COA uncovers new fertilizer scam

By BEN R. ROSARIO
August 24, 2009, 5:24pm

Another fertilizer distribution irregularity has been unearthed by the Commission on Audit (COA) in the wake of continued public condemnation drawn by the P728 million fertilizer scam, which implicated former Agriculture Undersecretary Jocelyn “Jocjoc” Bolante and other Department of Agriculture (DA) personnel.

Although the amount involved in the recently discovered irregularity pales in comparison with that in the 2003 scam allegedly masterminded by Bolante, COA auditors lamented that farmers were denied benefits from the program that involved the distribution of organic fertilizers.

State auditors led by Elnora Sta. Maria also pointed out that the latest irregularity dampened the efforts of the government to promote the use of organic fertilizers.

In its 2008 audit report on the financial condition of the National Agricultural and Fishery Council (NAFC), the COA noted that the P10-million it distributed to 10 organic fertilizer manufacturers under the Organikong Abono –Tulong sa Magsasakang Pilipino Project has not been repaid to the NAFC.

“Out of the 10 proponents, three did not submit accomplishment reports while five were found not to have distributed the required 5,00 bags of organic fertilizers, thus, not fully achieving the objective to promote organic usage,” the COA report said.

Not one has returned the start-up funds, government auditors added.

Growth Philippines, one of the recipients of the P1-million assistance, ceased to exist one year after it received the money in 2005.

Other recipients of the financial assistance were the Manila Fertilizer, Sanders Organic Fertilizer, Sagana 100 Philippines, Romarc Enterprises, Galactic Resources Development Corp. Fabcom Philippines, Novatech Agri-Food Industry, Sea Crop Feeds and Fertilizers Technology Center, and Extreme 3000 Enterprises.

Sta. Maria asked NAFC Executive Director Ed Fondevilla to send demand letters to remind producers of their overdue obligations and exert efforts in locating and going after officials of Nutrigrowth to recover government funds released to them.

In the same COA report, state auditors advised NAFC to pursue legal steps to recover from the Quedan and Rural Guarantee Corporation the P12.54-million the government firm failed to spend in putting up corn feedstock service centers in several corn-producing provinces in the country.

The amount is part of the P46.64-million released to Quedancor and other government agencies to finance fishery and agriculture projects but remained unused.

“The remaining unused fund of P12.5 million was not returned to NAFC. Instead it was placed in an investment per letter of the officer-in-charge (of Quedancor) dated November 27, 2007. However, verification of the short term investment account of Quedancor disclosed that no investment was placed under the NAFC account,” COA revealed.