Ombudsman clears DA chief on fertilizer imports

Agriculture Secretary Arthur Yap was excluded by the Office of the Ombudsman in its initial investigation of Department of Agriculture (DA) officials allegedly involved in the procurement of P432 million worth of fertilizers.

But Director Mary Susan Guillermo of the Ombudsman’s preliminary investigation and administrative adjudication bureau directed Yap’s co-respondents to rebut the graft and administrative charges filed by Marlene Esperat last July.

Of the 10 respondents, only Yap was excluded in the preliminary investigation. Before a complaint reaches the court, the Ombudsman first evaluates the complaint for technicalities then tosses it to a fact-finding panel.

Guillermo ordered DA undersecretaries Jocelyn Bolante and Edmund Sana, assistant secretaries Belinda Gonzales and Ibarra Poliquit, DA legal service chief Eduardo Garcia, DA chief accountant Ophelia Agawin, former undersecretary Jesus Varela, Benjamin Tabios, and Pepito Alvarez, owner of Philippine Phosphate Fertilizer Corp. (Philphos) to refute the charges.

She warned the respondents in two separate orders not to file a motion to dismiss or a motion for a bill of particulars as these will not be entertained. Failure to submit their counter-affidavits will mean they have waived their right to refute the charges, she said.

Yap, whose involvement in the case stems from his stint as administrator of the National Food Authority (NFA), earlier called the charges "an orchestrated demolition job" to prevent the confirmation of his appointment as DA secretary.

He denied there was any overpricing in the purchase of fertilizers or juggling of funds between the DA and NFA.

"This project occurred last year, and yet, she only filed this recently, coming so soon after my appointment to the DA. Clearly, this is a case of political harassment," he said.

Esperat, a former action officer of DA resident ombudsman Eulogio Cecilio, accused Yap and the 10 others of conspiring to overprice fertilizers worth P400 per bag by as much as P100 each.

"It is P50 to P100 over and above the regular price in the market, " she said.

Esperat said the DA officials violated department rules in their "unlawful negotiated procurement."

"Fertilizer procurement is a DA function. A negotiated procurement instead of regular procurement by bidding is a violation of the law. Negotiated procurement is only applicable for emergency purposes," she said.

Esperat said the NFA should not have been given the authority to purchase the fertilizers since the agency’s function is merely to buy and sell grains. This made the DA—NFA memorandum of agreement for negotiated procurement illegal.

She accused Yap of being the "implementor of the illegal project".

Esperat claimed that Philphos was the "favored bidder" because of Varela’s connection with Chito Santos, said to be the "right-hand man" of Alvarez.

She described Santos and Varela as former "classmates."