Senate orders arrest of 'bagman' in fertilizer fund scam

Senators ordered yesterday the arrest of the alleged “bagman” in the P728-million fertilizer fund scam along with three others.

Witnesses tagged Jaime Paule in their testimonies as the one behind the “fixing” of deals with the Department of Agriculture (DA).

Thirteen senators signed the warrants of arrest against Paule, said to be missing as the National Bureau of Investigation and other authorities failed to find him.

Those who signed the arrest orders were Sen. Richard Gordon, Senate President Juan Ponce Enrile, Senate President Pro Tempore Jinggoy Estrada, Senate Minority Leader Aquilino Pimentel Jr., Senators Gregorio Honasan, Edgardo Angara, Panfilo Lacson, Jamby Madrigal, Manuel Roxas II, Joker Arroyo, Loren Legarda, Rodolfo Biazon and Francis Escudero.

Maritess Aytona, the alleged “runner” of former agriculture undersecretary Jocelyn “Jocjoc” Bolante; Julie Gregorio and Redentor Antolin, both of Feshan Philippines Inc. that supplied the fertilizers to the DA were also ordered arrested and committed to the Pasay City Jail.

Paule, Aytona and Gregorio were ordered arrested for continuously failing to appear at the Senate hearings while Antolin was cited for falsely testifying and evading during the hearing last Dec. 10.

“Jimmy Paule continues to be evasive. There are apparently five or six Jimmy Paules recorded under the NBI, some of them wanted for different cases. However, we are fast closing in on the identification of this gentleman, if I can still call him a gentleman,” said Gordon, chairman of the Blue Ribbon committee.

He said Aytona promised to come but apparently still had second thoughts about testifying.

He stressed he did not intend to bring the witnesses to the Senate and spend money on these persons “trying to put the Senate into severe disrespect.”

Breakthroughs

Although their testimonies were not as explosive as expected, Gordon said there were “breakthroughs” as Agriculture Undersecretary Belinda Gonzales and Leonicia “Nezy” Llarena were able to provide good leads during the investigation.

Gordon said Gonzales managed to link Paule and Bolante, which, he stressed, was important because Bolante had been denying that he knew Paule.

He added that it was apparent that Bolante knew Paule, Aytona and the people from Feshan given Gonzales’ testimony.

He said he would come up with a preliminary report soon recommending charges against Bolante.

“Bolante knew (the scam). That is a conclusion. Bolante knows all about it and I think he is aware because like what we said before, money flooded at the time of the elections,” Gordon said.

“I cannot make him (Bolante) more guilty, which he is, as far as I am concerned. Of course this will have to be conferred with the committee. I could be reversed by the committee,” he said.

During the hearing, Gonzales said it was Bolante who asked her to accompany him in a meeting with “fixers” at the New World Hotel in 2002.

She testified that Paule was present in the meeting and that he was complaining about a deal that had gone awry.

She said Paule disclosed during the meeting that it was the group of former agriculture secretary Luis “Cito” Lorenzo that was into some irregular deals at the DA.

Gonzales noted Paule was expecting the release of P1.7 billion special allotment release order (SARO) for the fertilizers deal with the DA, which did not come.

She said her impression was that Paule was talking to the DA people “para makabawi (to get back what he lost).” But she could not elaborate.

Gordon concluded that the fertilizer deal came into force for Paule and his group.

Bolante claimed that he only acted on a complaint of a lawyer, whom he could not identify, about the fixers at the DA and the Department of Budget and Management.

“They (complainants) were afraid that these fixers are connected with the DA so I made sure that I brought with me someone who is familiar with the officers and employees of the DA. I brought Gonzales so I have somebody to witness the discussion,” Bolante said.

Gordon initially said he was disappointed because Gonzales changed her tune and could have been brainwashed not to talk.

But Gordon later on said there were really not much inconsistencies in Gonzales’ testimony, except that she initially said Lorenzo did not know anything about it but Jess Varela, a consultant of Lorenzo.

He said he would convince Lorenzo to come back to the country so he could testify on the issue.

What is in a name?

The Senate remained confused yesterday over the whereabouts of Paule.

There are five persons named Jimmy Paule in their files with different middle names.

In the NBI disposition form, certified by investigator Waldo Palattao Jr. and executive officer Ha Palmer Mallari, the NBI said they also recorded three Jimmy Paules facing cases of estafa before a San Fernando, Pampanga regional trial court, counterfeit drugs, and robbery in Manila before the City Prosecutors’ Office.

The Blue Ribbon oversight committee through its director general Rodolfo Noel Quimpo requested for information on Jimmy Paule and Leonicia Llarena’s whereabouts.

Llarena attended the hearing yesterday, hours after it started at past 12 noon, to the senators’ surprise.

Gordon said witnesses would be called as “criminal” unless they come and clear their names before the Senate.

In her testimony at the Senate, Llarena confirmed that she was the one being referred to by another Senate witness, Jose Barredo in the hearings of the 13th Congress last Feb. 2, 2005. Llarena heads the Dane Publishing House Inc.

She denied knowing Barredo, but affirmed Barredo’s statements on Aytona, tagged “runner” of Bolante.

Llarena also linked Paule with the executives of Feshan Philippines, one of the groups that cornered a large component of the fertilizer scam.

She narrated that it was Aytona who introduced her to Gregorio and Antolin, president and vice president, respectively, of Feshan.

Although she denied knowing Bolante, Llarena said she issued 10 personal checks totaling P12.695 million from March 25 to Sept. 30, 2004, after she acted as guarantor of Feshan Philippines in dealing with the DA, purportedly in connection with the fertilizer project.

In exchange, Llarena said she received 10 percent accommodation fee from Paule for the transaction.

“This is what I know insofar as my involvement with Maritess Aytona, Jimmy Paule and Feshan Philippines is concerned. I am not the financier of the fertilizer project. I merely lent my checks. I don’t know Jocelyn Bolante and I have not done any transaction with the Department of Agriculture,” Llarena said in her affidavit which contents she read out during the hearing. – Aurea Calica, Christina Mendez