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Tuesday, December 23, 2008
Aytona advised firm to bloat fertilizer price
MANILA -- A fertilizer supplier point to Maritess Aytona, alleged runner in the P728-million fertilizer scam, as the one who ordered to bloat by about P55 million the price of fertilizer it sold to the government.
Julie Gregorio, president of Feshan Philippines Inc, the firm that supplied the liquid fertilizer to the government in 2004, said it was Aytona who recommended that the price of the fertilizer be jacked up to P105 million.
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Aytona, who testified ahead of Gregorio before the Senate Blue Ribbon committee, denied Monday her role as the alleged runner of former agriculture undersecretary Jocelyn "Joc-Joc" Bolante on the controversial P728-million fertilizer fund scam.
Aytona said she merely served as a consultant to a foundation that helped implement the Department of Agriculture's (DA) fertilizer and farm implements project.
But Gregorio told senators that it was Aytona who advised her to "bloat" the project cost by more than P50 million.
Gregorio said Feshan Philippines sold only P50 million worth of fertilizers to the government.
But she said the Commission on Audit (COA) records has credited P105-million sales of fertilizer to the company.
Gregorio added they agreed to double the price so she could avail of the tax amnesty. When pressed by Gordon, Gregorio told the committee it was Aytona who instructed her to bloat the amount.
She also said an accountant was hired to "balance" their account books.
In the same hearing, Gregorio pointed at Leonicia Marco-Llarena, owner of a publishing house, who stood as a guarantor for the group that made transactions with their company.
This ran counter to Llarena's previous testimony where she said Jaime "Jimmy" Paule, Aytona, Gregorio, and Reden Antolin, vice president of Feshan Philippines Inc., were the ones who approached her to serve as a guarantor because they do not have a credit line.
Paule was then a representative of National Organization for Agricultural Enhancement and Productivity Inc., the foundation that became the implementer of the fertilizer project of the Department of Agriculture (DA).
According to Llarena, she issued several checks amounting to P12.6 million to Paule when she agreed to help the latter in getting fertilizer stocks from Feshan Philippines Inc.
Llarena said Paule had problems getting Feshan's approval for the release of stocks because he doesn't have any credit line and checking account.
Senator Gordon said he was not satisfied with Aytona's answer when asked to give her specific role in the project, but the hearing proved to be "meaty" as they are now getting deeper into the alleged modus operandi.
Earlier, Aytona stressed she did not serve as alleged runner to the beleaguered Bolante.
Aytona surrendered last week after the Senate cited her for contempt and ordered her arrest.
"I was not a runner. I was asked to be a consultant for a foundation," she told the Senate Blue Ribbon committee chairman, Senator Richard Gordon.
She claimed that it was Paule, who recruited her to be part of the fertilizer project.
At the hearing, Aytona said Jose Barredo Jr., the whistleblower in the scam, also asked her if she can work for the foundation.
She, however, denied having been an agent selling fertilizers together with Paule, Barredo and other personalities.
But Barredo refuted Aytona's statement, saying he was not the one who approached Aytona.
In the course of the hearing, it was learned that:
* Llarena, the alleged financier of the project, earned P1.2 million from Paule;
* Aytona earned P300,000 but said Paule has not yet paid her fully;
* Gregorio and Antolin, both Feshan officials, received P10 million from the project as gross income; and
* Gregorio said the landed cost of the fertilizer was P463 per liter and they sold it for P600 to the government.
"They are now liable for all kinds of crimes including falsification of documents and tax evasion," Gordon said.
Meanwhile, Senate President Juan Ponce Enrile received a letter from Paule following the hearing denying that he is in hiding.
Paule, in the letter sent by his lawyer Ferdinand Topacio, said he is "ready, willing, and able to appear" before the Senate to testify on the issue.
He explained that he never received a subpoena from the Senate.
Aytona, Paule, Gregorio, and Antolin were all issued contempt orders by the Senate.
Topacio maintained that his client is a legitimate businessman and has not been indicted for any criminal offense nor has he ever been in hiding. (AH/Sunnex)
For more Philippine news, visit Sun.Star Cebu. (December 23, 2008 issue)
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