THIRTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES) 
SECOND REGULAR SESSION 
) 
S.B. BILL No. 
222 
Introduced by Sen. Alfredo S. Lim 
EXPLANATORY NOTE 
Last week, this chamber was shaken by a temblor of 
the greatest intensity that hit it in its annals, when the 
combined Committees on Agriculture and Blue Ribbon, 
pursuant to Senate Resolution No. 327, after a tedious and 
months long investigation in aid of legislation that started in 
October last year, came up with its astounding preliminary 
report that the fertilizer fund comprising a whopping amount 
of 
Seven 
Hundred 
Twenty 
Eight 
Million 
Pesos 
(.P728,000,000) as covered by the Farm 
Inputs and 
Implements program was a systematic, premeditated and 
grand agricultural theft constituting the rape of a nation that 
was adopted solely to suit the electoral victory of certain 
candidates! This, albeit and notwithstanding the mischievous 
refusal of cabinet officials and their uncooperative stance in 
not appearing in the hearings despite subpoenae through 
sheer invocation of EO 464. 
It is unfortunate that the helpless and hapless farmers 
and fishermen who were the direct victims of that grand 
larceny, did not realize about the magnitude and gravity of 
the fraudulent and criminal use of funds supposedly due 
them for their farming needs to bring about their liberation 
from the hard times and crunched financial condition, not 
until this chamber concluded its committee investigations. 
The impoverished Juan Dela Cruz and its taxpayers were 
further robbed of their hard earned contribution to the 
government coffers! 


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Thus, it is the bill’s purpose to give credit to the 
salutary and great efforts of the committees in pursuing and 
finishing their investigation in aid of legislation and on that 
basis, to forthwith initiate a legislative measure that will 
henceforth give protection to all government appropriations 
for the use of farmers and fishermen, simplify the availment, 
requisition and release of funds or goods intended for them, 
rather than 
retain the rotten system that enabled 
unscrupulous government officials in perpetrating their 
nefarious 
schemes 
of 
defrauding 
the 
recipients 
of 
government funds and goods, and institutionalize stiffer 
penal sanctions to those who intend to duplicate the criminal 
schemes involved in the notorious fertilizer fund scam that 
had cost the nation P728 million in wasted funds. 
A 


6 VA? 15 F4.45 
THIRTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES) 
-- 
SECOND REGULAR SESSION 
I 
SENATE 
S.B. BILL No. 
Introduced by SENATOR ALFRED0 S. U M  
AN ACT 
INSTITUTING THE FARMERS' AND FISHERMEN'S 
ASSISTANCE ACT OF 2006 AND FOR OTHER PURPOSES. 
Be it enacted by the Senate and the House of 
Representatives of the Philippines in Congress assembled : 
SECTION 1. Title of the Act. - This Act shall be known 
as the "Farmers' and Fishermen's Assistance Act af 2006". 
SECTION 2. Declaration of Policy. - It is the policy of 
the state to effectively assist and provide funds for the 
farmers', fishermen and other agricultural sectors' needs, 
iiisulating the funds from misuse, misappropriation or 
diversion, and imposing penalties for violation thereof. 
SECTION 3. Definition of terms. - (a) Farmers - refer 
to natural persons cultivating, planting, marketing and 
distributing crops, vegetable, fruits and other agricultural 
products from land or sea and shall include fishermen; (b) 
Other Farmers - refer to corporations, associations, coopera- 
tives, foundations, NGOs, peoples organization and artificial 
beings with juridical capacity involved in similar activities 
stated in par. (a) hereof as done by farmers; (c) Funds - 
refers to appropriation from public funds for use 
of the 


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farmers included in the general appropriations act, special 
laws, or local ordinances intended for the farmers; (d) Farm 
use - refers to seedlings and fertilizers including farm tools, 
gadgets, 
implement 
and 
equipment 
necessary 
for 
cultivation, development, improvement or fertilization of 
farmlands, 
orchards and other agricultural lands; 
(d) 
Department - refers to the central and main office of the 
Department of Agriculture and/or the Secretary thereof. 
SECTION 4. Requisition, Release & Disbursement of 
funds. 
- 
Any 
provision 
of 
law 
to 
the 
contrary 
notwithstanding, the requisition, release & disbursement to 
farmers of funds intended or earmarked for use in the 
cultivation, development, improvement or fertilization of 
farmlands, orchards and other lands devoted to the planting 
of crops, agricultural food products, vegetable and fruits 
shall be through a Voucher System whereby the farmers 
themselves shall determine and requisition the farm inputs, 
implements and other farm uses as they need and submit 
such through vouchers to the regional office of the DA for 
approval by the Regional Director and release within a 
period of not exceeding sixty (60) days from approval based 
on and within the allocation in the budget for the specific 
locality where the farm is located; provided, however, that 
in purchasing or making available such agricultural inputs, 
implements and other farm uses as determined by the 
totality of the aggregate vouchers or requisitions, the 
provisions of Republic Act No. 9184, otherwise known as the 
Government Procurement Reform Act of 2003, shall be 
strictly complied with by the Regional Director of the 
Department. 
SECTION 5. Internal Pre-Audit Service. - However, in 
lieu of purchasing the said requisitioned agricultural farm 
inputs, implements and other farm uses, the Regional Office, 
may release funds directly to the requesting farmer, in 
which case, he shall immediately submit all the covering 
documents to the internal auditor in the region who shall, 
not later than thirty (30) days from such receipt, submit his 
audit report to the national office of the Department charged 
with monitoring the use of the funds, implementation of the 
project and evaluation of the progress or effects of the 


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program to the country, furnishing copies thereaf to the 
Congressional Oversight Committee on Agriculture. 
SECTION 6. Vioiations & Penalties. - The following 
violations shall constitute criminal offenses punishable under 
this Act as follows: 
(a) Diversion, misuse or misappropriation of the funds 
or a portion thereof or of the farm inputs, implements and 
other farm uses intended to be released to the farmers, or 
falsely or fraudulently making it appear that such requisition 
or release of funds or farm inputs has been made when in 
fact there is none, shall, in addition to the penalties provided 
for in the Revised Penal Code, 
be punishable with 
imprisonment of not less than twelve (12) years but not 
more than twenty (20) years; provided, however, if such 
funds or farm uses be utilized for election purposes, money 
laundering or other illegal and unlawful activities, the 
penalty shall be imposed in the maximum period; provided, 
finally, that in the event it is established that the use of the 
whole or a portion of the fund or farm uses also constitutes 
the crime of plunder, the penalty for plunder shall be 
applied. 
(b) 
Any 
farmer, 
group, 
corporation, 
association, 
cooperative, foundation, NGO, peoples organization or other 
artificial being with juridical capacity granted any fund or 
farm uses which shall use the same for vote-buying, re- 
selling or purposes other than those provided herein or shall 
be involved in the false or fraudulent requisition or misuse or 
misappropriation of the fund or farm uses, shall be 
punishable with irnprisonment of not less than ten (10) 
years but not more than fifteen (15) years; provided, 
however, in case of a corporation, association, cooperative, 
foundation, NGO, peoples organization or other artificial 
being with juridical capacity, whether such is registered or 
not, composed of two or more persons, the stockholders, 
members, directors, trustees, officers and the individuals 
composing such shall be liable in their personal capacity and 
suffer the penalties provided herein unless the individual 
composing it shall prove that he never took part in the 


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transaction and benefitted from the proceeds of the funds or 
the farm uses; 
(c) Failure or unjustifiable refusal of the Regional 
Director or his subordinate to act upon, 
process and 
evaluate within the period of time hereinbefore fixed or to 
release the funds or farm uses to the farmer applicant when 
there is no legal nor justifiable reason to do so shall be 
punishable with imprisonment of not less than six (6) years 
but not more than twelve (12) years; and, 
(d) Any other violation of this Act shall be punishable 
with imprisonment of not less than five (5) years nor more 
than ten (10) years. 
SECTION 7. Repealing Clause. - All laws, decrees, 
executive orders and Republic Acts inconsistent herewith are 
hereby deemed repealed. 
SECTION 8. Effectivity. - This Act shall take effect upon 
its approval. 
Approved