Part of the P10-billion pork barrel scam that has implicated senators and congressmen could have found its way to the previous administration of City Mayor Dan Lim in which a non-government organization, in a similar scheme used by the JLN racket, has been made as recipient of a P10-million public fund allegedly for organic farming purposes, and of all places, in the asphalt jungle of Tagbilaran. The COA wondered how the former city mayor, CARED Foundation Inc, and City Agriculture Officer Engr. Vicente Loquellano were able to spend P10 million for “mere distribution of organic fertilizers and sprayers.” In a Notice of Suspension report released by the Commission on Audit (COA) dated July 3, 2013, the government’s auditing body has found anomalies in the expenditures of farming project worth P10 million given by Senator Jinggoy Estrada through his pork barrel. Estrada is one of the five senators who has been subject of an on-going investigation by the National Bureau of Investigation (NBI) in relation to the P10-Billion pork barrel money-making scheme which used bogus NGOs that implemented ghost projects all over the country.

In the report, the COA found that the P10-million fund from the office of Senator Estrada givent to City Hall before was tainted with alleged anomaly. Originally, the P10-million financial assistance from Senator Estrada was intended for the “implementation of livelihood projects (organic farming for high value crops) for microentrepreneur and small farmers.” The COA said that “the project’s work and financial plan (WFP) should address the purpose of the release of the (P10-million) fund.” “However, the WFP prepared by Simonette Briones, President of CARED Foundation, and approved by Atty. Dan Neri Lim, the City Mayor, utilized the whole amount solely for the distribution of organic packages,” the COA said in its audit report. The COA revealed that the organic package contains only “1 unit 16 liter knapsack sprayer, 7 bottles/1 liter organic fish based fertilizer, 3 bottles/1 liter organic soil conditioner; 2 bottles/1 liter compost activator.” “Funding for the project in the implementation of livelihood projects (organic farming for high value crops) for micro entrepreneur and small farmers was not mentioned,” the COA discovered.

In the Annual Investment Plan of the City Government for 2013, the administration of Lim had allocated P3 million only for “promotion of organic agriculture and use of biodegradable pesticides.” With another P10 million from Senator Estrada, the total amount of budget for the city’s organic farming project was pegged at P13 million. The COA said that CARED Foundation for has not complied with COA Circular 2007-001 in which it provides that an NGO implementing a local project must have officers based in that locality. “The list of officers of the NGO (CARED Foundation) did not include anyone that is based in Tagbilaran City,” the COA found. CARED Foundation was accredited by the previous Sangguniang Panlungsod (SP) in a resolution passed by former city councilor Doni Piquero. SP’s accreditation is mandatory, according to COA guidelines. But according to the COA report, the SP “did not perform a selection process, screening of the qualification documents, and no report on whether ocular inspection of the NGO’s business site, and evaluation of the technical and financial capability of the NGO was performed.” “Documents to prove that provisions requiring the NGO to open a separate bank account for the fund received from the (government) and for them to put up an equity of 20 % of the total project cost were not attached,” the COA said.

Worse, the report of the output expected per project’s work and financial plan were not attached, according to the COA document. Named liable in the COA report are former City Mayor Lim, Briones, CARED Foundation Inc, Loquellano, members of the 11th Sangguniang Panlungsod, and Eleanor B. Beniga, city accountant (officer-in-charge). The COA chided CARED Foundation for implementing a project that “lacks data on how the mere distribution of organic fertilizers and sprayers could fully implement of the release of the (P10-million) fund.” Briones is liable, COA said, for violating various COA circulars and “for being the signatory of the Project Work and Financial Plan that do not address the full implementation of the purpose of the release of the (P10-millin) fund.” Ex-Tagbilaran Mayor Lim was cited responsible for the discrepancy for “entering and signing a MOA (memorandum of agreement) with CARED Foundation for the full release of the P10 Million while the City’s Annual Investment Plan allocated only P3 Million for the purpose of the use of organic fertilizers.” COA said Mayor Lim approved the payment and release of the P10 Million to CARED Foundation. Loquellano has been named responsible for “being the signatory of the list of target project recipients of the livelihood projects on organic farming for high value crops for micro entrepreneur and small farmers.” The SP was also rebuked by COA for enacting a resolution accrediting CARED Foundation without evaluating and investigating the true background of the NGO. Beniga is also facing liability “for certifying that documents are complete.”