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Office of the Assistant Director

Repu blikangPilipinas (Republic of the Philippines) KagawaranngKatarungan (Department of Justice) PAMBANSANGKAWANIHANNG PAGSISIYASAT "NATIONALBUREAU OF INVESTIGATION)

03 October 2013

Hon. CONCHITA CARPIO MORALES Ombudsman Office of the Ombudsman Agham Road, Diliman Quezon City

Madam: Respectfully transmitted for PRELIMINARY INVESTIGATION are the results of the investigation conducted by Agents and Special Investigators of the Special Task Force of the National Bureau of Investigation ("NBI"):

RECOMMENDED FOR PROSECUTION: 1. GLORIA MACAPAGAL-ARROYO, former President of the Republic of the Philippines, presently confined at Veterans Memorial Medical Center, North Avenue, Quezon City; EDUARDO R. ERMITA, former Executive Secretary, Office of the President, with address at 37 Arguilla St., San Lorenzo Village, Makati City; NASSER C. PANGANDAMAN, former Secretary of the Department of Agrarian Reform ("DAR"), of legal age, Filipino, and a resident of Opal Street, Golden Village, Cagayan De Oro City; NARCISO B. NIETO, former Undersecretary of the DAR in charge of its Finance Management Administration Office (FMAO), of legal age, Fil~pino, and a resident of 90 Purok 1, San Roque, San ISidro.),j>!,ueva ECIJa;
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ROLANDO G. ANDAYA, JR., then Secretary of the Department of Budget and Management ("DBM"), incumbent Representative of the 1st District of Camarines Sur, with office address at the House of Representatives, Constitution Hills, Quezon City; UNDERSECRETARY MARIO L. RELAMPAGOS, of the DBM, of legal age, Filipino, with office address at the DBM Offices at Gen. Solano Street, San Miguel, Manila; TERESITA L. PANLILIO, then Director of the Finance and Management Service of the DAR, at some point Officer-in-Charge (OIC)-Undersecretary of DAR-FMAO, presently the Officer-in-Charge of the Presidential Agrarian Reform Council ("PARC") Secretariat, of legal age, Filipino, with office address at the DAR Central Office, Elliptical Road, Diliman, Quezon City; ANGELITA V. CACANANTA, former Chief Accountant of the DAR, of legal age, Filipino, with last known address at the DAR Central Office, Elliptical Road, Diliman, Quezon City; NILDA P. BAUI, incumbent Cashier III of the DAR, of legal age, Filipino, with office address at the DAR Central Office, Elliptical Road, Diliman, Quezon City;

6.

7.

8.

9.

10. DOMINADOR V. SISON, JR., former OIC-Director Administrative Services of DAR, presently DAR Regional Director, of legal age, Filipino, with office address at the DAR Central Office, Elliptical Road, Diliman, Quezon City; 11. RONALD J. VENANCIO, presently the Budget Officer of the DAR, of legal age, Filipino, with office address at the DAR Central Office, Elliptical Road, Diliman, Quezon City; 12. RENE E. MAGLANQUE, incumbent Mayor of Candaba, Pampanga, of legal age, Filipino, and a resident of 41 Purok 4 Mandasig, Candaba, Pampanga; 13. JANET LIM NAPOLES, of legal age, Filipino, and a resident Pacific Plaza Towers, BGC, Taguig City; 14. RUBY C. TUASON, of legal age, Filipino, Anchorage St., Merville Park, Parafiaque City; and of 18-B

a resident

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15. EVELYN DE LEON, of legal age, Filipino, and a resident of Blk. 10, Lot 5, Daet Street, South City Homes, Biftan, LagUnj'2

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16. JESUS CASTILLO, of legal age, Filipino, and a resident Himamaylan, Negros Occidental; 17. LILIAN A. ESPANOL, of legal age, Poblacion, Magpet, North Cotabato; Filipino, and a

of Kalasa

resident

of

18. GENEVIEVE G. UY, of legal age, Filipino, and a resident of 13 Amador Compound, Plaridel Street, Kidapawan City, North Cotabato; 19. RONALD JOHN LIM a.k.a JOHN LIM, of legal age, Filipino, and a resident of 25 Elisco Road, San Joaquin, Pasig City; 20. EULOGIO D. RODRIGUEZ, of legal age, Filipino, and a resident of Blk. 1, Lot 9, Chico Street, South Plains 1, Sto. Tomas, Biiian, Laguna; 21. LORNA RAMIREZ, of legal age, Filipino, and a resident Abung, San Juan, Batangas; of Brgy.

22. RONALD FRANCISCO LIM, of legal age, Filipino, and a resident of BLk. 2, Lot 2, Phase 1, Diego Silang Avenue, Western Bicutan, Taguig City; 23. SIMPLICIO M. GUMAFELIX, of legal age, Filipino, and a resident of 1898 Ciudad Del Mejia Subdivision, Rosario, Pasig City; and 24. JOHN RAYMUND S. DE ASIS, of legal age, Filipino, and a resident of Blk. 20, Lot 9, Phase III, Glandiola Street, T.S. Cruz, Almanza 2, Las Piiias City.

COMPLAINANTS: 1. National Bureau of Investigation, with office address Avenue, Ermita, Manila; at Taft

2. Atty. LEVITO D. BALIGOD, Filipino, of legal age, and with office address at 3rd floor, The Lydia Bldg., 39 Polaris Street, Bel-Air Village, Makati City; and 3. Atty. LOURDES P. BENIPAYO, Filipino, of legal ale, office address at 43 Mindanao Avenue, Quezon City

and with

CRIMES COMMITTED:
3

/f:

Violations of the following penal laws: 1. Republic Act ("R.A.") No. 7080, as amended

(An Act Defining

and Penali2ing Plunder);


2. R.A. No. 3019, specifically: a. b. c. d. e. 3. Section Section Section Section Section as amended

(Anti-Graft and Corrupt Practices Act),

3 (b); 3 (e); 3 (g); 3 li); 4;

R.A. No. 6713 (Code of Conduct and Ethical Standards for Public Officials and Employees); and Article 172 of the Revised Penal Code.

4.

WHEN COMMITTED: Sometime between the years 2009 to 2010 WHERE COMMITTED: In the Cities of Manila, Pasig and Quezon

HOW COMMITTED: A.CASEBACKGROUND On March 22, 2013, the NBI, thru its Special Task Force ("NBI-STF"), conducted an operation to rescue a certain BENHUR LUY Y KILAP-KILAP ("BENHUR") who was then detained against his will at the Ground Floor, South Wing Gardens, Pacific Plaza Tower, Bonifacio Global City, Taguig City. The operation resulted in the successful rescue of BENHUR and the arrest of REYNALDLIMY LUY ("REYNALDLIM"). The following day, charges against REYNALDLIM and his sister, JANET NAPOLES Y LIM ("NAPOLES"), for Serious Illegal Detention under Article 267 of the Revised Penal Code were filed before the Department 0;1""Justice ("DOJ"). .

"

Initially, the complaint for Serious Illegal Detention filed by Spouses ARTURO FRANCISCO LUY and GERTRUDES LUY, ARTHUR LUY and ANNABELLE LUY (collectively referred to as the "Complainants"), the parents and siblings, respectively, of BENHUR, was dismissed but such dismissal was reversed after the Complainants' Motion for Reconsideration was granted. Consequently, an Information for Serious Illegal Detention was filed before the Regional Trial Court ("RTC") of Makati. Upon finding of probable cause, warrants of arrest were issued against REYNALDLIM and NAPOLES. NAPOLES is presently detained at Fort Sto. Domingo, Santa Rosa, Laguna after she voluntarily surrendered on August 28, 2013. On the other hand, REYNALD LIM is still at large and he is now the subject of a continuous manhunt by the NBI. In connection with the complaint for Serious Illegal Detention, the Complainants executed a joint statement wherein they stated that the main reason for BENHUR's illegal detention was his role as the "lead employee" of the JANET LIM NAPOLES ("JLN") Group of Companies, in which capacity he oversaw the implementation of several governmentfunded projects on behalf of JLN Group of Companies. According to them, the funding of these projects was sourced from the Priority Development Assistance Fund ("PDAF") of several Congressmen and Senators of the Republic of the Philippines, the Malampaya Fund (Special Account in the General Fund 151), and the Fertilizer Fund. In his affidavit dated March 23,2013, BENHUR confirmed the allegations of his parents and siblings that, indeed, he had a hand in facilitating, processing and implementing government projects funded by or sourced from the PDAF, the Malampaya Fund and the Fertilizer Fund. Another witness, MERLINA SUNAS Y PABLO ("SUNAS"), corroborated BENHUR's statement. In her Karagdagang Sinumpaang Salaysay dated September 12, 2013, she narrated how the Nine Hundred Million Pesos (PhP900 Million) Malampaya Fund allotted to DAR was granted to the twelve (12) Non-Governmental Organizations ("NGOs") established and controlled by NAPOLES. She further revealed the following: 1) requests for assistance were purportedly made by the respective Mayors of ninetyseven (97) cities and municipalities to the DAR when, in truth and in fact, no such requests were made, as the letters were made by the employees of JLN, and the signatures of the Mayors appearing therein were forged; 2) there were really no actual projects implemented in the 97 cities and municipalities, a case of "ghost deliveries" of products and servIces. In the Karagdagang Sinumpaang Salaysay of MARINA SULA Y CORTEZ ("SULA"),she stated that it was she who established the NOOs upon the instruction of NAPOLES. The names of most of the incorporators andl

Members of the Board of Directors of these NOOs were taken from telephone directories or were supplied by their respective presidents, without the knowledge or consent of the person whose name was used in the incorporation papers. Worse, there were even cases where the names appearing on the corporate documents belong to persons who are already dead. Twelve (12) of these NOOs created by and under the control of NAPOLESwere the recipients of the Nine Hundred Million Pesos (PhP900 Million) Malampaya Fund as conduits and purported implementers of the ghost projects.

B. NATURE OF THE MALAMPAYA

FUND

On March 22, 1976, President Marcos issued Presidential Decree No. 910 ("PD No. 910")1, which created a Special Fund to be used to finance energy resource development and exploitation programs and projects of the govemment, as well as for such other purposes as may be directed by the President. Specifically, paragraph 2 of Section 8 of PD 910 provides: "Section 8. Appropriations.xxx xxx xxx "All fees, revenues and receipts of the Board (Energy Development Board, now the Department of Energy) from any and all sources including receipts from service contracts and agreements such as application and processing fees, signature bonus, discovery bonus, production bonus; all money collected from concessionaires, representing unspent work obligations, fines and penalties under the Petroleum Act of 1949; as well as the government share representing royalties, rentals, production share on service contracts and similar payments on the exploration, development and exploitation of energy resources, shall form part of a Special Fund to be used to finance energy resource development and exploitation programs and projects of the government and for such other purposes as may be hereafter directed by the President." (Emphasis supplied)

Accordingly, the collections mentioned above were placed in a Special Account in the General Fund-Fund 151 ("SAGF-151") of the Department of Energy ("DOE") to be used to finance energy resource development and exploration programs and projects of the government and for such othe1~

IEntitled "Creating an Energy Development Board, Defining its Powers and Functions} Providing Funds Therefor and for Other Purposes."

purposes as may be directed by the President of the Philippines pursuant to Section 8 ofPD No 910. On December 11, 1990, pursuant to PD No. 87 and Section 8 paragraph 2 of PD No. 910, the Philippine Government, represented by the DOE, granted Service Contract No. 38 ("SC No. 38"), in favor of a Consortium composed of Shell B.V., Shell Philippines LLC, Chevron Malampaya LLC and PNOC-Exploration Corporation, for the exclusive exploration and extraction of petroleum resources in the area referred to as CamagoMalampaya located off the shores of northwest Palawan (the "Natural Gas Project"). SC No. 38 provides for a production-sharing scheme, whereby the net proceeds of the Natural Gas Projects, after the deduction of priority charges and obligations thereon, shall be divided between the National Govemment and the Service Contractor as follows: (1) for the National Government, an amount equivalent to sixty percent (600/0) of such net proceeds (the "Net Government Share"); and (2) for the Service Contractor, a share equivalent to forty percent (40%) of such net proceeds. On October 16, 2001, President Gloria Macapagal- Arroyo ("President Arroyo") inaugurated the Camago-Malampaya Natural Gas Project. In 2003, a territorial jurisdiction dispute arose between the National Government and the Province of Palawan. The issue was whether or not the Camago-Malampaya reservoir, where the Natural Gas Project is located, is within the territorial boundaries of Palawan. In May 2003, the Provincial Govemment of Palawan filed a Petition for Declaratory Relief with the RTC of Palawan, claiming territorial jurisdiction over the areas covered by SC No. 38, which alleged claim would entitle the Province of Palawan to 40% of the Net Government Share in the Natural Gas Project, pursuant to Section 290 of the Local Government Code. On February 9, 2005, pending resolution of the territorial dispute, an Interim Agreement was entered into by the Provincial Government of Palawan and the National Government, represented by the Secretaries of the Department of Finance ("DOF"), the DBM and the DOE, for the release in favor of the Province of Palawan of the portion of the disputed share. Said Agreement was later amended by the Provisional Implementation Agreement ("PIA") executed on July 25, 2007, which allowed the utilization of fifty percent (50%) of the disputed forty percent (40%) of the Net Government Share for the immediate and effective implementation of development projects for the people of the Province of Palawan. Subsequently, President Arroyo issued several executive orders pertaining to the camagO-Malam~aya Natural Gas Project, among Whi~

are: (1) Executive Order ("E.O.") No. 473 (November 29, 2005), which tasked the DOE to pursue the immediate exploration, development and production of crude oil from the Camago-Malampaya Reservoir; and (2) E.O. No. 556 (June 17, 2006), which amended EO 473 and required the exploration, development and production of crude oil from the CamagoMalampaya Reservoir to be undertaken through public bidding. In 2005, the RTC of Palawan ruled in favor of the Province of Palawan, holding that the latter is entitled to the revenues obtained by the National Govemment from the Camago-Malampaya Natural Gas Project since October 2001. Not satisfied with said decision, the National Government filed, in 2006, an appeal seeking the nullification of the RTC decision and the freezing of the contested 40% share of the Province of Palawan in the Net Government Share. The appeal of the National Government is still pending before the Supreme Court. On December 1, 2007, President Arroyo signed E.O. No. 683 ("EO 683"), which authorized the DBM to release funds to the implementing agencies ("IA"), pursuant to the PIA dated July 25, 2007, upon the endorsement and submission by the DOE and/or the PNOC Exploration Corporation of the documentary requirements pr~scribed therein.2 EO 683 effectively modified DBM Joint Circular No. 1 dated December 4, 2003, giving the DOE the sole prerogative to determine the use of the Net Government Share in SC No. 38. On January 30, 2008, the DBM, DOE and the DOF issued Joint Circular No.3, prescribing the implementing guidelines in the release of funds for the implementation of development projects chargeable against the GasMalampaya Collection per SC No. 38 (the "Malampaya Fund") pursuant to EO 683. Subsequent to the issuance of the Joint Circular, a petition was filed challenging the legality of EO 683 on the ground that the same reduces the alleged 40% share of the Province of Palawan to a measly 20%. Said petition questioning the legality of EO 683 was consolidated with the pending appeal filed by the National Government mentioned earlier. On October 13, 2009, President Arroyo issued E.O. No. 848 ("EO 848") which authorized the DBM "to release funds, in such amount as may be necessary, from the SAGF-151 of the DOE, to the implementing agency (IA)concemed, for purposes as may be authorized by the President of the Philippines." EO 848 further states: "SECTION 1. Release of Funds. xxx Provided, That the release of funds shall be subject to the following: /
2Section I, EO 683.

4
v

"a, Request for release of funds by the IA;

lib. Bureau of the Treasury (BTr) certification on the availability funds deposited with the SAGF-151 of the DOE; and
"C,

of

Existing laws and budgetary, accounting regulations," (Emphasis supplied)

and auditing rules and

Section 2 of said E.O. further provides that "[t1he IA shall be responsible for the implementation of the programs and projects, and its disbursements/ expenditures shall be subject to applicable laws and budgeting, accounting and auditing rules and regulations. For recording purposes, the DBM shall authorize the IA to open and maintain a SAGF for the amounts released pursuant to [EO 8481. In case the IA is a Local Government Unit, the SAGF shall be issued to DBM; and if the IA is a Government Owned or Controlled Corporation, the SAGF shall be issued to the BTr,"4

.C. RELEASE OF THE PHP900 MILLION FROM THE MALAMPAYA FUND (SAGF-151) TO THE DAR

On September 26, 2009, Typhoon Ondoy devastated the Island of Luzon, and a state of calamity was declared in Metro Manila and in twenty-five (25) different provinces. Damage to infrastructure and agriculture in Luzon amounted to more than PhP2 Billion. On October 3, 2009, Typhoon Pepeng battered Northern Luzon. More than 14,000 families in Regions 1,2,3,5, CAR and NCR were displaced. Estimated damage reached up to PhP800 Million. On October 13, 2009, Executive Secretary EDUARDO R. ERMITA ("Exec. Sec. Ermita") wrote to Sec. ROLANDO G. ANDAYA,JR. ("Sec. Andaya"), informing him of President Arroyo's approval of his Request for Authority, dated October 8, 2009, to use SAGF-151 of the DOE for the relief operations, rehabilitation, reconstruction and other works and services to areas affected by natural calamities. This authority was further formalized with the issuance of EO 848, also on October 13, 2009, which authorized the DBM "to release funds from the SAGF-151 of the DOE, to t~e implementin,g agency (IA) concemed, for purposes a/tt. may be authorIZed by the PresIdent xxx". . / .

4Section 2, EO 848.

Notably, on the date of Sec. Andaya's Memorandum (8 October 2009), what were in effect in relation to the utilization of the Malampaya Fund were DBM Joint Circular No.1 dated December 4,2003 (giving the DOE the sole prerogative to determine the use of the Net Government Share in SC No. 38) and E.O. 683 (which authorized the DBM "to release funds to the implementing agencies (IA)pursuant to the PIA"5authorizing the use of "50% of the disputed 40% of the Net Government Share in the proceeds of SC 38 ... for the immediate and effective implementation of development projects for the people of Palawan"6). In fact, DBM-DOEDOF Joint Circular No.3, dated January 30, 2008, expressly states that "[a]ll requests for funding chargeable against the Gas-Malampaya collection shall be submitted to DOE." Hence, at the time Sec. Andaya requested authorization to use the Malampaya Fund for Typhoon relief purposes, there was yet no issuance authorizing its utilization for such purpose. It was only five (5) days after Sec. Andaya's Memorandum that an E.O. (i.e., EO 848) was issued by President Arroyo, which effectively liberalized the disbursements from the Malampaya Fund, apparently to purposely and specifically accommodate the request of Sec. Andaya. Said EO 848 was expressly made to "take effect immediately"7. It was also on the very same date that Exec. Sec. Ermita wrote to Sec. Andaya, informing him of President Arroyo's approval of his Request for Authority. Thereafter, on October 22, 2009, DAR Undersecretary NARCISO B. NIETO ("Usee. Nieto"), then the OIC-Secretary of the DAR, sent a letter to Sec. Andaya, requesting a budget amounting to NINE HUNDRED MILLION PESOS (PhP900 Million), to be used in rehabilitating the farmer-beneficiaries from losses caused by Typhoons Ondoy and Pepeng. On November 17, 2009, Director NORA OLIVEROS ("Du. Oliveros"), of the Budget and Management Bureau of the DBM, sent a Memorandum to Sec. Andaya, through Undersecretary MARIO L. RELAMPAGOS ("Usee. Relampagos"), stating, among others, that the request of Usec. Nieto, as then OIC-DAR Secretary, suffers from the following deficiencies: (1) lacking the required Presidential Agrarian Reform Communities (PARC) Resolution and Rehabilitation Plan to support the request; and (2) the release is not part of the authorized appropriation for the DAR, and would mean exceeding DAR's original program for CY 2009. On November 19, 2009, or two days thereafter, DBM issued Special Allotment Release Order ("SARO") No. E-09-08417 for Nine Hundred Million Pesos (PhP900 Million) from SAGF-151 to DAR (Fund Code 158), as the lead implementing agency. According to the SARO, the purpose
Section 1, EO 683. 66th WHEREAS Clause, EO 683. 7 Section 4, EO 863.
5

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10

to provide support services to the Agrarian Reform Communities ("ARCs") and to help them recover from the losses/damages brought about by Typhoons Ondoyand Pepeng. It must be pointed out that the allotment authorized therein is based on the approval of President Arroyo, according to the Letter dated October 13, 2009 of Exec. Sec. Ermita. On the same date, Sec. Andaya wrote to the BTr requesting that an adjustment of deposited collections in the amount of PhP900 Million be taken from the SAGF-151 and transferred to DAR (Fund Code 158), as the lead implementing agency of CARP. On December 17, 2009, DAR Secretary NASSER C. PANGANDAMAN ("Sec. Pangandaman") requested the DBM to issue the Notice of Cash Allocation ("NCA") of the PhP900 Million to the Agrarian Reform Fund (Fund Code 158) for payment of their current due and demandable obligations. Sec. Pangandaman noted that the total amount of the SARO has already been fully spent as of the date of the letter. On December 21, 2009, Dir. Oliveros wrote another Memorandum to Sec. Andaya, through Usee. Relampagos, advising the former that the request of Sec. Pangandaman is not supported with the list of due and demandable accounts payable. Furthermore, Dir. Oliveros noted that the request of Sec. Pangandaman bore a note from the DBM Secretary in this wise "Ok. Signed RGA." "RGA"is the initial of Sec. Andaya. Again, notwithstanding the foregoing observations of Dir. Oliveros, the DBM issued a NCA (duly approved by Sec. Andaya) to the Land Bank of the Philippines for PhP900 Million. Furthermore, DBM through Sec. Andaya issued an Advice of NCA to DAR Sec. Pangandaman and informed the latter that the P900 Million had been credited to DAR's account. Patently, the irregularities: Issuance of the SARO and the NCA
IS

fraught

with

1) As observed above, on the date of Sec. Andaya's Memorandum requesting authorization to use the Malampaya Fund for Typhoon relief purposes, there was yet no issuance authorizing its utilization for such purpose. It was only five (5) days after Sec. Andaya's Memorandum that EO 848 was issued by President Arroyo, effectively liberalizing the disbursements from the Malampaya Fund, apparently to purposely and specifically accommodate the request of Sec. Andaya. It was also on the very same date that Exec. Sec. Ermita wrote to Sec. Andaya, informing him of President Arroyo's approval of

his Request for Authori::J11

Hence, because of the E.O. signed by Exec. Sec. Ermita for President Arroyo, and the latter's approval of the Request of Authority of Sec. Andaya, the release of the SARO and the NCA for purposes not otherwise contemplated by existing laws and issuances was made possible. 2) Despite the observations of Director Nora C. Oliveros, which, among others, pointed out the lack of the "required PARC Resolution, and Rehabilitation Plan to support the above request" and the fact that the "release is not part of the authorized appropriation for DAR and would mean exceeding DAR's original program for CY 2009," the PhP900Million was still transferred to DAR Fund 158 by the DBM. 3) Likewise, the transfer of the PhP900 Million failed to comply with the requirements of EO 848, particularly a BTr certification on the availability of funds deposited with the SAGF-151 of the DOE.

D. THE MODUS OPERANDI The investigation of the NBI and the Sworn Statements executed by SUNAS, BENHUR and SULA, revealed a scheme for the anomalous use of the amount of PhP900 Million from the Malampaya Fund, which was allocated to the DAR in 2009. Sometime in July 2009, or two months before the issuance of EO 848 authorizing the DBM to make releases from the Malampaya Fund to lAs, NAPOLES, during a meeting, informed her employees that she has a project with DAR. She instructed her employees to prepare the supporting documents needed in the project. During the subsequent meeting in October 2009, she mentioned that the fund for the project is worth PhP900 Million. The meeting was attended by JLN Corporation employees, namely: BENHUR, SUNAS, LAARNIUY, ARTHUR LUY, JR., JOHN LIM, SULA and the two (2) children of NAPOLES (JO CHRISTINE and JAMES CHRISTOPHER NAPOLES). The scheme employed by DBM and DAR officials, on the one hand, and by NAPOLES and her JLN Corporation employees, on the other, which resulted in the misuse and misappropriation of the Malampaya Fund, maybe summed up as follows: 1. Upon the instruction of NAPOLES, JLN Corporation employees prepared the documents needed for the release of the PhP900 rviillion fund. The documents included the Letter-Requests of the Mayor, Memorandum of Agreement ("MOA")and the Project Proposal. Ninetyseven cities and municipalities were identified as beneficiaries of 12 .

thY.:;

PhP900 Million Malampaya Fund. According to SUNAS: (1) Ten Million Pesos (PhP10 Million) each was allotted to the identified cities or municipalities from Regions 1, 2 and the Cordillera Administrative Region; (2) Seven Million, Five Hundred Thousand Pesos (PhP7.5 Million) each was earmarked for cities and municipalities from Regions 3 and 4; and (3) Five Million Pesos (PhP5 Million) each was allocated to the municipalities of Lupi, Camarines Sur and Victoria, Laguna. The 97 Letter-Requests each indicated the amounts sought for and the name of the NGO selected to implement the project. 2. Prior to the delivery of the supporting documents to the DAR Central Office, JLN employees forged the signatures of the Mayors of the cities and municipalities identified as beneficiaries in the Letter-Requests and in the MOAs. The MOAs are first "notarized" by JLN employees using the seal of the notaries public retained by NAPOLES. The documents were stamped to make it appear that the MOAs were duly executed and authenticated. The signatories in the MOAs are: (1) the President of the NGO (some of the signatures of the NGO presidents were forged by JLN employees); (2) the Mayor of the selected local government unit (signatures of the 97 Mayors were all forged); and (3) Usec. Nieto, representing the DAR. 3. Thereafter, NAPOLES and/or EVELYN DE LEON, a JLN Corporation employee, delivered the supporting documents to the DAR Central Office at Elliptical Road, Diliman, Quezon City. 4. DAR then prepared checks payable to the NGOs corresponding to the cost of the project. 97 checks for the 97 cities and municipalities identified as beneficiaries were released to twelve (12) NGOs controlled by NAPOLES.

5. Upon receipt, the checks were immediately deposited to the respective bank accounts of the NGOs. Most of the checks were deposited at the Metrobank Ortigas Branch in Pasig City. The rest of the checks were deposited either at Metrobank Magdalena Branch in Binondo, Manila or at the Landbank Elliptical Road Branch in Diliman, Quezon City. 6. Once the checks were cleared, JLN employees trusted by NAPOLES withdrew the amount covered by the checks from the banks in cash. The cash were then brought to the office of JLN Corporation where they were accounted. NAPOLES decided how much was to be left in the office and how much was to be brought to her residence in Taguig City. 7. After withdrawal of the proceeds of the checks, the corresponding reports on the utilization of the fund were prepared and submitted ~
13 '

DAR. The documents submitted included the following: Liquidation Report, Delivery Report, Certificate of Acceptance, Report of Disbursement, Certificate of Project Completion, Inspection and Acceptance Report. These documents were all fictitious as there were no deliveries made, and the signatures of the Mayors appearing thereon were also forged. The lists of farmer-beneficiaries submitted were also manufactured, with some farmer-beneficiaries not even being residents of the cities and municipalities that were purported to benefit from the ghost projects and deliveries. All the signatures of the farmer-beneficiaries were simulated or faked. One of the supposed beneficiaries is a sitting Supreme Court Associate Justice who was purportedly the recipient of a bolo, a shovel, a rake, and assorted seeds.

E. RESULTS OF THIS BUREAU'S INVESTIGATION E.!. ISSUANCE OF SPECIAL ALLOTMENT RELEASE ORDER AND NOTICE OF CASH ALLOCATION contained in Section C above are incorporated herein by

The paragraphs reference.

The chronology of events and the circumstances leading to the issuance of the SARO and NCA of the PhP900 Million Malampaya Fund clearly show the irregularities in the transfer of the Fund, as discussed and pointed out above. E.2. IMPLEMENTATION OF THE PROJECT In her Sinumpaang Salaysay, SUNAS stated, among others, that no deliveries were made to the supposed beneficiaries or the 97 cities and municipalities, because all the proceeds of the checks amounting to PhP900 Million released by DAR to the twelve NOOs were remitted instead to NAPOLES. Subpoenas were issued by the NBI to the Mayors who allegedly signed the Letter-Requests to verify the non-delivery of the projects indicated in Letter- Requests to the victims of Typhoons Ondoy and Pepeng. They were asked to shed light on the alleged projects in their respective cities/municipalities, or their participation or lack of involvement in said projects and to furnish the NBI documents pertaining to the Malampaya Fund project in 2009. In compliance with the subpoenas sent to them, the Mayors submitted their respective affidavits and letters denying that they received any ai114 '"

whatsoever from the NGOs, which purportedly implemented the project. They also denied sending Letter- Requests to DAR Sec. Pangandaman in 2009 for assistance, except for DWIGHT C. KAMPITANand ROLANDO E. COLUMBRES (former Mayors of Victoria, Laguna and San Jacinto, Pangasinan, respectively) who, nonetheless, claimed that they never came to know whether their written requests for assistance to the DAR Secretary had been granted. Finally, as regards the liquidation documents, all the Mayors claimed that the signatures appearing thereon were falsified. Some Mayors submitted certifications from their respective Municipal Treasurers andlor the Municipal Agrarian Reform Officers to prove that no such fund or assistance were received by their city or municipality. Subpoena was also sent to Dir. ROMEO REYES ("Reyes"), Chief of the Internal Audit Service of the DAR. In his affidavit, Reyes detailed the initial findings of his office on the claims of the witnesses and the Mayors that the signatures appearing on the supporting and liquidation documents were forged. Incidentally, said findings are basically similar to the results of the investigation of the NBI-STF. He further averred that no existing offices of the NGOs were found in the addresses indicated in the MOAs and that the purported NGOs were not known to the residents of the localities where said NGOs are said to be based or holding office.

E.3. ANOMALOUS SELECTION OF THE NGOs WHICH IMPLEMENTED THE PROJECT The twelve (12) NGOs which were selected as implementers of the PhP900 Million Malampaya Fund were not chosen in accordance with the General Procurement Policy Board Resolution 12-2007 ("GPPB Resolution No. 12-07") or the Amendment of Section 53 of the Implementing Rules and Regulations Part. A Of Republic Act 9184 And Prescribing Guidelines on Participation of Non-Governmental Organizations in Public Procurement. Under GPPB Resolution No. 12-07, the selection of NGOs shall either be through competitive bidding, prescribed under Section 21.2.1, or by negot.iated procurement, as prescribed under Section 21.2.4 of the IRR-A of RA No. 9184. Here, neither modes of procurement were resorted to. Neither was it shown from available evidence that the NGOs were accredited or qualified to implement government projects of great magnitude. The ninety-seven (97) Letter-.I.zequests, which were invariably dated from October 19, 2009 to Novembcr 8, 2009, were all addressed to DAR Secretary Pangandaman. The NGO, which had been specifically endorsede<:
15 ;-

in the purported Letter- Requests of the Mayors, was automatically chosen to implement the part.icular project, and the requested amounts indicated in all 97 Letter-I~equests were exactly the same amounts granted. Note that all these documents were prepared by the employees of JLN Corporation. It was further discovered that some of the NOOs selected to implement the project did not actually comply with Section 4.4.3 of Commission on Audit Circular No. 2007-00 1 ("COA Circular No. 2007-001") to be entitled to subject funds. The pertinent section provides: "4.4 Requisites for entitlement to government funds
xxx xxx xxx

"4.4.3 Financial reports, audited by an independent Certified Public Accountant, for the past three years preceding the date of project implementation, to ensure that it has a stable financial condition and that the funds provided by the GO shall not be its sole source of funds. For NGOjPO which has been in operation for less than three (3) years, report of accomplishment or any equivalent proof certified by its President and Secretary that it had previously implemented similar projects shall be required" in addition to financial reports for the years it has been in operation."

There is no evidence that the subject NOOs complied with the foregoing. The 12 NOOs were repeatedly used to implement the project despite noncompliance with the requirement. on the submission of a Fund Utilization Report required under COA Circular No. 2007-001 and the MOA. Under the aforementioned COA Circular, an NOO which is selected to implement a project using government funds is disqualified to receive new fund release covered by another MOA, unless it submits an interim Fund Utilization Report covering the funds previously released to it.8 In th'is case, the 12 NOOs were recipients of new fund releases under another MOA despite their non-submission of utilization reports on their previous undertakings. On the average, each NOO implemented seven (7) projects almost simultaneously.

EA.

NGOs CONTROLLED BY NAPOLES SELECTED TO IMPLEMENT THE FUND ALLOTTED TO DAR IN 2009/~"

~H.r

WERE EXCLUSIVELY MILLION MALAMPAYA

s Section 4.5.5, COA Circular No. 2007-00 I.

Inexplicably, only 12 NGOs were selected to implement the PhP900 Million Malampaya Fund allotted to DAR. Despite non-compliance with the required period before an NGO can implement government-funded projects and their ineligibility to enter into another MOA pending compliance with the fund u t.ilization report of a prior project, these 12 NGOs were repeatedly used to implement the PhP900 Million Malampaya Fund project. On the average, one (1) NGO was chosen as the implementer of projects for eight (8) LGUs simultaneously, in blatant disregard of the then existing COA Circular No. 2007-001. According to SULA, she was instructed by NAPOLES to set up foundations and take charge of the registration of these NGOs with the Securities and Exchange Commission (SEC). Four (4) of these NGOs were incorporated in July 2009, five (5) were registered in April 2008; two (2) in November 2008 and one (1) in July 2004. The presidents of these NGOs were either employees of JLN Corporation (owned by NAPOLES) or household helpers of NAPOLES. The incorporation papers and financial records of these NGOs show common auditors and notary publics, contain practically the same wordings, and are printed in the same font style. Records obtained from the DAR show the number controlled by NAPOLES were used to simultaneously PhP900 million Malampaya fund projects. of times NGOs implement the

No 1 2 3
4

Name ofN GO
.>--_ .. ..

_----

5 6
7

Harvest fa r People's Abundant Foundation Inc. 8 '"._-- --- --' .. -----Bukirin Tanglaw-F~u nd ,ILionInc. 8 Dalangpan Sang Amon Ut.od Kag Kasimanwa Foundation Inc. 8 Ginintuang Alay sa M agsasaka Foundation Inc. 8 --Gintong Pangk abuhayan Foundation Inc. 9 Karangyaan Para Sa M;19bubukid Foundation Inc. 9 -- -Kasaganahan Para Sa M agsasaka Foundation Inc. 8 -- _. Kaupdanan Para Sa Mangunguma Foundat.i o n Inc. 8
..

------

Number of Projects

Amount in Pesos
._---------._-_.-

75,000,000.00 75,000,000.00 75,000,000.00 77,500,000.00 82,500,000.00 82,500,000.00' 75,000,000.00 75,000,000.00

17

9 10 11 12

Masaganang Buhay Foundation Inc. ._..Micro Agri Business Citizens Initiative Foundation Inc. Atin sa Buhay Saganang Foundation Inc. ---_ _ .. Tanglaw Para sa Magsasaka Foundation Inc. ..._-..

----_ ..-

8 6 9 8 97

75,000,0 00.00 55,000,0 00.00 80,000,0 00.00 72,500,0 00.00 900,000, 000.00

Total
..

----

E.5. NAPOLES CONTROLS THE MONEY RECEIVED BY THE CONDUIT


NGOS

In the Affidavit of BENHUR, SUNAS and SULA, they alleged that: 1) NAPOLES ordered them to open bank accounts under the name of the NGOs at Metrobank and Land Bank of the Philippines; 2) after opemng the account, NAPOLES directed them and the other presidents of the NGOs who were signatories of the accounts to pre-sIgn several withdrawal slips; 3) NAPOLES has in her possession the pre-signed withdrawal slips and the savings passbooks of the NGOs; 4) every withdrawal from the bank accounts of the NGOs had to be cleared with NAPOLES; and 5) there were instances when the bank's teller would write a notation on the withdrawal slips that the withdrawal is with the authorization of NAPOLES. The disposition of all the checks issued by the DAR to the NGOs was under the control of NAPOLES. After the encashment of a check, the employee designated to make the withdrawal brought the cash to the office of JLN in Pasig City. NAPOLES would decide on the amount of money that will be left in the office and the amount to be brought to her house in Taguig City. More often than not, NAPOLES's employees, namely, FERNANDO RAMIREZ, EULOGIO RODRIGUEZ, JOHN RAYMUND DE ASIS, RONALD ,JOHN LIM and EVELYN DE LEON, would deliver the money from their office to NAPOLES's house. At times, NAPOLES entrusted to BENHUR and MERLINA the delivery of the money to her house. GERTRUDES K. LUY, NOVA KAY BATAL-MACALINTAL, ELENA S. ABUNDO, VANESSA A. EMAN and EVELYN LINGO, who are all house helpers of NAPOLES, received the money, which were placed in bags, from NAPOLES's employees. They carried the bags from t!he;Ievator to the condominium unit and. finally, to the room of NAPOLES/~ ...

18

As a matter of course, the proceeds of the checks went to NAPOLES because, according to SUNAS and SULA, the presidents of the NGOs were all related to NAPOLES either as relatives or employees of JLN Corporation, as shown in the table below:
- ._._-.

Name ofNGO Abundant Harvest For People's Foundation Inc. Bukirin Tanglaw Foundation Inc. Dalangpan Sang Amon Utod Kag Kasimanwa Foundation Inc. Ginintuang Alay sa Magsasaka Foundation Inc. Gintong Pangkabuhayan Foundation Inc. Karangyaan Para Sa Magbubukid Foundation Inc. Kasaganahan Para Sa Magsasaka Foundation Inc. Kaupdanan Para Sa Mangunguma Foundation Inc. Masaganang Buhay Foundation Inc.

- ._~. -

President

Relation to NAPOLES Household helper

--

VANESSA EMAN GERTRUDES KILAP-KILAP

---

Nanny of NAPOLES's youngest child Driver Nephew

JESUS CASTILLO
-

JOHN LIM (RONALD JOHN LIM) ----

EULOGIO D. RODRIGUEZ - -_._-SIMPLICIO M. GUMAFELIX -_.-

Employee/Driver of JLN Corporation Administrative officer of JLN Corporation Former employee and family friend of NAPOLES family Security / Driver of JLN Corporation Wife of security / driver of JLN Corporation

---

(}ENEVIEVE
-

G. UY

-_ ....

__

J OHN RAYMOND S. DE ASIS --LORNA RAMIREZ


.. .

-_ Micro Agri Business Citizens Initiative RONALD F. LIM Brother Foundation Inc. .-.- .... .....- ......... -- . ,-------------._----._-----_ .. -_. -_ __ .Saganang Buhay Sa Atin Foundation Inc. L L1ANA. ESPANOL Household helper Tanglaw Para Sa Magsasaka Foundation NOVA KAYB. Former household helper Inc. DULAY --1_ .. __ __ 0-. -

..

..

F.

CONCLUSION

From the facts obtaining in this case, NAPOLES knew at the outset that there were available funds from DAR. During a meeting with hel
19

employees sometime in July or August of 2009, she announced this fact and directed them to prepare the supporting documents for the project. Notably, this meeting transpired before Typhoons Ondoy and Pepeng devastated major parts of Luzon. Investigation reveals that SAGF 158 of the DAR had available funds pnor to the release of the PhP900 Million from the Malampaya Fund. The same fund under DAR LBP Trust Fund 158 with Account No. 0002070900-04 was the source of the fund for the thirty two (32) checks issued on November 26, 2009 and December 3, 2009. The total amount of the checks issued on said dates IS three hundred million pesos (PhP300,000,000.00). It must be noted that the NCA was issued only on December 21, 2009, or almost a month after the first batch of checks was issued to the NOOs controlled by NAPOLES. This means that DAR actually advanced PhP300 Million to the NAPOLES NOOs using funds coming from DAR LBP Trust Fund 158 before the release of the NCA for the DAR Ma1ampaya Fund projects on December 21,2009. The remaining Six Hundred Million Pesos (PhP600 Million) was drawn from the regular DAR Land Bank of the Philippines Account No. 0007070210-52. Clearly, there was connIvance among the DBM, DAR officials and NAPOLES to misappropriate or misuse the PhP900 Million allotted to DAR. This can be gleaned from the improper, if not illegal, transfer of the PhP900 Million by the DBM to DAR Fund 158 and the hasty release of the checks by DAR to NAPOLES NOOs for projects that were intended to help the victims of Typhoons Ondoy and Pepeng. As borne by the records of BENHUR, the misappropriation/misuse/ malversation of the PhP900 Million Malam paya Fund became possible because of the kickbacks or commissions given by NAPOLES to the following persons:
RUBY TUASON

Date
12/02/2009 12/03/2009

Am~~D:t

(in Php)

._

Mode of Payment
Withdrawal from MBTC-JLN Corp. (073-3-07352390-8) Withdrawal from MBTCKaupdanant-Ortigas(035 -303565098-0) Withdrawal from MBTC-AEPFFOrtigas(255 -3-25504 715-0) Withdrawal from MBTCAbundant Harvest-Ortigas(035-

50 000 000.00 20,000,000.00 ~;~I75,000.00 30,000,000.00


20

12/17/2009 01/05/2010

3-03565099-8 )

01/05/2010

20,000,000.00 . 60,000,000.00 __ 29,000,000.00

Withdrawal from Kaupdanan-Ortigas 03565098-0)

MBTC(035-3-

01/06/2010

Withdrawal from MBTC-Bukirin Tanglaw (073-3-07352348-7) Withdrawal from MBTC-Saganag Buhay (073-3-07367705-0) Withdrawal from MBTCKarangyaan (073-3-07367702 -6)

01/07/2010 01/07/2010
TOTAL

__ ~o,ooo,ooo.oo
.~42,775,OOO.OO

NASSER PANGANDAMAN c/o RENE MAGLANQUE Date

.~mount (in Php) 45,000,000.00 25,000,000.00


..

Mode of Payment
Cash from JLN Office MBTCWithdrawal from Kaupdanan-Magda lena(073- 307367713-1 Cash from JLN Office

01/12/2010 02/24/2010
- .-

~.

02/24/2010
TOTAL

---_. 5,000,000.00
._~
-

75,000,000.00

NARCISO NIETO c/o EVELYN DE LEON Date

__ ~ount

(in Php)

Mode of Payment
Withdrawal from (073-3-07352348-7) Branch MBTC-BTFI Magdalena

01/06/2010

6,000,000.00

TERESITA PANLILIO Date

_.~ount

(in Php)

Mode of Payment
Cash from JLN Office Withdrawal from MBTCAEPFF(255-3-25504 716-8)

01 05 2010 01/13/2010 01 14 2010

:t,000,000.00

____ 5,000,000.00 5,000,000.00


21

Cash from JLN Office

I TOTAL
All of them should be prosecuted for the crime of plunder under RA 7080, as amended (An Act Defining and Penalizing the Crime of Plunder). They conspired and confederated with each other to commit said crime resulting in the accumulation of at least PhP337,775,OOO.OO in illgotten wealth, with two (2) of the conspirators accumulating more than the threshold amount of PhP50 million, viz., Secretary NASSER PANGANDAMAN and RUBY TUASON, the latter in representation of a yet to be identified conspirator. In the case of Secretary Andaya and Undersecretary Relampagos, in SARO No. E-09-08417 under the topic NOTES, it is specifically required therein that "DAR shall be accountable for the implementation of the projects covered by this release & the corresponding expenditure to be incurred." Furthermore, it was provided for therein that "[t]he obligations & expenditures out of the amount released shall be subject to the submission of work & financial plan & utilization budget accountability reports to DOE & DBM." For sure, Secretary Andaya and Undersecretary Relampagos utterly failed to enforce said requirements of the SARO either by abandonment or gross negligence, if not in outright conspiracy with the plunderers; otherwise the misappropriation or misuse of the fund would not have happened. On the part of Secretary Pangandaman, Undersecretary Nieto, Teresita Panlilio, and other officials of DAR, the following acts show their complicity in the perpetration of the crime of plunder, with NAPOLES and her NGOs as conduits in the plunder scheme: 1. Their questionable choice of NAPOLES NGOs as implementer projects fun~ed by the Malampaya Fund; of the

2. Their deliberate failure t.o check the background of the NAPOLES NGOs, instead of repeatedly giving them huge projects (in violation of COA Circular 2007-001) notwithstanding, among others, the absence of bidding and their failure to submit authentic and genuine completion documents; 3. The hasty release of t.he ninety-seven (97) checks in just four (4) batches, even advancing the amount of PhP300 Million from ~ryr agency's very own trust fund before the release of the NCA; an/'<.

22

4. Their receipt of their respective NAPOLES.

kickbacks

or commissions

from

All told, DAR officials, from Secretary Pangandaman and Undersecretary Nieto to others, who in one way or another facilitated the commission of the crime of plunder with NAPOLES and her NOOs, should be held accountable on the theory t hat conspiracy existed among them. Despite non-compliance with the prevailing law on the selection of an NOO, Nieto, in connivance with NAPOLES, signed the 97 MOAs. Moreover, he signed it even in the absence of the Mayors of the identified LOUs and the presidents of the NOOs which will implement the project. He also approved the payment by signing all the 97 Disbursement Vouchers. Of the 97 checks issued to NOOs controlled by NAPOLES, Nieto signed fifty-three (53) checks amounting to Five Hundred Million Pesos (PhP500,000,000.00). As signatory of the MOAs for DAR, it was incumbent upon Nieto to ascertain the authenticity of the signatures of the Mayors in the MOAs and the letter-requests, instead of merely relying upon the representation of the NOOs. For his complicity, Nieto received PhP6 Million in kickbacks from NAPOLES. Dir. TERESITA PANLILIO ("Pan1i1io") on the other hand, signed fortyfour (44) checks amounting to Four Hundred Million Pesos (PhP400,000,000.00). Panlilio signed the checks in her capacity as the ole Undersecretary for Finance Management and Administration Office at that time. Suffice it to state that all disbursements passed through Panlilio. For her role in the conspiracy, Panlilio received PhP14 Million in kickbacks from NAPOLES. As a result of the conspiratorial acts of the DBM and DAR officials and NAPOLES, said conspirators pocketed the amount or total value of PhP900,000,000.00 supposedly intended for the "relief operations, rehabilitation, reconstruction and other works and services to areas affected by natural calamities", as mentioned in the October 13, 2009 letter of then Executive Secretary Eduardo R. Ermita. This act constitutes misuse, if not misappropriation and malversation of public funds, the commission of which would not have been possible were it not for the participation and consent of the concerned public officials of DBM and DAR, resulting in the accumulation of ill-gotten wealth in the form of kickbacks or commissions amounting to more than PhP50 Million with respect to Sec. Pangandaman and Ruby Tuason, the latter in representation of a still unidentified conspirator. These acts are defined and penalized as plunder under RA 7080 amended, committed 1) through the misuse, misappropriation 23 as or()~

malversation of public funds in the implementation of a government contract or project; 2) by eventually receiving kickbacks as their share for their indispensable participation in the malversation scheme in relation to the government contract or project; and 3) by taking undue advantage of their official position and authority to unjustly enrich themselves at the expense and to the damage and prejudice of the Filipino people and the Republic of the Philippines. As the guardians of pu blic funds, it is the solemn duty of Secretary Andaya and Undersecretary Nieto to see to it that the Malampaya Fund is spent for its intended purpose. They are fully aware of the conditions laid down in SARO No. E-09-08147 designed to ensure thaLSAGF 151, which they are transferring to DAR Fund 158, is properly spent. Yet, they intentionally failed to st.rictly enforce the conditions of the SARO, thereby resulting in the misuse, if not misappropriation, of the PhP900 Million. The DAR officials, from Secretary Pangandaman, Undersecretary Nieto and others who in one way or another participated in or facilitated the misappropriation/ misuse of the Malampaya Fund, are equally liable. They processed the manufactured documents submitted by NAPOLES to enable her NGOs to implement the projects contemplated by SARO No. E-09-08147, ultimately resulting in the dissipation or loss of the PhP900 Million Malampaya Fund. Below is an overview of the culpability of the DAR officials: NAMES OF DAR OFFICIALS 1. NASSER C. PANGANDAMAN PARTICIPATION Addressee of the ninety seven (97) letter-requests from Mayors of different LGUs, yet did not bother to check the authenticity of said letters. Followed up the release of the NCA, despite the fact that DAR has already exceeded its budget. Received PhP75 Million from NAPOLES. 2. NARCISO B. NIETO
In

kickbacks

Signed the MOA, Disbursement Vouchers and some of the checks issued to the NGOs, acts which enabled NAPOLES and other public officials to pocket the PhP900 Million Malampaya Fund.

24

Received P6 million in kickbacks NAPOLES. 3. TERESITA L. PANLILIO

from

Signed some of the checks issued to by NAPOLES, the NGOs controlled In the irregularities the despite selection of the NAPOLES NGOs and the dubious documents submitted to corner the projects and get hold of the fund. Received PhP 14 Million In kickbacks from NAPOLES.

4. ANGELITA V. CACANANTA

the supporting Certified that documents are proper and complete notwithstanding their patent falsity. Signed fifty-five (55) checks NGOs of NAPOLES. issued to

5. NILDA P. BAUI

6. DOMINADOR V. SISON, JJ.(

Signed forty-two (42) checks issued to NGOs of NAPOLES. Same as the act of PANLILIO.
--

7. RONALD J. VENANCIO

Certified resulting PhP900 ___L_NGOs.

the availability of funds in the illegal release of the Million to the NAPOLES

It is not a matter of mere oversight or inadvertence on the part of OBM officials, particularly Andaya, when, despite the observations raised by Oliveros in her Memoranda, he issued SARO No. E-09-08417 in the amount of PhP900 Million to DAR. As noted by Oliveros, the request of the agency, through Nieto, lacked the required PARC Resolution and Rehabilitation Plan. Likewise, Oliveros noted that the release of the amount is not part of the authorized appropriation of the DAR and as such, would mean exceeding the appropriated budget of the DAR for the CY 2009. In spite of the aforementioned observations, Andaya still issued the SARO and NCA to DAR. However, even conceding tha t their acts constituted mere lapses in the discharge of their duty, and not malicious and willful conspiracy to raid the treasury, still, the responsible DBM officials committed MalversationqZ,
25

of .Public Funds or Property. It is not necessary that they profited thereby. Their being remiss in the duty of safekeeping public funds clearly violated the trust reposed in them. As to the participation and culpability of former President Arroyo and then Executive Secretary Ermita, the release of the SARO and the NCA would not have been possible if it weren't for the hastily issued E.O., which invalidly liberalized the exploitation of the Malampaya Fund for purposes not contemplated by existing laws, and the latter's approval of the Request of Authority of then DBM Secretary Andaya. Notably, PD 910 created the fund and provided for the utilization thereof for the purpose of "financ! ing] energy resource development and exploitation programs and projects of the government and for such other purposes as may be hereafter directed by the President." Far from giving the President untrammeled and absolute discretion in the use of the fund, said law has expressly stated the standards to guide the disbursements therefrom, i.e.) that the Fund could only be used for purposes of the same nature or class as "energy resource development and exploitation programs and projects of the government," or purposes related thereto.9 Yet, through E.O. 848, President Arroyo invalidly liberalized the exploitation of the Malampaya Fund for purposes beyond the contemplation by existing laws, essentially arrogating unto herself and her authorized su bordinates the absolute and untrammeled discretion of allocating or utilizing the funds for whatever purpose she may direct. Further, as can be gleaned from the facts, an October 8, 2009 request for authorization for the use and access to DOE SAGF-151 (the Ma1ampaya Fund) was justified and granted on the basis of the O~tober 13, 2009 Executive Order (EO 848). The request preceded the existence of the legal basis for the making of any such request in the first place. In the ordinary course of events, what should have been the chronology of executive action is the following:

"Where general words follow the enumeration (If particular classes of persons or things, the general words will be construed as applicable only to persons or thin~s of the same general nature or class as those enumerated. The rule is based on the obvious reason that ,f the legislature had intended the general words to be .used in their unrestricted sense they would have made no menllon of the particular classt.~. xxx
"\"\x
XX\

xxx

"It is this kind of phraseology in a statute or any written document which precisely calls for the applicati~n of the doctrine of 'ejusdem generis' in construing the import of the general phrase used. For under the maxim of 'ejusdem generis' which means 'of the same kind. class or nature', when general words follow an enumeration of particular cases, such words apply only to eases (If the same kind as those expressly mentioned. Thus, when broad expressions ar~ used, such~, 'and all other~' or .anv others' these are ~sually to be restricted to persons or thinrS of the same kmd or class With those specillCalh. named m the precedmg words.xxx" (City ofA1anila v. Entote . ' G.R. No. L-24776, June 28, 1974) \.

26

1. An executive order is issued authorizing the DBM to release funds to the implementing agency concerned using DOE SAGF-151 for purposes authorized by the President; 2. The DBM Secretary t hen requests for the use of SAGF-151 by asking for the President's approval of the authorized uses of SAGF151, on the basis of EO 848. 3. The Executive Secretary then communicates to the DBM the approval of his request by the President, specifying the authorized use of SAGF-15I for "relief operations, rehabilitation, reconstruction, and other works and services to areas affected by natural calamities". 4. On the basis of this approval for the specific purpose authorized by the President, the DBM Secretary proceeds to process requests for access to SAGF-15l from implementing agencies for the purpose authorized by the President. What happened here is not in accordance with the ordInary course of events expected in government transactions. When Secretary Andaya made his request on Octo ber 8, 2009, he was already assuming that the restrictions on the use of DOE SAGF-151 will be lifted to accommodate liberalized access by the DBM as may be approved by the President, even when it is only five days later, on October 13, 2009, that EO 848 was to be issued lifting such restrictions, making liberalized DBM access possible. President Arroyo and Exec. Sec. Ermita caused the retroactive application of EO 848 when they used the same for the approval of a request made five days before the issuance of the Executive Order, without, however, citing EO 848 as the basis for the approval of a premature request, as can be gleaned from Ermita's October 13, .2009 letter to Secretary Anadaya. In addition, the lack of specificity in Arroyo's and Ermita's identification of the authorized purpose by which DBM can access DOE SAGF-151 resulted in the almost discretionary, if not arbitrary, granting of implementing agency requests for millions of pesos in funds by the DBM, without the submission of any agency work or development plan for the use of the fund whatsoever. The DBM was practically given a blanket approval to fund any and all relief and rehabilitation projects at the mere request of any implementing agency, without the need of any further approval from the President, even when no clear work plan is submitted by the implementing agency showing that the funds will actually be used for the purpose authorized by the President. This leniency of control displayed by the President in the use of, and access to an essentially presidential discretionary fund made possible the plunder of such fund, eithe~ intentionally or through. gro~s i.nexcusable negligence. The form~~!l case is made all the more credible hght of the fact that the recipient

In

;L,

27

the major share in kickbacks amounting to almost coursed through Ruby Tuasol1, remains unknown.

PhP243

Million,

WHEREFORE, this Bureau hereby reiterates its recommendation charging the following persons of the following crimes:

of

1. Plunder as defined in Section 2, in relation to Section l(d), pars. (1) (2) and (6) of RA 7080, as amended (An Act Defining and Penalizing the Crime of Plunder): a. GLORIA MACAPAGAL-ARROYO; b. EDUARDO R. ERMITA; c. NASSER C. PANGANDAMAN; d. NARCISO B. NIETO; e. TERESITA L. PANLILIO; f. JANET LIM NAPOLES; g. ROLANDO ANDAYA, JR.; h. Usee. MARIO L. RELAMPAGOS; 1. RUBY C. TUASON; j. RENE E. MAGLANQUE; k. ANGELITA V. CACANANTA; 1. NILDA P. BAUI; m. DOMINADOR V. SISON, JR.; n. RONALD J. VENANCIO; o. EVELYN DE LEON; p. JESUS CASTILLO; q. LILIAN A. ESPANOL; r. GENEVIEVE G. UY; s. RONALD JOHN LIM, a.k.a JOHN LIM; t. EULOGIO D. RODRIGUEZ; u. LORNA RAMIREZ; v. RONALD FRANCISCO LIM; w. SIMPLICIO M. GUMAFELIX; and x. JOHN RAYMUND S. DE ASIS; 2. Violation of Section 3(b) of RA 3019, as amended (Anti-Graft and Corrupt Practices Act): a. NASSER C. PANGANDAMAN; b. NARCISO B. NIETO; and c. TERESITA L. PANLILIO; 3. Violation of Sections 3(e), (g) and li) of RA 3019, as amended (AntiGraft and. Corrupt Practices Act), and Republic Act No. 6713 (Code of Conduct and Ethical Standards for Public Officials and Employees): a. NASSER C. PANGANDAMAN)\
~8 '

NARCISO B. NIETO; TERESITA L. PANLILIO; ANGELITA V. CACANANTA; NILDA P. BAUI; f. DOMINADOR V. SISON, JR.; g. RONALD J. VENANCIO;and 4. Violation of Section 4 of RA 3019, as amended, and Article 172 of the Revised Penal Code: a. JANET LIM NAPOLES; and b. EVELYN DE LEON. In support of our recommendations, evidence, to wit: attached herewith are the following pieces of

b. c. d. e.

1. Transmittal Letter and attachments addressed to DOJ Prosecutor General CLARO A. ARELLANO dated 23 March 2013; Re: Serious Illegal Detention Case against REYNALD LIM Y LUY alias "JOJO" and JANET NAPOLES Y LIM; 1.1. 1.2. 1.3. NBI Joint Affidavit of Arrest dated 23 March 2013; Letter Request of Atty. LEVITO D. BALlGOD of Villanueva and Baligod Law Office dated 01 March 2013; Joint Sworn Statement dated 08 March 2013 of spouses ARTURO FRANCISCO LUY and GERTRUDES LUY, ARTHUR LUY and ANNABELLE LUY, the parents and siblings of; Karagdagang Sinumpaang Salaysay of ANNABELLE REARIO Y LUY dated 22 March 2013; Pinagsama-samang Sinumpaang Salaysay of ARTURO LUY Y FRANCISCO, GERTRUDES LUY Y KILAPKILAP, and ANNABELLE REARIO Y LUY dated 23 March 2013; Karagdagang Sinumpaang Salaysay of ARTHUR LUY Y KILAPKILAP dated 23 March 2013; Sinumpaang Salaysay 'Ii BENHUR KILAPKILAP LUY dated 23 March 2013; NBI Memorandum dated 22 March 2013 addressed to NBI Director; NBI Coordination Letter to PNP Southern Police District; NBI Coordination Letter to the Security of Pacific Plaza Tower South Wing; Certification dated 23 March 2013 from the attending physician of Subject REYNALD LIM in St. Luke's Medical Center - Global City; Fingerprint card of Victim/Witness BENHUR LUY Y KILAPKILAP; Photographs o~ ~b.iects REYNALD LIM Y LUY and JANET

1.4. 1.5.

1.6. 1.7.
1.8. 1.9. 1.10. 1.11. 1.12. 1.13.

NAPOLESY LIM;

;~
29

1. 1'4. NBI Letter dated 22 March 2013 addressed to St. Luke's Medical Center - Global City; 1.15. Photographs of text messages sent by Subject REYNALD LIM Y LUY taken from the cellular phone of GERTRUDES LUYY KILAPKILAP; 1.16. Medical Certificate of Victim/Witness BENHUR LUY Y KILAPKILAP from NBI Medico Legal Division; 1.17. Photographs of victim BENHUR KILAPKILAPLUY; and 1.18. Request for Preliminary Investigation and Waiver of Article 125 of the Revised Penal Code of Subject REYNALD LIM. 2. Motion to admit additional pieces of evidence and attachments, re NBI, et a1. vs. REYNALD L. LIM, et at. with NPS Docket No. XVI-INQ-13C-00025 for Serious Illegal Detention elated 17 April 2013; 2.1. Supplemental Sworn Statement of BENHUR K. LUY dated 27 March 2013; and 2.2. Sinumpaang Salaysay of MERLINA PABLO SUNAS dated 02 April 2013. 3. DOJ - Task Force on Anti-Kiclnapping Resolution dated 10 June 2013, re NBI, et aI. vs. REYNALD L. LIM, et a1. with NPS Docket No. XVI-INQ-13C00025 for Serious Illegal Detention; 4. DOJ - Task Force on Anti-Kidnapping Review Resolution dated 06 August 2013, re NBI, et a!. vs. REYNALD L. LIM, et a1. with NPS Docket No. XVI-INQ-13C-00025 for Serious Illegal Detention; 5. Information filed by DOJ Senior Deputy State Prosecutor THEODORE M. VILLANUEVAdated 06 August 2013, re PP vs. REYNALD LIM Y LUY alias "JOJO" and JANET NAPOLES Y LIM with Crim. Case No. 13-1992 for Serious Illegal Detention; 6. Order dated 14 August 2013 issued by Hon. ELMO M. ALAMEDA, Presiding Judge of Regional Trial Court of Makati, Branch 150, , re PP vs. REYNALD LIM Y LUY alias "JOJO" and JANET NAPOLES Y .LIM with Crim. Case No. 13-1992 for Serious Illegal Detention; 7. Order of Arrest against JANET NAPOLES Y LIM dated 14 August' 2013 issued by Hon. ELMO M. ALAMEDA, Presiding Judge of Regional Trial Court of Makati, Branch 150, re PP VS. REYNALD LIM Y LUY' alias "JOJO" and JANET NAPOLES Y LIM with Crim. Case No. 13-1992 for Serious Illegal Detention; 8. Securities and Exchange Commission (SEC) records of Non-government Organizations (NGOs) / Foundations used in P900M Malampaya Fund allotted to Department of Agrarian Reform (DAR) in 270 ; 8.1. Abundant Harvest for People's Foundation Inc.; L..
30 '.

President: Vanessa A. Eman 8.2. Bukirin Tanglaw Foundation Inc.; President: Gertrudes E. Kilapkilap 8.3. Dalangpan Sang Amon Utod Kag Kasimanwa Foundation President: Jesus Castillo 8.4. Ginintuang Alay sa Magsasaka Foundation Inc.; President: John Lim 8.5. Gintong Pangkabuhayan Foundation Inc.; President: Eulogio D. I~odriguez 8.6. Masaganang Buhay Foundation Inc.; President: Lorna Ramirez 8.7. Micro Agri Business Citizens Initiative Foundation Inc.; President: Ronald F. Lim 8.8. Karangyaan Para sa Magbubukid Foundation Inc.; President: Simplicio M. Gumafe1ix 8.9. Kasaganahan Para sa Magsasaka Foundation Inc.; President: Genevieve G. Uy 8.10. Kaupdanan Para sa Mangunguma Foundation Inc.; President: John Raymund S. De Asis 8.11. Saganang Buhay sa Atin Foundation Inc.; and President: Lilian A. Espanol 8.12. Tanglaw Para sa Magsasaka Foundation Inc. President: Nova Kay B: Dulay

Inc.;

9. Sworn Statement of Witnesses andComplainants; 9.1. Pinagsamang Sinumpaang Salaysay of NOVA KAY BATALMACALINTAL and GERTRUDES KILAPKILAP-LUY dated 18 April 2013; 9.2. Affidavit of EDUARDO "EDDIE" BADDEO dated 22 July 2013; 9.3. Joint Sworn Statement of BENHUR K. LUY, MERLINA P. SUNAS, GERTRUDES K. LUY, and ANNABELLE LUY-REARIO dated 05 August 2013; 9.4. Sworn Statement of MARINA SULA dated 29 August 2013; 9.5. Sworn Statement of MARYARLENE B. BALTAZAR dated 29 August 2013; 9.p. Salaysay of SIMONETTE BRIONES dated 29 August 2013; 9.7. Sworn Statement of ROMAN L. BRIONES dated 31 August 2013; 9.8. Sinumpaang Salaysay of VANESSA A. EMAN dated 04 Septem her 2013; 9.9. Affidavit of SUSAN R. VICTORINO dated 06 September 2013; 9.10. Karagdagang Sinumpaang Salaysay of MARINA SULA dated 10 September 2013; 9.11. Pinagsamang Sinumpaang Salaysay of BENHUR K. LUY, MERLINA P. SUNAS, GERTRUDES K. LUY, NOVA KAY BATAL-MACALINTA~

]1

9.12.
9.13.

9.14.
9.15.

9.16.
9.17.

9.18. 9.19.
9.20.

9.21. 9.22. 9.23. 9.24.

ELENA S. ABUNDO, and AVELINA C. LINGO dated 11 September 2013; Karagdagang Sinumpaang Salaysay of MARINA SULA y CORTEZ dated 12 September 2013; Sinumpaang Salaysay of NOVA KAY MACALINTAL Y BATAL dated 12 September 2013; Sinumpaang Salaysay of GERTRUDES LUY Y KILAPKILAP dated 12 September 2013; Karagdagang Sinumpaang Salaysay of MERLINA SUNAS Y PABLO dated 12 Septem ber 20 13; Karagdagang Sinumpaang Salaysay of BENHUR LUY Y KILAPKILAP dated 12 September 2013; Karagdagang Sinumpaang Salaysay of GERTRUDES LUY Y KILAPKILAP dated 30 September 2013; Karagdagang Sinumpaang Salaysay of MERLINA SUNAS y PABLO dated 30 September 2013; Karagdagang. Sinumpaang Salaysay of BENHUR LUY Y KILAPKILAP dated 01 October 2013; Karagdagang Sinumpaang Salaysay of NOVA KAY MACALINTAL Y BATAL dated 02 October 2013; Sworn Statement of MARINA SULA dated 02 October 2013; Affidavit of Atty. LEVITO D. BALIGOD dated 16 September 2013; Affidavit of Atty. LOURDES P. BENIPAYO dated 02 October 2013; and NBI Joint Affidavit dated 02 October 2013. Release

10. Documents from the DBM for the release of Special Allotment Order (SARO) for PhP900 Million Malampaya Fund; 11. Documents from the DOE;

12. Affidavit and attachments, dated 04 September 2013, submitted by ROMEO L. REYES, Ole Director for Internal Audit Section of the Department of Agrarian I<cform; 13. Documents submitted by the Department of Agrarian Reform (DAR), Certified Xerox Copy by LOLITA M. SORIANO of Special Audits OfficeCommission on Audit, for the total amount of P7S,000,000.00 Malampaya Fund allotted to DAR in 2009, implemented by Abundant Harvest for People's Foundation Inc.; 14. Documents submitted by the Department of Agrarian Reform (DAR), Certified Xerox Copy by LOLITA M. SORIANO of Special Audits OfficeCommission on Audit, for the total amount of P7S,000,000.0~

32

Malampaya Fund allotted Tanglaw Foundation Inc.;

to DAR In 2009,

implemented

by Bukirin

15. Documents submitted by t.he Department of Agrarian Reform (DAR), Certified Xerox Copy by LOLITA M. SORIANO of Special Audits OfficeCommission on Audit, for the total amount of P75,000,000.00 Malampaya Fund allotted to DAR in 2009, implemented by Dalangpan Sang Amon Dtod Kag Kasimanwa Foundation Inc.; 16. Documents submitted by t.he Department of Agrarian Reform (DAR), Certified Xerox Copy by LOLITA M. SORIANO of Special Audits OfficeCommission on Audit, for the total amount of P77,500,000.00 Malampaya Fund allotted to DAR in 2009, implemented by Ginintuang Alay sa Magsasaka Foundat.ion Inc.; 17. Documents submitted by t.he Department of Agrarian Reform (DAR), Certified Xerox Copy by LOLITA M. SORIANO of Special Audits OfficeCommission on Audit, for the total amount of P82,500,000.00 Malampaya Fund allotted to DAR in 2009, implemented by Gintong Pangkabuhayan Foundation Inc.; 18. Documents submitted by the Department of Agrarian Reform (DAR), Certified Xerox Copy by LOLITA M. SORIANO of Special Audits OfficeCommission on Audit, for the total amount of P75,000,000.00 Malampaya Fund allotted to DAR m 2009, implemented by Masaganang Buhay Foundation Inc.; 19. Documents submitted by the Department of Agrarian Reform (DAR), Certified Xerox Copy by LOLITA M. SORIANO of Special Audits OfficeCommission on Audit, for the total amount of P55,000,000.00 Malampaya Fund allotted to DAR in 2009, implemented by Micro Agri Business Citizens Initiative Foundation Inc.; 20. Documents submitted by the Department of Agrarian Reform (DAR), Certified Xerox Copy by LOLITA M. SORIANO of Special Audits OfficeCommission on Audit, for the total amount of P82,500,000.00 Malampaya Fund allotted to DAR in 2009, implemented by Karangyaan Para sa Magbubukid Foundation Inc.;

21. Documents submitted by t he Department of Agrarian Reform (DAR), Certified Xerox Copy by LOLITA M. SORIANO of Special Audits OfficeCommission on Audit, for the total amount of P75,000,000.00 Malampaya Fund allotted to DAR in 2009, implemented by Kasaganahan Para sa Magsasaka Foundation InC!~

33

22.

Documents submitted by the Department of Agrarian Reform (DAR), Certified Xerox Copy by LOLITA M. SORIANO of Special Audits OfficeCommission on Audit, for the total amount of P75,000,000.00 MaIampaya Fund allotted to DAR in 2009, implemented by Kaupdanan Para sa Mangunguma Foundation Inc.; Documents submitted by I he Department of Agrarian Reform (DAR), Certified Xerox Copy by LOLITA M. SORIANO of Special Audits OfficeCommission on Audit, for the total amount of P80,000,000.00 Malampaya Fund allotted to DAR in 2009, implemented by Saganang Buhay sa Atin Foundation Inc.;

23.

24. Documents submitted by the Department of Agrarian Reform (DAR), Certified Xerox Copy by LOLITA M. SORIANO of Special Audits OfficeCommission on Audit, for the total amount of P72,500,000.00 Malampaya Fund allotted to DAR in 2009, implemented by Tanglaw Para sa Magsasaka Foundation Inc. 25. DAR Disbursement Vouchers, eight (8) Land Bank checks (Certified Xerox Copy based on original copy) issued to Abundant Harvest for People's Foundation Inc., and Affidavit of Local Government Unit Execu tives; 25.1. 25.2. 25.3. 25.4. 25.5. Mfidavit of MARLON FERDINAND T. SALES of Pagudpud, Ilocos Norte, and attachments, dated 05 September 2013; Affidavit of CARLITO A. ABADILLAII of Banna, Ilocos Norte, and attachments, dated 05 September 2013; Mfidavit of FRANCISCO R. ESPIRITU, JR. of Dumalneg, Ilocos Norte, and attachments, dated 04 September 2013; Affidavit of LEONAr~DOR. DE LEON of Angat, Bulacan dated 03 September 2013; and Affidavit of BONY 1.. TACIO of Sablan, Benguet dated 04 September 2013.

26. DAR Disbursement Vouchers, eight (8) Land Bank checks (Certified Xerox Copy based on original copy) issued to Bukirin Tanglaw Foundation Inc., and Affidavit of Local Government Unit Executives; 26.1. 26.2. 26.3. 26.4. Affidavit of WILFREDO QUIAT Y MALIGAT of Pila, Laguna, and attachments, dated 28 August 2013; Affidavit of RUDOLFO A. BERNARDEZ IV of Bucay, Abra, and attachments, dated 04 September 2013; Affidavit of BONIFACIO C. CLEMENTE, JR. of Paoay, Ilocos Norte, and attachments, dated 05 September 2013; Affidavit of OSCAR D. AGUINALDO of Pasuguin, Ilocos Norte, and attachments, dated September

05

201,z
_

34

26.5. 26.6.

Affidavit of JOSEPH E. DE LARA of Solsona, Ilocos Norte, and attachments, dated 05 September 2013; and Affidavit of CARLITO D. REYES of Bustos, Bulacan dated 06 Septem ber 2013.

27. DAR Disbursement Vouchers, eight (8) Land Bank checks (Certified Xerox Copy based on original copy) issued to Dalangpan Sang Amon Utod Kag Kasimanwa Foundation Inc., and Affidavit of Local Govemment Unit Executives; 27.1. 27.2. 27.3. 27.4. 27.5. 27.6. Affidavit of MARLON B. INES of Sinait, Ilocos Sur, attachments, dated 20 September 2012; Mfidavit of DANTE S. GARCIA of Tubao, La Union, attachments, dated 06 September 2013; Affidavit of LIZARDO A. SINOGO, JR. of Lagangilang, dated 06 September 2013; Affidavit of SALCEDO A. TUMBAGA of Bagulin, La Union, attachments, dated 05 September 2013; Affidavit of JOSE G. FORONDA of Vintar, Ilocos Norte, attachments, dated 03 September 2013; and Affidavit of EPIFANIO V. GUILLERMO of Marilao, Bulacan, attachments, dated 09 September 2013. and and Abra and and and

28. DAR Disbursement Vouchers, eight (8) Land Bank checks (Certified Xerox Copy based on original copy) issued to Ginintuang Alay sa Magsasaka Foundation Inc., and Affidavit of Local Government Unit Execu tives;

28.1.
28.2. 28.3. 28.4. 28.5. 28.6.

28.7.

Affidavit of MASAYO C. DOMASING of Manabo, Abra, and attachments, dated 05 September 2013. Mfidavit of JOSE FERDINAND Z. CALIMLIM, JR. of Mapandan, Pangasinan, and attachments, dated 05 September 2013; Letter of ALEJANDREA N. SUPNET of Natividad, Pangasinan, and attachments, dated 03September 2013; Affidavit of RICARDO REVITA Y VELO of Rosales, Pangasinan, and attachments, dated 14 August 2013; Affidavit of RODERICK DG. TIONGSON of San Miguel, Bulacan, and attachments, dated 30 August 2013; Joint Affidavit of VENERANDA B. GUTIERREZ, Ole-Office of the Municipal Accountant of Mangaldan, Pangasinan, and JUAN R. GARCIA, JR., OIC-Office of the Municipal Treasurer of Mangaldan, Pangasinan (for deceased mayor HERMINIO A. ROMERO of Mangaldan, Pangasinan), and attachments, dated 03 September 2013; and Affidavit of ARNULFO M. BISARES of; Pidigan, Abra, and attachments, dated 05 September 2011'
J5 .

29. DAR Disbursement Vouchers, nine (9) Land Bank checks (Certified Xerox Copy based on original copy) issued to Gintong. Pangka~uhayan Foundation Inc., and Affidavit of Local Government Umt ExecutIves; 29.1. 29.2. 29.3. 29.4. 29.5. 29.6. 29.7. 29.8. Affidavit of REYNALD R. TALIMBATOG of Kabugao, Apayao dated 18 September 2013. Affidavit of BARTOLOME R. RAMOS of Sta. Maria, Bulacan dated 13 September 2013; Affidavit of LEONARDO B. FLORES of Macabebe, Pampanga, and attachments, dated 02 September 2013; Affidavit of RICARDO RIVERA Y SISON of Guagua, Pampanga dated 17 September 2013; Affidavit of LEONEL C. GUZMAN of Piat, Cagayan, and attachments, dated 04 September 2013; Affidavit of ATANASIO T. DAYRIT, JR. of Cabatuan, Isabela, and attachments, dated 13 September 2013; Affidavit of AMADOR B. DlAZ of San Quintin, Abra, and attachments, dated 04 September 2013; and Affidavit of JOSE T. PANGANIBAN,JR. of Angandanan, Isabela, and attachments, dated 03 September 2013.

30. DAR Disbursement Vouchers, eight (8) Land Bank checks (Certified True Copy of Original) issued to Masaganang Buhay Foundation Inc., and Affidavit of Local Government Unit Executives; 30.1. 30.2. 30.3. 30.4.'. 30.5. 30.6. 30.7. 30.8. Affidavit of ELEANOF( B. BEGTANG of Calanasan, Apayao, and attachments, dated 16 September 2013; Affidavit of JOAN VELASCO ALARILLAof Meycauayan, Bulacan, and attachments, dated 06 September 2013; Letter of ALFREDO P. VALDEZ, JR. of San Nicolas, Ilocos Norte, and attachments, dated 09 September 2013; Affidavit of CARLOS TRECE R. MAPILI of Tayug, Pangasinan, and attachments, dated 09 September 2013; Affidavit of MAUI~rCIO T. MACAY of Bokod, Benguet, and attachments, dated 12 September 2013; Affidavit of ROLANDO E. COLUMBRES of San Jacinto, Pangasinan, and attachments, dated 02 September 2013; Affidavit of SALVADOR S. PILLOS of Marcos, Ilocos Norte, and attachments, dated 12 September 2013; and Affidavit of CANDIDO R. GUIAM III of Victoria, Tarlac dated 05 September 2013.

31. DAR Disbursement Vouchers, six (6) Land Bank checks (Certified True Copy based on original) issued to Micro Agri Business Citizens Initiative Foundation Inc., and Affidavit of Local Government Unit ExeCUtiVer
36

Affidavit of ROBEl~TO C. AGCAOILI of San Mateo, Isabela, and attachments, dated 10 September 2013; 31.2. Affidavit of FERDINAND R. MALIWANAGof Candelaria, Quezon, and attachments, dated 02 September 2013; 31.3. Affidavit of FERNANDO O. CUMIGAD of Gamu, Isabela, and attachments, dated 12 September 2013; 31.4. Affidavit of ARNOLD S. BAUTISTA of Tamauini, Isabela, and attachments, dated 12 September 2013; 31.5. Affidavit of FILIPINA GRACE R. AMERICA of Infanta, Quezon, and attachments, dated 09 September 2013; and 31.6. Affidavit of FLORANTE S. GERDAN of Sta. Fe, Nueva Viscaya, and attachment, dated 11 September 2013. 32. DAR Disbursement Vouchers, nine (9) Land Bank checks (Certified True Copy based on original) issued to Karangyaan Para sa Magbubukid Foundation Inc., and Affidavit of Local Government Unit Executives; 32.1. 32.2. 32.3. 32.4. 32.5. 32.6. 32.7. 32.8. 32.9. Affidavit of DELFIN T. TING of Tuguegarao City, Cagayan dated 10 September 2013; Affidavit of TITO G. RAZALAN Mayantoc, Tarlac, and attachments, dated 04 September 2013; Affidavit of AVELINO N. AGUSTIN, JR. of Cabarroguis, Quirino, and attachments, dated 09 September 2013; Affidavit of AMELITA S. NAVARRO of Santiago City, Isabela dated 03 September 2013; Affidavit of MAY GARNACE-CALAUNANof Diffun, Quirino, and attachments, dated 05 September 2013; Affidavit of FLORENCIO V. BENTREZ of Tuba, Benguet, and attachments, dated II September 2013; Affidavit of DIONISIO L. MANUEL of La Paz, Tarlac, and attachments, dated 02 September 2013; Affidavit of REYNALDO L. CATACUTAN of Capas, Tarlac, and attachment, dated 02 September 2013; and Affidavit of PABLO M. CUHAYON of Hungduan, Ifugao, and attachments, dated 12 September 2013.

31.1.

33. DAR Disbursement Vouchers, eight (8) Land Bank checks (Certified True Copy based on original) issued to Kasaganahan Para sa Magsasaka Foundation Inc., and Affidavit of Local Government Unit Executives; 33.1. 33.2. Affidavit of GREGORIA J. MANGLICMOT of Ramos, Tarlac, and attachments, dated 06 September 2013; Affidavit of JOSE G. PERALTA, JR. of B~l~. ao, Pangasinan, and attachments, dated 10 September 201jL.... 37 .

cf

33.3. 33.4. 33.5. 33.6. 33.7.

Affidavit of SAMUEL M. EUGENIO of San Jose, Tarlac, and attachments, dated] 0 September 2013; Affidavit of BENITO D. SIADTO of Kibungan, Benguet dated 12 Septem ber 2013; Affidavit of ELDRED P. TUMBOCON of Umingan, Pangasinan, and attachments, dated 10 September 2013; Affidavit of LEONCIO S. SALDIVAR III of San Nicolas, Pangasinan, and attachments, dated 08 September 2013; and Letter of MANUEL COLLADO of Alcala, Pangasinan, and attachments, dated 15 August 2013.

34.

DAR Disbursement Vouchers, eight (8) Land Bank checks (Certified True Copy based on original) issued to Kaupdanan Para sa Mangunguma Foundation Inc., and Affidavit of Local Government Unit Executives; 34.1. 34.2. 34.3. 34.4. 34.5. 34.6. 34.7. Affidavit of JOHN RODNEY V. ARCINUE of Sual, Pangasinan, and attachments, dated 06 September 2013; Affidavit of CONCEPCION D. BALAO of Atok, Benguet, and attachments, dated 10 September 2013; Affidavit of JAYSON S. SAGUM of San Luis, Pampanga dated 05 Septem ber 2013; Affidavit of PETER B. FLORES of Masantol, Pampanga, and attachments, dated 09 September 2013; Affidavit of SALVADOR M. PEREZ of San Manuel, Pangasinan, and attachments, dated 05 September 2013; Affidavit of JOSE C. GINEZ of Sta. Maria, Pangasinan, and attachments, dated 10 September 2013; and Affidavit of CLARK CECIL P. TIU of San Quintin, Pangasinan, and attachments, dated 05 September 2013.

35.

DAR Disbursement Vouchers, nine (9) Land Bank checks (Certified 'True Copy based on original) issued to Saganang Buhay sa Atin Foundation Inc., and Affidavit of Local Government Unit Executives; 35.1. 35.2. 35.3. 35.4. 35.5. Affidavit of PABLO N. BOLANTE, JR. of Claveria, Cagayan, attachments, dated 12 September 2013; Affidavit of CHARLES L. CATTILINGof Alfonso Lista, Ifugao, attachments, dated 11 September 2013; Affidavit of ROBERT B. TURINGAN of Enrile, Cagayan, attachments, dated 12 September 2013; Affidavit of FERDINAND B. TRINIDAD of Iguig, Cagayan, attachments, dated 09 September 2013; Affidavit of EVELYN B. MARTINEZ of Marcela, Apayao, attachments, dated 10 September 201;,,,
38

and and and and and

;t;L

35.6. 35.7.

Affidavit of ANASTACIA R. VISTAN of Plaridel, Bulacan, attachments, dated 12 September 2013; and Affidavit of VERTURITO C. BULAN of Divilacan, Isabela, attachments, dated 12 September 2013.

and and

36. DAR Disbursement Vouchers, eight (8) Land Bank checks (Certified True Copy based on original) issued to Tanglaw Para sa Magsasaka Foundation Inc., and Affidavit of Local Government Unit Executives; 36.1. 36.2. 36.3. 36.4. 36.5. Affidavit of RAMON N. TINAWI of Hingyon, Ifugao, and attachments, dated 03 September 2013; Affidavit of ISMAEL V. TUMARU of Aparri, Cagayan, and attachments, dated 30 August 2013; Affidavit of CAMILO T. LAMMAWIN,JR. of Tabuk City; Kalinga, and attachments, dated 04 September 2013; Affidavit of AMADEO R. PEREZ, JR. of Urdaneta, Pangasinan, and attachments, dated 16 August 2013; and Affidavit of SIMPLICIa L. ROSARIO of Binmaley, Pangasinan, and attachments, dated 28 August 2013.

37. Other pieces of evidence to follow. Early advice on the action taken wi II be highly appreciated.

Very truly yours,


1

,f~/

Q:.;

~'l A.-

L.\t~l....

At~t. MEDA &'~MO NBI ASSISTANT DIRECTOR( and Ole-Director

39