NBI tags lawmaker, 4 others in fake SARO scam

MANILA, Philippines - The National Bureau of Investigation (NBI) has tagged Aklan Rep. Teodoro Haresco Jr. and four others in the falsification of special allotment release orders (SAROs) issued by the Department of Budget and Management (DBM).

In its report released by the Department of Justice (DOJ) yesterday, the NBI has recommended the preliminary investigation against Haresco for falsification of public documents after it was found in a fact-finding investigation that his office endorsed to the Department of Agriculture (DA) in October last year a fake SARO for the implementation of a P77-million project.

The NBI explained that by submitting the fake SARO to the DA, the lawmaker was presumed to be the author of such document – especially since he stands to benefit from the project.

“Rep. Haresco would surely take the credit if the project mentioned in the SARO would be implemented, considering that his district was its beneficiary,” the bureau stressed.

The project, however, was not implemented when the DBM cancelled it after the discovery of the scheme.

Probers also found liability of the lawmaker’s consultant Mary Ann Castillo, who provided Haresco with the fake SARO, for obstruction of justice over her refusal to pinpoint the source of the bogus document during the probe.

“Ms. Castillo, by claiming not to remember the physical description of the man she claims to be the source of her SARO is, in effect, concealing the identity of such person, thus preventing the prosecution of such person for falsification of public documents,” the NBI stressed.

Apart from Haresco and Castillo, the NBI also recommended criminal prosecution of Emmanuel Raza, a congressional staff of Zamboanga City Rep. Lilia Macruhon-Nuno; Elvie Rafael, driver of DBM Undersecretary Mario Relampagos; and Bherni Beltran of the DBM.

The bureau alleged that the three were responsible for the fake SARO involving a P161.6-million project in Tuguegarao City in Cagayan.

The NBI said it found evidence to charge the three with falsification of public documents and violations of the Anti-Graft and Corrupt Practices Act and the Code of Conduct and Ethical Standards for Public Officials.

Except for differences in font styles, the fake SAROs contained the same SARO numbers, codes, amount of money, dates, and name of signatories as the authentic ones.

The group allegedly superimposed the signature of DBM Assistant Secretary Luz Cantor on unsigned SAROs.

In a 22-page final report and recommendation, the NBI revealed that it discovered that “a well-entrenched” syndicate operating in the DBM was responsible for the issuance of the fake SAROs. It stressed that the operations would extend even to the halls of Congress.

“However, at this point the team is still in the process of gathering evidence against them. Therefore, it is strongly recommended that further investigation be conducted until sufficient evidence are gathered to support the filing of appropriate charges against said personalities,” the bureau explained.

DBM Undersecretary Relampagos was not implicated in the scheme, according to the NBI report.

“There was no evidence or sufficient evident yet (against Relampagos). That’s why the team also recommends further investigation with the end in view of identifying others who may be part of a well-entrenched syndicate engaged in SARO peddling and similar insidious schemes,” Justice Secretary Leila de Lima explained to reporters.

De Lima said the NBI would pursue its probe and look into fake SAROs in other regions.

Last October, the DBM and the DA uncovered 12 fake SAROs intended for farm-to-market projects in Cagayan Valley, Calabarzon, Western Visayas and Soccsksargen region worth over P879.8 million.

However, in view of the absence of the network plan as required under the special provisions of the General Appropriations Act (GAA) of the fiscal year 2013, the DBM disapproved the SAROs.

The fake SAROs were discovered only last November at the height of the pork barrel scam involving businesswoman Janet Lim-Napoles, who allegedly used bogus foundations to divert Priority Development Assistance Fund of lawmakers and the Malampaya Fund with the help of several lawmakers and implementing government agencies.

Haresco strongly denied his involvement in the SARO scam as he urged the NBI to review their findings.

The congressman said he was surprised that out of 32 lawmakers mentioned in the scam, he was the only one recommended to be charged, yet he was never invited by the NBI for questioning.

“I am flabbergasted over what was told me that the NBI filed criminal charges against me in connection with the faked SARO. I am the victim here. I was the one who requested for the investigation in the NBI, and yet I was the one being charged here,” Haresco said in a press conference.

He said faking SAROs is a major operation that needs well-placed sources from the DBM and other implementing agencies, to include serial numbers, formatting of documents, and other information.

“How can I, and my staff of five, who include working students, undertake such a gargantuan operation? How can we get information about serial numbers and markings?” the lawmaker said.

He said when he learned in the news that several lawmakers’ SAROs were faked, he immediately sought the NBI’s help as the document in his office dated Oct. 10, 2013 was fake.

What is also perplexing, he said, is that on Jan. 19 this year, he received a SARO for the same project but this time it is was certified as genuine.

Haresco showed to the media copies of the fake and genuine SAROs.

The project involved was a farm-to-market road in Oquendo Balete, Aklan. The fake SARO stated the project cost at P77 million while the genuine document valued the project at P40 million.

Palace welcomes NBI findings

Malacañang yesterday welcomed the NBI report recommending criminal charges against a congressman and several staff members of the budget department in connection with the so-called SARO scam.

“We welcome the submission – finally – of the report, particularly the findings with respect to the perpetrators of the scam,” said DBM Secretary Florencio Abad.

“We will need to thoroughly review the report and determine the culpability and extent of involvement of DBM personnel in the so-called SARO scam. We will take appropriate action thereafter,” he added.

Presidential Communications Operations Office Secretary Herminio Coloma Jr., for his part, said this is proof of the administration’s resolve to weed out systemic corruption in the entire government bureaucracy. – With Delon Porcalla, Aurea Calica, Paolo Romero