my office in the morning and again later at lunchtime. I was not available when he called on both instances. I returned his call in the afternoon.

He introduced himself and reminded me that he is the Jun Alano who used to work for me at the now defunct daily business paper, “MoneyAsia.”

I asked him what he wanted. At the start, he was hemming and hawing. Finally he said “his brother is working with the MRT” and because of that he is helping Vitangcol in his PR effort.

I had to ask him twice, “So, are you or are you not Vitangcol’s PR (consultant)?” And he then meekly admitted, “Eh, ganoon na nga. [Eh, that in fact is the case.]” I then said, “Ganoon naman pala, PR ka pala nya, bakit paikot-ikot ka pa? Ano ba ang kailangan mo? [If that’s what it is, and you’re his PR, why do you have to go around in circles? What do you want?]”

Imploringly, he replied, “Baka naman huwag nang ilagay ang pangalan ni Vitangcol sa story mo. [Maybe Vitangcol’s name doesn’t have to be in your story.]” I said, “How could that be? He is one of the principal players in the document in my possession.”

Alano then blurted out: “Iyon na nga, sir. Baka naman daw may magawa siya para sa iyo in the future. [That’s the thing, sir. He said maybe he could do something for you in the future. ]”

That took away my equilibrium for a moment. I was dumbfounded. I had never before felt so humiliated in my life. Imagine a former employee asking that I omit the name of a major participant in an alleged $30-million grease-money scandal and having the temerity to offer me something in the “future.” I admonished him briefly and immediately put down the phone. He did not call again after that.

What kind of Public Relations was that? Is that what they call PR at MRT? Is that the best Vitangcol can do in the face of a crisis? Kill the story in exchange for a future favor? Where did this Alano come from? Just because he can write a news release he thinks he is already a PR practitioner?

And so the first question I asked Vitangcol when we met in the morning of Friday, July 5, at Café Adriatico in Malate, was, “Do you know a certain Jun Alano?” Instead of answering my question directly, he launched a circuitous explanation about his being “a director of the UP Engineers Association and we contracted the services of a PR firm to conduct our homecoming (activities) and plan events. That’s Jun Alano.”

He vehemently denied that Alano is MRT’s PR consultant and insisted that he did not engage Alano to be his personal PR or write specific stories for him.

Vitangcol however said that he knew that Alano had called me. The MRT GM explained that after he and I had talked and set our appointment, he spoke to Alano and “asked him to find out what the story is all about.”

When I pressed him if he knew that Alano had asked me to delete his name from my story, he said, “Ang sabi ko lang po sa kanya, wala akong alam dyan, tapos eh kung lalabas ang pangalan ko kawawa naman ako kasi I have always protected. . . (unintelligible). Ang tagal kong pinagtrabahuhan na may credibility ang pangalan ko tapos masisira lang ng unfounded story. [The only thing I told him was I know nothing about that, and it would make me so pitiful if my name comes out because I have always protected . . . (unintelligible). I worked long and hard to give my name credibility then it would just be damaged by an unfounded story.]”

What else did you tell Jun Alano, I asked him. “Kung ano yung ibang tao di ko sila kilala eh di gusto nyang banggitin eh di banggitin nya. [Whatever those other people are I don’t know them and if he (Dante Ang) wants to name them then let him name them.]”

Vitangcol also confirmed to me that he had instructed Alano to tell me that maybe he (Vitangcol) could do something for me in the future in exchange for not naming him in my report.

I repeated my question to give Vitangcol a chance to rethink his statement. But without any hesitation, he repeated what he just said and proceeded to justify it by saying, “Ganoon naman po talaga tayo pag nakikiusap [We are really that way when seeking a favor], we don’t close the discussion. We don’t want enemies, di ba [do we]? Eh sometimes (unintelligible).”

Before I left, Vitangcol managed to ask me if someone had directed me to write about the $30 million demand from the Czech company. I dismissed the insinuation and replied that I am writing the report because it is a good story.

An unsolicited advice to Vitangcol and his PR. Face the issue squarely. If the story is inaccurate, point out the inaccuracies clearly, logically. Air your side in a straightforward no nonsense fashion. And don’t put a spin on it. When you try to pay your way out, you only reinforce suspicion of your guilt.

S30M MRT Extortion - Facts?

2013-07-21T17:44:00.001-07:00

The $30-million extort try: Fact or fiction?

July 8, 2013 11:16 pm

by DR. DANTE A. ANG
CHAIRMAN EMERITUS, THE MANILA TIMES

Part two

I didn’t expect my defense of Presidential sister Ballsy and brother-in-law Eldon Cruz, former DOTC Secretary Pete Prado and Lopez-in-law Steve Psinakis on their alleged attempt to extort $30 million from a Czech company in exchange for MRT project contracts to invite polarized reactions from my readers.

Naturally, some disagreed with me while others were supportive. But that’s neither here nor there. I’m less concerned with earning public approval than writing a legitimate story.

I was handed the document containing details of the alleged $30-million extortion try about three weeks ago by someone who has access to the DOTC goings-on. Just like that. He’s asked me to study the document and do whatever I wanted to do with it.

The accusations are so serious that I said, “I will look into it, talk personally to the people on the list, get their side of the story and, hopefully, uncover the truth before publishing the report”—if it would do any good.

In the days that followed, he emailed me, sent and forwarded me text messages from one of the major players in the botched extort episode. We talked on the phone almost daily.

But while I was preparing to talk to some of the people cited in the document, out came the radio newscast accusing Ballsy, Eldon, Prado and Psinakis of allegedly demanding $30 million from Inekon, a Czech company, for a favorable deal with the MRT. The reports dragged Big Names into the fray except that they were not the characters on the list.

I then decided to write a story defending the presidential relatives, Prado and Psinakis, the better to help enlighten the public on this relevant issue and to challenge our government officials and thought leaders to stand up against corruption in government not by mere rhetoric but by some positive action.

I should be the last person to defend the President or his family from their detractors. Little is known about the fact that I was “fired” by the President in February 2012 as consultant for the Philippine Charity Sweepstakes Office (PCSO) for my close ties with the late President Gloria Macapagal-Arroyo and for his mistaken information (a piece of black prop) that I was former Supreme Court Justice’s Rene Corona’s PR consultant. I told my friend at the PCSO that “I am not Corona’s PR, but if he had asked me, I would have helped him.”

I submitted my irrevocable resignation to the PCSO Board after learning from a highly reliable source that a personal message by the President, no less, was sent to the PCSO Chair Margie P. Juico, “not to defend Dante Ang anymore.” I wanted to spare her the agony of having to defend me in the face of a presidential order. Besides, I was afraid that if I stayed a day longer, I would be placing her in a fix. She would likely court the ire of the President and face the prospect of an abbreviated reign at the PCSO.

It is my view that defending the innocent is a matter of public duty. Media practitioners are bound by ethical standards of checking, cross-checking, verifying, interviewing the persons mentioned in a story before it is published or aired. No sort of thing ever happened before the alleged involvement of the presidential relatives in the $30-million shakedown was aired on radio three times in as many days.

The $30 million extort try
The reported $30 million demand by some people—in and out of government – is contained in a 2-page document that was furnished me by someone with access to DOTC records. It includes dates, meetings, events and summaries or descriptions and even quotes of conversations between DOTC and MRT officials, the Czech Ambassador to the Philippines and the roles played by some private individuals in the episode.

The paper talks of the dinner attended by the Czech Ambassador, two Inekon officials, MRT General Manager Al Vitangcol, Manolo Maralit, Wilson de Vera and Marlo dela Cruz, that led to another meeting at the Ambassador’s residence where someone in the group allegedly proposed that Inekon officials give a $30 million gift. The Czech officials rejected the idea as being “excessive and impossible.”

It also describes the events surrounding Vitangcol’s proposal to Inekon to set up a Philippine company for a joint venture undertaking with the Czech company which would be 60 percent owned, secretly, by the MRT GM’s uncle and some other equity holders.

The document also tells of how Vitangcol allegedly snubbed the Czech Ambassador and Inekon officials when they went to his office for an official call previously arranged by DOTC people weeks earlier.

Interview with a principal figure
My source, it should now be obvious, is someone who was part of the whole shameful episode. He confirmed the dinner sometime in July 2012 somewhere in Makati with the two Inekon officials, Vitangcol, Maralit who made the arrangement upon the request of the Ambassador, Wilson de Vera and Marlo P. dela Cruz.

He said that after the dinner, Maralit went to him and said that “Vitangcol wants another meeting somewhere else and he will explain to you what you must do to proceed with the project.” The Ambassador suggested his residence.

My source said that Vitangcol begged off saying that Wilson de Vera was authorized to speak for him. Present in the meeting at the Ambassador’s residence were the Ambassador, the two Inekon officials, Manolo Maralit, and Wilson de Vera. Nobody could ascertain for sure whether or not Marlo dela Cruz was also present.

In that meeting, Wilson de Vera “offered [named the amount] how much Inekon must pay.” My source said that “He started with $30 million” and subsequently lowered it to $2.5 million after the Inekon group rejected his demand. The Ambassador said, “Are you crazy? Do you realize how much each train would cost? Each train will cost $4.5 million.”

De Vera, according to my source, excused himself and said that he “must consult.” He then proceeded to call someone and came back and said, “Ok, Mr. Vitangcol said that the consultants have determined that the cost of the train must not go over $3 million.” Dela Cruz then lowered the extortion demand to $2.5 million.

Maralit, my source tells me, was equally surprised at the demands of De Vera. However, Maralit who was present during the meeting at the Ambassador’s residence, denies having heard De Vera asking for $30 million, which was subsequently reduced to $2.5 million. In my phone interview with him, he said that he was in and out of the meeting for a smoke.

Maralit however confirmed that De Vera was at times on the phone seemingly consulting with someone. “Must be taking instructions,” he added. “(Di ko alam) I don’t know, every time he put down the phone, he came up with some new ideas,” Maralit added. He also said that he noticed De Vera was very uneasy during that meeting, “Parang naiiyak si Wilson.”

My source also recounted how Vitangcol snubbed the Ambassador and Inekon officials when he purposely did not meet with them for a pre-arranged official call at the GM’s office. After waiting for some 15 minutes, someone from the MRT depot faced them to say that the GM was not coming.

Not wanting to waste their time, the group of the Ambassador requested that they be brought to the depot to see for themselves the conditions of the coaches. While there, they were met by Jose “Pepe” Rodriguez, former bureau chief in the Philippines of the Spanish wire service, EFE. Rodriguez told the Ambassador that Vitangcol didn’t want to meet with the group at his office and that he would meet with them somewhere else.

Rodriguez brought them to Café Breton in Trinoma where Vitangcol, after some five minutes showed up and joined the group.

In that encounter, Vitangcol reportedly said, “Pepe and I are together. You cannot separate us.”

Joint venture proposed
My source could not remember the exact date of the meeting but someone from the group suggested forming a joint venture agreement with 60 percent of its equity to be held by a Filipino group, Vitangcol’s uncle being one of them.

The following day, the Ambassador and Inekon officials went to meet with Vitangcol at his office in Quezon City. They were greeted by Vitangcol and Wilson de Vera. Upon seeing them, Vitangcol allegedly asked, “How did you decide to pay this money and to establish the joint venture? What is your position?”

“They already had the papers and some Filipino names ready,” my source added. The group of the Ambassador was shown the door immediately after they stated their rejection of the demands and the formation of a joint venture company. “We will not go for any corruption,” my source quoted the Ambassador as saying when he rejected the joint venture. “The group was not even given any chance at all to present their [legitimate] program to Vitangcol,” he added.

Maralit reportedly arrived at the GM’s office after the Ambassador’s party had left and while on their way to their office in Makati, His Excellency received a text message from Maralit saying, “The Czechs are finished, I will not give them any project. I don’t want to speak with them anymore.”

Maralit confirmed that he sent the text message to the Ambassador only because De Vera had asked him to.

Vitangcol denies allegations
I met with Vitangcol in the morning of Friday, July 6, to get his side of the story. He refused to have the interview taped. He said he doesn’t want his name mentioned on tape. I dutifully turned off my recorder and proceeded to ask my questions.

Vitangcol denied ever having dinner with the Ambassador or having coffee with the Ambassador and Pepe Rodriguez at Trinoma. “Jose (Pepe) is just an acquaintance, not a friend,” he said. He insisted on his denials even as I pressed him about the reported dinner that was hosted by the Ambassador where he and the three others were reportedly present. I asked him, “if Maralit, de Vera and Dela Cruz are not your friends, what were they doing in the meeting? Who invited them?” He denied that he was present at that dinner.

When asked whether he had any occasion to have dinner and coffee with the Ambassador outside the MRT office, Vitangcol nonchalantly said no.

I asked him if Maralit, de Vera and Dela Cruz are his friends. He replied in the negative. “Hindi ko personal na kakilala ang mga iyan. Mga taga PH Trams (yan), mga officers,” he said. He only met them when they started to handle the maintenance of the MRT in October 2012, he added. “They are not my friends,” he emphasized. “I don’t know where these people came from. I also don’t know who their connections are. I have not gone out with them,” he added.

When I asked him why Maralit, dela Cruz and De Vera went to the Ambassador’s residence, he suggested that “the three might have some business with the foreign dignitary.” He said that Maralit is known to the Ambassador and that the two were together when they paid him a courtesy call in January or February this year.

Vitangcol also denied knowing anything about the $30 million extort try. He said that he was not present at the Ambassador’s residence when the alleged solicitation happened. Said he: “Since I was not at the Ambassador’s residence at the time the $30 million extortion reportedly happened, that should prove that I had nothing to do with it.”

He denied as well that he proposed the formation of a joint venture with Inekon where the Filipino equity holders, including his uncle, would own 60 percent.

He said he did not snub the Ambassador and the Inekon officials when they went to his office for an official call. He explained that he was out of the office at that time and the only time he came to know that there was a meeting was when his secretary called him earlier that same day.

“Why would I attend the meeting, it was arranged only by a director at the DOTC. I am higher in rank than him,” Vitangcol added.

Pepe Rodriguez joins the denial act
Jose “Pepe” Rodriguez and I met Saturday morning at the Intercon. I wanted some clarifications.

Contrary to the claim of Vitangcol, Rodriguez admitted that Vitangcol and he had dinner with the Czech Ambassador in a restaurant in Greenbelt 5 (he couldn’t recall the date) and again for coffee in Café Breton in Trinoma sometime in March this year.

He recounted the circumstances behind the meeting with Vitang col, the Ambassador and the two Inekon officials at Trinoma. He said that “Vitangcol was not at his office when these people went there and I told them ‘Let me try to see if he’s around so I can call up and if he’s around he can come’ and the guy came.” It was during that meeting that Vitangcol allegedly told the Ambassador and Inekon officials that “You cannot separate us. We are together.” Rodriguez repeated that the meeting was purely social and that there was nothing said about him and Vitangcol being inseparable.

Rodriguez, again contrary to the claim of Vitangcol, confirmed that a dinner was held at Zuni Restaurant at Greenbelt 5 in Makati with the Ambassador and Vitangcol. Others present were Manolo Maralit, Wilson de Vera and Marlo P. dela Cruz.

The document I got describes the three individuals as belonging to the party of Vitangcol. Maralit however clarified that at the time when the dinner was held, he was still part of the Ambassador’s party. He is now one of the members of the group that was awarded the contract to maintain the MRT coaches for a “temporary period of time.”

Next thursday: An attempt to silence this paper or just plain filipino culture?

$30M MRT Extortion - Smoke and Mirrors

2013-07-21T17:25:00.002-07:00

BALLSY, ELDON, PRADO: VICTIMS OF A DEMOLITION JOB

July 3, 2013 9:56 pm

by DR. DANTE A. ANG
THE MANILA TIMES, CHAIRMAN EMERITUS

There have been reports that presidential sister Ballsy and brother-in-law Eldon Cruz, former Transportation secretary Pete Prado, and Engr. Steve Psinakis, husband of Precy Lopez, the daughter of the late Eugenio “Geny” Lopez, had attempted to extort $30 million from a Czech company in exchange for a supply contract with the Metro Rail Transit (MRT).

What amazes me no end is that a leading network and a radio station aired the allegations twice last week and yet again on Monday with the announcer urging the couple to clear their names without bothering to check the accuracy of the facts. Never mind if the story was devoid of substance.

For one, the story merely quoted “a source.” The writer didn’t even bother to describe the source, much less countercheck her source (yes the writer is a she).

For another, if the author had checked her facts, she would have discovered that Psinakis is aging and ailing. Indeed, there is another Psinakis, but he is not the Psinakis of the Lopez clan. He is a Greek who has deep ties with a minister of the Czech Republic. It was this Psinakis who brought the Czech Foreign Minister and the Philippine government to the table for the MRT project.

One quick glance at the story and anybody with a modicum of intelligence would see that it is a demolition job, part of a sinister campaign to obfuscate the real issue and draw attention away from the real culprits. (For the record, I do not blame the radio announcer for airing the alleged $30 million imposition by the presidential sister and brother-in-law. The news reader is just a talking head and reads the news given to him after it has been edited).

The story alleges that Ballsy and Eldon travelled to Prague and personally met with a representative of Inekon, a Czech company, and demanded $2 million to $30 million. The Czech representative however rejected the couple’s offer. Imagine, Ballsy and Eldon face-to-face with the company representative asking for grease money!

Ballsy and Eldon Cruz did travel to Prague sometime in 2011 upon the invitation of Czech Ambassador to the Philippines Josef Rychtar. While in Prague, the three were invited to a social event attended by representatives from the Czech government and business sector. No business matters were discussed in the event. Even assuming that Ballsy and Eldon had attempted to extort $30 million from Inekon, as some speculators would put it, there was simply no window of opportunity to privately discuss business deals in the middle of a public gathering.

Again, assuming that Ballsy and company did try to extort money from Inekon, how could that be possible? The Czech company’s proposal is a government-to-government project, leaving no provision for broker’s commissions or worse, “tongpats” or “kotong.”

I do not know Ballsy personally; I never even met her. But I have some friends who worked closely with her during her mother’s incumbency as President and they are one in saying that Ballsy is very reserved, soft-spoken and upright. She is, my friends would say, like her mother, the late President Cory Aquino, honest to a fault.

The plotters must have calculated that the “scandal” involving the presidential sister and brother-in-law would whet the appetite of the public given the Filipinos’ gluttony for “tsismis.” Wrong. The public did not fall for it. The black propaganda did not go viral, for good reason.

Before President Benigno Aquino 3rd starts blaming the opposition, particularly those closely associated with former President Gloria Macapagal-Arroyo for the demolition job, he should first meet with his sisters, particularly Ballsy, to get some sense of what is happening with the MRT project.

What he should NOT do is consult with the people Secretary Mar Roxas brought in when he was appointed DOTC chief. Save for one who went with Mar to the Department of Interior and Local Government, I am told that these people have remained in their strategic posts at the DOTC and are running the show.

What’s at the DOTC that some people would rather breach established protocol of leaving the post along with their boss when he leaves office? What is it that makes them hold on to their old positions and bear the ugly brand of “kapalmuks?” Does it have to do with the multi-billion peso-projects like the contracts for drivers license, car plates, the Land Transportation Office (LTO) computerization and integration system, among other big time deals at the DOTC and its attached agencies?

Why Secretary Joseph Emilio Abaya keeps and tolerates them at the Transportation department is a puzzle to me. Is there a quid pro quo between Mar and Abaya?

P-Noy should not worry much about his detractors from the ranks of the opposition, the New People’s Army, Moro Islamic Liberation Front, Moro National Liberation Front or some other groups out to overthrow the government. Rather, he should guard against some of his so-called “friends” and some of the people his “friends” brought into the government, many of whom are holding powerful positions, so powerful that they can bring the government literally to a standstill. Some examples of projects that can greatly affect the country if bungled are the LTO drivers license, car stickers, MRT expansion project, irrigation projects, upgrading of the NAIA 1, resolution of the NAIA2, and a host of other much delayed programs.

PNoy should keep his ears to the ground. He should rely less on his so-called “friends” and more on his sisters for personal advice, because they have a reputation for honesty, integrity and probity. Besides being family, they wouldn’t lie to him. They will serve his best interests in much the same way that they had served their mother well.

The President should watch out for some of his so-called “friends”. The alleged extortion attempt by Ballsy is a case in point.

I have received information that the family of the President has traced the source of the story to a Malacanang insider.

The latest news is that Secretary Abaya was hastily summoned on Tuesday night (around 9:30 p.m.) to the Palace by no less than the President. I suspect that the meeting may have something to do with the letter of the Czech Ambassador (yes, there is a recent letter) to PNoy complaining of how Inekon’s government-to-government proposal for the MRT3 modernization had been gathering dust at the DOTC for almost three years now.

Unless the President steps in, Inekon’s proposal will be permanently shelved (if it has not been buried yet) in favor of a Chinese supplier (more on this in subsequent reports).

Next Tuesday: The story behind the $30 million extort try

CORRECTIONS, AMPLIFICATIONS ON ‘BALLSY, ELDON, PRADO: VICTIMS OF A DEMOLITION JOB’

Manila Times July 4, 2013 10:16 pm

Computer glitches and editing errors marred the opinion article by Dr. Dante A. Ang, chairman emeritus of The Manila Times, titled “Ballsy, Eldon, Prado: Victims of a demolition job” in yesterday’s Times.

Dr. Ang’s original manuscript referred to the “extortion reports” as a canard.

Engineer Steve Psinakis is the husband of Precy Lopez, sister—not daughter as the printed article incorrectly states—of the late Eugenio “Geny” Lopez.

Dr. Ang’s article cites the failure of the broadcast stations’ news team leadership to verify the accuracy of the allegations and as a result helped in the demolition job against Ballsy, et al. The false allegations were part of a sinister campaign to obfuscate the real issue and draw attention away from the real culprits.

Dr. Ang’s article as written is more economical with words—using “social” not “social event” to mean a party. Thus, it states, to counter the allegation that Ballsy, et al. went to Prague to commit extortion:

“True enough, Ballsy and Eldon Cruz did travel to Prague sometime in 2011 upon the invitation of Czech Ambassador to the Philippines Josef Rychtar. While in Prague the three were treated to a social attended by representatives from the Czech government and business sector. It was purely social and no business matters were discussed. Even assuming they had attempted to extort $30 million from Inekon, as some speculators would put it, there was simply no window of opportunity to privately discuss business deals in the middle of a public gathering.”

The published article omitted some details Dr. Ang pointed out to punctuate the dangerous situation at the DOTC.

“What he [President Aquino] should NOT do is consult with the people Secretary Mar Roxas brought in when he was appointed DOTC chief. Save for one who went with Mar to the Department of Interior and Local Government, I am told that these people have remained in their strategic posts at the DOTC and are running the show at the department long after Mar had left for the DILG job.”

The published version weakened the intensity of the warning. In this original paragraph Dr. Ang wrote:

PNoy should not worry much about his detractors from the ranks of the opposition or the NPA or the MILF or the MNLF or some other groups committed to the overthrow of the government. Rather, he should guard against some of his so-called “friends” and some of the people his “friends” brought into the government many of whom are holding powerful positions, so powerful that they can bring the government literally to a standstill. Some examples: the LTO drivers licenses, the car stickers, the MRT expansion project, the irrigation projects, the upgrading of the NAIA 1, the resolution of the NAIA2 dispute, and a host of other much delayed programs.

P10-B Scam - Start of the End

2013-07-18T22:59:00.001-07:00

Witness in fertilizer fund scam rescued

By Edu Punay (The Philippine Star) | Updated April 2, 2013 - 12:00am

MANILA, Philippines - The National Bureau of Investigation (NBI) has rescued a witness in the P728-million fertilizer fund scam from the condominium unit in Taguig of a businesswoman implicated in the corruption scandal.

Benhur Luy was rescued last March 22 from the residence of Janet Napoles, who owns the JLN Group of Companies, one of the suppliers of fertilizers to the Department of Agriculture during the Arroyo administration.

Luy’s parents said Napoles and her brother Reynald Lim had illegally detained their son since December last year after he decided to testify in the graft case.

Napoles has eluded arrest, while Lim was taken to a nearby hospital due to chest pains.

Arturo and Gertrudes Luy have accused Napoles and Lim of kidnapping their son on Dec. 19, 2012.

They were allowed to see and visit him twice, they added.

On the second visit their son “surreptitiously handed his hand-written note indicating that he is being detained against his will,” read the complaint.

According to his parents, Luy said he knew how employees of JLN Group forged signatures of “fictitious individuals” in organizing non-government organizations Kaupdanan Para sa Magsasaka Foundation, Social Foundation, People’s Organization for Progress and Development Foundation, Pangkabuhayan Foundation and Masaganang Ani Foundation.

He had decided to testify in the fertilizer fund and Malampaya cases, they added.

The DOJ has summoned Napoles and Lim to a preliminary investigation on April 15 on charges of serious illegal detention.

The Luys sought the assistance of Justice Secretary Leila de Lima in rescuing their son.

Accused in fertilizer fund scam denies detaining witness

By Edu Punay (The Philippine Star) | Updated April 4, 2013 - 12:00am

MANILA, Philippines - A businesswoman earlier implicated in the P728-million fertilizer fund scam yesterday belied allegations that she illegally detained a possible witness in the corruption case.

Janet Napoles, owner of JLN Group of Companies who was dragged into the controversial graft case as one of the suppliers of fertilizers to the Department of Agriculture (DA), said she and her brother Reynald Lim did not detain Benhur Luy, who was reportedly rescued by National Bureau of Investigation (NBI) agents from her condominium unit last March 22.

Napoles’ lawyer Jean-Paul Acut said the charges of illegal detention filed by Luy’s parents against his client were “false and untrue” since Luy stayed in her residence of his own free will.

In fact, Luy stayed in Napoles’ place while on a four-month “spiritual retreat.”

“He stayed there of his own free will to atone for the wrongdoings he committed during his tenure at the JLN Group of Companies, for which he was investigated by management,” Acut told reporters at the Department of Justice (DOJ) in Manila.

The lawyer also stressed that the case was a simple internal family problem.

DOJ assessing testimony of rescued witness in fertilizer fund scam

By Edu Punay (The Philippine Star) | Updated April 5, 2013 - 12:00am

MANILA, Philippines - The Department of Justice (DOJ) is assessing the testimony of a witness in the P728-million fertilizer fund scam rescued recently by agents of the National Bureau of Investigation (NBI) from alleged detention by a businesswoman, Secretary Leila de Lima revealed yesterday.

“We are still validating or vetting the credibility (of the witness). So we can’t make certain pronouncements yet at this point as to the validity of the claims,” De Lima said.

De Lima said witness Benhur Luy will be presently regarded as a victim because of the serious illegal detention complaint filed by his parents at the Department of Justice (DOJ) against Janet Napoles, owner of JLN Group of Companies, who was implicated in a graft case as one of the suppliers of fertilizers to the Department of Agriculture (DA).

“The parents sought my help and therefore I referred it to the NBI who undertook the rescue operations. This is a case of serious illegal detention because he was rescued,” she explained.

Napoles, however, denied detaining Luy in her condominium unit at Pacific Plaza Tower, Bonifacio Global City in Taguig City last March 22.

Napoles said Luy went on a voluntary retreat or recollection at Bahay San Jose under the care of Fr. Peter Lavin since December 2012.

Napoles also denied being an accused in the Sandiganbayan case on the fertilizer fund scam.

She said she was only invited to the Senate inquiry as a resource person but not among those charged.

Napoles claims P300-M extort try

By Delon Porcalla (The Philippine Star) | Updated July 17, 2013 - 12:00am

MANILA, Philippines - The woman embroiled in the P10-billion pork barrel fund scam had informed President Aquino of an alleged attempt of her former personal assistant – now a purported star witness in the scandal – to extort at least P300 million from her.

In a two-page letter sent to Aquino last April, a copy of which was obtained by The STAR, businesswoman Janet Lim-Napoles related the “demand” by alleged whistle-blower Benhur Luy – through lawyer Levito Baligod – for P300 million, apart from several other demands, “in exchange for dropping” the illegal detention case.

“On March 27 (2013), I met with attorney Baligod and this time he demanded a higher amount (P250 million to P300 million), excluding their other demands such as issuance of Canadian visas for all of the Luy family members, including himself (Benhur),” Napoles said.

This was on top of the initial P38 million they tried to extort. There was also a demand for $1.5 million “pocket money” and the “opening of a legitimate pharmaceutical business to be given to the youngest sister who will be left behind in the Philippines.”

“We reiterate that the charges against us are all false, fabricated and a mere product of lies, perpetrated by our business competitors, with the ulterior purpose of besmirching our reputation and destroying our name,” a portion of the letter read.

Napoles sought Aquino’s help, particularly after agents of the National Bureau of Investigation (NBI) raided their unit at the Pacific Plaza condominium in Bonifacio Global City on March 22 without any warrant.

“We write with feelings of utmost disappointment, desperateness and extreme fear for our lives, as a result of the continuous threats, intimidation and even physical harm being inflicted upon us by some unscrupulous individuals, in cohorts with corrupt NBI agents,” she said in her letter to Aquino.

The NBI, however, justified the “warrantless arrest” based on a serious illegal detention complaint allegedly filed by the Luy family against Napoles and her brother Reynald Lim.

“This sudden illegal intrusion into our home and (invalid) warrantless arrest, all in complete disregard of our constitutional rights, reminded me of the human rights violations during martial law which your parents strongly opposed,” Napoles wrote.

The NBI stepped into the probe because of the alleged kidnapping of Luy.

Luy, who worked as Napoles’ personal assistant in the trading company JLN Corp., submitted an affidavit to the NBI claiming Napoles was behind a P10-billion scam using the pork barrel of senators and congressmen for ghost projects over the past 10 years.

Malacañang defended the NBI, saying it was part of the agency’s mandate to investigate any allegation of wrongdoing.

Deputy presidential spokesperson Abigail Valte, however, refused to comment on the allegations against Napoles.

Valte said they were not privy to the contents of the affidavits and would withhold any comment until such time that the NBI released its findings.

Napoles denied the allegations that Luy was held against his will.

“We are decent law abiding citizens. We are not kidnappers, we are not criminals. My family and I are legitimate businessmen,” read the letter.

Napoles’ letter, dated April 17, also requested Aquino to release her brother Reynald from NBI custody. She said her brother was arrested under an “illegal warrantless arrest, who is continuously languishing in the hospital under close watch since March 22.”

“We likewise seek your help in this illegal extortion activity involving private individuals and officers/agents of the NBI and for the protection of our family,” Napoles told the President.

She described the serious illegal detention charges as “illogical and unbelievable.”

Last June 10, the Department of Justice (DOJ) – through assistant state prosecutor Juan Pedro Navera – threw out the charges against Napoles and her brother, which was approved by Senior Deputy State Prosecutor Theodore Villanueva and Prosecutor General Claro Arellano.

Relatedly, assistant city prosecutor Rey Camilo Dumlao recommended the filing of “qualified theft” charges against Luy – who was also a witness in the P728-million fertilizer fund scam – before the Pasig City regional trial court.

This was based on the complaint Napoles filed against Luy in connection with the P300,000 that he “misappropriated” and the total P5.5-million loan he separately obtained in August and December 2012 without Napoles’ knowledge.

Napoles has been linked to an alleged scam involving the diversion of pork barrel funds of several lawmakers into dummy non-government organizations (NGOs) purportedly for ghost projects worth P10 billion.

Her lawyer Bruce Rivera said his client had been advised by doctors to take a rest after suffering from hypertension “due to stress brought about by these allegations.”

Rivera though stressed Napoles is denying the charges that he attributed to “a simple extortion case.”

“They have nothing against my client but mere baseless claims of Benhur Luy. Where’s the document to show that my client has this alleged NGO or foundation?” Rivera told dzBB.

Rivera said the accusers should bring the charges against his client before Congress or the Anti-Money Laundering Council.

“My client does not personally know these senators and congressmen being implicated. It is very unfair for these lawmakers to be dragged into the issue,” he said.

Rivera maintained the issue was personal between Napoles and Luy.

MOST issues clarification

On the other hand, the law firm of Executive Secretary Paquito Ochoa Jr. clarified yesterday its alleged links to Napoles.

The law firm Marcos Ochoa Serapio Tan (MOST) said it only served as collaborating counsel for Napoles and her brother Reynald in the earlier preliminary investigation at the DOJ on serious illegal detention charges filed against them by Luy.

The law firm explained their lawyers only collaborated with Freddie Villamor, Napoles’ counsel who needed help since he was conferring with her at the hospital most of the time.

“The firm’s written engagement with Ms. Napoles was limited only to handling the preliminary investigation stage. It was agreed that should the Department of Justice recommend the filing of the kidnapping case against Ms. Napoles and her brother, the firm would have to determine whether or not it would continue to represent her at the trial stage,” read the statement.

“Since the firm only acted as collaborating counsel, it did not formally enter its appearance in the kidnapping case,” it added.

The law firm also revealed that after the pleadings were submitted to the DOJ, and even before the DOJ issued its resolution dismissing the complaint, they already withdrew from the kidnapping case.

The law firm stressed it has never served as counsel for Napoles in connection with her alleged involvement in the P10-billion scam.

Napoles has denied any involvement in the misuse of billions in pork barrel funds of lawmakers. However, her former employees said she was the one who set up foundations using them as dummies.

Napoles was also the one who negotiated with and offered kickbacks to senators and congressmen, they claimed.

They said up to 60 percent of pork barrel funds given to the foundations were offered as kickbacks.

They said a lot of the funds from which commissions and kickbacks were taken were coursed through the Department of Agriculture, which also disbursed the P728 million in fertilizers funds in 2004.

DBM: No pork to foundations

The Department of Budget and Management (DBM) clarified it does not release the pork barrel funds of senators and congressmen directly to foundations and NGOs.

“We release the funds to government agencies, not to NGOs,” Budget Secretary Florencio Abad said in a television interview.

Abad was obviously reacting to the statement of Sen. Ferdinand Marcos Jr. that the DBM should explain the reported irregularities in the use of billions in pork barrel funds.

Marcos and Senators Juan Ponce Enrile, Jinggoy Estrada, Ramon Revilla Jr., and Gregorio Honasan have allegedly given hundreds of millions in their Priority Development Assistance Fund (PDAF) allocations to fake NGOs supposedly organized by Napoles.

Explaining the process of disbursing PDAF allocations, Abad said senators and congressmen submit to the DBM requests for the release of their funds.

The requests contain the amounts the lawmakers allocate for projects chosen from a menu embodied in the annual budget, and the agencies to which the money would be released, he said.

Abad said a bureau in the DBM makes sure that the projects are consistent with those listed in the menu.

The funds are then released to the identified national agencies, he added.

Abad pointed out that implementing agencies have the option of undertaking the projects themselves or hire NGOs to implement them through a memorandum of agreement.

He said it is the lawmakers and the agencies that identify the NGOs to which the funds are then given.

“It is the lawmakers and implementing agencies that are ultimately responsible for whatever irregularities in the use of the funds,” he stressed.

Enrile to COA: Release report

Sen. Juan Ponce Enrile, for his part, maintained the Commission on Audit (COA) should reveal the results of its special audit on the use of the PDAF.

Enrile said he stands by the entire record of how he had directed the distribution and use of funds made available to him as a legislator to identify projects to be funded by the government.

“I am submitting myself to a full investigation and audit of all my PDAF allocations over the years as I served as senator,” Enrile said.

Enrile added the exposé was selective instead of looking at all the lawmakers’ fund disbursements.

Sen. Francis Escudero, for his part, said he never gave funds to foundations and NGOs.

Escudero said he has been allocating his P200-million annual PDAF to government hospitals for medical assistance to indigent patients and local government units for the improvement of public markets.

Escudero also said that he usually does not allocate huge amounts for projects other than medical assistance.

Some politicians named in the scam, such as Sen. Ramon Revilla Jr., said the issue was not legitimate but a plot to demolish the political opponents of the administration.

Valte replied Malacañang is focused on solving problems such as the relocation of informal settlers and does not have time for such things.

She also said President Aquino had been very strict against making accusations without evidence to support them.

“The President is always very strict – and this is something that he has repeated to us – that government should never accuse without evidence and that we should never proffer accusations without proof. The investigation will settle that,” Valte said.

She said they were fixing a lot of problems like the informal settlers’ relocation, especially those living in danger zones.

“Because of the focus on those problems, we no longer allot time for those things,” Valte said.

“I understand that the senator mentioned that he has a source. We would appreciate it if that information was given to us because, certainly, that is not the case – that the demolition is coming from us,” Valte said.

Initiatives

Ombudsman Conchita Carpio-Morales announced yesterday the creation of a special team of investigators that will look into the ghost project allegations of certain members of Congress.

Morales said the six-man investigating panel has been tasked to conduct a parallel probe in coordination with the NBI.

Morales explained that under Republic Act 6770 or the Ombudsman Act of 1989, the anti-graft agency may initiate the investigation even without a complaint.

P10-B Scam - Infographic

2013-07-18T22:25:00.004-07:00

INFOGRAPHIC: Pork barrel scam made easy

By Rose-An Jessica Dioquino,GMA NewsJuly 19, 2013 11:28am

Click Image to Enlarge

P10-B Scam - Napoles ‘welcome’ streamers puzzle Candaba folk

2013-07-18T20:41:00.000-07:00

Napoles ‘welcome’ streamers puzzle Candaba folk

2:26 am | Saturday, July 13th, 2013

VIP WELCOME Streamers in Candaba, Pampanga, welcome Janet (“Madame Jenny”) Lim-Napoles and family to the oath-taking of Mayor Rene E. Maglanque on June 30, (they did not show up.) The streamers were hastily taken down Friday afternoon after news broke out that Napoles is being investigated by the NBI for suspected multibillion fraud in the use of congressional pork barrel funds for scores of ghost projects. E.I. REYMOND T. OREJAS/INQUIRER CENTRAL LUZON

CITY OF SAN FERNANDO—Streamers welcoming “Jenny, Jimmy, James Lim Napoles” lined the road leading to the center of Candaba town on Friday, some two weeks after members of the Napoles family were scheduled to grace the June 30 oath-taking of Mayor Rene Maglanque.

The three did not turn up for the occasion, but the streamers sparked speculations here after the Inquirer carried a story on Friday about a government investigation of Janet “Jenny” Lim-Napoles, who was implicated in an alleged P10-billion scam involving ghost projects financed by congressional pork barrel funds.

“Were they the same people in the Inquirer story?” asked a village official, who requested anonymity for fear of reprisal.

Streamers removed

Local leaders said the question went unanswered as the mayor was not available for interview. He was reportedly attending an agricultural summit and could not take calls.

The streamers were removed at 4 p.m. on Friday after copies of the INQUIRER had circulated around town. But local officials here would not say if Maglanque had ordered the pullout.

The mayor’s staff asked the INQUIRER to send its queries through a text message, but as of late Friday, Maglanque had yet to reply to the questions.

In 2005, “jueteng” (illegal numbers game) whistle-blower Sandra Cam named the Candaba mayor as “one of the bagmen” of former Pampanga Rep. Juan Miguel Arroyo. The mayor denied Cam’s allegations.

As then undersecretary of the Department of Transportation and Communications, Maglanque reportedly failed a lifestyle check.

In 2012, the INQUIRER learned that Maglanque had allegedly tried to bribe a leader of a fishermen’s group in Masantol town in an attempt to silence the group about an irregularity involving the distribution of farm equipment.

Some 2,500 fishermen in Masantol were reported to have received farming tools and seeds worth P89.2 million from the Department of Agrarian Reform. The supposed beneficiaries, however, claimed that their signatures had been forged and that they did not receive anything from the DAR or its listed partner, the Kaudpanan para sa Mangunguma Foundation Inc. (KMFI).

KMFI is one of the fake NGOs Napoles reportedly set up.

John Raymund de Asis, president and chair of KMFI, did not answer calls and text messages seeking his group’s side of the issue.

Maglanque, one source claimed, had asked a leader of the Masantol fishermen to keep mum on the issue in exchange for P1 million. The amount was rejected.

More NGOs that got Malampaya money go missing

by Chiara Zambrano, ABS-CBN News

Posted at 11/29/2012 1:37 AM | Updated as of 11/29/2012 1:40 AM

MANILA, Philippines - More nongovernment organizations (NGOs) that allegedly received millions of pesos in grants from the Malampaya project under the Arroyo administration are nowhere to be found.

Department of Agriculture (DAR) records show that in 2009, P10 million were downloaded from the agency to an NGO called Tanglaw Para sa Magsasaka Foundation.

The said amount was said to have been used by Yanglaw to purchase and distribute farming equipment to the municipality of Hingyon in Ifugao.

But a preliminary investigation by DAR showed that Hingyon never received the said amount. Then-Hingyon Mayor Ramon Tinawani, in a letter to the DAR, vehemently denied ever having heard of such a fund.

Tinawani also maintained that his signatures in the memorandum of agreement between DAR, the foundation, and the LGU were forged.

Per DAR records, Tanglaw Para Sa Mangggawa Foundation's official address is on Block 2, Lot 1, Tulip Street, West Fairview Park Subdivision, Barangay Fairview, Quezon City. But ABS-CBN News' visit to Tulip Street showed that the said address did not even exist.

There are only 14 blocks on the street. Moreover, residents who have lived there for decades said they've never heard nor seen such a group in the area.

"Walang ganyang address dito," said one resident, Ma. Teresa Alcaraz.

"Kilala namin lahat ng tao dito, walang tao dito na may ganyang pangalan," said another local, Martha Ramitere.

There is also no record of the group at the Fairview barangay hall.

Officials consider this proof that the foundation doesn't exist in the area, since all organizations -- whatever the function -- must all get a barangay clearance before being allowed to establish themselves within the jurisdiction.

Residents and barangay officials alike deny knowing a certain Nova Kay Viray, who DAR records say is the president of Tanglaw Para Sa Magsasaka Foundation.

If the foundation cannot be found, where are P10 million that were supposed to have been received by Hingyon 2 years ago?

Tip of the iceberg

The Hingyon issue may only be the tip of the iceberg.

In 2009, the entire P900 million given to DAR from the Malampaya fund was distributed to various NGOs like the Tanglaw Ng Mga Magsasaka Foundation, with the agreement that the groups would be the ones to distribute the funds in DAR's behalf.

Initial investigation by the agency reveals that of the 8 NGOs they have checked thus far, 5 including Tanglaw Ng Mga Magsasaka, cannot be found in their official addresses.

Each of the ngos was given at least P10 million per municipality. It is still uncertain how many municipalities these groups were assigned to.

The said NGOs are:
- Bukirin Tanglaw Foundation, Inc.
- Tanglaw Para Sa Magsasaka Foundation Inc.
- Ginintuang Alay sa Magsasaka Foundation, Inc.
- Kasaganahan Para Sa Magsasaka Foundation, Inc.
- Masaganang Buhay Foundation, Inc.

There are also more NGOs on DAR's list that still need to be verified, as the P900-million fund was spread out through Regions 1 to 4 and the Cordillera Administrative Region.

It may be recalled that ABS-CBN News tried to locate the official address of another ngo called Kaupdanan Para Sa Mangunguma Foundation, Inc., but instead found the residence of Juanito Castillo -- one of the group's board members, who claimed the NGO had not convened in a while, and that he only allowed to group to use his name and address because he was promised good profit from it.

Kaupadanan, like the other NGOs, claimed that they distributed at least P6 million worth of farming equipment to Masantol, Pampanga. But residents of Masantol say that their signatures were forged, and that they received no such money. Moreover, there are no ricefields in Masantol as the community is full of fishponds.

The DAR is in its initial stages of investigation, running parallel to a probe already being conducted by the Commission on Audit.

They are now verifying which portions of the P900 million fund are missing, and which officials in 2009 could have had a hand in this.

In an earlier interview, Agrarian Reform Secretary Gil Delos Reyes said he finds it unlikely that then-Secretary Nasser Pangandaman did not know about the fund.

Pangandaman refused to comment on the matter.

Delos reyes now fears that with P900 million in government funds unaccounted for, the controversy could very well be bigger than the infamous fertilizer fund scam.

P10-B Scam - Napoles camp won't commit to opening bank accounts

2013-07-18T18:46:00.000-07:00

Napoles camp won't commit to opening bank accounts

By Ina Reformina, ABS-CBN News
Posted at 07/17/2013 3:38 PM | Updated as of 07/18/2013 2:29 AM

Denies close ties with legislators, Enrile's former chief of staff

MANILA (1st UPDATE) - The camp of Janet Lim Napoles, the businesswoman embroiled in the reported P10 billion legislators' pork barrel scam, denies she is as wealthy as she is being portrayed by a trusted relative-turned-foe.

Yet, in spite of mounting pressure for Napoles to have her bank accounts scrutinized by the Anti-Money Laundering Council (AMLC), and an assurance that her camp will cooperate in any probe pertaining to the issue, her lawyers said she has yet to respond to the challenge.

"I cannot speak on her behalf, it's unfair for me to give an answer now since I might preempt what she's going to do," said her counsel and spokesman, Atty. Bruce Rivera, in a press conference in Manila on Wednesday.

Rivera said Atty. Levito Baligod, the lawyer of Benhur Luy, the main whistleblower of the pork barrel scam and relative and former employee of Napoles, met with Napoles to "extort" P300 million from her in exchange for the dropping of the serious illegal detention charges against her and her brother, Reynald.

"If it's true she has P10 billion, what is P300 million? But she does not have that," Rivera said.

Whether Napoles waives her right on the secrecy of her bank deposits, Justice Secretary Leila De Lima had earlier bared that the National Bureau of Investigation (NBI), the agency asked to probe the alleged pork scam, is already coordinating with AMLC.

Luy and 5 others implicated Napoles and her JLN Group of Companies in the scam, allegedly in cahoots with senators, congressmen, and public agencies that implement the projects of lawmakers under their Priority Development Assistance Fund (PDAF).

The list of lawmakers who have allegedly misused and benefited from their PDAF includes Sen. Pres. Juan Ponce Enrile, Sen. Bong Revilla, Sen. Jinggoy Estrada, Sen. Gringo Honasan, Sen. Bongbong Marcos, all of whom have categorically denied the allegation.

NOT PERSONALLY ACQUAINTED WITH LAWMAKERS

Contrary to the claims of Luy's camp that Napoles is closely associated with the legislators they have identified, Rivera said she is "not personally acquainted with any of them."

Napoles may have, on some occasion, had her photo taken with any of the legislators, he added, but this does not mean she personally knew them.

"She had her picture taken with Sen. Bong Revilla because he is popular and good looking, but that's it," Rivera said.

Rivera also flatly denied that Napoles is close to Atty. Gigi Reyes, the resigned chief-of-staff of Enrile, who had also found herself the target of attacks for allegedly being more powerful than her designation allowed her to.

Rivera denied that Napoles was present in Reyes' 50th birthday party attended by high-ranking government officials and her closest circle of friends.

"She (Napoles) cannot remember if she went to that party, she attends many parties," Rivera said.

FEARING FOR SECURITY

In a statement read by Rivera, Napoles said she now fears for her security and that of her family following Luy's revelations about her residences, officers, and vehicles.

"I now fear for the security of myself and my family since Benhur [has] divulged in public our known residential addresses as well as location of our offices.

"Several family-owned vehicles with plate numbers were also exposed by Benhur and we now fear that kidnappers would now be targeting us thinking that the amount of money being attributed to us is true," she said.

Despite this fear, Napoles is "not in hiding," Rivera assured.

P10-B Scam - 2 mayors on pork projects: We got nothing

2013-07-18T18:39:00.003-07:00

2 mayors on pork projects: We got nothing

12:45 am | Thursday, July 18th, 2013

CANDELARIA, Quezon—The syndicate behind a P10-billion scam employed a good signature forger to secure multimillion-peso projects for dummy nongovernment organizations in the towns of Candelaria and Mulanay in Quezon province, the mayors there said.

“At first glance, they look like my signature but closer scrutiny will reveal the forgery. Whoever faked my signature was a good forger,” Mayor Ferdinand Maliwanag of Candelaria said in an interview on Tuesday.

Former Mayor Prudencio Maxino of Mulanay was surprised when told that his town had been the beneficiary of a P10-million project from Agri and Economic Performance for Farmers Inc., one of several dozen that Janet Lim-Napoles, president and CEO of JLN group of companies, was alleged to have set up over the past decade.

“It’s my first time to hear the name of that NGO,” Maxino, who served three terms totaling nine years, said in a telephone interview on Monday.

Six whistle-blowers have executed affidavits accusing Napoles of setting up dummy NGOs to secure funding for ghost projects from the Priority Development Assistance Fund (PDAF), or pork barrel, of senators and members of the House of Representatives, royalties from the Malampaya gas project off Palawan, and budget allocations of the Department of Agriculture and the Department of Agrarian Reform (DAR).

Signatures forged

The racket went on for a decade until it was exposed by Benhur Luy, a JLN employee, who allegedly was kidnapped in December last year and held captive for three months. After his rescue, Luy issued statements accusing Napoles of the shenanigans. The latter, however, has denied any wrongdoing.

On May 11, 2012, Susan Garcia, a Commission on Audit (COA) director, wrote Maliwanag for confirmation of his signatures on documents pertaining to the release by the Department of Budget of Management of P7.5 million to Micro Agri Business Citizen Initiative Foundation Inc. (MABCF) for assistance to victims of Typhoon “Ondoy.”

The documents were dated from Oct. 19, 2009, to Jan. 25, 2010, about a supposed DAR project in Candelaria to be financed by the Malampaya fund.

On June 12, 2012, Maliwanag replied to Garcia and “vehemently denied” that the municipality had asked the DAR for funding assistance. He said his signatures on the documents were forged and that the project was nonexistent.

MABCF is said to be one of the dummy NGOs of Napoles. Whistle-blower Luy said the JLN firm had opened an account for MABCF at the Metrobank, Magdalena branch in Binondo.

P7.5-million project

Maliwanag showed several documents on the purported program sent by the COA, which he claimed were all carrying his fake signatures.

The first document dated Oct. 19, 2009, was on the letterhead of the municipality of Candelaria. In the letter, Maliwanag was requesting then Agrarian Reform Secretary Nasser Pangandaman for financial assistance of P7.5 million for typhoon victims in his town.

Maliwanag was supposedly endorsing MABCF to implement the program involving the purchase of farm inputs to increase the food production of the typhoon victims.

On Nov. 16, 2009, a memorandum of agreement (MOA) for the funding assistance program was signed by Maliwanag, Agrarian Reform Undersecretary Narciso Nieto and MABCF president Ronald Lim.

The three-page MOA carried a stamped note “DAR Budget Division-OBLIGATED” with handwritten date 12/3/09, accounting code 876 and amount 7,500,000.” A separate document carried a notarization made by one Atty. Mark Oliveros in Taguig City on the same date.

Two other documents were also signed on Jan. 18, 2010.

The first carried the delivery report from MABCF to the Candelaria local government. One Grace Bangayan of MABCF and Maliwanag of LGU signed the delivery dated Jan. 18, 2010. The project was identified as “Disaster Advancement Scheme” in the delivery report. The document pertained to the delivery of “193 sets of agri equipment.”

The second document, a “certificate of acceptance,” which was purportedly signed by Maliwanag and Lim, certified that the local government had accepted 193 sets of agricultural equipment.

‘All forgeries’

In another document, an “inspection report,” the agricultural equipment were itemized as “sealed fresh seeds, planting tools, lightweight sprayers and farming implements” with a unit cost of P38,537. This report, signed by Lim, carried the address of MABCF—Blk 2, Lot 2 AFPOVAI Phase 1, Diego Silang Ave., Western Bicutan, Taguig City.

Another document was the “report of disbursement” signed by Lim, Maliwanag and one Isabelo San Miguel as company bookkeeper.

Maliwanag also purportedly issued a “certificate of project completion” dated Jan. 25, 2010.

“All documents about the supposed DAR funding assistance to Candelaria carried my fake signatures. I swear to God, they were all forgeries,” Maliwanag said.

He also denied a report in the Inquirer on Tuesday that Candelaria received a P10-million assistance from Malampaya, which was supposedly paid on Feb. 1, 2010.

“The local government of Candelaria during that time has no project or program or whatever that was funded from Malampaya,” Maliwanag said.

Candelaria belongs to the second district of Quezon. During the period covered by the supposed DAR funding assistance, the district’s representative was Proceso Alcala, the current agriculture secretary.

P10-B Scam - Tightened policies on pork in Aquino Sona

2013-07-18T18:19:00.003-07:00

Tightened policies on pork in Aquino Sona

By Michael Lim Ubac and Norman Bordadora
Philippine Daily Inquirer

2:21 am | Friday, July 19th, 2013

Jumping the gun on the lawmakers, Malacañang is submitting to Congress next week “policy recommendations” to tighten up the rules on the disbursement of funds from the graft-tainted pork barrel.

The measures include limiting the menu of projects that can be funded by pork, accreditation of the civil service organizations by the Department of Social Welfare and Development (DSWD) and limiting the number of implementing agencies, according to presidential spokesman Edwin Lacierda and Budget Secretary Florencio Abad.

But if Sen. Franklin Drilon, touted to be elected Senate President in the 16th Congress, would have his way, the pork barrel could simply be taken out of the national budget instead of passing a new law that would abolish the program, now at the center of a scandal involving P10 billion in patronage funds allegedly siphoned off by a businesswoman, Janet Lim-Napoles, through bogus NGOs using her extensive connections in Congress and in the government.

Next Tuesday, a day after his address to a joint session of Congress, President Aquino will submit to Congress the proposed P2.268-trillion national budget for 2014, which contains a separate item worth P27-billion for the Priority Development Assistance Fund (PDAF), or pork barrel.

No Aquino stand yet

The so-called Makabayan bloc in the House of Representatives and the Catholic Bishops’ Conference of the Philippines have called for the abolition of the PDAF following the disclosure of a government investigation of the racket that involved the shares of the pork of five senators and 23 representatives.

Lacierda told reporters on Thursday that Aquino had not yet taken a position on the matter.

“We have not discussed it with the President, so I am not in a position to say what the position is. However, my understanding (Wednesday) in the press briefing of (Budget) Secretary Butch Abad, (is) that they have made some policy recommendations … to the President,” Lacierda said.

He tossed back the question of abolishing the pork barrel to Congress.

“We wouldn’t want to wade into that debate because that’s primarily the call of [the legislators],” he said.

Lacson, Arroyo did it

“(Former) Sen. (Panfilo) Lacson did it. Is it something that is worth emulating? That is the call and discretion of each and every legislator,” he said.

Former Senators Lacson and Joker Arroyo did not collect their share of pork during their terms, from 2001 to 2013.

Drilon agreed that abolishing the pork barrel is a matter only for Congress to decide.

“This is a decision of both Houses. If one House does not agree, then you cannot abolish (the pork barrel), which is part of the general appropriations act,” Drilon told Senate reporters on Thursday.

It is also unnecessary to pass a new law to abolish the PDAF, he said.

“We just have to delete (the PDAF) from the (general appropriations act) and it will be gone,” he said.

Long shot

But that is a long shot, Drilon said, as legislators, especially the members of the House, need funds to finance projects for their constituencies.

“I think the only way is to limit the use of the PDAF so we can minimize the abuses and the misuses of [the fund],” he said. “In other words, be very strict with the menu to minimize what are perceived to be the abuses of the PDAF.”

But Sen. Grace Poe wants the introduction of regulations to stop the abuses.

Speaking to reporters in Mabalacat City after launching a program for the families of migrant workers, Poe said she and Sen. Francis Escudero had filed a resolution for an investigation by the Senate blue ribbon committee of the pork scam allegedly orchestrated by businesswoman Janet Lim-Napoles.

Poe said the National Bureau of Investigation of the Department of Justice should be given a free hand in investigating the racket.

“If the allegations of a scam are true, then [an investigation] in aid of legislation is really needed to prevent [a repeat of this scandal],” Poe said.

While President Aquino has not taken a position on the pork controversy, he appears to be not keen on letting go of his own pork barrel.

Deputy presidential spokesperson Abigail Valte said on Tuesday that Aquino had a lot of uses for the President’s Social Fund, which channels assistance to the families of soldiers, policemen or government workers killed in the line of duty.

New procedures

Lacierda told reporters that the Department of Budget and Management (DBM) headed by Abad had made some recommendations on the procedure for the release of pork barrel to the projects of senators and members of the House.

“What’s in the budget is (the proposal for) accreditation, but we are putting together some more recommendations—limited menu, limited implementing agencies, etc.,” Abad said in a text message.

The additional recommendations will be presented to Congress during budget hearings, he said.

“There’s a policy recommendation of accrediting the CSOs (civil service organizations) with the DSWD, subject to a standard to be determined by the DBM and DSWD,” Lacierda said.

Under the pork barrel system, each senator is allotted P200 million, while a House member gets P70 million.

Lacierda said that the matter of deleting the pork barrel item from the budget bill is up to Congress.

“Remember, the GAA (General Appropriations Act) is a law in itself. If it’s passed, it becomes a law. So Congress decides …. We just submit our budget,” he said.

“The budget goes through a lengthy process by the House and the Senate to review and question the budget. So we will have a budget season right after [the State of the Nation Address],” he said.

The matter of abolishing PDAF, then, should be left to the “discretion” of the legislators, he said.

P10-B Scam - Pork barrel scam alarms legit NGOs

2013-07-18T18:12:00.000-07:00

Pork barrel scam alarms legit NGOs

By Nancy C. Carvajal
Philippine Daily Inquirer

3:28 am | Tuesday, July 16th, 2013

MANILA, Philippines—A group of development workers has expressed concern that revelations of ghost projects implemented by bogus contractors would hobble its operations.

“The reported scam involving pork barrel funds of legislators and fake nongovernment organizations (NGOs) unfairly tarnishes the image of legitimate NGOs,” said Donato C. Macasaet, executive director of the Caucus of Development NGO Networks (CODE-NGO), in a statement Monday.

The umbrella association has 12 NGO networks and 1,600 base organizations nationwide.

Current news reports about a P10-billion decade-old scam involving the Priority Development Assistance Fund (PDAF) of congressmen and senators drag down the image and credibility of genuine NGOs who work hard in many communities, often with limited funds, and are quite unfair,” Macasaet said.

He feared that the allegations of wrongdoing would affect donations for legitimate NGOs and people’s organizations (POs).

“Why is it that legitimate NGOs find it very difficult to avail themselves of government funding support for their worthy projects, yet dubious individuals are able to use bogus NGOs to run rings around government financial rules?” Macasaet asked.

CODE-NGO called on the Department of Budget and Management (DBM) and the Commission on Audit (COA) to immediately review and revise its rules on funding for NGOs and POs even while the investigation into the reported scam is ongoing.

“We cannot afford more scandals like this. It hurts both the government and all legitimate NGOs and POs who are valuable contributors to nation-building and national development” Macasaet said.

COA circular

He said that Circular 2007-001 of the Commission on Audit stated that the release of government funds to NGOs and POs stipulates that these groups need to submit certifications of legitimacy.

These are the certificate of registration with the Securities and Exchange Commission, Cooperative and Development Authority or the Department of Labor and Employment; an authenticated copy of their latest articles of incorporation or articles of cooperation; and audited financial reports for the past three years.

However, the same circular also provides that for NGOs and POs in existence for less than three years, an accomplishment and financial report for the period it has been in operation will be sufficient.

Apparently, an independent validation of the documents submitted by NGOs and POs is not provided for by the government.

“We believe that incidents like this can be avoided and the PDAF can be utilized more effectively and responsibly if NGO-recipients are limited to those certified by the Philippine Council for NGO Certification (PCNC) or similar certification bodies,” Macasaet said.

CODE-NGO welcomed the probe of the National Bureau of Investigation into the reported scam and asked that all those found to be involved be prosecuted.

Macasaet also challenged Congress to be more transparent about their PDAF.

Transparency urged

“We appreciate the DBM’s initiative to post its PDAF fund releases online, but as articulated in our PDAF Watch reports, congressmen and senators should themselves disclose more information about their PDAF, including their criteria and process for selecting projects and beneficiaries.”

The PCNC is an independent and NGO-initiated and -managed institution recognized by the Department of Finance that certifies NGOs for good governance, financial management and track record for creating impact to their beneficiaries.

CODE-NGO has been spearheading the PDAF Watch initiative since 2006.

As active advocates of effective, democratic and participatory governance, CODE-NGO upholds and promotes standards of conduct in development work in the same way that it demands good governance from the government.

The CODE-NGO network encourages its members and other NGOs to participate in the certification process of the PCNC and to ensure the adherence of member NGOs to the Code of Conduct for Development NGOs. It is also promoting a checklist of minimum good governance standards for NGOs and POs.

Philippine Council for NGO Certification or PCNC

How to Register a Foundation in the Philippines

P10-B Scam - Fake NGO that got P195M in pork now blacklisted

2013-07-18T17:24:00.000-07:00

Fake NGO that got P195M in pork now blacklisted

BY RAPPLER.COM
POSTED ON 05/29/2013 7:55 PM | UPDATED 05/30/2013 10:41 AM

COA REPORT ON NABCOR - PFI (FAKE NGOs)

MANILA, Philippines – The Commission on Audit (COA) has blacklisted Pangkabuhayan Foundation Inc, a bogus non-governmental organization (NGO) that managed to get a total of P194.97 million from the pork barrel of at least 3 senators and a party-list congressman.

In its 2012 audit report on ZNAC Rubber Estates Corp (ZREC), an attached agency of the agriculture department, COA said the legislators have been informed not to grant further financial assistance to the NGO.

Pangkabuhayan Foundation was found to have submitted false documents to liquidate government funds received in 2009 and 2010.

The 2011 audit report on ZREC disclosed that senators Juan Ponce Enrile, Jose “Jinggoy” Estrada, and Ramon “Bong” Revilla Jr, and Buhay Rep Rene Velarde released a total of P206 million from their Priority Development Assistance Fund (PDAF) to the Department of Agriculture (DA).

It was DA which turned over P201 million to ZREC, which in turn transferred P194.97 million to Pangkabuhayan Foundation Inc (PFI).

Of the amount that eventually reached PFI, P74.69 million came from Enrile’s pork barrel, P106.7 million from Estrada’s, P9.7 million from Revilla, and P3.88 million from Velarde’s, according to COA.

Non-existent suppliers

The disbursements were supposedly for agricultural development and livelihood projects of the legislators.

Sums were earmarked for the purchase of seedlings, fertilizers, hand tractors, water pumps, and composting/organic fertilizer facilities, as well as for the conduct of trainings and seminars for farmers.

Auditors, however, found that various documents submitted by PFI in support of supposed procurements – like official receipts, sales invoices, and delivery receipts – did not tally with those from the identified suppliers.

Two purported suppliers were found to be non-existent.

While the audit report stressed that the lawmakers’ offices specifically nominated PFI to implement their projects, the 3 senators have vehemently denied this and demanded a clarification from the DA.

Estrada likewise vowed to call for a congressional inquiry on the matter, saying he was assured that his PDAF will benefit farmers in the provinces.

Unheeded audit recommendations

COA recommended that ZREC compel PFI to refund P161.914 million that was liquidated using “fabricated documents and forged signatures” and to study legal actions against the NGO.

The agriculture department has also been instructed to submit for audit all disbursements vouchers pertaining to the release of P10 million to PFI in 2010.

Blacklisting PFI, warning legislators against further PDAF release, and tightening monitoring of project implementation were only a few of the COA recommendations. ZREC has not acted on 22 other recommendations of the audit agency.

COA said all PDAF disbursements since 2009 and subsequent years are already covered in a wider review being conducted by the Special Audits Office under the Special Services Sector.

This special audit body will come out with a separate report. It will also issue Notices of Disallowance on PDAF disbursement considered to be questionable.

COA said it has already sent out a total of 6,006 confirmation letters to various government agencies and beneficiaries as part of the ongoing audit investigations.

P10-B Scam - CoA warns solons on bogus NGOs preying on PDAF

2013-07-18T17:16:00.003-07:00

CoA warns solons on bogus NGOs preying on PDAF

Written by Gerry Baldo
Thursday, 30 May 2013 08:00

The Commission on Audit (CoA) yesterday warned lawmakers not to fall into the trap of channeling their priority development assistance fund (PDAF) to fake foundations such as the Pangkabuhayan Foundation Inc (PFI) which made off with P199.63 million in pork barrel funds from three senators and a former partylist congressman.

CoA said the fake NGO used false documents to liquidate government funds received in 2009 and 2010.

CoA noted that Senators Juan Ponce Enrile, Jose “Jinggoy” Estrada and Ramon “Bong” Revilla and Rep. Rene Velarde (PL-Buhay) released P206 million from their PDAF to the Department of Agriculture (DA) which turned over the P201 million to ZNAC Rubber Estates Corp. which in turn transferred P194.97 million to Pangkabuhayan Foundation Inc. (PFI).

A breakdown of the amount showed that P74.69 million came from Enrile’s pork barrel; P106.7 million from Estrada, P9.7 million from Revilla and P3.88 million from Velarde, according to CoA.

The disbursements were supposedly for agricultural development and livelihood projects of the legislators.
The amounts were earmarked for the purchase of seedlings, fertilizers, hand tractors, water pumps and composting/organic fertilizer facilities as well as for the conduct of trainings and seminars for farmers.

Auditors, however, found that various documents submitted by PFI in support of supposed procurements like official receipts, sales invoices and delivery receipts did not tally with those from the identified suppliers two of which were found to be non-existent.

While the audit report stressed that the lawmakers’ offices specifically nominated PFI to implement their projects, the three senators have vehemently denied this and demanded a clarification from the DA.
Estrada likewise vowed to call for a congressional inquiry into the matter, saying he was assured that his PDAF will benefit farmers in the provinces.

CoA recommended that ZREC compel PFI to refund P161.914 million that was liquidated using “fabricated documents and forged signatures” and to study legal actions against the NGO and to submit for audit all disbursements vouchers pertaining to the release of P10 million to PFI in 2010.

CoA said all PDAF disbursements since 2009 and subsequent years are already covered in a wider review being conducted by the Special Audits Office under the Special Services Sector.

P10-B Scam - Yap defends self in PDAF mess

2013-07-18T17:14:00.000-07:00

Yap defends self in PDAF mess

By Angeline Valencia (The Freeman) | Updated March 8, 2013 - 12:00am

TAGBILARAN CITY, Philippines — The allegedly bogus non-government organization must be the one to explain the anomalous funds it received from the priority development assistance fund (PDAF), or pork barrel, according to re-electionist Rep. Arthur Yap (3rd district, Bohol).

Yap clarified that he should not be one to explain the funds just because he was agriculture secretary when the alleged anomaly transpired.

There must be an investigation on the use of PDAF after a report from the Commission on Audit showed that the pork barrel of some senators and congressmen went to a “bogus” NGO allegedly through the Department of Agriculture, which he headed at the time, said Yap.

Yap clarified that the DA secretary never gets involved in endorsing NGOs to senators to become recipients of their PDAF, and that he had no idea who ran the NGO implicated in the issue.

“I do not know the people behind the NGO. I also did not refer the NGO to Senators Jinggoy Estrada, Juan Ponce Enrile and Bong Revilla. It is not the secretary’s job to refer NGOs to senators for the use of their PDAF,” said the congressman.

Yap dared for a scrutiny on how the documents were processed and how ZNAC Rubber Estate Corp. (ZREC) went through the transaction, because it was already outside his role then as DA secretary.

“So to get to the bottom of this, let us ask the ZREC to bring out the NGO’s accreditation papers and see how the NGO was qualified or who recommended for it. I should not be asked about the use of the PDAF because these are not regular DA funds but the funds of senators,” Yap said.

The broadsheets broke the news last week, quoting a COA report finding “some P195 million in PDAF allocations in 2009 and 2010 of four lawmakers—Senators Enrile, Estrada and Revilla—and Buhay party-list Rep. Rene Velarde, went to Pangkabuhayan Foundation Inc. (PFI)”.

According to the COA, as quoted by broadsheets: “PFI fabricated documents and forged signatures for the liquidation of the funds and that the PFI president, Petronila Balmaceda, could no longer be reached.”

Estrada asked Yap and ZREC board to explain why the PDAF allocations went to PFI. In response, Yap was earlier quoted by national television saying, “I don’t recall the name of that foundation. That senators and congressmen, then and today, are allowed to endorse coops to undertake projects using their PDAF. But the recipient coops must account for their usage and liquidate the funds. In this case, the concerned NGOs must be called to account for the funds they received. There are procedures followed when government funds are released for use.”

Senator Chiz Escudero, for his part, told Bohol media recently that the senators and the congressman dragged into the issue should be asked to explain what really happened to save the credibility and integrity of the Senate.

Escudero also said questionable practices in PDAF spending should be stopped because some lawmakers consider their pork barrel as their personal bank account.

The senator further said the lawmakers’ PDAFs belong to the taxpayers and no senator or any congressman has the right to claim it as his own.

P10-B Scam - Jinggoy: DA vouched for 'bogus' NGO

2013-07-18T17:08:00.001-07:00

Jinggoy: DA vouched for 'bogus' NGO

KIMBERLY JANE TAN, GMA NewsFebruary 28, 2013 1:53pm

(Updated 4:18 p.m.) Senate President Pro Tempore Jinggoy Estrada on Thursday said he, Senate President Juan Ponce Enrile and Sen. Ramon Bong Revilla gave funds to an allegedly bogus non-government organization (NGO) because the Department of Agriculture (DA) had assured them that it was a legitimate group.

"I was very confident because of the assurance given by the DA before, that that particular NGO was accredited... nagtiwala kami sa DA," Estrada told reporters in a phone interview Thursday.

"Right now I'm very very mad at what is happening. Wala akong kamalay-malay [na] 'di pala napunta sa tamang tao, sa magsasaka 'yung pera ko, 'yung naibigay ko... nakakasama ng loob," he added.

Estrada was reacting to a report by the Philippine Daily Inquirer that said that, based on a Commission Audit (COA) report, the three senators gave around P195 million of their Priority Development Assistance Fund (PDAF) — or pork barrel — to a questionable NGO in 2011.

Statement of former DA chief Arthur Yap on 'bogus' NGO

I don't recall the name of the foundation.

That senators and congressmen, then and today, are allowed to endorse coops to undertake projects using their PDAF.

But the recipient coops must account for their usage and liquidate the funds. In this case, the concerned NGOs must be called to account for the funds they received.

There are procedures followed are released for use.

The report said that the three, along with then-Buhay party-list Rep. Rene Velarde, gave P206 million in PDAF to the DA, which reportedly gave P201 million to ZNAC Rubber Estate Corp. (ZREC), a government-owned and -controlled corporation.

The report said ZREC then gave P194.97 million to Pangkabuhayan Foundation Inc. (PFI), which was eventually asked by COA to refund P162 million “due to fabricated documents and forged signatures."

COA also reportedly recommended “that PFI should no longer be granted any fund assistance and have it blacklisted.”

In a separate statement on Thursday, Enrile confirmed that his office had allocated P74.69 million in PDAF for agricultural and livelihood projects in 2008 and 2009. He said these were released to the DA, which ZREC released to PFI.

But he stressed that he utilizes his PDAF with "utmost adherence to transparency and accountability."

"Senators do not receive these funds, which are released directly to the implementing offices, such as the Department of Agriculture. Our only participation in the entire process is to identify the projects to be funded... the localities where they are to be implemented and to indicate the amounts intended for such. The DBM sets the limits, the qualified implementing agencies and the type of projects that can be funded through the PDAF," he said.

In the case of the DA, Enrile said the senators' offices are merely asked to indicate their confirmation regarding their intended beneficiaries.

"We routinely confirm this because it is the DA’s responsibility to ascertain the capability, competence or qualifications of these recipients and to accredit them accordingly," he said, adding that COA did not tell them about the recommendation to blacklist PFI.

Enrile has recently been under fire for the alleged unequal distribution of Senate funds. He is also one of the stalwarts in the United Nationalist Alliance (UNA), the rival of the administration's Liberal Party (LP) in the 2013 elections. Estrada's father, former President Joseph Estrada, is also one of the stalwarts of UNA.

Revilla, on the other hand, is reportedly being groomed to be Lakas-CMD's standard-bearer in the 2016 presidential election, where LP is also expected to field a candidate.

Accredited group

The younger Estrada said he only remembers allocating P30 million to the DA, which he said informed his office that PFI was an accredited group.

"Kami pa ang masama. Now if indeed that [PFI] is bogus then saan nila dinala 'yung pera? If the COA, or the DA or the DBM (Department of Budget and Management) insists that it's not accredited, then why did they pay them?" he said, noting that the PDAF never went through them since they can only identify projects they want implemented.

"'Yung nilaan kong pera, para sa magsasaka 'yun nationwide. We are just identifying the projects for the benefit of our constituents. We are not aware if that particular NGO is bogus or not. Paano namin malalaman? Di na namin sakop 'yun, na i-scrutinize lahat ng mga NGOs na accredited or not" he added.

Estrada also said that he is open for scrutiny and that he will personally initiate an inquiry on the issue.

"Sasama ko sa imbestigasyon dahil gusto ko malaman saan napunta 'yung inilaan kong pera para sa magsasaka. I want to get to the bottom of this one," he said.

But he immediately noted that he is not putting any malice on the timing of the issue.

"Di naman kami kandidato eh [kaya] 'di ko muna iniisip 'yun," he said, adding that he remains to be supportive of President Benigno Aquino III.

Release full findings

At the same time, Enrile urged COA to release in full its findings and observations from its special audit of the PDAF of lawmakers, which he said he was aware of.

"[COA] Chairman Grace Pulido Tan...clarified that the special audit was not directed at the lawmakers but at the implementing agencies. I said that I understood her point, it was a job she must do and I personally had no worries or qualms about the utilization of my own PDAF being scrutinized by the COA," he said.

"[But] the COA...must not allow itself to be used by anybody to achieve political or partisan ends by allowing a piece-meal or selective disclosure of parts of its report...It must explain the parameters and the scope of its audit and, in all fairness, point out the parties responsible for any shenanigans in the use of public funds without fear or favor," he added.

P2.9-B pork barrel funds went to scam from 2006-2011-Luys

July 16, 2013 3:02 am
By Perfecto T. Raymundo

MANILA, July 15 (PNA) — Some P2.9-billion in pork barrel funds of some lawmakers were spent allegedly due to scam through the National Agri Business Corporation from the years 2006 to 2011.
This was based on the 11-page joint sworn-affidavit executed by the relatives of whistle blower Benhur Luy, namely: his parents Arturo Francisco and Gertrudes, and his siblings Arthur and Anabelle.
The sworn-affidavit was submitted by the Luys to the Department of Justice Monday in connection with the complaint for serious illegal detention filed against the siblings Janet Lim-Napoles and Reynald Lim.
It appeared from the said affidavit that Napoles detained Benhur as the latter allegedly knew about the projects funded by the government through the JLN Group of Companies.
The affidavit also said the information cited by the Luys in their sworn-affidavit can be verified with the records of the Department of Budget and Management and the Commission on Audit.

Some of the non-government organizations allegedly used by Napoles are the following:
Kaunlaran Para sa Magsasaka Foundation, Social Foundation, People's Organization for Progress and Dev't Foundation, Pangkabuhayan Foundation, and Masaganang Ani Foundation.

Meanwhile, the list of lawmakers who allegedly allotted part of their priority development assistance fund or pork barrel to the NGOS of Napoles in accordance with their respective Special Allotment and Release Order (SARO) are the following:

Sen. Ramon "Bong" Revilla, Jr. He allotted P92 million. The first SARO of P12 million went to the Masaganang Ani Para sa Mass Foundation; second SARO of P65 million to Masaganang Ani and Social Dev't Program for Farmers Foundation; and third SARO amounting to P15 million to Masaganang Ani;<pSen. Juan Ponce Enrile: P150 million. The first SARO of P25 million allotted to the People's Organization for Progress and Development Foundation Inc.; The second and third SAROs with the same amount of P50 million each were allotted to the Masaganang Ani and Social Dev't Program for Farmers; and the fourth SARO amounting to P25 million to the Social Dev't Program for Farmers;
Sen. Jinggoy Estrada: P81.5 million. The first, second and third SAROs amounting to P25 million, P19.5 million and P37 million were all allotted to the Masaganang Ani;
Cong. Conrado Estrella III. The total amount of P20 million went to the Social Dev't Program for Farmers;
Cong. Robert Estrella. The total amount of P31.5 million went to the Social Dev't Program for Farmers;
Cong. Erwin Chiongban. The total amount of P39.25 million were allotted to the Social Dev't Program for Farmers;
Cong. Rodolfo Plaza. He allotted funds for three times in the total amount of P22.5 million for the Social Dev't Program for Farmers;
Cong. Victor Ortega. He allotted P5 million each for two times for the Social Dev't Program for Farmers;
Cong. Samuel Dangwa. He allotted P8 million each for the Social Dev't Program for Farmers;
Cong. Edgardo Valdez. He allotted P10 million and P12 million for the Social Dev't Program for Farmers;
Congresswoman Rizalina Seachon-Lanete. She allotted P38.29 million for the Masaganang Ani para sa Masa Foundation and Social Devt Program for Farmers;
Cong. Marc Douglas Cagas who allotted P5 million for the Social Development Program for Farmers;
Cong. Rodolfo Valencia. He allotted P3 million for the Masaganang Ani para sa Mass Foundation; and

Cong. Arthur Pingoy who allegedly allotted P3 million for the Social Dev't Program for Farmers.

P10-B Scam - Enrile: Reports on pork selective, incomplete

2013-07-18T16:52:00.003-07:00

Enrile: Reports on pork selective, incomplete

BY AYEE MACARAIG, RAPPLER
POSTED ON 07/15/2013 7:14 PM | UPDATED 07/15/2013 11:17 PM

'DISCLOSE FULL FINDINGS.' Resigned Senate President Juan Ponce Enrile calls on the COA to release its full report on lawmakers' pork barrel, saying news reports tagging him in a scam are selective and incomplete. File photo by Rappler/Ayee Macaraig

MANILA, Philippines – Resigned Senate President Juan Ponce Enrile denied receiving kickbacks for the use of his pork barrel, branding news reports about a scam as “obviously selective and incomplete.”

In a statement Monday afternoon, July 15, Enrile said he is submitting himself to a full investigation and audit of his pork barrel.

Enrile was one of 5 senators named in a Philippine Daily Inquirer report as giving a syndicate access to their pork barrel to fund ghost projects of dummy NGOs in exchange for hefty kickbacks.

The other senators linked to the P10-billion scheme are Senators Ramon "Bong" Revilla Jr, Ferdinand "Bongbong" Marcos Jr, Jinggoy Estrada, and Gregorio Honasan II. Of the 5, only Estrada has yet to comment on the allegations.

The former Senate President said he does not know Janet Lim-Napoles, the alleged brains behind the scam, and he does not have business transactions with her company.

Enrile said he abided by guidelines of the Department of Budget and Management (DBM) on the use of the pork barrel, despite revisions in the rules over the years under different administrations.

The pork barrel is officially called the Priority Development Assistance Fund (PDAF). Each senator is allotted 200 million in PDAF every year to fund projects for their constituents. These projects are in the form of infrastructure, health, education and social aid packages. Congressmen get a pork barrel of P70 million per year.

“I have not received any bribe or in any way financially benefitted from nor in exchange for the utilization of my PDAF,” Enrile said.

“All the fund releases from mine and other legislators’ PDAFs and other infrastructure projects are of public record. The Special Allotment Release Orders (SAROs) or releases being cited, with myself and other legislators being singled out in the affidavits of supposed ‘whistle-blowers’ are made public by the DBM and are obviously selective and incomplete,” he added.

Enrile said he stands by his record of directing the distribution and use of his pork barrel to identify projects to be funded.

‘COA must release full report’

Enrile said he has long called on the Commission on Audit (COA) to release its full report on the pork barrel of lawmakers but the agency has yet to do so.

“The COA must officially release its findings in full and without fear or favor, if it were to perform its constitutional duty, lest it be accused of allowing the piece-meal or selective disclosure of parts of its report to serve political or partisan ends.”

Enrile said that last year, he met with COA Chairperson Grace Pulido-Tan along with Speaker Feliciano Belmonte Jr, and congressmen Bem Noel and House Majority Leader Neptali Gonzales Jr to discuss the COA’s special audit of the PDAF.

Enrile said he sought the meeting after the congressmen asked him to arrange it because they were concerned that they were being singled out in the audit.

“Chairman Tan acceded and met us at the EDSA Shangri-La Hotel and confirmed that the COA was conducting a ‘special audit’ of the PDAF. But she clarified, in answer to Cong Gonzales’ concern, that the special audit was not directed at the lawmakers but at the implementing agencies,” Enrile said.

“I said that for my part, I understood it was a job COA must do and I personally had no worries about the utilization of my PDAF being scrutinized by the COA.”

Enrile said Tan assured him and Belmonte that she will inform them when the report on the audit was finished but until now, the COA has yet to fully disclose its findings.

Now that the justice department and the National Bureau of Investigation are probing the scam, Enrile said it is high time for the COA to release the report.

“In the interest of transparency, and to bring to justice all parties, public or private, who, with their illegal machinations, may have financially benefited from the PDAF funds which are meant to help our constituents, I reiterate my call to the Commission on Audit to disclose its findings and the parameters and the scope of its audit,” he said.

‘Not first time Inquirer dragged our names’

In seeking to clear his name, Enrile said that the Inquirer’s series of reports including a story it released on Feb 28, 2013 singled him, his close ally Sen Jinggoy Estrada and Sen Bong Revilla out.

In February, the COA released a 2011 report that showed that Enrile, Estrada, Revilla and former Buhay Rep Rene Velarde used their pork barrel to help a dubious NGO.

The report said a total of P194.7 million in PDAF was funneled to a certain Pangkabuhayan Foundation Inc (PFI), which the COA found questionable because the NGO had several tax identification numbers.

Its address was also questionable, according to COA. The report covered PDAF disbursements in 2009 and 2010.

In his statement Monday, Enrile took issue with the Inquirer’s February story on the 2011 COA report, highlighting its title, “COA: Senators’ pork went to bogus NGO” and subtitle, “JPE, Estrada, Revilla tied to P195-M scam.”

“Hence, it is not the first time that my name and the names of Senators Estrada and Revilla had been dragged and singled out as being involved in PDAF ‘scams’ such as what is now headline news.”

Honasan, another Enrile ally, has also said that the February report and the current Inquirer series are related. Honasan branded them as “politically motivated.”

During the campaign period, Honasan was also named in reports as having allegedly funded fake NGOs.

The former Senate President said documents COA earlier sent his office for verification showed that the signatures of his staff members were forged, prompting him to call for a full investigation.

He said the documents were signed by a certain Petronila Balmaceda of PFI.

“Sadly, the issue was soon drowned by the last political campaign,” Enrile said.

In his statement, Enrile did not respond to his critic Sen Miriam Defensor Santiago’s call for the 5 senators to take a leave of absence pending the results of an independent investigation.

Santiago, who Enrile clashed with over the Senate fund controversy, called on President Benigno Aquino III to form a panel of special prosecutors composed of retired Supreme Court justices to investigate the issue.

Blasting Enrile over both the pork barrel scam and his selective distribution of Senate funds last December, Santiago called Enrile’s use of Senate funds “a partisan political act” in a speech Monday morning.

Enrile has yet to respond to Santiago’s tirades.

Likely Senate President Franklin Drilon proposed limitations on the use of the pork barrel to avoid abuse while Sen Francis Escudero filed a resolution for a Senate probe on the issue.

Enrile is expected to return to the Senate when the 16th Congress opens on July 22. He said he will vie for the post of Senate Minority Leader.

P10-B Scam - Enrile, Estrada used pork for dubious NGO - COA

2013-07-18T16:49:00.001-07:00

Enrile, Estrada used pork for dubious NGO - COA

BY RAPPLER.COM
POSTED ON 02/27/2013 2:56 PM | UPDATED 02/27/2013 7:24 PM

PORK ISSUE. Senate President Juan Ponce Enrile in a file photo

MANILA, Philippines - Senate President Juan Ponce Enrile, Sen Jinggoy Estrada, Sen Ramon "Bong" Revilla Jr, and former Buhay Rep Rene Velarde used their pork barrel to help what turned out to be a dubious nongovernment organization, according to a 2011 Commission on Audit report.

A total of P194.7 million of Priority Development and Assistance Fund (PDAF) or pork barrel was funneled to a certain Pangkabuhayan Foundation Inc. (PFI), which the COA found questionable. It should have been disqualified as recipient of government funds, it said.

The NGO has a number of tax identification numbers. Its address is also questionable, according to COA. The report covered disbursements in 2009 and 2010.

“Based on the information above, the validity and accuracy of the documents submitted by PFI were doubtful which also put to question its legal personality,” COA said in its report.

The transfer of funds from the lawmakers to the NGO was multilayered.

Enrile, Estrada, Revilla and Velarde allocated a total of P206-M to the Department of Agriculture (DA). The department later released P201 million of the funds to a certain ZNAC Rubber Estate Corp (ZREC), which gave P195 million to Pangkabuhayan Foundation Inc. The NGO is the final recipient.

“The Offices of Senators Juan Ponce Enrile, Jinggoy Estrada, Ramon Revilla and Congressman Rene Velarde all nominated Pangkabuhayan Foundation, Inc. (PFI) to implement their projects,” COA report said.

Enrile gave a total of P74.69 million.

Estrada gave a total of P106.7 million.

Revilla gave a total of P9.7 million.

Velarde gave a total of P3.88, according to the report.

The Pangkabuhayan Foundation Inc listed its address in Roces Avenue corner Quezon Avenue Quezon City but the programs are implemented all over the country -- Ilocos Norte, Bacolod City, Negros Occidental, Aklan, Iloilo, Camiguin, Sulu, Tawi-tawi, Zamboanga City and Basilan.

The NGO had 5 different different tax identification numbers submitted to various government agencies -- Bureau of Internal Revenue and Securities and Exchange Commission.

“There were no recorded liabilities, thus the fund balance was equal to the total assets. From the financial statements for 2006 to 2008 … that there was no property, plant and equipment account, thereby casting doubt as to how the Foundation operated its business without any office equipment, furniture and fixtures which are essential in carrying out the day to day operations of a Company,” auditors also noted.

P10-B Scam - Revilla, Marcos link pork scam to 2016

2013-07-18T16:45:00.004-07:00

Revilla, Marcos link pork scam to 2016

BY AYEE MACARAIG, RAPPLER
POSTED ON 07/15/2013 2:11 PM | UPDATED 07/15/2013 11:02 PM

DEMOLITION JOB. Sen Bong Revilla links the pork barrel scam to the 2016 presidential polls, calling it the administration's demolition job against the opposition. File photo from Senate PRIB

MANILA, Philippines (2nd UPDATE) – “Just because there are people urging me to run for 2016, they will already ruin my name?”

Sen Ramon “Bong” Revilla Jr branded as a demolition job allegations that he topped the list of lawmakers who allegedly allowed their pork barrel to be used for ghost projects in exchange for hefty kickbacks.

An Inquirer report said he gave a syndicate access to his pork barrel in 22 instances.

In statements on Monday, July 15, Revilla and Senators Juan Ponce Enrile, Gregorio Honasan II and Ferdinand “Bongbong” Marcos Jr denied knowledge of the P10 billion scheme.

Honasan and Revilla even said the Philippine Daily Inquirer report on the scam was politically motivated and “in aid of persecution.”

The other senator named in the report, Jinggoy Estrada, refused to comment on the issue as of posting time.

In his statement, Revilla said the accusations were a continuation of the administration’s supposed efforts to harass him beginning with the midterm polls in Cavite.

“I have already been warned by someone in Malacañang that I will be targeted. This is it. This controversy has been engineered by the administration for only one purpose – to demolish the opposition, especially those who enjoy the popular support of our people,” said Revilla, who has been reported to be eyeing the presidency in 2016.

“This demolition job is a sad commentary on the state of Philippine politics,” he added.

An action star-turned-politician, Revilla is the chairman of the Lakas party of former President Gloria Macapagal-Arroyo. He got into a word war with Interior Secretary Mar Roxas of the ruling Liberal Party (LP), as he accused Roxas of alleged political harassment in the Cavite polls last May.

“Suspiciously, only non-allies of the administration are being dragged into this controversy. Why don’t they just open and scrutinize the records on how everyone is using the PDAF (pork barrel), even those allied with the President?”

Revilla said he is innocent, claiming he has been transparent and accountable. He supported calls for an investigation, but said it should be done fairly and objectively.

“The allocation of our funds [is] all subject to existing government rules and regulations. The release of funds [is] solely handled by the implementing agencies and the executive branch,” Revilla said.

He asked the NBI for the affidavits that the witnesses reportedly gave on the issue.

“Kung may katotohanan man ang mga affidavit, kami ay biktima rin ng anomalyang ito. Ang executive branch ang may responsibilidad na siguruhing sa tama napupunta ang mga pondo ng pamahalaan.” (If the affidavits are true, we are victims of this anomaly, too. The executive branch has the responsibility to ensure that funds go to their intended use.)

The pork barrel is officially called the Priority Development Assistance Fund (PDAF). Each senator is allotted 200 million in PDAF every year to fund projects for their constituents. These projects are in the form of infrastructure, health, education and social aid packages. Congressmen get a pork barrel of P70 million per year.

‘Trial by publicity’

Both Revilla and Honasan questioned what they call a trial by publicity.

In a phone interview with Rappler, Honasan said the allegations are “a follow through” of reports that came out during the campaign period that he used his pork barrel for bogus NGOs.

Honasan ran and was re-elected as a candidate of the opposition United Nationalist Alliance (UNA).

“What I wonder is why this was done through media, not present the evidence in the proper mechanism: NBI, DOJ or the courts so that we will not go through a recurring, painful process of trial by publicity,” Honasan said.

The report said Honasan had the lowest amount of pork barrel funds used among the senators, about P15 million.

Honasan said his office approved the release of pork barrel for a livelihood program for widows and orphans of policemen and the military, as requested by the local governments of Lanao del Sur and Isabela province.

“I have no way of authenticating if these foundations or entities registered under the Securities and Exchange Commission are bona fide. The entire amount allocated for that has not been released, the alleged P15 million. I do not even know if it reached P15 million.”

As the principal sponsor of the Freedom of Information (FOI) bill, Honasan said he supports transparency and is open to an investigation.

Yet he said he will not take a leave of absence until the Department of Budget and Management (DBM), and the Anti-Money Laundering Council (AMLC) make public their records to trace the sources and recipients of the funds.

“So what I’m saying is let the axe fall where it will but I am going to recommend that if this develops into a full-blown investigation, that all records of DBM be made public, AMLC, let’s connect this all. Which implementing agency received the funds, which accredited agency? Even the records of the NGOs, open them all.”

‘Marcos also looking into 2016 angle’

Marcos, who is also rumored to be a presidential aspirant, said he does not know Janet Lim-Napoles, the alleged brains behind the scam.

“I have never spoken to her and so I have had no personal dealings with her. However, I am more than eager to fully cooperate in the investigation and in any other similar efforts that will reveal the truth on this matter,” Marcos said in a statement.

In a separate statement on his Facebook page, Marcos said it is the DBM and implementing government agencies' responsibility to check the implementation of PDAF-funded projects.

“A Senator’s role in this process is merely to identify the projects to be funded, the amount allocated to these projects as well as the beneficiary LGUs,” Marcos said.

“I am eager to cooperate with any investigation, which will reveal the truth of this matter. I am also exploring the possibility that there may be a political angle to all this in light of the upcoming Presidential elections in 2016.”

Marcos is a member of former Sen Manny Villar’s Nacionalista Party.

Sen Miriam Defensor Santiago has called on President Benigno Aquino III to create an independent panel of prosecutors to probe the issue.

She said the senators named in the report must take a leave of absence while the investigation is ongoing.

P10-B Scam - Will Janet Napoles get away again?

2013-07-18T14:22:00.002-07:00

Will Janet Napoles get away again?

By Rolly T. Carandang
Published: July 19, 2013

Manila, Philippines --- Being implicated in an anomalous transaction is not new to businesswoman Janet “Jenny” Lim Napoles.

Once charged with graft and malversation of public funds for alleged participation in fraudulent contracts with the military for the supply of Kevlar helmets, Napoles is now embroiled in the P10-billion pork barrel scam which is now the object of investigation and media frenzy.

Sandiganbayan records show that 12 years ago, government prosecutors indicted Napoles and her husband, retired major Jaime G. Napoles for graft and malversation of public funds for that alleged fraudulent military supply contracts.

However, both got off relatively unscathed with Maj. Napoles being dropped as defendant long before the cases went to trial and his wife Janet, who was accused as the person behind seven “dummy suppliers,” eventually acquitted.

Then Ombudsman Aniano Desierto issued an order dated March 18, 2002 dismissing the case against Maj. Napoles “for lack of probable cause”.

But Mrs. Napoles stood trial on both charges but was cleared of any liability on October 28, 2010 for lack of evidence.

Their cases involved alleged bid rigging for the supply of 500 units of US-made Kevlar helmets with a total contract price of P3,864,044.99 awarded to seven suppliers in 1998.
Prosecutors said the contracts were divided into amounts lower than the P300,000 threshold to evade a second review.

Named co-accused were former Philippine Marine officers Lt. Gen. Edgardo Espinosa; Colonels Natalio Torreno, Inocencio Artajos, Arnold Blanco and Sergio Eria; Majors Luciardo Obena, Godofredo Tabila and Edmund Yurong, and civilian personnel Iluminada Flores.

Named private defendants were traders Evelyn de Leon, Anna Marie Dulguime, Reynaldo L. Francisco, Magdalena L. Francisco, Mia Legacion, and Prescilla Somosot.

After seven years of trial, the court convicted Tabila, Yurong, Blanco, Flores, De Leon, Dulguime, Reynaldo and Magdalena Francisco, Legacion and Somosot and sentenced them to four to eight years imprisonment with P5,000 fines each.

Findings of a Board of Officers Inquiry ordered by the Philippine Navy was submitted in court showing that 14 checks were released in payment for the helmets but they were deposited and cleared in only one account – Security Bank Account No. 512-000-2200.

In a memorandum dated April 23, 2010, suppliers Evelyn de Leon, Anna Marie Dulguime, Reynaldo Francisco, Magdalena Francisco and Mia Legacion admitted that their checks went to the bank account of Jenny Napoles but they said there was nothing irregular about the “check rediscounting” arrangement as they were reportedly given cash instead.

Other developments:

• Malacañang is leaving it up to the two houses of Congress to decide on the proposed abolition of the pork barrel system in the wake of the P10-billion scam implicating Napoles and some lawmakers.

• The United Nationalist Alliance (UNA) backed yesterday President Benigno Aquino III’s directive for a full-dress investigation into the reported P10-billion pork barrel scam.

• Benhur Luy, the man who blew the whistle in the alleged P10-billion pork barrel scam, has finally accepted the offer of the Department of Justice (DOJ) to be placed under the agency’s witness protection program (WPP).

• Senator Franklin Drilon said that Congress, with the simple stroke of the pen, can delete the controversial budget appropriation for legislators’ Priority Assistance Development Fund (PDAF), also called “pork barrel.” (With reports from Genalyn D. Kabiling, Ben R. Rosario, Leonard D. Postrado, and Mario B. Casayuran)

P10-B Scam - 2 witnesses in pork barrel ‘scam’ to take stand for State —De Lima

2013-07-18T13:41:00.001-07:00

2 witnesses in pork barrel ‘scam’ to take stand for State —De Lima

Written by Tribune
Friday, 19 July 2013 08:00
By Benjamin B. Pulta and Paul Atienza

Two individuals in the eye of the brewing storm over the multibillion-peso ghost government projects allegedly funded by legislators’ public funds will be taken in as state witnesses, Justice Secretary Leila de Lima yesterday said.

Benhur Luy and Merlina Sunas will be placed under the government’s witness protection program (WPP), De Lima confirmed to reporters.

Luy earlier had exposed the alleged P10-billion pork barrel scam allegedly perpetrated by Janet Lim Napoles and her brother of the JLN Group of Companies where he was previously connected.
Luy identified five senators and 23 members of the House of Representatives in the alleged pork barrel scam.

The Justice chief said she made a previous offer to Luy to be covered by WPP after he was rescued by agents of the National Bureau of Investigation (NBI) from the camp of Napoles last March when the whistle-blower filed serious illegal detention charges against the Napoles, but Luy decided then not to be givent government protection.

According to De Lima, when she reiterated recently the offer to Baligod, the latter was able to convince his client this time.

“I’ve talked to them already before. I interviewed Benhur before, that’s why we initiated the investigation and I created a very small team of trusted investigators to look into the allegations of Benhur and his companions,” she added.

De Lima, however, stressed it was too early for her to assess the “strength” of the case, saying she has yet to review all the documents and other pieces of evidence currently with the NBI.
These individuals – just like Sunas – were allegedly named as presidents and officers of Napoles’ ghost foundations without their knowledge, Baligod said.

But Napoles’ lawyer Bruce Rivera said the NBI and De Lima were just “misled” into rescuing Luy and taking him into custody during a “fake rescue” last March at the condominium unit of Napoles’ brother, Reynaldo Lim.

According to him, this was pointed out in the DoJ resolution dismissing the serious illegal detention charges filed by the parents of Luy against Napoles and Lim.

With the NBI standing by Luy despite the DoJ resolution, Rivera said he believes the agency might not be the best venue anymore for the investigation on the alleged scam.

But De Lima warned Napoles’ camp against its accusation.

“We won’t take seriously this kind of move or strategy because at the end of the day, this may be part of their smear campaign against the NBI,” she said.

The Partido Lakas ng Masa, meanwhile, urged De Lima to make sure Napoles cannot leave the country following the controversy surrounding the P10-billion pork barrel scam where Napoles was accused of being the “mastermind.”

During a protest rally at the Department of Justice, PLM chairman Sonny Melencio said Napoles should be held liable for allegedly dipping her hands into the government coffers.

The group also called for an investigation on allegations Executive Secretary Paquito Ochoa Jr., whose law firm has allegedly represented Napoles and the Liberal Party, received P100 million from her.

“Ochoa and the Liberal Party have to disclose the kind of connections they have with Napoles…A disclosure is relevant in order to allay the public’s fear of possible whitewash in the investigation by
Malacañang or the ruling party,” Melencio said.

The activist fisherfolk alliance Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas (Pamalakaya) has also dared President Aquino to certify as urgent a proposed bill abolishing the pork barrel of senators and congressmen, including the audit-free pork barrel allotted to the Office of the President.

In a press statement, Pamalakaya vice chairman Salvador France said Malacañang should certify House Bill (HB) 1535 recalling the pork barrel to all lawmakers and the President.

HB 1535 was filed the other day by militant congressmen belonging to Bayan Muna, Anakpawis, Gabriela, Alliance of Concerned Teachers and Kabataan Partylist — collectively known as the Makabayan bloc in the House of Representatives.

The bill shall prohibit the President from providing a budgetary item or including in the proposed budget submitted to Congress every fiscal year lump sum allocations to the priority development assistance fund (PDAF) and other lump sum discretionary amounts.

Aside from the legislators’ pork barrel, the bill shall also abolish the Presidential pork barrel, such as the President’s Social Fund sourced from revenue-generating agencies like the Philippine Amusement and Gaming Corp., Philippine Charity Sweepstake Office and the Malampaya Fund.

“We compel the highest office in the land to certify as urgent HB 1535 to frustrate the large-scale resource grabbing and plunder of taxpayers’ money in aid of legislation. Instead, the pork barrel should be re-channeled to basic social services such as housing, education, health and other forms of services beneficial to the people and the taxpaying public,” France said.

But Malacañang said it is leaving to Congress the decision on the proposed scrapping of PDAF.

Presidential spokesman Edwin Lacierda added the President has not said anything on the calls by some groups to abolish the pork barrel.

“We have not discussed it with the President, so I am not in a position to say what the position is. However, my understanding yesterday in the press briefing of (Budget) Secretary (Florencio) Butch Abad, (is) that they have made some policy recommendations. I am not aware what those policy recommendations are to the President,” he added.

P10-B Scam - Ex-employee also links businesswoman to alleged ‘pork barrel scam’

2013-07-18T13:40:00.000-07:00

Ex-employee also links businesswoman to alleged ‘pork barrel scam’

July 18, 2013 12:48am
Rouchelle R. Dinglasan/DVM, GMA News

A former employee of JLN Corporation on Wednesday also implicated businesswoman Janet Lim-Napoles in the alleged P10-billion scam involving funds from lawmakers’ Priority Development Assistance Fund (PDAF).

“Naririnig din naming mismo sa bunganga ni Madam Jenny, ‘O sige mag-prepare ka ng ano, mag-withdraw kayo kasi si ganito. Magbibigay tayo sa kanya,’” Merlina Suñas said in an interview with Susan Enriquez, aired Wednesday' on GMA’s “24 Oras”. Suñas had been an employee of JLN for 12 years.

“Kung minsan kailangan nung lawmaker ng P10, 15, 20 [million]. Kung minsan kasi may incoming sila na pondo, mga PDAF, [kaya] ayan nagreready na [kami ng cash]. May pondo si Senador kaya dapat mag prepare tayo ng ganito [komisyon nila],” she noted.

The television report said that Napoles supposedly preferred to hand over cash rather than checks to lawmakers to avoid any evidence that may link her to them.

Benhur Luy, who also claimed to be an employee of Napoles, had earlier blown the whistle on the alleged P10-billion scam that has run for 10 years. About five senators and 23 member of the House Representatives has purportedly made their PDAF allocation available to JLN Corporation, which in turn transferred the funds to bogus non-government organizations.

The television report said that Luy angered Napoles after he allegedly filched money from the transactions.

For her part, the JLN president and CEO denied Luy’s accusations and turned the tables on the whistleblower. "Si Benhur 'Kilap Kilap' Luy ang scammer," accused Napoles.

“Alam ko ‘yan yung ginagawa nila mga atake sa akin para sirain ang aking kredibilidad as magte-testify against sa kanya,” Luy said in the same television report.

“Palusot na lang ni Napoles ‘yan para madivert ang attention mula sa principal na issue natin. Ang issue natin ay nasaan yung pera para sa mga magsasaka,” replied Luy’s and Suñas’ legal counsel, Levito Baligod.

Beligod added that his clients were ready to face any investigation on the supposed pork barrel scam.—