Foundations used to cover up fertilizer funds scam - Gordon

MANILA, Philippines - Despite the denials of alleged Malacañang liaison Jaime Paule, Senator Richard Gordon believes foundations were used to cover up the corruption scheme in the alleged P728-million fertilizer fund scam. In a press statement Friday, Gordon said the blue ribbon committee, which he heads, would be able to trace the paper trail in the multi-million scam in the fertilizer project of the Department of Agriculture. "We can now trace the paper trail; foundations were used to launder money," Gordon said. Gordon named National Organization for Agricultural Enhancement and Productivity, headed by Joselito Flordeliza, as one of the foundations used to launder money in the fertilizer scam. The second foundation reportedly involved in the program has yet to be named. During Tuesday's hearing, Natalio Castillo Jr. disclosed how Paule approached him to be the financier of the project. Castillo said that during their negotiation, Paule told him the scheme on how the project will be implemented. "The scheme of using a foundation came in," Castillo said. He said he decided to decline the offer after realizing that he might not be able to get his money back. Castillo, however, referred his friend Joselito Flordeliza to Paule, for the use of the former's foundation, the National Organization for Agricultural Enhancement and Productivity, Inc. in the project. During the hearing, Flordeliza, president of the foundation, disclosed that the foundation would get three percent for every transaction that would be completed and that Paule recommended Marites Aytona to manage the project with the DA when Flordeliza said he was too busy for it. Paule denied Castillo and Flordeliza's testimonies as well as his involvement in the fertilizer scam, claiming that he does not know the other personalities presented during the hearing. But Marilyn Araos testified she was ordered by Paule to open an account at the Land Bank-Elliptical Road Branch for Feshan Phils., the biggest supplier in the fertilizer project, and sign blank checks for the company. She added that Paule threatened her that she would lose her job if she would refuse to comply with his orders. Araos is a "runner" for the said project for the local government units in Regions III and IV, where she gets one percent commission for every transaction. Alleged financier Leonicia Llarena, owner of Dane Publishing, also testified that it was Paule who approached her to seek assistance in issuing checks for the project. Both Llarena and Paule said their respective families had been friends for some time. Gordon said believed the committee was able to put together,, through the documentary and testimonial evidence presented by the witnesses the whole picture of the fertilizer scam. "Sa palagay ko natatahi-tahi na natin. Nadikit-dikit na from the bank account [of Feshan Philippines Inc] all the way to [former Agriculture undersecretary Jocelyn] Bolante [I believe we are able to knit the evidence on the fertilizer scam from the bank account of the foundation all the way to Bolante]," Gordon said. The senator said he only needs to see the other personalities and documents mentioned in the latest hearing and he would be able to have the preliminary report on the issue. "We are now nearing the end of the investigation. We only need the other names mentioned to surface but what we have will already suffice," Gordon said. - Amita Legaspi, GMANews.TV