Senate panel urged to probe P15-M fertilizer scam in NE

By Pat C. Santos

11/21/2008

Nueva Ecija Vice Gov. Edward Joson yesterday urged the Senate blue ribbon committee to investigate the province’s similar “fertilizer scam” filed against Gov. Aurelio Umali.

Joson said the complaint against Umali should also be reinvestigated since the case is still pending before the Office of the Ombudsman.

The complaint was about the alleged padding of fertilizer and water pumps prices amounting to P15 million.

“The reopening of the complaint is very timely since the Senate is now looking into the Bolante case. We want to inform the upper chamber that there is also another case that it should look into because this was made after the Senate started its investigation into the P728-million fertilizer scam,” he said.

Last June 2, Joson filed graft charges against Umali for an anomalous deal that he allegedly entered into when he was still a member of the House of Representatives.

In a 10-page complaint filed before the Office of the Ombudsman, Joson charged the governor before the anti-graft court for violations of Republic Act 3019 or the Anti-Graft and Corrupt Practices Act and Republic Act 9184, or the Procurement Act, for giving favors to non-government organizations amounting to P15 million worth of liquid fertilizer and irrigation pumps for agricultural use of MAMFI and SMPGI.

The first, a foundation called Masaganang Ani Para sa Magsasaka Foundation Inc. (MAMFI), was the recipient of P12-million agricultural development projects in the third district of Nueva Ecija coming from the Priority Development Assistance Fund of then Representative Umali and was allegedly for the distribution of fertilizers to qualified beneficiaries of the province.

MAMFI, the NGO tasked to distribute the alleged fertilizer, is the solely choice of Umali. On the other hand, the fertilizer beneficiaries are the sole choice of MAMFI, according to the complaint.

MAMFI used the P12 million to purchase 7,920 liters/bottles of liquid fertilizers which were overpriced at P1,500 per bottle when the true price was only P50 per bottle at the Gabaldon N.E. Market which was approved by Umali at 30 times higher its real price and the actual price was just P396,000 for the 7,920 liters of liquid fertilizers.

In short, MAMFI quoted it at the overly bloated total price of P11,800,000, making a huge profit of P11,404,000.

Resident farmers of the Municipality of Gabaldon complained of exorbitant pricing on the part of MAMFI where they executed affidavit “Pagpapatunay” and attested that they had purchased fish liquid fertilizers from the Municipal Market of Gabaldon for a measly sum of P50 per bottle.

A doubt was raised on the existence of MAMFI which, according to the complainant, was a fictitious entity used as dummy to act as medium in stealing public funds.

The second, another alleged non-government organization named Samahan ng mga Manininda ng Prutas sa Gabi Inc. (SMPGI), was the recipient of P3 million to supply Irrigation pumps from the “integrated livelihood activities to supply irrigation pumps project by Umali.”

SMPGI, another non-government foundation, priced the 15 units of irrigation pump at P120,000. per unit while the prevailing market price was only P40,000 per unit. A total of P1.2 million overprice was also approved by Umali.

The case was filed last June but no action has been taken by Office of the Ombudsman until now.

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