Ex-DAR officials face Malampaya fund probe

MANILA, Philippines - The Commission on Audit (COA), which issued a special audit report on the P900-million Malampaya Fund anomaly in 2009, has called on the Office of the Ombudsman to investigate former officials of the Department of Agrarian Reform (DAR) for their alleged role in transactions that led to “a great loss of public money.”

Among those recommended probed are former DAR secretary Nasser Pangandaman, former undersecretary Narciso Nieto and director Teresita Panlilio, who have all denied participating in any anomaly.

As in the case of the pork barrel scam, bogus or questionable non-government organizations (NGOs) allegedly siphoned P900 million from the Malampaya Fund four years ago.

The COA, in a special audit report dated Dec. 16 released over the weekend, pointed the accusing finger at the DAR, noting that the agency’s requests for funds from the Department of Budget and Management (DBM) resulted in “great loss of public money”.

Malampaya funds were supposed to be used to rehabilitate areas ravaged by Typhoons Ondoy and Pepeng four years ago, but intended programs were not implemented because government money was released to NGOs supposedly based on the requests for help by local government units (LGUs).

The money, however, went to fake projects and ghost beneficiaries, with local officials denying ever asking for public funds or sending letter requests wherein their signatures were allegedly forged.

State auditors said the 103-page COA report focusing on DAR’s role in the Malampaya Fund scam covers the release of government money to NGOs amounting to P900 million from October to December 2009.

The COA report identified the 12 foundations that were recipients or implementers of projects as the Karangyaan Para sa Magbubukid Foundation Inc., Gintong Pangkabuhayan Foundation Inc., Kaupdanan Para sa Mangunguma Foundation Inc., Kasaganaan Para sa Magsasaka Foundation Inc., Dalangpan Sang Amon Utod Kag Kasimanwa Foundation Inc., Ginintuang Alay sa Magsasaka Foundation Inc., Bukirin Tanglaw Foundation Inc., Abundant Harvest for People’s Foundation Inc., Tanglaw Para sa Magsasaka Foundation Inc., Saganang Buhay Sa Atin Foundation Inc., Micro-Agri Business Citizens Initiative Foundation Inc., and Masaganang Buhay Foundation Inc.

State auditors said the NGOs were selected on the sole basis of purported endorsements by the 97 city and municipal mayors and not through public bidding or negotiated procurement in violation of Republic Act 9184 or the Procurement Law.

“The contracts with the 12 NGOs were split into 97 MOAs, one MOA for each LGU, in amounts not exceeding P10 million even when the projects to be implemented by each NGO are practically the same,” the COA report read.

The audit team said funds were transferred to the NGOs even before the release of the Notice of Cash Allowance (NCA) on Dec. 21, 2009 and were continuously released to them even in the absence of liquidation documents to support utilization of funds previously released and status reports of project accomplishments.

COA auditors said there were no documents to show that DAR monitored the implementation of the alleged projects and the very existence of the 12 NGOs is questionable.

The 12 NGOs turned out to be unknown and could not be located at their given addresses, or have given non-existent addresses.

While the 12 NGOs have different addresses, they allegedly have common accountants and notaries public, as evidenced by how only four certified public accountants signed the Independent Auditor’s Reports of the 12 NGOs and all documents purportedly signed by the 97 city and municipal mayors requesting financial help were all notarized by only three notaries public.