2 Arroyo execs, Napoles charged over Malampaya fund scam

The Office of the Ombudsman has filed with the Sandiganbayan 97 counts of graft and malversation cases against two former Cabinet officials of the Arroyo administration and detained businesswoman Janet Lim Napoles over the alleged P900-million Malampaya fund scam.

The Ombudsman charged former Budget chief and incumbent Camarines Sur Rep. Rolando Andaya Jr. and former Agrarian Reform secretary and now Masui City, Lanao del Sur Mayor Nasser Pangandaman of violation of Section 3(e) of the Anti-Graft and Corrupt Practices Act and malversation of public funds through falsification of public documents.

The respondents are accused of diverting P900 million from the Malampaya fund allocated by DBM to DAR between 2009 to 2010 and in the process using 12 Napoles-led non-government organizations as conduits to the fraud.

Andaya allegedly approved the request of DAR and signed the Special Allotment Release Order (SARO) and Notice of Cash Allocation requested by Pangandaman even prior to the review of the DBM's budget and management bureau.

According to the charge sheet, Pangandaman provided the P900 million without validating the regularity and legality of the claim or obligation in exchange of receiving commissions from Napoles.

Napoles, meanwhile, allegedly used her NGOs for the implementation of ghost and non-existent projects while her children, brother, and former bodyguard forged signatures and fabricated documents to conceal the fictitious nature of the transaction.

Aside from them, also facing charges are then-DBM Undersecretary Mario Relampagos, DAR Undersecretary Narciso Nieto and Director Teresita Panlilio; former Candaba, Pampanga mayor Rene Maglanque; Ruby Tuason, Jo Christine Napoles, James Christopher Napoles, Reynald Lim, Evelyn De Leon, Ronald Francisco Lim, Ronald John Lim, Eulogio Rodriguez, Simplicio Gumafelix, John Raymund De Asis, Rodrigo Galay, Alejandro Garro, Paquito Dinso, Jr., Gerald Apuang, Napoleon Sibayan, Winnie Villanueva, Angelita Cacananta, and Ronald Venancio.

Presidential Decree 910 provides for the usage of the Malampaya funds to finance the government’s energy resource exploration, development and exploitation programs and projects, and such other purpose as may be directed by the President.

The funds are collected through the Department of Energy from the government’s share in royalties, rentals, production share on service contracts and other payments on the exploration, development and exploitation of energy resources.

Records obtained by the Ombudsman during its investigations showed that Andaya submitted to the Office of the President on Oct. 8, 2009 a request for authority to use the Malampaya fund for relief operations, rehabilitation, and reconstruction of areas affected by Tropical Storm Ondoy and Typhoon Pepeng.

Five days later, then-President Gloria Macapagal-Arroyo issued Executive Order 848 authorizing the DBM to release the funds to the DAR as implementing agency.

On Oct. 22 that year, Nieto asked Andaya to release the P900 million from the Malampaya fund to provide direct assistance to farmer-beneficiaries affected by the two cyclones. The request was based on 97 purported letter-requests made by the mayors of various local government units.

Last year, the Sandiganbayan cleared Arroyo, former executive secretary Eduardo Ermita, and former DAR officials Dominador Sison and Nilda Baui in connection with the scam. 

The Ombudsman had earlier ordered the filing of plunder charges against the respondents. It, however, partially granted their motions for reconsideration which downgraded the case to graft and malversation on September 5.

A total bail bond of P22.31 million — P2.91 million for graft and P19.4 million malversation — has been recommended for each of the respondents in the case.

Confident of acquittal

In a statement, Andaya said he is confident that the Sandiganbayan will acquit him in the case after the Ombudsman downgraded his case.

"I welcome the filing of the case. [I am] confident that at the end, when my side will be fully heard and the evidence I submit will be appreciated, truth will prevail and I shall be acquitted of the charges against me," Andaya said.

"I have full faith in our justice system even as I wish that the case will proceed in a fair and fast manner," he added. —KBK, GMA News