Former Mayor Percianita Racho of Buenavista, Agusan del Norte is facing trial before the Sandiganbayan for violation of the Government Procurement Reform Act (Republic Act No. 9184) and Section 3(e) of the Anti-Graft and Corrupt Practices Act (Republic Act No. 3019) for anomalously disbursing P3million to procure overpriced fertilizers. Also facing trial as co-accused is Lucio Lapidez of Feshan Philippines, Inc.
In 2004, Racho approved the purchase of 2,000 bottles of Bio-Nature at P1,500.00 per liter/bottle. The 2004 Annual Audit Report of the Commission on Audit (COA) shows that at time of purchase, the cost of fertilizer in the market was only P125.00 per bottle. In September 2005, the COA issued a Notice of Disallowance after it noted procurement violations such as lack of public bidding and overpricing by as much as P2.7million. Based on laboratory tests, the fertilizers bought were also of inferior quality.
The Ombudsman pointed out that “the manner and speed by which the transaction was consummated show that Racho acted with manifest partiality and evident bad faith in conspiracy with Lapidez in causing undue injury to Buenavista, giving Feshan unwarranted benefits.” ###