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NGO Leader Convicted for Misuse of Development Assistance Funds in Sulu

NGO Leader Convicted for Misuse of Development Assistance Funds in Sulu

The case is part of the broader Priority Development Assistance Fund (PDAF) or “pork barrel” scam. The term “pork barrel” is believed to have originated after the American Civil War, referring to barrels of pork given as rewards to slaves, with the implicit purpose of encouraging them to compete and fight among themselves over the food. Today, the term describes the practice of distributing public funds for local projects to benefit specific district representatives, often at the expense of transparency and fairness. Image Source: Roanoke Tribune

Johanne Edward B. Labay, former president and chief executive officer of the Farmer Business Development Corporation (FBDC), has been sentenced to decades in prison for his role in misusing development funds meant for livelihood projects in Sulu.

He was found guilty by the Sandiganbayan—the Philippines’ special anti-graft court—of multiple counts of graft and malversation. The court imposed a prison term ranging from 12 to 16 years for two graft charges, and from 42 to 58 years for four counts of malversation, along with ₱9 million in fines.

The case centered on the FBDC, a non-governmental organization that received government funds under the guise of supporting regional development. Prosecutors argued that the organization was never qualified to manage the projects and lacked the capacity to implement them effectively. In fact, FBDC had no operational presence in Sulu and no track record in delivering development projects and was based instead in Quezon City.

FBDC had no operational presence in Sulu and no track record in delivering development projects and was based instead in Quezon City.

According to the court, the wrongdoing involved misappropriation of ₱14.4 million from the Priority Development Assistance Fund (PDAF) originally allocated to the late Sulu Representative Yusop Jikiri. These funds were routed via the now defunct Technology Resource Center (TRC) before landing with FBDC in crimes dating back to 2008.

TRC executives have also been tried as co-conspirators. TRC general manager Maria Rosalinda Lacsamana was sentenced to 8 to 12 years in prison for two counts of malversation and ordered to pay a ₱1 million fine. A third co defendant, ex TRC director general Antonio Ortiz, remains at large.

A third co defendant, ex TRC director general Antonio Ortiz, remains at large.

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This conviction reinforces the broader context of the notorious “pork barrel scam,” where PDAF allocations were diverted via ghost or unqualified NGOs, often in exchange for kickbacks or other illicit gains across the Philippines. The scandal revealed systemic abuse of public funds under the guise of development programs.

The verdict also echoes broader governance challenges in Sulu, where public trust has long been strained by recurring financial misconduct. In one case, former Representative Hussin Amin and former Hadji Panglima Tahil Mayor Nedra Burahan were charged in 2018 over the alleged misuse of ₱5 million in fertilizer funds, which were released without proper procurement and documentation.

The verdict also echoes broader governance challenges in Sulu, where public trust has long been strained by recurring financial misconduct.

Meanwhile, in 2017, former Vice Governor Nur-Ana Sahidulla and her husband, provincial board member Abdulwahid Sahidulla, faced charges for failing to declare significant assets in their SALN filings. Though not directly tied to fund diversion, the case pointed to longstanding concerns about financial transparency among local officials. Together, these incidents highlight the systemic vulnerabilities in Sulu’s governance—conditions that have enabled larger corruption schemes like the recent pork barrel misuse to flourish.

While NGOs play a vital role—especially in underserved, remote, or conflict affected areas such as Sulu—this case highlights the inherent risks when oversight is weak. Balancing the critical benefits of NGO led development with rigorous accountability measures remains an ongoing challenge and a priority in the region.

REFERENCES

Abogado.com.ph. (2025, August 11). Sandiganbayan convicts NGO chief, ex TRC exec in pork barrel scam. Retrieved from https://abogado.com.ph/

Datu, J. (2018, September 22). Ex Sulu officials face graft raps over fertilizer fund scam. GMA News Online. Retrieved from https://www.gmanetwork.com/

Mangosing, F. (2025, April 2). NGO executive guilty in PDAF scam involving livelihood funds in Sulu. Rappler. Retrieved from https://www.rappler.com/

Sandiganbayan. (2025, August 11). People v. Antonio Y. Ortiz, et al. (SB 22 CRM 0106 0111) [Decision]. Sandiganbayan (Philippine Judiciary). Retrieved from https://sb.judiciary.gov.ph/

Politopedia. (n.d.). Pork-barrel projects. PoliticalDictionary.com. Retrieved [August 14th 2025], from https://politicaldictionary.com/

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