Ex-Butuan mayor, 8 others indicted for graft over fertilizer scam

The Office of the Ombudsman has found probable cause to file graft charges against former Butuan City, Agusan Del Norte mayor Leonides Theresa Plaza and eight other former city officials over their alleged involvement in the fertilizer fund scam in 2004.

Aside from Leonides, ordered charged before the Sandiganbayan were former vice-mayor Angelo Calo and former city Bids and Awards Committee (BAC) members Salvador Satorre, Adulfo Llagas, Arthur Castro, Rodolfo Evanoso, Bebiano Calo, Danilo Furia and Melita Loida Galbo.

They were ordered charged with violation of Sections 3 (e) and 3 (g) of Republic Act 3019 or the Anti-Graft and Corrupt Practices Act.

A resolution recently signed by Ombudsman Conchita Carpio-Morales said Plaza and the eight other respondents were responsible for the alleged anomalous purchase of liquid fertilizer amounting to P4.8 million.

Based on the Ombudsman investigation, the Butuan City government received a total of P5 million in 2004 as part of the implementation of the Department of Agriculture’s (DA) Farm Inputs and Farm Implements Program under the term of then President Gloria Macapagal-Arroyo.

To implement the program, the Ombudsman said Plaza signed a purchase request dated April 14, 2004 covering the procurement of 3,333 bottles of liquid organic fertilizer costing P1,500 per liter.

One week later, on April 22, 2004, Plaza, in an alleged conspiracy with BAC members, awarded the project to Feshan Philippines, Inc. and on the same date, Feshan was supposedly paid its first installment of P3.1 million.

The remaining balance of P1.7 million was allegedly paid to Feshan on May 31, 2004.

In indicting the former city officials, the Ombudsman gave weight to a Notice of Disallowance (ND) issued by the Commission on Audit (COA) wherein the audit body found several violations of Republic Act 9184 or the Government Procurement Reform Act concerning the transaction.

Among the violations mentioned by COA in the ND was the resort to direct contracting instead of a public bidding, reference to specific brand names, and overpricing as there were supposedly suitable substitutes available in the local market at lower prices.

The Ombudsman said the COA, in its audit report, noted that fertilizers of the same quality only cost P125 per liter.

Section 3(e) of RA 3019 prohibits a public official from causing undue injury to any party including the government, or giving any party unwarranted benefits, advantage or preference in the discharge of his official functions through manifest partiality, evident bad faith or gross inexcusable negligence.

Meanwhile Section 3 (g) of RA 3019 prohibits the act of entering, on behalf of the government, into any contract or transaction manifestly and grossly disadvantageous to the government, "whether or not the public officer profited or will profit thereby.”

Butuan City’s alleged anomalous fertilizer transaction was said to have been part of the P728-million fertilizer scam allegedly orchestrated by former Agriculture Undersecretary Jocelyn “Jocjoc” Bolante to siphon government funds for the 2004 presidential campaign of Arroyo. —KG, GMA News