Ping seeks probe
of P2.5B swine scam

SEN. Panfilo Lacson yesterday filed a resolution for an investigation on the alleged diversion of P2.5 billion swine dispersal program fund to the campaign chest of administration candidates in the 2004 elections.

Lacson, in Senate Resolution 340, sought to find the status of the funds released by Quedan and Rural Credit Guarantee Corp. (Quedancor) supposedly to farmers venturing into hog-raising.

"Like the (P728 million) fertilizer scam, there are allegations that funds for the swine program were diverted o ensure the re-election of President Gloria Macapagal Arroyo," he said in his resolution.

He also noted the scam brought "memories" of a P1.3 billion textbook scam, where the bidding process was "tailored-fit" for a select group of favored bidders with interlocking sets of officers.

Lawyer Harry Roque had said that the Commission on Audit has discovered that at least P1.4 billion of the P2.5 billion that Quedancor released for the swine industry remains unliquidated.

Quedancor launched the pig dispersal program in 2003. Some P5 billion went to the project, with P3 billion coming from the Land Bank of the Philippines and P2 billion from Equitable-PCI Bank, and government bonds issued as collateral.

But the COA’s 2005 Annual Report found that P755.62 million in outstanding loan balance and P663.77 million in receivables were "doubtful."

The COA findings also said the procurement of input supplies for Quedancor swine program amounting to P1.67 billion during the year was not in accordance with government procurement procedures, and the high cost of credit was not beneficial to farmer-beneficiaries.

COA also said some borrowers denied borrowing from Quedancor, and that the team leader or input suppliers sought their signatures in exchange for amounts ranging from P200 to P300.

Lacson also alleged that Quedancor management also did not provide equal opportunity to contractors, leading to a monopoly by a group of input suppliers with interlocking sets of officers.

Records of the COA showed that the chief executive officer (CEO) and managing director of Metro Livestock Inc., is also a member of the board of directors of the BIRKS Agri-Livestock Corporation and a partner of the New Gold Agri-Vet Company.

His name and that of a director of BIRKS Corporation also appear as former directors of the Silver Rock Resources Corporation.

"What is also shocking to know is that these companies had no track record and were ‘incorporated’ only in 2003, several months before the 2004 elections. The COA also discovered that these so-called hog suppliers were not accredited by the Bureau of Animal Industry," Roque said.

As of Dec. 31, 2005, Quedancor had procured some P1.67 billion worth of input supplies under the swine program. Of this amount, BIRKS, SRC and Metro Livestock got the biggest share. Including that of New Gold Rock, the four acquired 87.53 percent or P1.46 billion of the total procurement.

Tabulation from the regional office also showed that procurement was concentrated from the three Input Suppliers in the following regions: Silver Stock in Regions I and III; BIRKS in Regions VI, VII and VIII and Metro Livestock in Regions IV, VI and National Capital Region.

Records showed the major suppliers have only P1 million authorized capital stock each and despite their minimal paid-up capital they were given huge amounts of purchase orders.

"No track record was required from the Input Suppliers per QSP (Quedancor Swine Program) accreditation process. Even newly organized suppliers were able to participate in the program," Lacson said.