P728-million fertilizer scam ‘smoking gun’ now in Senate’s hands

AMLC moved in lifting freeze on Joc-joc’s assets

By Angie M. Rosales

01/13/2009

Even the Anti-Money Laundering Council (AMLC) has lent former Department of Agriculture (DA) Undersecretary, Jocelyn “Joc-joc” Bolante, who stands accused in the Senate as the “architect” of the P728-million fertilizer fund scam, a big helping hand in getting his bank assets back and quickly, despite its mandate to ensure that money launderers get charged and dirty money being laundered is not dissipated.

It was recently discovered that it was the AMLC itself that had informed the banks holding 32 of the questioned accounts of the former DA undersecretary to unfreeze the deposits as ordered by the Court of Appeals (CA).

The move is unusual since it is generally the banks that seek confirmation from the AMLC for the lifting of the frozen accounts.

The unusual move by the AMLC heightened suspicions of a conspiracy involving the anti-money laundering agency in allowing Bolante to now gain immediate access to his accounts, effectively paving for the dissipation of the questioned funds.

It was also disclosed by the Senate blue ribbon committee chairman, Sen. Richard Gordon, that a new “smoking gun” that would pin down the alleged individuals involved in the misuse of the Department of Agriculture’s

(DA) P728 million fertilizer funds in 2004, is now in the hands of Senate investigators.

Gordon, however, yesterday withheld information pertaining to this matter until his panel resumes the inquiry proceedings next week when Congress reconvenes its plenary sessions.

Gordon was also vexed at the discovery that the AMLC made it easier for Bolante to recover the deposits in the bank accounts.

Although there are enough pieces of evidence to come up with a case on money laundering, perjury, falsification of public documents to secure tax amnesty, much still remains to be done, especially after the freeze order on the bank accounts of Bolante was lifted recently.

“Just who is orchestrating this? That’s why we are asking the AMLC to come here. This is a serious case. They (AMLC officials) are the ones who effectively said that the money is now accessible (to Bolante). My God! They have a duty to the people who are stealing money but they don’t have a duty to the Filipino people?” he said in frustration.

Gordon is still mulling over the move to hold the AMLC as an accomplice to the fund scam crime.

“I don’t know (if they could be held as an accomplice). I’ll see what their defense is,” he said.

Gordon was referring to the recent discovery by the blue ribbon panel when it had inquired on the other procedural requirement before the AMLC or the CA can gain access to the accounts following the unfreezing of the 32 accounts.

In such instances, AMLC executive director Vicente Aquino said, the owner need not undergo any other procedure.

It was during this “inquiry” made last Jan. 7 that the blue ribbon, through a staff identified as Agapito Rene Conchu, learned from Aquino that the AMLC quickly informed the banks concerned on the lifting of the freeze order by the CA.

In such cases, Aquino explained to Conchu that the banks or financial institutions usually call up their office to verify and confirm if they can now unfreeze the contested accounts.

“When I asked whether to his knowledge he knew if any bank had already verified this, he added that upon the lapse and or expiration of the term of the freeze order granted by the CA, the AMLC informed all the banks and financial institutions concerned of this fact.

He explained that the AMLC thought it prudent to do this to protect the institution from any civil or criminal suit and to be fair to the parties involved,” Conchu said in a sworn affidavit.

In light of this development, Senate investigators are now looking into the possible liability of Aquino for allowing the freeze orders on the multiple Bolante accounts to lapse without informing the blue ribbon committee.

“Worse, we got word that Aquino himself told the banks, out of courtesy he says, that the freeze orders have been lifted yet he did not even inform the Senate that the matter we are investigating is about to expire,” Gordon said.

“He (Aquino) misled the committee…he should have told us (that the freeze orders were expiring)”, he stressed.

The CA gave the AMLC and the government lawyer from the Office of the Solictor-General an extension of the freeze order with the warning to the AMLC to provide the court with evidence on the money laundering in the case of the Bolante bank accounts.

The AMLC, which was already in possession of the evidence, from bank deposits and instant withdrawals in big amounts were deposited to another bank account. The claim of the lawyer and the AMLC was that they still had to gather more evidence.

It will also be recalled that when AMLC’s Aquino appeared before the blue ribbon hearing last Dec. 10, the AMLC Executive Director said he could not disclose details on the frozen Bolante accounts because the council was still investigating the matter but promised to submit a report as soon as it is concluded.

“But on Dec. 20, the freeze order had already expired after failing to meet a six-month deadline for filing cases,” Gordon complained.

Gordon added that the Senate Committee is now crafting amendments to the Anti-Money Laundering Law that would, among others, extend the deadline for filing cases involving frozen accounts and allow for “preliminary attachments” of suspicious deposits.

“The blue ribbon will definitely recommend amendments to the Anti-Money Laundering Law but we are summoning Aquino first to explain why he allowed the freeze orders on the Bolante accounts to lapse,” the senator said.

Gordon also disclosed the alleged new “smoking gun” that is now in the hands of the Senate that promises to pin down those involved in the scam.

Despite these new revelations, however, Gordon admitted during a press conference yesterday that there is no big fish other than Bolante, who could be made liable for what obviously was a plunder of the funds intended for millions of poor farmers.

“Based on the evidence the Senate has gathered so far, I want to release the preliminary report the moment we get hold of the (information on) bank accounts…we do not see anything that would likely zero on the so-called big fish.

“The only thing I can say is that the inaction of Malacañang is deafening. It’s very clear that these people are their men and yet the Ombudsman (never moved to charge Bolante and company). What did it do?” he asked.

Gordon also admitted that two of the potential witnesses who could have shed light on the case, such as former DA Secretary Luisito “Cito” Lorenzo who was then the superior of Bolante and Malyn Araos can no longer be contacted.

Lorenzo earlier promised to cooperate and even expressed willingness to execute a deposition on the matter when contacted by Gordon himself.

The senator told reporters he could no longer reach Lorenzo who is currently in the United States.

Araos, who was identified in the last hearing as the supposed holder and signatory to the LandBank account, opened to receive payments made to the main supplier, Feshan Philippines Inc., seem to be on the same boat.

“We have not contacted her. So what all that the go-betweens could give us are promises (for her appearance),” he said.

Nonetheless, Gordon said they already have in their hands, documents implicating those involved in the misuse of the funds.

“You’ll find out later. I told her I will not use it until she comes around,” he said, insinuating what could possibly be a paper trail as to whose hands the funds went.

As to whether Bolante would be further pinned down, Gordon said that would be uncovered when the matter is brought up in the next scheduled hearing.

Back to top

For comments about this website:Webmaster@tribune.net.ph
The Daily Tribune © 2006