Sunday, July 21, 2013

$30M MRT Extortion - Smoke and Mirrors

BALLSY, ELDON, PRADO: VICTIMS OF A DEMOLITION JOB

July 3, 2013 9:56 pm

There have been reports that presidential sister Ballsy and brother-in-law Eldon Cruz, former Transportation secretary Pete Prado, and Engr. Steve Psinakis, husband of Precy Lopez, the daughter of the late Eugenio “Geny” Lopez, had attempted to extort $30 million from a Czech company in exchange for a supply contract with the Metro Rail Transit (MRT).

What amazes me no end is that a leading network and a radio station aired the allegations twice last week and yet again on Monday with the announcer urging the couple to clear their names without bothering to check the accuracy of the facts. Never mind if the story was devoid of substance.

For one, the story merely quoted “a source.” The writer didn’t even bother to describe the source, much less countercheck her source (yes the writer is a she).

For another, if the author had checked her facts, she would have discovered that Psinakis is aging and ailing. Indeed, there is another Psinakis, but he is not the Psinakis of the Lopez clan. He is a Greek who has deep ties with a minister of the Czech Republic. It was this Psinakis who brought the Czech Foreign Minister and the Philippine government to the table for the MRT project.

One quick glance at the story and anybody with a modicum of intelligence would see that it is a demolition job, part of a sinister campaign to obfuscate the real issue and draw attention away from the real culprits. (For the record, I do not blame the radio announcer for airing the alleged $30 million imposition by the presidential sister and brother-in-law. The news reader is just a talking head and reads the news given to him after it has been edited).

The story alleges that Ballsy and Eldon travelled to Prague and personally met with a representative of Inekon, a Czech company, and demanded $2 million to $30 million. The Czech representative however rejected the couple’s offer. Imagine, Ballsy and Eldon face-to-face with the company representative asking for grease money!

Ballsy and Eldon Cruz did travel to Prague sometime in 2011 upon the invitation of Czech Ambassador to the Philippines Josef Rychtar. While in Prague, the three were invited to a social event attended by representatives from the Czech government and business sector. No business matters were discussed in the event. Even assuming that Ballsy and Eldon had attempted to extort $30 million from Inekon, as some speculators would put it, there was simply no window of opportunity to privately discuss business deals in the middle of a public gathering.

Again, assuming that Ballsy and company did try to extort money from Inekon, how could that be possible? The Czech company’s proposal is a government-to-government project, leaving no provision for broker’s commissions or worse, “tongpats” or “kotong.”

I do not know Ballsy personally; I never even met her. But I have some friends who worked closely with her during her mother’s incumbency as President and they are one in saying that Ballsy is very reserved, soft-spoken and upright. She is, my friends would say, like her mother, the late President Cory Aquino, honest to a fault.

The plotters must have calculated that the “scandal” involving the presidential sister and brother-in-law would whet the appetite of the public given the Filipinos’ gluttony for “tsismis.” Wrong. The public did not fall for it. The black propaganda did not go viral, for good reason.

Before President Benigno Aquino 3rd starts blaming the opposition, particularly those closely associated with former President Gloria Macapagal-Arroyo for the demolition job, he should first meet with his sisters, particularly Ballsy, to get some sense of what is happening with the MRT project.

What he should NOT do is consult with the people Secretary Mar Roxas brought in when he was appointed DOTC chief. Save for one who went with Mar to the Department of Interior and Local Government, I am told that these people have remained in their strategic posts at the DOTC and are running the show.

What’s at the DOTC that some people would rather breach established protocol of leaving the post along with their boss when he leaves office? What is it that makes them hold on to their old positions and bear the ugly brand of “kapalmuks?” Does it have to do with the multi-billion peso-projects like the contracts for drivers license, car plates, the Land Transportation Office (LTO) computerization and integration system, among other big time deals at the DOTC and its attached agencies?

Why Secretary Joseph Emilio Abaya keeps and tolerates them at the Transportation department is a puzzle to me. Is there a quid pro quo between Mar and Abaya?

P-Noy should not worry much about his detractors from the ranks of the opposition, the New People’s Army, Moro Islamic Liberation Front, Moro National Liberation Front or some other groups out to overthrow the government. Rather, he should guard against some of his so-called “friends” and some of the people his “friends” brought into the government, many of whom are holding powerful positions, so powerful that they can bring the government literally to a standstill. Some examples of projects that can greatly affect the country if bungled are the LTO drivers license, car stickers, MRT expansion project, irrigation projects, upgrading of the NAIA 1, resolution of the NAIA2, and a host of other much delayed programs.

PNoy should keep his ears to the ground. He should rely less on his so-called “friends” and more on his sisters for personal advice, because they have a reputation for honesty, integrity and probity. Besides being family, they wouldn’t lie to him. They will serve his best interests in much the same way that they had served their mother well.

The President should watch out for some of his so-called “friends”. The alleged extortion attempt by Ballsy is a case in point.

I have received information that the family of the President has traced the source of the story to a Malacanang insider.

The latest news is that Secretary Abaya was hastily summoned on Tuesday night (around 9:30 p.m.) to the Palace by no less than the President. I suspect that the meeting may have something to do with the letter of the Czech Ambassador (yes, there is a recent letter) to PNoy complaining of how Inekon’s government-to-government proposal for the MRT3 modernization had been gathering dust at the DOTC for almost three years now.

Unless the President steps in, Inekon’s proposal will be permanently shelved (if it has not been buried yet) in favor of a Chinese supplier (more on this in subsequent reports).

Next Tuesday: The story behind the $30 million extort try


CORRECTIONS, AMPLIFICATIONS ON ‘BALLSY, ELDON, PRADO: VICTIMS OF A DEMOLITION JOB’

Manila Times July 4, 2013 10:16 pm

Computer glitches and editing errors marred the opinion article by Dr. Dante A. Ang, chairman emeritus of The Manila Times, titled “Ballsy, Eldon, Prado: Victims of a demolition job” in yesterday’s Times.

Dr. Ang’s original manuscript referred to the “extortion reports” as a canard.

Engineer Steve Psinakis is the husband of Precy Lopez, sister—not daughter as the printed article incorrectly states—of the late Eugenio “Geny” Lopez.

Dr. Ang’s article cites the failure of the broadcast stations’ news team leadership to verify the accuracy of the allegations and as a result helped in the demolition job against Ballsy, et al. The false allegations were part of a sinister campaign to obfuscate the real issue and draw attention away from the real culprits.

Dr. Ang’s article as written is more economical with words—using “social” not “social event” to mean a party. Thus, it states, to counter the allegation that Ballsy, et al. went to Prague to commit extortion:

“True enough, Ballsy and Eldon Cruz did travel to Prague sometime in 2011 upon the invitation of Czech Ambassador to the Philippines Josef Rychtar. While in Prague the three were treated to a social attended by representatives from the Czech government and business sector. It was purely social and no business matters were discussed. Even assuming they had attempted to extort $30 million from Inekon, as some speculators would put it, there was simply no window of opportunity to privately discuss business deals in the middle of a public gathering.”

The published article omitted some details Dr. Ang pointed out to punctuate the dangerous situation at the DOTC.

“What he [President Aquino] should NOT do is consult with the people Secretary Mar Roxas brought in when he was appointed DOTC chief. Save for one who went with Mar to the Department of Interior and Local Government, I am told that these people have remained in their strategic posts at the DOTC and are running the show at the department long after Mar had left for the DILG job.”

The published version weakened the intensity of the warning. In this original paragraph Dr. Ang wrote:

PNoy should not worry much about his detractors from the ranks of the opposition or the NPA or the MILF or the MNLF or some other groups committed to the overthrow of the government. Rather, he should guard against some of his so-called “friends” and some of the people his “friends” brought into the government many of whom are holding powerful positions, so powerful that they can bring the government literally to a standstill. Some examples: the LTO drivers licenses, the car stickers, the MRT expansion project, the irrigation projects, the upgrading of the NAIA 1, the resolution of the NAIA2 dispute, and a host of other much delayed programs.






Thursday, July 18, 2013

P10-B Scam - Start of the End

Witness in fertilizer fund scam rescued

By Edu Punay (The Philippine Star) | Updated April 2, 2013 - 12:00am

MANILA, Philippines - The National Bureau of Investigation (NBI) has rescued a witness in the P728-million fertilizer fund scam from the condominium unit in Taguig of a businesswoman implicated in the corruption scandal.

Benhur Luy was rescued last March 22 from the residence of Janet Napoles, who owns the JLN Group of Companies, one of the suppliers of fertilizers to the Department of Agriculture during the Arroyo administration.

Luy’s parents said Napoles and her brother Reynald Lim had illegally detained their son since December last year after he decided to testify in the graft case.

Napoles has eluded arrest, while Lim was taken to a nearby hospital due to chest pains.

Arturo and Gertrudes Luy have accused Napoles and Lim of kidnapping their son on Dec. 19, 2012.

They were allowed to see and visit him twice, they added.

On the second visit their son “surreptitiously handed his hand-written note indicating that he is being detained against his will,” read the complaint.

According to his parents, Luy said he knew how employees of JLN Group forged signatures of “fictitious individuals” in organizing non-government organizations Kaupdanan Para sa Magsasaka Foundation, Social Foundation, People’s Organization for Progress and Development Foundation, Pangkabuhayan Foundation and Masaganang Ani Foundation.

He had decided to testify in the fertilizer fund and Malampaya cases, they added.

The DOJ has summoned Napoles and Lim to a preliminary investigation on April 15 on charges of serious illegal detention.

The Luys sought the assistance of Justice Secretary  Leila de Lima in rescuing their son.

Accused in fertilizer fund scam denies detaining witness

By Edu Punay (The Philippine Star) | Updated April 4, 2013 - 12:00am

MANILA, Philippines - A businesswoman earlier implicated in the P728-million fertilizer fund scam yesterday belied allegations that she illegally detained a possible witness in the corruption case.

Janet Napoles, owner of JLN Group of Companies who was dragged into the controversial graft case as one of the suppliers of fertilizers to the Department of Agriculture (DA), said she and her brother Reynald Lim did not detain Benhur Luy, who was reportedly rescued by National Bureau of Investigation (NBI) agents from her condominium unit last March 22.

Napoles’ lawyer Jean-Paul Acut said the charges of illegal detention filed by Luy’s parents against his client were “false and untrue” since Luy stayed in her residence of his own free will.

In fact, Luy stayed in Napoles’ place while on a four-month “spiritual retreat.”

“He stayed there of his own free will to atone for the wrongdoings he committed during his tenure at the JLN Group of Companies, for which he was investigated by management,” Acut told reporters at the Department of Justice (DOJ) in Manila.

The lawyer also stressed that the case was a simple internal family problem.

DOJ assessing testimony of rescued witness in fertilizer fund scam

By Edu Punay (The Philippine Star) | Updated April 5, 2013 - 12:00am

MANILA, Philippines - The Department of Justice (DOJ) is assessing the testimony of a witness in the P728-million fertilizer fund scam rescued recently by agents of the National Bureau of Investigation (NBI) from alleged detention by a businesswoman, Secretary Leila de Lima revealed yesterday.

“We are still validating or vetting the credibility (of the witness). So we can’t make certain pronouncements yet at this point as to the validity of the claims,” De Lima said.

De Lima said witness Benhur Luy will be presently regarded as a victim because of the serious illegal detention complaint filed by his parents at the Department of Justice (DOJ) against Janet Napoles, owner of JLN Group of Companies, who was implicated in a graft case as one of the suppliers of fertilizers to the Department of Agriculture (DA).

“The parents sought my help and therefore I referred it to the NBI who undertook the rescue operations. This is a case of serious illegal detention because he was rescued,” she explained.

Napoles, however, denied detaining Luy in her condominium unit at Pacific Plaza Tower, Bonifacio Global City in Taguig City last March 22.

Napoles said Luy went on a voluntary retreat or recollection at Bahay San Jose under the care of Fr. Peter Lavin since December 2012.

Napoles also denied being an accused in the Sandiganbayan case on the fertilizer fund scam.

She said she was only invited to the Senate inquiry as a resource person but not among those charged.

Napoles claims P300-M extort try

By Delon Porcalla (The Philippine Star) | Updated July 17, 2013 - 12:00am

MANILA, Philippines - The woman embroiled in the P10-billion pork barrel fund scam had informed President Aquino of an alleged attempt of her former personal assistant – now a purported star witness in the scandal – to extort at least P300 million from her.

In a two-page letter sent to Aquino last April, a copy of which was obtained by The STAR, businesswoman Janet Lim-Napoles related the “demand” by alleged whistle-blower Benhur Luy – through lawyer Levito Baligod – for P300 million, apart from several other demands, “in exchange for dropping” the illegal detention case.

“On March 27 (2013), I met with attorney Baligod and this time he demanded a higher amount (P250 million to P300 million), excluding their other demands such as issuance of Canadian visas for all of the Luy family members, including himself (Benhur),” Napoles said.

This was on top of the initial P38 million they tried to extort. There was also a demand for $1.5 million “pocket money” and the “opening of a legitimate pharmaceutical business to be given to the youngest sister who will be left behind in the Philippines.”

“We reiterate that the charges against us are all false, fabricated and a mere product of lies, perpetrated by our business competitors, with the ulterior purpose of besmirching our reputation and destroying our name,” a portion of the letter read.

Napoles sought Aquino’s help, particularly after agents of the National Bureau of Investigation (NBI) raided their unit at the Pacific Plaza condominium in Bonifacio Global City on March 22 without any warrant.

“We write with feelings of utmost disappointment, desperateness and extreme fear for our lives, as a result of the continuous threats, intimidation and even physical harm being inflicted upon us by some unscrupulous individuals, in cohorts with corrupt NBI agents,” she said in her letter to Aquino.

The NBI, however, justified the “warrantless arrest” based on a serious illegal detention complaint allegedly filed by the Luy family against Napoles and her brother Reynald Lim.

“This sudden illegal intrusion into our home and (invalid) warrantless arrest, all in complete disregard of our constitutional rights, reminded me of the human rights violations during martial law which your parents strongly opposed,” Napoles wrote.

The NBI stepped into the probe because of the alleged kidnapping of Luy.

Luy, who worked as Napoles’ personal assistant in the trading company JLN Corp., submitted an affidavit to the NBI claiming Napoles was behind a P10-billion scam using the pork barrel of senators and congressmen for ghost projects over the past 10 years.

Malacañang defended the NBI, saying it was part of the agency’s mandate to investigate any allegation of wrongdoing.

Deputy presidential spokesperson Abigail Valte, however, refused to comment on the allegations against Napoles.

Valte said they were not privy to the contents of the affidavits and would withhold any comment until such time that the NBI released its findings.

Napoles denied the allegations that Luy was held against his will.

“We are decent law abiding citizens. We are not kidnappers, we are not criminals. My family and I are legitimate businessmen,” read the letter.

Napoles’ letter, dated April 17, also requested Aquino to release her brother Reynald from NBI custody. She said her brother was arrested under an “illegal warrantless arrest, who is continuously languishing in the hospital under close watch since March 22.”

“We likewise seek your help in this illegal extortion activity involving private individuals and officers/agents of the NBI and for the protection of our family,” Napoles told the President.

She described the serious illegal detention charges as “illogical and unbelievable.”

Last June 10, the Department of Justice (DOJ) – through assistant state prosecutor Juan Pedro Navera – threw out the charges against Napoles and her brother, which was approved by Senior Deputy State Prosecutor Theodore Villanueva and Prosecutor General Claro Arellano.

Relatedly, assistant city prosecutor Rey Camilo Dumlao recommended the filing of “qualified theft” charges against Luy – who was also a witness in the P728-million fertilizer fund scam – before the Pasig City regional trial court.

This was based on the complaint Napoles filed against Luy in connection with the P300,000 that he “misappropriated” and the total P5.5-million loan he separately obtained in August and December 2012 without Napoles’ knowledge.

Napoles has been linked to an alleged scam involving the diversion of pork barrel funds of several lawmakers into dummy non-government organizations (NGOs) purportedly for ghost projects worth P10 billion.

Her lawyer Bruce Rivera said his client had been advised by doctors to take a rest after suffering from hypertension “due to stress brought about by these allegations.”

Rivera though stressed Napoles is denying the charges that he attributed to “a simple extortion case.”

“They have nothing against my client but mere baseless claims of Benhur Luy. Where’s the document to show that my client has this alleged NGO or foundation?” Rivera told dzBB.

Rivera said the accusers should bring the charges against his client before Congress or the Anti-Money Laundering Council.

“My client does not personally know these senators and congressmen being implicated. It is very unfair for these lawmakers to be dragged into the issue,” he said.

Rivera maintained the issue was personal between Napoles and Luy.



MOST issues clarification

On the other hand, the law firm of Executive Secretary Paquito Ochoa Jr. clarified yesterday its alleged links to Napoles.

The law firm Marcos Ochoa Serapio Tan (MOST) said it only served as collaborating counsel for Napoles and her brother Reynald in the earlier preliminary investigation at the DOJ on serious illegal detention charges filed against them by Luy.

The law firm explained their lawyers only collaborated with Freddie Villamor, Napoles’ counsel who needed help since he was conferring with her at the hospital most of the time.

“The firm’s written engagement with Ms. Napoles was limited only to handling the preliminary investigation stage. It was agreed that should the Department of Justice recommend the filing of the kidnapping case against Ms. Napoles and her brother, the firm would have to determine whether or not it would continue to represent her at the trial stage,” read the statement.

“Since the firm only acted as collaborating counsel, it did not formally enter its appearance in the kidnapping case,” it added.

The law firm also revealed that after the pleadings were submitted to the DOJ, and even before the DOJ issued its resolution dismissing the complaint, they already withdrew from the kidnapping case.

The law firm stressed it has never served as counsel for Napoles in connection with her alleged involvement in the P10-billion scam.

Napoles has denied any involvement in the misuse of billions in pork barrel funds of lawmakers. However, her former employees said she was the one who set up foundations using them as dummies.

Napoles was also the one who negotiated with and offered kickbacks to senators and congressmen, they claimed.

They said up to 60 percent of pork barrel funds given to the foundations were offered as kickbacks.

They said a lot of the funds from which commissions and kickbacks were taken were coursed through the Department of Agriculture, which also disbursed the P728 million in fertilizers funds in 2004.



DBM: No pork to foundations

The Department of Budget and Management (DBM) clarified it does not release the pork barrel funds of senators and congressmen directly to foundations and NGOs.

“We release the funds to government agencies, not to NGOs,” Budget Secretary Florencio Abad said in a television interview.

Abad was obviously reacting to the statement of Sen. Ferdinand Marcos Jr. that the DBM should explain the reported irregularities in the use of billions in pork barrel funds.

Marcos and Senators Juan Ponce Enrile, Jinggoy Estrada, Ramon Revilla Jr., and Gregorio Honasan have allegedly given hundreds of millions in their Priority Development Assistance Fund (PDAF) allocations to fake NGOs supposedly organized by Napoles.

Explaining the process of disbursing PDAF allocations, Abad said senators and congressmen submit to the DBM requests for the release of their funds.

The requests contain the amounts the lawmakers allocate for projects chosen from a menu embodied in the annual budget, and the agencies to which the money would be released, he said.

Abad said a bureau in the DBM makes sure that the projects are consistent with those listed in the menu.

The funds are then released to the identified national agencies, he added.

Abad pointed out that implementing agencies have the option of undertaking the projects themselves or hire NGOs to implement them through a memorandum of agreement.

He said it is the lawmakers and the agencies that identify the NGOs to which the funds are then given.

“It is the lawmakers and implementing agencies that are ultimately responsible for whatever irregularities in the use of the funds,” he stressed.



Enrile to COA: Release report

Sen. Juan Ponce Enrile, for his part, maintained the Commission on Audit (COA) should reveal the results of its special audit on the use of the PDAF.

Enrile said he stands by the entire record of how he had directed the distribution and use of funds made available to him as a legislator to identify projects to be funded by the government.

“I am submitting myself to a full investigation and audit of all my PDAF allocations over the years as I served as senator,” Enrile said.

Enrile added the exposé was selective instead of looking at all the lawmakers’ fund disbursements.

Sen. Francis Escudero, for his part, said he never gave funds to foundations and NGOs.

Escudero said he has been allocating his P200-million annual PDAF to government hospitals for medical assistance to indigent patients and local government units for the improvement of public markets.

Escudero also said that he usually does not allocate huge amounts for projects other than medical assistance.

Some politicians named in the scam, such as Sen. Ramon Revilla Jr., said the issue was not legitimate but a plot to demolish the political opponents of the administration.

Valte replied Malacañang is focused on solving problems such as the relocation of informal settlers and does not have time for such things.

She also said President Aquino had been very strict against making accusations without evidence to support them.

“The President is always very strict – and this is something that he has repeated to us – that government should never accuse without evidence and that we should never proffer accusations without proof. The investigation will settle that,” Valte said.

She said they were fixing a lot of problems like the informal settlers’ relocation, especially those living in danger zones.

“Because of the focus on those problems, we no longer allot time for those things,” Valte said.

“I understand that the senator mentioned that he has a source. We would appreciate it if that information was given to us because, certainly, that is not the case – that the demolition is coming from us,” Valte said.



Initiatives

Ombudsman Conchita Carpio-Morales announced yesterday the creation of a special team of investigators that will look into the ghost project allegations of certain members of Congress.

Morales said the six-man investigating panel has been tasked to conduct a parallel probe in coordination with the NBI.

Morales explained that under Republic Act 6770 or the Ombudsman Act of 1989, the anti-graft agency may initiate the investigation even without a complaint.

P10-B Scam - Infographic

INFOGRAPHIC: Pork barrel scam made easy 

By Rose-An Jessica Dioquino,GMA NewsJuly 19, 2013 11:28am





























Click Image to Enlarge

P10-B Scam - Napoles ‘welcome’ streamers puzzle Candaba folk

Napoles ‘welcome’ streamers puzzle Candaba folk

By 




VIP WELCOME Streamers in Candaba, Pampanga, welcome Janet (“Madame Jenny”) Lim-Napoles and family to the oath-taking of Mayor Rene E. Maglanque on June 30, (they did not show up.) The streamers were hastily taken down Friday afternoon after news broke out that Napoles is being investigated by the NBI for suspected multibillion fraud in the use of congressional pork barrel funds for scores of ghost projects. E.I. REYMOND T. OREJAS/INQUIRER CENTRAL LUZON


CITY OF SAN FERNANDO—Streamers welcoming “Jenny, Jimmy, James Lim Napoles” lined the road leading to the center of Candaba town on Friday, some two weeks after members of the Napoles family were scheduled to grace the June 30 oath-taking of Mayor Rene Maglanque.
The three did not turn up for the occasion, but the streamers sparked speculations here after the Inquirer carried a story on Friday about a government investigation of Janet “Jenny” Lim-Napoles, who was implicated in an alleged P10-billion scam involving ghost projects financed by congressional pork barrel funds.
“Were they the same people in the Inquirer story?” asked a village official, who requested anonymity for fear of reprisal.

Streamers removed
Local leaders said the question went unanswered as the mayor was not available for interview.  He was reportedly attending an agricultural summit and could not take calls.
The streamers were removed at 4 p.m. on Friday after copies of the INQUIRER had circulated around town. But local officials here would not say if Maglanque had ordered the pullout.
The mayor’s staff asked the INQUIRER to send its queries through a text message, but as of late Friday, Maglanque had yet to reply to the questions.
In 2005, “jueteng” (illegal numbers game) whistle-blower Sandra Cam named the Candaba mayor as “one of the bagmen” of former Pampanga Rep. Juan Miguel Arroyo. The mayor denied Cam’s allegations.
As then undersecretary of the Department of Transportation and Communications, Maglanque reportedly failed a lifestyle check.

In 2012, the INQUIRER learned that Maglanque had allegedly tried to bribe a leader of a fishermen’s group in Masantol town in an attempt to silence the group about an irregularity involving the distribution of farm equipment.
Some 2,500 fishermen in Masantol were reported to have received farming tools and seeds worth P89.2 million from the Department of Agrarian Reform. The supposed beneficiaries, however, claimed that their signatures had been forged and that they did not receive anything from the DAR or its listed partner, the Kaudpanan para sa Mangunguma Foundation Inc. (KMFI).
KMFI is one of the fake NGOs Napoles reportedly set up.

John Raymund de Asis, president and chair of KMFI, did not answer calls and text messages seeking his group’s side of the issue.

Maglanque, one source claimed, had asked a leader of the Masantol fishermen to keep mum on the issue in exchange for P1 million. The amount was rejected.


More NGOs that got Malampaya money go missing


by Chiara Zambrano, ABS-CBN News

Posted at 11/29/2012 1:37 AM | Updated as of 11/29/2012 1:40 AM


MANILA, Philippines - More nongovernment organizations (NGOs) that allegedly received millions of pesos in grants from the Malampaya project under the Arroyo administration are nowhere to be found.

Department of Agriculture (DAR) records show that in 2009, P10 million were downloaded from the agency to an NGO called Tanglaw Para sa Magsasaka Foundation.

The said amount was said to have been used by Yanglaw to purchase and distribute farming equipment to the municipality of Hingyon in Ifugao.

But a preliminary investigation by DAR showed that Hingyon never received the said amount. Then-Hingyon Mayor Ramon Tinawani, in a letter to the DAR, vehemently denied ever having heard of such a fund.

Tinawani also maintained that his signatures in the memorandum of agreement between DAR, the foundation, and the LGU were forged.

Per DAR records, Tanglaw Para Sa Mangggawa Foundation's official address is on Block 2, Lot 1, Tulip Street, West Fairview Park Subdivision, Barangay Fairview, Quezon City. But ABS-CBN News' visit to Tulip Street showed that the said address did not even exist.

There are only 14 blocks on the street. Moreover, residents who have lived there for decades said they've never heard nor seen such a group in the area.

"Walang ganyang address dito," said one resident, Ma. Teresa Alcaraz.

"Kilala namin lahat ng tao dito, walang tao dito na may ganyang pangalan," said another local, Martha Ramitere.

There is also no record of the group at the Fairview barangay hall.

Officials consider this proof that the foundation doesn't exist in the area, since all organizations -- whatever the function -- must all get a barangay clearance before being allowed to establish themselves within the jurisdiction.

Residents and barangay officials alike deny knowing a certain Nova Kay Viray, who DAR records say is the president of Tanglaw Para Sa Magsasaka Foundation.

If the foundation cannot be found, where are P10 million that were supposed to have been received by Hingyon 2 years ago?

Tip of the iceberg

The Hingyon issue may only be the tip of the iceberg.

In 2009, the entire P900 million given to DAR from the Malampaya fund was distributed to various NGOs like the Tanglaw Ng Mga Magsasaka Foundation, with the agreement that the groups would be the ones to distribute the funds in DAR's behalf.

Initial investigation by the agency reveals that of the 8 NGOs they have checked thus far, 5 including Tanglaw Ng Mga Magsasaka, cannot be found in their official addresses.

Each of the ngos was given at least P10 million per municipality. It is still uncertain how many municipalities these groups were assigned to.

The said NGOs  are:
- Bukirin Tanglaw Foundation, Inc. 
- Tanglaw Para Sa Magsasaka Foundation Inc.
- Ginintuang Alay sa Magsasaka Foundation, Inc. 
- Kasaganahan Para Sa Magsasaka Foundation, Inc. 
- Masaganang Buhay Foundation, Inc.

There are also more NGOs on DAR's list that still need to be verified, as the P900-million fund was spread out through Regions 1 to 4 and the Cordillera Administrative Region.

It may be recalled that ABS-CBN News tried to locate the official address of another ngo called Kaupdanan Para Sa Mangunguma Foundation, Inc., but instead found the residence of Juanito Castillo -- one of the group's board members, who claimed the NGO had not convened in a while, and that he only allowed to group to use his name and address because he was promised good profit from it.

Kaupadanan, like the other NGOs, claimed that they distributed at least P6 million worth of farming equipment to Masantol, Pampanga. But residents of Masantol say that their signatures were forged, and that they received no such money. Moreover, there are no ricefields in Masantol as the community is full of fishponds.

The DAR is in its initial stages of investigation, running parallel to a probe already being conducted by the Commission on Audit.

They are now verifying which portions of the P900 million fund are missing, and which officials in 2009 could have had a hand in this.

In an earlier interview, Agrarian Reform Secretary Gil Delos Reyes said he finds it unlikely that then-Secretary Nasser Pangandaman did not know about the fund.

Pangandaman refused to comment on the matter.


Delos reyes now fears that with P900 million in government funds unaccounted for, the controversy could very well be bigger than the infamous fertilizer fund scam.

P10-B Scam - Napoles camp won't commit to opening bank accounts

Napoles camp won't commit to opening bank accounts


By Ina Reformina, ABS-CBN News
Posted at 07/17/2013 3:38 PM | Updated as of 07/18/2013 2:29 AM

Denies close ties with legislators, Enrile's former chief of staff

MANILA (1st UPDATE) - The camp of Janet Lim Napoles, the businesswoman embroiled in the reported P10 billion legislators' pork barrel scam, denies she is as wealthy as she is being portrayed by a trusted relative-turned-foe.

Yet, in spite of mounting pressure for Napoles to have her bank accounts scrutinized by the Anti-Money Laundering Council (AMLC), and an assurance that her camp will cooperate in any probe pertaining to the issue, her lawyers said she has yet to respond to the challenge.

"I cannot speak on her behalf, it's unfair for me to give an answer now since I might preempt what she's going to do," said her counsel and spokesman, Atty. Bruce Rivera, in a press conference in Manila on Wednesday.

Rivera said Atty. Levito Baligod, the lawyer of Benhur Luy, the main whistleblower of the pork barrel scam and relative and former employee of Napoles, met with Napoles to "extort" P300 million from her in exchange for the dropping of the serious illegal detention charges against her and her brother, Reynald.

"If it's true she has P10 billion, what is P300 million? But she does not have that," Rivera said.

Whether Napoles waives her right on the secrecy of her bank deposits, Justice Secretary Leila De Lima had earlier bared that the National Bureau of Investigation (NBI), the agency asked to probe the alleged pork scam, is already coordinating with AMLC.

Luy and 5 others implicated Napoles and her JLN Group of Companies in the scam, allegedly in cahoots with senators, congressmen, and public agencies that implement the projects of lawmakers under their Priority Development Assistance Fund (PDAF).

The list of lawmakers who have allegedly misused and benefited from their PDAF includes Sen. Pres. Juan Ponce Enrile, Sen. Bong Revilla, Sen. Jinggoy Estrada, Sen. Gringo Honasan, Sen. Bongbong Marcos, all of whom have categorically denied the allegation.

NOT PERSONALLY ACQUAINTED WITH LAWMAKERS

Contrary to the claims of Luy's camp that Napoles is closely associated with the legislators they have identified, Rivera said she is "not personally acquainted with any of them."

Napoles may have, on some occasion, had her photo taken with any of the legislators, he added, but this does not mean she personally knew them.

"She had her picture taken with Sen. Bong Revilla because he is popular and good looking, but that's it," Rivera said.

Rivera also flatly denied that Napoles is close to Atty. Gigi Reyes, the resigned chief-of-staff of Enrile, who had also found herself the target of attacks for allegedly being more powerful than her designation allowed her to.

Rivera denied that Napoles was present in Reyes' 50th birthday party attended by high-ranking government officials and her closest circle of friends.

"She (Napoles) cannot remember if she went to that party, she attends many parties," Rivera said.

FEARING FOR SECURITY

In a statement read by Rivera, Napoles said she now fears for her security and that of her family following Luy's revelations about her residences, officers, and vehicles.

"I now fear for the security of myself and my family since Benhur [has] divulged in public our known residential addresses as well as location of our offices.

"Several family-owned vehicles with plate numbers were also exposed by Benhur and we now fear that kidnappers would now be targeting us thinking that the amount of money being attributed to us is true," she said.

Despite this fear, Napoles is "not in hiding," Rivera assured.

P10-B Scam - 2 mayors on pork projects: We got nothing

2 mayors on pork projects: We got nothing

By 


CANDELARIA, Quezon—The syndicate behind a P10-billion scam employed a good signature forger to secure multimillion-peso projects for dummy nongovernment organizations in the towns of Candelaria and Mulanay in Quezon province, the mayors there said.
“At first glance, they look like my signature but closer scrutiny will reveal the forgery. Whoever faked my signature was a good forger,” Mayor Ferdinand Maliwanag of Candelaria said in an interview on Tuesday.
Former Mayor Prudencio Maxino of Mulanay was surprised when told that his town had been the beneficiary of a P10-million project from Agri and Economic Performance for Farmers Inc., one of several dozen that Janet Lim-Napoles, president and CEO of JLN group of companies, was alleged to have set up over the past decade.
“It’s my first time to hear the name of that NGO,” Maxino, who served three terms totaling nine years, said in a telephone interview on Monday.
Six whistle-blowers have executed affidavits accusing Napoles of setting up dummy NGOs to secure funding for ghost projects from the Priority Development Assistance Fund (PDAF), or pork barrel, of senators and members of the House of Representatives, royalties from the Malampaya gas project off Palawan, and budget allocations of the Department of Agriculture and the Department of Agrarian Reform (DAR).

Signatures forged
The racket went on for a decade until it was exposed by Benhur Luy, a JLN employee, who allegedly was kidnapped in December last year and held captive for three months. After his rescue, Luy issued statements accusing Napoles of the shenanigans. The latter, however, has denied any wrongdoing.
On May 11, 2012, Susan Garcia, a Commission on Audit (COA) director, wrote Maliwanag for confirmation of his signatures on documents pertaining to the release by the Department of Budget of Management of P7.5 million to Micro Agri Business Citizen Initiative Foundation Inc. (MABCF) for assistance to victims of Typhoon “Ondoy.”
The documents were dated from Oct. 19, 2009, to Jan. 25, 2010, about a supposed DAR project in Candelaria to be financed by the Malampaya fund.
On June 12, 2012, Maliwanag replied to Garcia and “vehemently denied” that the municipality had asked the DAR for funding assistance. He said his signatures on the documents were forged and that the project was nonexistent.
MABCF is said to be one of the dummy NGOs of Napoles. Whistle-blower Luy said the JLN firm had opened an account for MABCF at the Metrobank, Magdalena branch in Binondo.

P7.5-million project
Maliwanag showed several documents on the purported program sent by the COA, which he claimed were all carrying his fake signatures.
The first document dated Oct. 19, 2009, was on the letterhead of the municipality of Candelaria. In the letter, Maliwanag was requesting then Agrarian Reform Secretary Nasser Pangandaman for financial assistance of P7.5 million for typhoon victims in his town.
Maliwanag was supposedly endorsing MABCF to implement the program involving the purchase of farm inputs to increase the food production of the typhoon victims.
On Nov. 16, 2009, a memorandum of agreement (MOA) for the funding assistance program was signed by Maliwanag, Agrarian Reform Undersecretary Narciso Nieto and MABCF president Ronald Lim.
The three-page MOA carried a stamped note “DAR Budget Division-OBLIGATED” with handwritten date 12/3/09, accounting code 876 and amount 7,500,000.” A separate document carried a notarization made by one Atty. Mark Oliveros in Taguig City on the same date.
Two other documents were also signed on Jan. 18, 2010.
The first carried the delivery report from MABCF to the Candelaria local government. One Grace Bangayan of MABCF and Maliwanag of LGU signed the delivery dated Jan. 18, 2010. The project was identified as “Disaster Advancement Scheme” in the delivery report. The document pertained to the delivery of “193 sets of agri equipment.”
The second document, a “certificate of acceptance,” which was purportedly signed by Maliwanag and Lim, certified that the local government had accepted 193 sets of agricultural equipment.

‘All forgeries’
In another document, an “inspection report,” the agricultural equipment were itemized as “sealed fresh seeds, planting tools, lightweight sprayers and farming implements” with a unit cost of P38,537. This report, signed by Lim, carried the address of MABCF—Blk 2, Lot 2 AFPOVAI Phase 1, Diego Silang Ave., Western Bicutan, Taguig City.
Another document was the “report of disbursement” signed by Lim, Maliwanag and one Isabelo San Miguel as company bookkeeper.
Maliwanag also purportedly issued a “certificate of project completion” dated Jan. 25, 2010.
“All documents about the supposed DAR funding assistance to Candelaria carried my fake signatures. I swear to God, they were all forgeries,” Maliwanag said.
He also denied a report in the Inquirer on Tuesday that Candelaria received a P10-million assistance from Malampaya, which was supposedly paid on Feb. 1, 2010.
“The local government of Candelaria during that time has no project or program or whatever that was funded from Malampaya,” Maliwanag said.
Candelaria belongs to the second district of Quezon. During the period covered by the supposed DAR funding assistance, the district’s representative was Proceso Alcala, the current agriculture secretary.

P10-B Scam - Tightened policies on pork in Aquino Sona

Tightened policies on pork in Aquino Sona



Jumping the gun on the lawmakers, Malacañang is submitting to Congress next week “policy recommendations” to tighten up the rules on the disbursement of funds from the graft-tainted pork barrel.
The measures include limiting the menu of projects that can be funded by pork, accreditation of the civil service organizations by the Department of Social Welfare and Development (DSWD) and limiting the number of implementing agencies, according to presidential spokesman Edwin Lacierda and Budget Secretary Florencio Abad.
But if Sen. Franklin Drilon, touted to be elected Senate President in the 16th Congress, would have his way, the pork barrel could simply be taken out of the national budget instead of passing a new law that would abolish the program, now at the center of a scandal involving P10 billion in patronage funds allegedly siphoned off by a businesswoman, Janet Lim-Napoles, through bogus NGOs using her extensive connections in Congress and in the government.
Next Tuesday, a day after his address to a joint session of Congress, President Aquino will submit to Congress the proposed P2.268-trillion national budget for 2014, which contains a separate item worth P27-billion for the Priority Development Assistance Fund (PDAF), or pork barrel.

No Aquino stand yet
The so-called Makabayan bloc in the House of Representatives and the Catholic Bishops’ Conference of the Philippines have called for the abolition of the PDAF following the disclosure of a government investigation of the racket that involved the shares of the pork of five senators and 23 representatives.
Lacierda told reporters on Thursday that Aquino had not yet taken a position on the matter.
“We have not discussed it with the President, so I am not in a position to say what the position is. However, my understanding (Wednesday) in the press briefing of (Budget) Secretary Butch Abad, (is) that they have made some policy recommendations … to the President,” Lacierda said.
He tossed back the question of abolishing the pork barrel to Congress.
“We wouldn’t want to wade into that debate because that’s primarily the call of [the legislators],” he said.

Lacson, Arroyo did it
“(Former) Sen. (Panfilo) Lacson did it. Is it something that is worth emulating? That is the call and discretion of each and every legislator,” he said.
Former Senators Lacson and Joker Arroyo did not collect their share of pork during their terms, from 2001 to 2013.
Drilon agreed that abolishing the pork barrel is a matter only for Congress to decide.
“This is a decision of both Houses. If one House does not agree, then you cannot abolish (the pork barrel), which is part of the general appropriations act,” Drilon told Senate reporters on Thursday.
It is also unnecessary to pass a new law to abolish the PDAF, he said.
“We just have to delete (the PDAF) from the (general appropriations act) and it will be gone,” he said.

Long shot
But that is a long shot, Drilon said, as legislators, especially the members of the House, need funds to finance projects for their constituencies.
“I think the only way is to limit the use of the PDAF so we can minimize the abuses and the misuses of [the fund],” he said. “In other words, be very strict with the menu to minimize what are perceived to be the abuses of the PDAF.”
But Sen. Grace Poe wants the introduction of regulations to stop the abuses.
Speaking to reporters in Mabalacat City after launching a program for the families of migrant workers, Poe said she and Sen. Francis Escudero had filed a resolution for an investigation by the Senate blue ribbon committee of the pork scam allegedly orchestrated by businesswoman Janet Lim-Napoles.
Poe said the National Bureau of Investigation of the Department of Justice should be given a free hand in investigating the racket.
“If the allegations of a scam are true, then [an investigation] in aid of legislation is really needed to prevent [a repeat of this scandal],” Poe said.
While President Aquino has not taken a position on the pork controversy, he appears to be not keen on letting go of his own pork barrel.
Deputy presidential spokesperson Abigail Valte said on Tuesday that Aquino had a lot of uses for the President’s Social Fund, which channels assistance to the families of soldiers, policemen or government workers killed in the line of duty.

New procedures
Lacierda told reporters that the Department of Budget and Management (DBM) headed by Abad had made some recommendations on the procedure for the release of pork barrel to the projects of senators and members of the House.
“What’s in the budget is (the proposal for) accreditation, but we are putting together some more recommendations—limited menu, limited implementing agencies, etc.,” Abad said in a text message.
The additional recommendations will be presented to Congress during budget hearings, he said.
“There’s a policy recommendation of accrediting the CSOs (civil service organizations) with the DSWD, subject to a standard to be determined by the DBM and DSWD,” Lacierda said.
Under the pork barrel system, each senator is allotted P200 million, while a House member gets P70 million.
Lacierda said that the matter of deleting the pork barrel item from the budget bill is up to Congress.
“Remember, the GAA (General Appropriations Act) is a law in itself. If it’s passed, it becomes a law. So Congress decides …. We just submit our budget,” he said.
“The budget goes through a lengthy process by the House and the Senate to review and question the budget. So we will have a budget season right after [the State of the Nation Address],” he said.
The matter of abolishing PDAF, then, should be left to the “discretion” of the legislators, he said.