How the scam works

The biggest corruption scandal to break out in 2013 involved commissions that ranged from 20% to as much as 50%. Ghost projects, fake NGOs, complicit government agencies, and non-existent beneficiaries became the means to collect kickbacks. The perpetrators studied the system, the tools, and the players well. Pretend to be a lawmaker cutting deals and navigating the pork barrel system.

(Click the left and right arrows, or swipe from right to left, or left to right, to navigate from one step to the next.)

50% okay with you?

Agree on a split arrangement with Janet Lim Napoles.

Make sure you are clear about where funds will be diverted from – your Priority Development Assistance Fund or special funds from departments like agriculture and agrarian reform.

Choose: fund transfer, manager’s check, ordinary check or cash.

This will allow you to collect your 40%-60% rebate from your own PDAF.

Write a letter to the budget department to facilitate the release of the PDAF or special fund. Course it through the Senate President or chair of the finance/appropriations committee.

Your letter should simply request for a release of funds for your project.

Proceed to the Department of Budget and Management, which will issue a Special Allotment Release Order.

The government agency that will be the source of the fund should furnish Napoles a copy of the SARO.

Once she receives a copy of the SARO, Napoles releases the balance of the rebate.

Watch out for it.

As assurance of full payment, Napoles asks the fund source to provide an endorsement letter, identifying a preferred NGO.

Agreement and project proposal are also signed, approved, and noted by the fund source.

Inform the implementing agency – through an endorsement letter – which particular NGO should receive the funds.

Guided by the fund source’s endorsement letter, the implementing agency should issue a check to your specified NGO. The NGO should deposit the check to its bank account and request for fund reservation.

Napoles collects her own share through her staff who get the cash and deliver it to their office at Discovery Suites in Ortigas. Cash is eventually transferred to her home at the Pacific Plaza Tower in Taguig. Overflowing money is kept in Napoles’ bathtub.

Cash is either deposited to JCLN Global Properties, a Napoles account, or Napoles-owned or controlled corporations, or used as a revolving fund, rebates for future transactions, or for other purposes. The money goes around and everybody’s happy.

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