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Pdaf Scam

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The 10-Billion Pork Barrel Scam The Priority Development Assistance Fund (PDAF) more commonly known as Pork Barrel is a budgetary allocation that is given to the House of Representatives and the senate from 2006. ₱70 Million for each of the congressmen and ₱200 Million for each of the senators. This fund should be used for financial assistance in development projects which the senate and congressmen would sponsor. However, on August 2013 a public outrage have blasted after whistleblower Benhur Luy have alleged that Janet Lim-Napoles, a Filipino-born Chinese woman was behind the P10 billion scam that also involved several senators and congressmen. They have allocated their PDAF to ghost projects which were “implemented” through Napoles’s companies but have produced no tangible output. Napoles, who specialized in trading agricultural products, frequently used the procurement of agricultural inputs in the propagation of the scam. Either her employees would write to legislators requesting for funds for the implementation of a particular project (e.g. farm inputs), or a legislator would indicate to the DBM a particular recipient agency for his or her PDAF funds that would be pre-selected by Napoles. Once received, this is forwarded to the DBM, which would then issue a Special Allotment Release Order (SARO) indicating the amount deducted from the legislator's PDAF allocation, and later a Notice of Cash Allocation (NCA) given to the recipient agency. The NCA would then be deposited in one of the foundation's accounts, and the funds withdrawn in favor of the JLN Group of Companies. The funds would then be split between Napoles, the lawmaker, the official of the DA responsible for facilitating the transfer of funds and, for good measure, the local mayor or governor. The JLN Group of Companies offered a commission of 10-15% against funds released to local government units and recipient agencies of PDAF funds, while a legislator would receive a commission of between 40-50% against the total value of his/her PDAF.

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