Senate Report Fertilizer Scam

THIRTEENTH CONGRESS OF THE REPUBLICOF THE PHILIPPINESSecond Regular SessionS E N A T ECOMMITTEE REPORT NO. _____

Submitted by the Committees on Agriculture and Food and Accountabilityof Public Officers and Investigations (Blue Ribbon), on

PSR 327

1

- “RESOLUTION DIRECTING THE COMMITTEE ONAGRICULTURE AND FOOD TO CONDUCT AN INQUIRY, IN AID

1

RESOLUTION DIRECTING THE COMMITTEE ON AGRICULTURE AND FOOD TO CONDUCTAN INQUIRY, IN AID OF LEGISLATION, ON THE ALLEGED MISMANAGEMENT AND USE OFTHE FERTILIZER FUND OF THE DEPARTMENT OF AGRICULTURE’S GININTUANGMASAGANANG ANI PROGRAM TO THE DETRIMENT OF FILIPINO FARMERS WITH THE ENDIN VIEW OF CHARTING EFFECTIVE POLICIES AND PROGRAMS FOR THE AGRICULTURESECTOR Whereas, one of the hallmarks of the 1987 Philippine Constitution is the prominence of declarations aimed at preventing wastage of government resources through the institutions of so-called“sunshine laws”, viz:

•

Section 27, Article II, stating “[t]he State shall maintain honesty and integrity in publicservice and take positive and effective measures against graft and corruption.”

•

Section 28, Article II, providing “[s]ubject to reasonable conditions prescribed by law,the state adopts and implements a policy of full public disclosure of all its transactionsinvolving public interest.”

•

Section 7, Article III, mandating “[t]he rights of the people to information on matters of public concern shall be recognized. Access to official records, and to documents, and papers pertaining to official acts, transactions, or decisions, as well as to governmentresearch data used as basis for policy development, shall be afforded the citizen, subjectto such limitation as may be provided by law.”

•

Section 1, Article XI, declaring “[p]ublic office is a public trust. Public Officers andemployees must at all times be accountable to the people, serve them with utmostresponsibility, integrity, loyalty, and efficiency, act with patriotism and justice, and leadmodest lives.”Whereas, the

Ginintuang Masaganang Ani

(GMA) Program of the Department of Agriculture isenvisioned to generate employment, increase farmers’ income, and achieve greater food security;Whereas, the fund resources of the Program are meant for the procurement and distribution seeds(inbred and hybrid) and fertilizer, provision of other location specific intervention, research andDevelopment (R & D) to improve productivity and farmer’s income and National Expansion of FarmersField Schools revitalization of national extension system;Whereas, the Philippine Center for Investigative Journalism (PCIJ) in a report revealed that theDepartment of Agriculture released fertilizer funds during the 2004 presidential campaign and recordswould bear that the Department of Budget and Management authorized the release of Seven HundredTwenty-eight Million Pesos (P 728,000,000.00) for the purchase of farm inputs and implements;Whereas, farmers and farm organizations declared that they never received a single-centavo worthof fertilizers or farm inputs intended for their respective district and accordingly, some of those districtswithout agricultural lands were reportedly given

1

OF LEGISLATION, ON THE ALLEGED MISMANAGEMENT ANDUSE OF THE FERTILIZER FUND OF THE DEPARTMENT OFAGRICULTURE’S

GININTUANG MASAGANANG ANI

PROGRAMTO THE DETRIMENT OF FILIPINO FARMERS WITH THE ENDIN VIEW OF CHARTING EFFECTIVE POLICIES ANDPROGRAMS FOR THE AGRICULTURE SECTOR” by SenatorRamon Magsaysay, Jr.

Recommending the adoption of the recommendations contained herein:Mr. President:The Committees on Agriculture and Food and Accountability of PublicOfficers and Investigations (Blue Ribbon) have conducted an inquiry, in aidof legislation, into P. S. Resolution 327 by Senator Magsaysay, Jr. Six (6) public hearings

2

and a series of dialogues with farmer organizations have been conducted. A substantial number of witnesses appeared, braving thethreats on their lives : career service officers, local government officials,ordinary farmers and farm workers affiliated with respectable farmer organizations and responsible men and women of the Commission on Audit.Witnesses who answered the summons of the committees, withcorresponding dates, are listed below :

2

appropriation for fertilizers;

Whereas, the truth in this particular issue must be resolved considering that the agriculture sector particularly our farmers are sweating it out to make both ends meet and are in dire need of governmentsupport: Now therefore be itRESOLVED BY THE SENATE, AS IT HEREBY RESOLVED, TO DIRECT THECOMMITTEE ON AGRICULTURE AND FOOD TO CONDUCT AN INQUIRY, IN AID OFLEGISLATION, ON THE ALLEGED MISMANAGEMENT AND USE OF THE FERTILIZER FUNDSOF THE DEPARTMENT OF AGRICULTURE’S GININTUANG MASAGANANG ANI PROGRAM TOTHE DETRIMENT OF FILIPINO FARMERS WITH THE END IN VIEW OF CHARTING EFFECTIVEPOLICIES AND PROGRAMS FOR THE AGRICULTURE SECTOR.Adopted,



Six (6) public hearings have been conducted on the following dates : October 6 and 26, 2005; November 17 and 24, 2005; December 12, 2005 and February 2, 2006.

2

October 6, 2005

Assistant Commissioner

Sofronio Flores,

Director

Tobias P. Lozada,

Ms.

Flerida Jimenez - Commission on Audit (COA);

Ms

. Che Che Lazaro -ABS-CBN Channel 2 Probe Team;

Secretary General

Danilo Ramos – Kilusang Magbubukid ng Pilipinas (KMP);

Secretary General

EnricoCabanit - Pambansang Ugnayan ng mga Nagsasariling Lokal naOrganisasyon sa Kanayunan (UNORKA);

Advocacy Officer

EmersonPerucho - Partneship for Agrarian Reform and Rural Development Services(PARRDS);

Executive Director

Arce Glipo - Integrated Rural developmentFoundation (IRDF); Joseph Canlas – Alyansa ng Magbubukid sa GitnangLuzon

October 26, 2005

Commissioner

Guillermo Carague

, Assistant Commissioner

Sofronio Flores,

Assistant Commissioner

Emma Espina - Commission on Audit (COA);

President

Raymond Ilustre – Fertilizer Industry Association of thePhilippines (FIAP);

Secretary General

Danilo Ramos – KilusangMagbubukid ng Pilipinas (KMP);

Atty.

Frank Chavez – Taxpayer;

Mr.

Villano- League of Provinces; Ka Felix Paz – KMP Bicol Region;

National Vice Chairperson

Imelda Lacandazo – KMP Southern Tagalog

November 17, 2005

Former Secretary

Emilia

Boncodin – Department of Budget andManagement (DBM);

Atty. Frank Chavez; Mr. Antonio Salas – Asst.Provincial Treasurer, Eastern Samar; Mr. Alfonso Esposa – President,Provincial Irrigations Associations; Mr. Danilo Ramos – KilusangMagbubukid ng Pilipinas (KMP); Prof. Cesar Mamaril – farmer, UPLBProgram and IRRI specialist in fertilizer and food management;

SecretaryGeneral