Graft charges recommended vs. Lorenzo, Quedancor execs over swine program

Graft charges will be filed against former Agriculture secretary Luis Ramon “Cito” Lorenzo Jr. and officials of Quedan and Rural Credit Guarantee Corporation (Quedancor) over the alleged anomalous implementation of the government swine program in 2004 and 2005.

A statement from the Office of the Ombudsman said Ombudsman Conchita Carpio Morales has found probable cause to indict Lorenzo and his co-accused for alleged violation of the Anti-Graft and Corrupt Practices Act.

Lorenzo's co-accused in the case were former Quedancor president and CEO Nelson Buenaflor, and former Quedancor governing board members Wilfredo Domo-ong, Romeo Lanciola, Nellie Ilas and Jesus Simon.

Established in 2004, the Quedancor swine program is a credit project intended to support swine raisers through loans. But instead of cash, the state-run agency provided input supplies like hogs, gilts, feeds, medicines and technical assistance.

However, according to the Ombudsman statement, the supplies were either delivered late of were not delivered at all by the program's implementing company, Metro Livestock.

“Input supplies amounting to P47.465 million were not delivered to the borrowers as of year-end 2005 despite the advance payment therefore by the Quedancor to the Input Suppliers,” the resolution read, citing a Commission on Audit report.

The Ombudsman also said Quedancor did not hold public bidding to award input supplies contract.

“The non-compliance with the required public bidding resulted in damages because Quedancor lacked recourse against the suppliers for late deliveries or non-deliveries since the suppliers were not made to post a performance bond or contractor’s surety bond which is required under R.A. No. 9184 (Government Procurement Reform Act),” the resolution read.

It also questioned why Metro Livestock was awarded the contract “even if it failed to comply with the accreditation and eligibility requirements.”

“Quedancor awarded purchase contracts in the form of purchase orders to Metro Livestock in the amount of P48.6 million in Mindoro province alone, despite it having a paid-up capital of only P62,500,” the statement read.

“The procurement of swine inputs as a contract of sale between Quedancor and Metro Livestock, and hence should have been subjected to competitive bidding the Government Procurement Reform Act,” it added. — Rouchelle Dinglasan/KBK, GMA News