INTING, J.:
The True Purpose and Operation of the Foundations
8. JLN [Napoles] initially informed the JLN Corporation Employees (including Benhur K. Luy and Merlina P. Suñas) that these foundations were created to help the farmers improve their lives. However, when these foundations began operation about three years after their registration, the real reason became clear. JLN informed us that Government funds will be allocated to these Foundations to finance the implementation of several programs. These funds came from the CDF/PDAF of legislators as well as special funds from government agencies like the DOTC, DA, NABCOR, NLDC, TRC, etcetera.
9. The financial transactions of JLN and JLN-owned-or-controlled corporations on one hand, and the foundations on the other hand, were recorded by me, Benhur K. Luy, being part and parcel of the tasks assigned to me by JLN. Based on my (Benhur K. Luy) records, the financial transactions of the above are as follows:9.1. Upon receipt by the foundations of these government funds, the same will be immediately withdrawn through over-the-counter transactions by either the President of the foundation, or any authorized representative to be determined by JLN, accompanied by some security personnel of JLN.x x x
9.2. At times, once monies are withdrawn from foundation accounts, the same will be directly remitted to JLN either in the JLN Corporation office in Discovery Center Suites in Ortigas Center, Pasig City or in her condominium unit at Unit 18B, Pacific Plaza Tower in Taguig City.
9.3. I, Gertrudes K. Luy, personally saw that at times, the cash delivered to the above condominium unit was stashed in the vault, or in the bathtub of JLN's bathroom.x x x x
9.4. To liquidate these funds, JLN will instruct her employees, including us, Benhur K. Luy and Merlina P. Suñas, to prepare Acknowledgment Receipts from supposed beneficiaries, Accomplishment Reports, and Requests for the release of remaining funds, and Official Receipts.
9.5. The implementation of these programs, however, involve three types: a) under-delivery; b) mis-delivery; or c) ghost delivery, depending on the instructions of JLN and the "commission" being requested by certain government officials. Accordingly, then the liquidation documents that JLN employees prepare are either partially or completely false. For example, the list of beneficiaries may be a mix of bona fide beneficiaries and fictitious individuals. The acknowledgment receipts purportedly executed by the beneficiaries in a listing are either wholly or partially truthful, or completely fake; the Official Receipts issued by the NGOs are also fake. In short, the government funds intended to certain beneficiaries in fact do not reach them; while the funds received by these foundations were diverted, as narrated in the sample transactions above, to the personal account of JLN or to her owned-or-controlled corporations like Jo-Chris Trading, JLN Corporation, and JCLN Global Properties Development Corporation.
9.6. Some bank transactions instructed by JLN to be done and recorded by Benhur K. Luy involve fund transfers from these foundations to specific accounts of certain government officials.
10. In summary, and based on our personal knowledge, all government funds received by these foundations were actually diverted from their intended purposes to the personal accounts of JLN and to her owned-or-controlled corporations like JLN Corporation, Jo-Chris Trading, JCLN Global Properties Development Coxporation, and TNU Trading.[12]
Date Description Amount Source 03/30/2010 Fund Transfer Php10,000,000.00 Debited from Metrobank Account No. 255-3-25504715-0 of Agri and Economic Program for Farmer's Foundation 04/13/2010 MetroBank
Manager's Check Php10,000,000.00 Debited MetroBank Account No. 073-3-07367717-4 of Social Development- Program for Farmer's Foundation, Inc. 03/15/2012 Metrobank Check No 7302 Php9,750,000.00 Metrobank Account of Janet Napoles[27]
Date | Amount received (in PHP) | Mode | Source |
September 30, 2010 | 10,000,000.00 | Deposit of Metrobank Check No. 0733638724 | JLN Corporation's Metrobank Account No. 007073509285 |
September 30, 2010 | 10,000,000.00 | Deposit of Metrobank Check No. 0733638725 | JLN Corporation's Metrobank Account No. 007073509285 |
October 1, 2010 | 4,500,000.00 | Deposit of Metrobank Check No. 0733638727 | JLN Corporation's Metrobank Account No. 007073509285[62] |
Date Description Amount Source 03/30/2010 Fund Transfer Php10,000,000.00 Debited from Metrobank Account No. 255-3-25504715-0 of Agri and Economic Program for Farmer's Foundation 04/13/2010 MetroBank Manager's Check Php10,000,000.00 Debited MetroBank Account No. 073-3-67717-4 of Social Development Program for Farmer's Foundation, Inc. 03/15/2012 MetroBank Check No. 7302 Php9,750,000.00 MetroBank Account of Janet Napoles[63]