MANILA, Philippines – Whistleblower Benhur Luy on Thursday narrated to the Senate Blue Ribbon committee the steps taken by detained Janet Lim Napoles and certain legislators in manipulating the multi-million projects funded from the Priority Development Assistance Fund (PDAF).
Aided by Justice Secretary Leila de Lima, Luy narrated in a power-point presentation how anywhere from 40-50% of the total amount of a project allegedlylanded in the hands of lawmakers who assigned part of the PDAF to Napoles-created NGOs that were in turn endorsed by lawmakers to government implementing agencies.
A smaller fraction, called "SOP," would later be given also in kickbacks to contacts in implementing agencies. He did not categorically say if kickbacks went to "contacts" at the Department of Budget and Management (DBM), which played a crucial role in releasing the Statement of Allotment and Release Order (SAROs) that served as trigger for releasing half of the "rebate" to lawmakers.
First step
Luy said at first Napoles and the lawmaker will agree on which implementing agency will be tapped to receive the pork funds and give these to the Napoles NGOs..
“Una po, mag-uusap si Ms. Napoles at lawmaker kung saan ilalagak ang pondo,” Luy said.
“For example, the lawmaker has P10 million in pork funds which will be funnelled to a particular implementing agency like the National Livelihood Development Corporation (NLDC).”
“May ganitong PDAF ang isang lawmaker, pork na ito ay ibabagsak sa NLDC bilang implementing agency kasi nag-uusap sila ni Ms, Napoles at lawmaker, kasi may kausap na si Napoles sa NLDC,” Luy said.
Second step
Next, Napoles and the lawmaker will make a deal about the rebates from the P10 million pork funds coursed through the particular implementing agency.
“Nakikipag-usap si Napoles at lawmaker kung paano ang deal nila, kung paano makukuha ang rebates, . Kapag nagkasundo na sila sa usapan tungkol sa rebate, makukuha na ng lawmaker ang 50% ng rebates,” Luy said.
He said that if the project cost P10 million, the lawmaker will get 50% of the total amount which will be advanced by Napoles to the lawmaker--either deposited in cash or in check to the bank account of the particular legislator or the assigned chief of staff.
“Kahit wala pa ang project, mag-uusap na sina Napoles at lawmaker tungkol sa rebates. Sa deal nila sa rebates, minsan nag-advance si Ms. Napoles, partial minsan cash or check sa lawmaker,” he said.
Asked by De Lima if he has evidence to substantiate his allegation, Luy said he has the bank account number of all legislators, and/or their chiefs of staff.
“I have the evidence particularly the account number of lawmakers kung saan ilalagay ang fund transfer, not only lawmaker, also their chief of staff, kung saan ipapasok ang pondo,” Luy said.
Third step
Lawmakers will write the Department of Budget and Management for the source of the fund, through the chairmen of the Senate committee on finance and House committee on appropriations.
“The lawmaker will write the DBM with attached identified implementing agency, and identified project descriptions and the amount kung ano ang napag-usapan nila,” Luy said.
Fourth Step
After the completion of the documentary requirements submitted to DBM, the budget agency will release the Statement of Allotment and Release Order (SARO), of which the lawmaker will get one copy and the implementing agency, a second copy.
“So, kapag nandoon na ang SARO, the lawmaker will furnish a copy to JLN, and the other one for the agency copy,” Luy said.
Besides the lawmaker, Luy said Napoles, some of her staff or even Luy himself makes a follow-up with DBM on the status of the particular SARO requested by the lawmaker to be released to the implementing agency.
“Sometimes, we make follow-ups with DBM and also Napoles,” Luy said.
Sometimes, he said, DBM contacts would remark, "sina-SARO-han na nga namin kayo," if they are slow in following up.
Fifth Step
Luy said that before Napoles pays the remaining 50% rebates or kickback to legislators, they ask the office of the lawmaker to make endorsement letters, memorandum of agreement (MOA), and project proposal.
“Kapag nandyan na ang SARO, the balance will be released for what we call full payment (to lawmakers),” Luy said
But before that, Luy said their staff or him will make draft endorsement letters, MOA and project proposal which will be sent through emails to the office of the particular lawmaker for signature and eventual submission to the implementing agency.
“Bago nila makuha ang remaining 50% balance, mayroon silang endorsement letter, then memorandum of agreement and project proposal signed by the lawmaker or whoever assigned by the lawmaker,” Luy said.
“We draft the endorsement letter, and then email it to the lawmaker, kung sino man lawmaker na assigned to sign the document,” he added.
“I draft the endorsement letter, at isasalang nila yan sa letterhead of the legislator, siyempre papalitan nila nang kaunti o may revision ang content sa pagka-endorse o pagka-designate ng foundation,’ Luy said.
Luy said after submission of documentary requirements to the implementing agency and before the consumption of the project, Napoles will pay the lawmaker in cash or in check.
