PThe Office of the Ombudsman (Ombudsman) is going after non-Napoles' non-government organizations (NGOs) too. This after the Ombudsman investigators have filed a complaint for malversation of public funds and violation of Section 3(e) of Republic Act No. 3019, or the "Anti-Graft and Corrupt Practices Act", against former Nueva Ecija Rep. Rodolfo Antonino, former Department of Agriculture (DA) Secretary Arthur Yap (now Bohol 3rd District Representative), and five others in connection with the alleged irregular allocation and utilization of the Priority Development Assistance Fund (PDAF). Antonino and Yap will undergo preliminary investigation along with former National Agribusiness Corporation (NABCOR) officials Alan Javellana, Encarnita Cristina Munsod, Rhodora Mendoza and Maria Niñez Guanizo as well as Marilou Antonio, president of Buhay Mo Mahal Ko Foundation, Inc. (BMMKFI); and Carmelita Barredo, general manager of CC Barredo Publishing House (CC Barredo).

Likewise, the Ombudsman also filed a separate complaint for malversation of public funds and violations of Section 3(e) and (h) of RA No. 3019 against former Isabela Rep. Anthony Miranda, and nine others also in connection with the alleged irregular allocation and utilization of PDAF. Miranda will undergo preliminary investigation along with Technology Resource Center (TRC) officials Antonio Ortiz, Dennis Cunanan, Marivic Jover, Belina Concepcion, Francisco Figura, Maria Rosalinda Lacsamana, and Consuelo Lilian Reyes Espiritu as well as Domingo Mamauag and Edison Sabio of Aksyon Makamasa Foundation, Inc. (AMFI). Incumbent public officials Cunanan, Jover, Concepcion, Lacsamana and Espiritu also face administrative charges for grave misconduct, serious dishonesty, and conduct prejudicial to the best interest of the service. Field investigation was ordered conducted on the PDAF scam as early as July 2013 when Ombudsman Conchita Carpio Morales motu proprio initiated a fact-finding investigation in response to news reports on the "pork barrel scam" expose.

Several investigation teams were subsequently created to expedite the investigation by gathering numerous documents and interviewing hundreds of witnesses nationwide based on the Commission on Audit (COA) Special Audits Office Report No. 2012-03 which involved a total of Php6.156-billion worth of PDAF released from 2007 to 2009 by various implementing agencies to 82 NGOs. The first phase of investigation on Rep. Antonino covered his Php15-million PDAF allocation to the DA for an Integrated Livelihood Project for the 4th district of Nueva Ecija, under Special Allotment Order (SARO) No. ROCS-07-02898. Investigation showed that on Feb. 14, 2007 or even prior to the actual transfer of funds to the DA, Rep. Antonino requested then DA Secretary Yap to transfer the funds to NABCOR even if NABCOR was not identified in the General Appropriations Act of 2007 as one of the implementing agencies of PDAF.

An Advice of Notice of Cash Allocation (NCA) was issued on Feb. 23, 2007 by the Department of Budget and Management (DBM) to the DA which subsequently entered into a Memorandum of Agreement (MOA) with NABCOR on March 7, 2007. A disbursement voucher in favor of NABCOR was issued on March 9, 2007, which facilitated payment on March 16, 2007 through a Landbank check dated March 14, 2007. Two days prior to the March 7, 2007 MOA signed by DA Secretary Yap and NABCOR president Javellana, however, records showed that NABCOR already entered into a MOA with BMMKFI, upon the request of Rep. Antonino, on the implementation of the project worth Php14.55 million. Records also showed that Javellana approved the release of the first tranche of payment to BMMKFI without the signature of NABCOR accountant Roderica Bitancor who was supposed to certify that the supporting documents are complete and proper.

NABCOR received the first amount (90%) on March 21, 2007 through a UCPB check signed by Javellana and Mendoza, NABCOR Director for Financial Services. It was found that BMMKFI exclusively procured from CC Barredo 7,275 sets of Livelihood Technology Kits with a unit cost of Php2,000 or a total of Php14.55 million. However, investigators noticed that CC Barredo made an offer to BMMKFI as early as Feb. 14, 2007. On March 23, 2007, CC Barredo purportedly delivered the kits to BMMKFI which reportedly delivered the same to Rep. Antonino on even date. The remaining 10% of the project cost was thereafter released by NABCOR to the BMMKFI through a disbursement voucher dated April 24, 2007 signed by Munsod and Guanizo. After receiving the remaining amount (10%) on the same day through a UCPB check signed by Javellana and Mendoza, BMMKFI paid CC Barredo on April 30, 2007. Based on the list of Project Beneficiaries certified correct by Rep. Antonino, the 7,275 livelihood kits were purportedly distributed in Gapan City and the municipalities of San Isidro, General Tinio, Cabiao, Jaen, Peñaranda and San Leonardo. The complaint alleged that the project is inexistent based on on-site validation showing that a number of concerned city and municipal officials attested that their respective local government units did not receive the livelihood sets nor were there records relative thereto. Investigation found that neither the BMMKFI nor Rep. Antonino's office submitted a list of actual beneficiaries or a detailed liquidation report. The BMMKFI Report indicated only the total number of kits without identifying the breakdown or names of beneficiaries. To date, the COA Report categorized the funds as "unliquidated in full."

From 2007 to 2009, Rep. Miranda's P21-million PDAF was released to AMFI as the conduit NGO through TRC as the implementing agency for livelihood programs and projects in the 4th district of Isabela. The funds were released under SARO Nos. ROCS-07-00608 (P10 million) and ROCS-07-004174 (P11 million) on Jan. 15, 2007 and Feb. 23, 2007, respectively. Investigation showed that on Feb. 8, 2007, Rep. Miranda requested that the first PDAF of P10 million be released to AMFI, of which Rep. Miranda acted as incorporator, director and chairman of AMFI based on AMFI's General Information Sheet for 2007 on file with the Securities and Exchange Commission (SEC). DBM issued the advice of NCA on Feb. 13, 2007 for credit to TLRC's account. TLRC legislative liaison officer Concepcion recommended to TLRC director general Ortiz on March 9, 2007 ordered the release of P9.5 million, citing a MOA between TLRC and AMFI which entitled TLRC to retain the total amount of P500,000 for the cost of livelihood materials, the pertinent documents of which were reviewed and initialed by TLRC Group Manager Figura and approved by Ortiz on same date.

On same date, AMFI's Mamauag prepared a Work and Financial Plan detailing the conduct of agro-farming and livestock seminars, distribution of farming seeds livestock product, and livelihood training materials, which AMFI Chairman Sabio noted. Attached to the Plan is the Project Proposal which was endorsed by Rep. Miranda. It was only on March 12, 2007 that TLRC director general Ortiz, Rep. Miranda and AMFI chairman Sabio executed the required MOA with a certification of availability of funds signed by TLRC Accounting Division Chief Jover, which MOA was notarized by a certain Atty. Donato Manguiat. On same date, Mamauag received the Php9.5 million Land Bank check dated March 13, 2007 through an undated disbursement voucher signed by Cunanan, Jover and Ortiz. Respecting the second amount of Php11 million, records showed that DBM issued the advice of NCA on March 5, 2007 for credit to the account of TLRC. On March 12, 2007, Rep. Miranda requested that the Php11-million PDAF be similarly released to AMFI, through an endorsement letter with an attached Work and Financial Planand a Project Proposal also endorsed by Rep. Miranda.

TLRC group manager Lacsamana recommended on March 23, 2007 the release of Php10,560,000 under the terms of a MOA with AMFI. On March 30, 2007, TLRC director general Ortiz, Rep. Miranda and AMFI chairman Sabio executed a MOA on this second project, bearing also Jover's certification of availability of funds, which was notarized by Atty. Joel Gordola, notary public. On April 2, 2007, Mamauag acknowledged receipt of the amount of Php10,560,000 via Land Bank check through a disbursement voucher signed by Cunanan, Jover and Ortiz. Ombudsman investigators claimed that the two MOAs were filled with irregularities, such as lack of identified beneficiaries, lack of standards for project implementation and project acceptance, lack of project cost estimates, one lump sum payment instead of a schedule of release of payment, among others items required under the COA circular. The complaint alleged that TLRC failed to heed the COA circular on NGO accreditation, while AMFI failed to submit the required three-year financial statements to TLRC that would have ensured that AMFI had a stable financial condition such that the fund assistance shall not be its sole source of funds, and had proven experience in fund management. SEC records showed that AMFI sourced its funds only from government assistance and did not comply with SEC reportorial requirements from 2007 to present. Investigation did not yield any record showing that AMFI implemented or completed the projects, despite demand by COA to liquidate as early as May 30, 2012. (PNA)