By Fel V. Maragay

A farm-based foundation served as a front for a racketeering syndicate to carry out the systematic looting and laundering of public funds intended for the purchase of fertilizer and other agriculture inputs in 2004.

Investigation conducted by the Senate Blue Ribbon committee revealed that the National Organization for Agricultural Enhancement and Productivity Inc. was the conduit between the Agriculture Department and local government units’ non-government organizations for the distribution of the fund and fertilizer.

“The foundation was used to cover up for the well-entrenched corruption scheme in the P728-million fertilizer fund engineered by the Mafia-like group,” Senator Richard Gordon, committee chairman, said.

During the seventh public hearing on the fund scandal, surprise witness Natalio Castillo, Jr. disclosed how businessman Jimmy Paule approached him to finance the project and when he turned down the request, he referred the latter to his friend Joselito Flordeliza, president of the foundation.

Paule was tagged by members of the group as the person who put together the fertilizer distribution scheme and tapped their services for the project.

Among the members of the group who testified on Paule’s role were Maritess Aytona, Leonicia Llarena (owner of Dane Publishing), Julie Gregorio (president of Feshan Philippines) and Marilyn Araos (who served as runner and agent for the project).

Agriculture Undersecretary Belinda Gonzales described Paule as “fixer” who used to hang around the Agriculture Department and who had some connections with former Agriculture Undersecretary Jocelyn Bolante, the alleged brains of the fertilizer project.

Flordeliza said based on his arrangement with Paule, the foundation would get a 3-percent commission for every transaction that would be completed and coursed through the foundation.

In his testimony, Flordeliza said when he informed Paule that he would not be able to manage the project because he was busy with other activities, the businessman assigned Aytona to take over his role.

Gordon said the testimonies of the witnesses showed that a large chunk of the fertilizer fund ended up in the pockets of several individuals implicated in the scam and only a small part actually went to the purchase of state-subsidized fertilizer.

He said the Senate is about to wrap up its inquiry into the case, with the scam and modus operandi employed by the syndicate pieced together through the documentary and testimonial evidence presented by the witnesses.

“We are now nearing the end of the investigation. We only need the other names mentioned to surface but what we have will already suffice,” Gordon said.