The Office of the Ombudsman has filed Informations with the Sandiganbayan charging former Butuan mayor Leonides Theresa Plaza and eight other officials for their involvement in the fertilizer fund scam. Facing trial with Plaza for violation of Sections 3(e) and 3(g) of the Anti-Graft and Corrupt Practices Act are former vice-mayor Angelo Calo, Salvador Satorre, Adulfo Llagas, Arthur Castro, Rodolfo Evanoso, Bebiano Calo, Danilo Furia and Melita Loida Galbo.
Investigation revealed that Butuan received P5million in 2004 as part of its allocation for the implementation of the Farm Inputs and Farm Implements Program of the Department of Agriculture. To implement the project, Plaza signed a purchase request dated 14 April 2004 covering the procurement of 3,333 bottles of liquid organic fertilizer costing P1,500 per liter. One week later on 22 April 2004, Plaza et. al. awarded the project to Feshan Philippines, Inc. On the same date, Feshan was paid its first installment of P3.1million with the remaining balance of P1.7million paid on May 31.
Upon audit, the Commission on Audit (COA) issued a Notice of Disallowance observing that local officials committed blatant procurement violations such as the unlawful resort to Direct Contracting without complying with the requirements of Republic Act No. 9184 (Government Procurement Reform Act); reference to specific brand names; overpricing as suitable substitutes selling at lower prices were available in the local market. The COA found that fertilizers of the same quality costs only P125.00 per liter. ###