NGO official gets 16 years for graft, malversation for PDAF misuse

The Sandiganbayan has found a non-government organization (NGO) official guilty of graft and malversation of public funds, and sentenced her to at least 16 years in prison over the misuse of P5 million discretionary fund of a La Union lawmaker in 2007.
 
In a 56-page decision dated April 29, the anti-graft court said that Mylene Encarnacion, the President of NGO Countrywide Agri and Rural Economic Development Foundation, Inc. (CAREDFI), is liable for the abovementioned crimes because the government project funded by the Priority Development Assistant Fund (PDAF) of then La Union First District Rep. Manuel Ortega had zero beneficiaries even if the group received the said budget for implementation.
 
Likewise, the Sandiganbayan said CAREDFI is not qualified to receive PDAF to begin with since its total capital of P1 million is way lower than the project cost worth P5 million.
 
“Accused Encarnacion is liable because notwithstanding CAREDFI's absence of accreditation requirements under COA (Commission on Audit ) Circular No. 96-003, she accepted the undertakings and received the fundings when she signed the MOA, (memorandum of agreement), Work and Financial Plan, TLRC's (state-run Technology and Livelihood Resource Center) disbursement voucher, the cheque for CAREDFI, and official receipt No. 12220 as proof of receipt of funds from TLRC,” the Sandigabayan said.

“[But] it should be emphasized that there was no proof that the indigent farmers of the First District of La Union received and benefited from the supposed livelihood projects. In fact, the local officials in the 1st District of La Union submitted certifications/affidavits that farmer residents from their municipalities had never attended any training seminars and had never received financial and technical assistance covering the period January to June 2007 from TLRC through CAREDFI,” the Sandiganbayan added.
 
When she took the witness stand, the Sandiganbayan said Encarnacion denied that she was the president or a member of the board of directors of CAREDFI and insisted she had no idea why she became an officer of the group without her consent.

Encarnacion, however, admitted that she was an employee of Janet Lim Napoles Corporation which operates the CAREDFI and refused to confirm if she was replaced as president. Instead, she maintained that she was not involved in the subject transactions and that she did not sign the various documents such as the MOA,Work and Financial Plan, disbursement voucher and CAREDFI official receipt.
 
The Sandiganbayan said that based on the records presented to the anti-graft court, the PDAF was diverted using a scheme allegedly to make it appear that it was regularly routed through a government agency identified as the implementing agency in the project menu of the GAA ( General Appropriations Act). These funds, however, were redirected by the implementing agency to a dubious NGO as a project partner based on the endorsement of the legislator.
 
In addition, the anti-graft court said that there were no liquidation documents supporting the procurement of livelihood materials, distribution of items, and implementation of livelihood projects for the La Union indigent farmers.
 
“In summary, accused Encarnacion's receipt of funds for CAREDFI albeit unqualified and without  submitting any proof of fund liquidation, combined with the fact that the project was not implemented, proves that she conspired to achieve the common goal to malverse public funds,” the Sandiganbayan said.
 
“Encarnacion willfully entered into the undertaking knowing that CAREDFI lacks qualifications to participate in the PDAF-funded project. This bolsters the claim that CAREDFI was given unwarranted benefits, advantage, or preference. Encarnacion, therefore, cannot be considered an innocent recipient of unwarranted benefit or advantage,” the Sandiganbayan added.

Encarnacion was sentenced to 10 to 18 years in prison for her malversation of public funds conviction. Her graft conviction, on the other hand, carries a jail time of six to 10 years.
 
As a result of her convictions, the anti-graft court also ordered Encarnacion to pay a P5 million fine or the amount of the government funds malversed and another P5 million for her civil liability, with  legal interest of 6% per year reckoned from the finality of  the decision until the amount is fully paid. 
 
Finally, the Sandiganbayan has perpetually disqualified Encarnacion from holding any public office.—LDF, GMA Integrated News