FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES —)
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Representative Maximo B. Rodriguez, Jr. and
Representative Rufus B. Rodriguez

House Bill No.__1632

EXPLANATORY NOTE

The Senate Committees on Agriculture and Blue Ribbon, after a tedious
and several months of investigation, in aid of legislation, came up with its
astounding preliminary report that the fertilizer fund comprising a whopping
amount of Seven Hundred Twenty Eight Million Pesos (P728,000,000.00) 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 subpoena
through sheer invocation of E.0. 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 the taxpayers
were further robbed of their hard earned contribution to the government coffers.

Thus, itis 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 fisherfolk, 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.

In view of the foregoing considerations, early passage of this bill is

earnestly sought
< VWs

MAXIMO ’B. RODRIGUEZ, JR.
AS

RUFYS B. RODRIGUEZ


FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Representative Maximo B. Rodriguez, Jr. and
Representative Rufus B. Rodriguez

House Bill No._ 1632

AN ACT
INSTITUTING THE FARMERS’ AND FISHERFOLK ASSISTANCE ACT OF
2010 AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Title of the Act. This Act shall be known as the “Farmers’
and Fisherfolk Assistance Act of 2010."

SEC. 2. Declaration of Policy. It is the policy of the state to effectively
assist and provide funds for the farmers’, fisherfolk and other agricultural
sectors’ needs, insulating the funds from misuse, misappropriation or diversion,
imposing penalties for violation thereof.

SEC. 3. Definition of Terms.

(a) Farmers — refer to natural persons cultivating, planting, marketing
and distributing crops, vegetables, fruits and other agricultural
products from land and sea and shall include fisherfolk;

(b) Other Farmers ~ refer to corporations, associations, cooperatives,
foundations, NGOs, people's organizations and artificial beings with
juridical capacity involved in similar activities stated in paragraph (a)
hereof as done by farmers;

(©) Funds- refers to appropriation from public funds for use of the
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;

(€) Department — refers to the Department of Agriculture.


SEC. 4. Requisition, Release and Disbursement of Funds — Any
provision of law to the contrary notwithstanding, the requisition, release and
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 Department for approval of 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 Act of 2003, shall
be strictly complied with by the Regional Director of the Department.

SEC. 5. Internal Pre-Audit Service. ~ 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 program to the country, furnishing copies thereof
to the Congressional Oversight Committee on Agriculture.

SEC. 6. Violations and 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, people's organization or other artificial being
with juridical capacity granted any fund or farm uses which


shall use the same for vote-buying, reselling 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 imprisonment 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, people's
organization or other artificial being with juridical capacity,
whether registered or not, composed of two or more persons,
the stockholders, members, directors, trustees, officers and
the individuals composing it shall be liable in their personal
capacity and suffer the penalties provided herein unless the
individuals composing it shall prove that he/she never took
part in the transaction and benefited 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

(@) Any other violation of this Act shall be punishable with
imprisonment of not less than five (5) years nor more than ten
(10) years.

SEC. 7. Repealing Clause. All laws, decrees, executive orders and
Republic Acts inconsistent herewith are hereby deemed repealed.

SEC. 8. Effectivity. — This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or in at least two (2) national newspapers of
general circulation, whichever comes earlier.

Approved,