Former CDO Rep. Jaraula cleared of malversation, but guilty for graft in fertilizer fund scam

MANILA — The Sandiganbayan acquitted former Cagayan de Oro Rep. Constantino Jaraula and five others of malversation of public funds but convicted them of graft for their involvement in the fertilizer fund scam in 2004.

The decisions are linked to the anomalies in the implementation of the Ginintuang Masaganang Ani Farm Input Farm Implements Program, when the Department of Agriculture Regional Field Unit X paid P3 million to the Philippine Social Development Foundation Inc. (PSDFI) through a memorandum of agreement signed by then lawmaker Jaraula.

According to a 2006 Commission on Audit report, auditors found that Cagayan De Oro received 3,750 bottles of fertilizer worth P3 million. A COA independent canvass was given a price quotation of only P502,087.50 for the same number of bottles of fertilizer.   

The Sandiganbayan Second Division found former congressman Jaraula, Department of Agriculture officials Reina Legaspi Lumantas, Claudia Artazo, Joel Rudinas and PSDFI president Evelyn de Leon guilty beyond reasonable doubt for violation of Section 3 (e) of Republic Act No. 3019 or the Anti-Graft and Corrupt Practices Act.

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Each of them are sentenced to a minimum of six years and one month to up to ten years in prison, along with the penalty of perpetual disqualification from holding public office.

Jaraula, Lumantas, Artazo and Rudinas will also lose their retirement or gratuity benefits as public officials.

The Court said the first element of the violation was proven since the defense admitted the public positions of Jaraula, Lumantas, Artazo and Rudinas and they performed the act as part of their official functions.

Jaraula endorsed and entered into the MOA with PSDFI despite it lacking credentials and the terms of payment being detrimental to government.

"In his capacity as Representative of the Lone District of CDO, he singlehandedly endorsed PSDFI as implementing agency for the FIFI Program in his district without taking into consideration other options that maybe available to him," the court decision said.

Under the MOA signed by Jaraula, 65% or P1,950,000 will be paid upon approval and signing while 35% or P1,050,000 upon completion of the project.

These terms are against what is allowed by COA.

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The other accused DA officials certified and signed the documents despite a lack of required supporting documents required under the Audit Code of the Philippines.

The Court also noted PSDFI was based in Taguig, far from CDO where the project will be implemented and it was not accredited by the regional DA field unit so it cannot handle fertilizers.

De Leon, a private individual, was proven to have conspired with the five public officers when she signed the MOA as PDSFI president.

The former lawmaker, Lumantas, Artazo, Rudinas and De Leon were found civilly liable for the improper implementation of the FIFI Project in Cagayan de Oro. They are jointly ordered to pay P3 million with legal interest of 6% per year.

In the same decision, the anti-graft court acquitted former Cagayan de Oro City Agriculturist Godofredo Bajas due to insufficient evidence to prove his guilt beyond reasonable doubt. 

Following his acquittal, the Hold Departure Order against Bajas is also lifted and set aside.

The anti-graft court second division acquitted Jaraula, Lumantas, Artazo, Rudinas, Bajas and De Leon for the crime of malversation.

It said the prosecution failed to prove their guilt beyond reasonable doubt.

Jaraula, Rudinas, Artazo and Lumantas were proven responsible and accountable for the disbursed funds and property but there was no evidence the accused received or misappropriated any amount from the P3 million.

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There was also no proof the fertilizers were not delivered to Cagayan de Oro City or were non-existent, despite testimonies from witnesses.

The cases against Annabelle Luy-Reario, Maria Fe Escabarte, Jose Ardias, Gertrudes Kilapkilap-Luy, Henry Bucalin and Luzviminda Bucalin will be archived while the accused remain at large.

The case against Martino Cajita was dismissed following his death.

In 2021, Jaraula was also found guilty of three counts of graft and three counts of malversation of public funds linked to the Priority Development Assistance Fund or pork barrel scam.

The former lawmaker was also ordered to pay P6 million in fines.