P728-million Fertilizer Fund Scam (2004, 2008)

Summary:

As early as March 2004, Lacson accused Malacañang of virtual vote buying, using P728 million in government funds to ensure the support of governors, congressmen and mayors for President Arroyo’s presidential bid in May.  Lacson cited documents showing Mrs. Arroyo ordered the budget department to release some P728 million in funds for buying farm inputs like fertilizers and pesticides through a special allotment release order.

Of the P728 million, P467 million was to go to 105 congressmen, P405 million to 53 provincial governors, and P56 million to 23 city and town mayors. "Based on the advice of SARO issued Feb. 3, only congressmen, governors and mayors who are allied with Mrs. Arroyo would be the recipients of the funds ranging from P2 million to P5 million each," he said.

Of the 23 mayors included in the SARO advice, only two local executives were allotted P5 million. Of the 105 congressmen, 44 were given P5 million each and the others P3 million each.

"Surprisingly, two Metro Manila congressmen - Navotas Rep. Federico Sandoval and Quezon City Rep. Maite Defensor - were also allotted P3 million each despite the fact that there are practically no farms left in the NCR to merit the purchase of millions of pesos worth of fertilizers and pesticides," Lacson said.  Also, he noted not a single member of the opposition is listed among those who would receive the funds.

Fast-forward four years to December 2008 - at a Senate hearing, Lacson showed documents indicating former agriculture undersecretary Jocelyn Bolante had much leeway not only in choosing the proponents in the scam, but also had enough pull to have the funds released without the required work and financial plans.

Bolante is described as a "close buddy" of First Gentleman Jose Miguel Arroyo.

Effect:

Aside from raising public consciousness on the "creative" ways that the Arroyo administration toys with public funds, Lacson's expose also bolstered the links of people close to the First Couple to graft-ridden scandals – and the shamelessness with which they pulled these scandals off.