Witness confirms fertilizer overprice

Another resource person who testified yesterday during the resumption of the Senate inquiry into the P728-million fertilizer scam confirmed that fertilizer supplies distributed to farmer-beneficiaries in 2004 were overpriced.

Julie Gregorio, president of Feshan Philippines, which reportedly cornered P105 million of the contract, revealed that her company received only a total payment of P50.783 million out of the fertilizer project of the Department of Agriculture (DA) in 2004.

Gregorio told the Senate Blue Ribbon committee that it was businesswoman Maritess Aytona who directed her to place P105 million in the books of the company when in fact the real account was only half of the amount. 

It was also revealed that the remaining P55 million was deposited to the account of one Mailyn Araos, who is said to be Aytona’s employee.

Upon testifying that Feshan received a total payment of P50.783-million, at P600 each per bottle, senators immediately noted the discrepancy in Gregorio’s statement and the Commission on Audit’s (COA) report, which said Feshan cornered P105 million. 

The initial P38 million paid in cash was allegedly carried by a staff of Nezy Llarena, who has denied the allegation.    

Gregorio said the P38 million was paid in tranches.

“Is it safe to assume that it was overpriced?” Blue Ribbon chairman Senator Richard Gordon asked, to which Gregorio responded in the affirmative.

Gregorio earlier told the Senate committee that the total payment made to her company for the ordered fertilizer stock was only over P50 million. But a Commission on Audit record showed that Feshan received P105 million from the government.

Asked about the discrepancy, Gregorio said, “That’s what’s in the document.”

On questioning of Gordon, Gregorio said she availed of the tax amnesty. When Gordon pressed for the identity of the person who instructed her to bloat the amount, it was then that Gregorio identified Aytona.

Gordon also said that the Senate committee wants Araos subpoenaed to explain her alleged involvement in the fertilizer fund project, especially on the bank account she reportedly opened for Feshan.

Gordon directed Araos and the manager of Land Bank Elliptical Circle branch be subpoenaed for the next hearing on Jan. 20 to provide information on the bank account where the payment for fertilizers bought from Feshan was deposited.

Gordon said Araos’ testimony is important for the panel to find out where specifically the P105 million, which was supposedly the payment for fertilizers supplied by Feshan, went.

Aytona said Araos was her former employee and that the account was opened in March 2004 but she is not aware if it is still active.

“There was an accountant hired to place (the P105 million) in the books,” said Gregorio after Gordon informed her that she faces arrest if she remains evasive in answering the questions.

Aside from the alleged overprice,

Gregorio was also questioned over the low quality or “adulterated” fertilizers, which were delivered to the beneficiaries.

She maintained that she does not know any Jaime or Jimmy Paule, who is said to be Aytona’s cohort. She identified Aytona and Llarena as the persons who negotiated with the company for the fertilizer supply contract.

Gregorio said her office received directives from Llarena on where and how the fertilizers were to be distributed. 

During interrogation by Senate President Juan Ponce Enrile, Aytona said Paule was the one brokering with the government and that Gregorio was his supplier. “In other words, he is a commissioner. He will not work for nothing,” Gordon commented.

Gregorio said she supplied fertilizers to “Ms. Nezy” (Llarena), but not Paule.

Surrender feelers

Paule, in a signed letter, said he never received a subpoena from the Senate, adding that “his knowledge of the subpoena and of the subsequent warrant of arrest against (him) is based merely on newspaper, television and radio accounts.”

“I don’t find it funny that he has been evading us. That’s why I ordered his arrest,” Gordon said in a press conference after the hearing.

The Blue Ribbon chairman lifted the warrant of arrest against Paule, provided that his lawyer, Ferdinand Topacio, would make good on his promise to present his client before the Senate at 11 a.m. today and testify at the next hearing in January.

Topacio went to the offices of Enrile and Gordon to explain why he failed to come to the Senate

Paule, who described himself as “a legitimate businessman,” said he has been residing in the same address for five years, and that he has records with the Land Transportation Office, the Securities and Exchange Commission and the Department of Foreign Affairs stating where he may be found.

He also belied reports that he was a “wanted” man, saying “he has not been indicted, much less charged, of any criminal offense.”

“For the record, Mr. Paule vehemently denies any links, official or personal, past or present, with Malacañang Palace, President Arroyo or any member of the First Family, Secretary Ronaldo Puno, or Undersecretary Jocelyn Bolante. He also denies reports that there is any danger to his life whatsoever, and he has not perceived any, either before the start of the Senate inquiry or even at present,” Topacio said.

He added that Paule is willing to testify at any time and will not leave the country until after the conclusion of the investigation. “This gives lie to speculations that there is a conspiracy to avoid the appearance of witnesses before the Senate.”

“We are confident that Mr. Paule will be able to clear his name once he is called to the witness stand to reveal all that he knows about this particular issue,” he said. “That is why we are calling on the Senate to lift the warrant for his arrest, if there is any, as there is no longer any need for it.”

Denials

Aytona, for her part, denied having acted as the “runner” of former agriculture undersecretary Jocelyn Bolante.

“I’m not a runner. I was a consultant for a foundation,” she said.

Aytona also identified the foundation as the Agricultural Enhancement and Productivity Inc., which she said was represented by Paule.

She also confirmed knowing Jose Barredo, the whistle-blower in the scam, saying it was he who called and asked if she could also work for the foundation.

“The mayors of Bulacan had plenty of funds,” Aytona said, quoting Barredo, which the latter has denied.

“It’s not true I was the one who approved Ms. Aytona,” said Barredo.

Aytona testified later that it was Paule who gave her the brochures of Feshan and other groups.

In an additional sworn statement she read at the start of the hearing, Aytona said Paule was a representative of a foundation named National Organization for Agricultural Enhancement and Productivity Inc. (NOAEPI) that became one of the implementors of the government’s fertilizer project.

Aytona said she dealt with Paule because he was the one dealing with the DA.

Senate lifts warrant of arrest

Before suspending the hearing, Gordon said the committee decided to lift, “in the spirit of Christmas,” the arrest warrants it earlier issued against Aytona, Gregorio and Reden Antolin, president and vice president, respectively, of Feshan Philippines; and Llarena.

“We will lift the order of arrest against you upon your word that you will attend the succeeding hearings,” Gordon said.

Before the hearing ended, the senators asked Gregorio, Llarena and Aytona if they knew Bolante. All denied knowing him.

The Blue Ribbon committee will summon in the next hearing the officers and board of directors of NOAEPI, the same foundation represented by Paule and which hired Aytona as consultant.

The Blue Ribbon committee also asked Gregorio and Llarena to bring to the next hearing their financial books.

“Please don’t give us sparse or meaningless papers,” Gordon said.

Perplexed by the over P50-million overprice, the senators asked the witnesses how much they earned from the scam. 

Barredo said he got salaries from February to September 2004 totaling P70,000, while Llarena said she earned about P1.2 million.

Despite all her efforts, Aytona said she got only P300,000 from Paule. “Mr. Paule was not able to pay me,” she said.

Gregorio and Antolin earned P10 million out of the fertilizer project.

Lacson said he cannot see the point why these resource persons were “covering up” for those who earned much from the scam.

Aytona has been detained in an undisclosed room in the Senate since she surrendered Thursday to the upper chamber, which issued an arrest order against her for repeatedly snubbing Senate summons.