He said the municipality was given P3 million, supposedly for the purchase of liquid fertilizers to be distributed to farmers in town but was used instead for infrastructure development.
Godio said he was hesitant to use the fund to buy fertilizers because product prices offered then were so excessive, thus he decided to divert the money for the improvement of the Ambuklao-Camiling Road in Itogon.
"Fertilizer prices increased to as high as 312 percent," he said.
The three-term mayor said he is willing to be investigated over the use of the money.
"If they ask me where the money went, then I can easily point to the road improvement project," he told reporters, saying the project will speak for itself.
The P728-fertilizer fund controversy stemmed from allegations that it was released and used during the 2004 presidential elections.
Several politicians, mostly allies of President Gloria Macapagal-Arroyo, were accused of receiving the money, which was channeled through the Department of Agriculture.
Some local officials admitted receipt of the money while others deny having received any amount.
Former Agriculture Undersecretary Jocelyn "Joc-Joc" Bolante, who is said to have engineered the diversion of the fertilizer funds, is now being grilled by the Senate.
He fled to the US when the controversy broke in 2005 and was deported after his petition for asylum was denied by US courts.
Bolante, on his first appearance at the Senate hearing, immediately cleared Arroyo from any involvement in the controversy.
Congressmen and local politicians whose names were implicated in the scam were also cleared.
