Anti-graft court junks graft case vs former agriculture chief

MANILA, Philippines – The Sandiganbayan First Division has junked a graft case against former agriculture secretary Luis Ramon “Cito” Lorenzo Jr and former officials of the Quedan and Rural Credit Guarantee Corporation (Quedancor) involving an alleged anomalous contract sealed by the state corporation in 2004.

In a 14-page resolution, the antigraft court held that the concerned transaction under the Quedancor Swine Program – a credit program meant to support swine raisers – was aboveboard.

“The Court finds the accused-movant’s motion to be impressed with merit. Even if the program was eventually proven unsuccessful…the Court is convinced that this was an honest-to-goodness swine program which had gone wrong in its execution or implementation,” the Sandiganbayan said. 

Lorenzo’s co-defendants in the case are former Quedancor president and chief executive officer Nelson Buenaflor, and former Quedancor governing board members/ representatives Wilfredo Domo-ong, Romeo Lanciola, Nellie Ilas and Jesus Simon.

On July 18, 2013, the Office of the Ombudsman announced that Ombudsman Conchita Carpio Morales had found probable cause to indict Lorenzo and the Quedancor officials for allegedly causing undue injury to the government by failing to hold a public bidding for the multimillion peso contract.

The input supply deal was awarded to Metro Livestock Inc for supplies such as breeding stock of hogs, gilts, feeds, medicines and technical assistance.

The Ombudsman resolution cited the Commission on Audit finding that Metro Livestock had failed to deliver supplies amounting to P47,465,614 as of 2005 despite Quedancor’s advance payment.

It also said that Quedancor did not hold public bidding to award the input supplies contract.

“The non-compliance with the required public bidding resulted in damages because Quedancor lacked recourse against the suppliers for late deliveries or non-deliveries since the suppliers were not made to post a performance bond or contractor’s surety bond which is required under R.A. No. 9184 (Government Procurement Reform Act),” the Ombudsman’s July 2013 resolution read.

The Sandiganbayan said, however, that public bidding was not required for “transactions of government financial institutions in the ordinary course of business” as provided under Section 9 of Executive Order No 423.

Then-president Gloria Macapagal Arroyo issued Executive Order 423 on April 30, 2005, which repealed EO No. 109-A dated September 18, 2003. It prescribed the rules and procedures on the review and approval of all government contracts to conform with Republic Act 9184 or the Government Procurement Reform Act.

Lorenzo served as Arroyo’s agriculture secretary until 2004. Another Arroyo Cabinet official, former justice secretary Hernani Perez, had been cleared of all graft charges by the Sandiganbayan in May.  – Rappler.com