Republic of the PhilippinesSupreme Court

Manila

Statement of the FactsJanet "Jenny" Luy Lim-Napoles (born January 15, 1964 in Malabon) is believed to have masterminded the Priority Development Assistance Fund Scam. Janet Lim-Napoles was born in a hospital, then a municipality of Rizal. She was the only daughter amongst five children born of a Chinese Filipino couple: Johnny Co Lim and Magdalena "Nelly" Lim Luy, with her family living in Binondo, Manila until December 1970, with the death of her father.

The widowed Magdalena thereafter decided to return to her hometown of Maluso, Basilan, bringing her children along. Napoles, who was six at the time, studied at the Maluso Central Elementary School for her elementary education, and later completed her secondary education at the local Claretian school. To survive, the family ran the Luys' sari-sari store, as well as delivered drinks to workers at the local port.[1] However, some residents of Maluso have claimed that the Luys were a rich family, including owning a fish drying business and plots of land.[2] However, as the security situation in Basilan began to deteriorate—including receiving threats of extortion—the Lim family moved back to Manila.[2]

Napoles reportedly met her husband, Jaime G. Napoles, on board a ship which traversed between the southern islands of Mindanao,[1] and later married in April 1982,[3] when she was 18. While living in Manila, the couple lived inside Fort Bonifacio, where the young Napoles ran a carinderia.[1]

Napoles' business interests date back to the early 1990s. In 1993, she solicited for investments in a supposed shipyard in Cebu, promising 5% interest on all investments. It was later discovered that the money was not invested in the shipyard: according to Col. Ariel Querubín, who was a friend of the Napoles family, the money they had invested in the shipyard was reportedly invested in someone else, with Napoles pocketing the interest. While the investment was eventually recovered, Querubín claims that the death of his first wife was caused by the investment.[4]

In 2001, Napoles and her husband, Jaime G. Napoles, were implicated in the acquisition by the Armed Forces of the Philippines of ₱3.8 million worth of substandard Kevlar helmets, and were charged with graft and malversation of public funds by the Sandiganbayan (people's special tribunal). While her husband was dropped from the list of defendants in 2002, Napoles herself stood trial, and was acquitted on October 28, 2010 for lack of evidence.[5]

In 2013 it was discovered that Janet Napoles's alleged giant JLN Corporation had paid significantly less taxes than the average local public school teacher. Records show that from 2009 to 2011, her flagship firm JLN Corporation paid less in yearly taxes than a public school teacher earning P21,500 a month.[6]

She is linked with an alleged misuse of the Priority Development Assistance Fund together with Philippine Senators Bong Revilla, Jinggoy Estrada, Juan Ponce Enrile, and other congressmen.

Some accused who have fled and reported to have already left the country were: Plaza, Reyes, Tuason, Ortiz, Cunanan and Pablo.

Cunanan issued a statement saying he left on Friday September 16, 2013 to attend a meeting in the United States of the Junior Chamber International, where

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he is its incoming secretary general, but would return to answer allegations he was involved in the scam.

Janet Lim-Napoles' husband was a major in the Philippine Marine Corps who participated in the God Save the Queen coup attempt against President Corazon Aquino.[7] Originally a reservist, he later applied for active duty status, and eventually retired from the Marines on December 31, 2004. [8] Together, they have four children, Jo Christine, James Christopher, Christian, and Jeane. [3] Jo Christine Napoles is the president of the Metro Manila chapter of the OFW Family Club party list,[9] and was the group's third nominee to the House of Representatives until she withdrew her nomination on August 8, 2013.[10] Jeane Napoles, meanwhile, has been heavily criticized in social media for flaunting her lifestyle,[11][12] including, among others, owning a $2 million unit at the Ritz-Carlton in Los Angeles while she studied fashion design at the Fashion Institute of Design & Merchandising.[13]

There are conflicting accounts as to the net worth of the Napoles family. While Napoles has most recently claimed that her family belonged to the middle class,[14] acquaintances in Basilan claim that her maternal family had old money,[2] which she confirmed in an earlier interview as having inherited. [15] Her extended family in Basilan, however, has denied her claims of such an inheritance. [16] She has also claimed on other occasions that her family is wealthy, and most of her net worth was due to sound investments,[17] mostly with coal trading in several countries but particularly in Indonesia. [15][18] However, the profitability of Napoles' business ventures has been questioned: according to disclosures made with the Securities and Exchange Commission in 2011 and 2012, the corporations under the JLN Group of Companies reported a total net income of less than ₱1 million,[19] and Merlina Suñas, one of the whistleblowers in the PDAF scam, has claimed that the Napoleses are not knowledgeable about the coal industry. [17]

In other disclosures made to the SEC, it was revealed that Napoles owns at least 28 houses in a number of cities in Luzon alone, with her other family members also holding property in the United States.[20] She also maintains, according to the Department of Justice, around 415 accounts with seventeen different banks.[21] The Napoles family also maintains a fleet of 30 vehicles, which are all registered under the flagship company of the JLN Group of Companies, JLN Corporation.[22]

Janet Napoles's PDAF Senate Hearing was held November 7, 2013. Plunder charges were filed against her, together with Senators Juan Ponce Enrile, Jinggoy Estrada and Ramon Bong Revilla Jr. as co-respondents, by the government at the Ombudsman for the P10-billion pork barrel scam. Below are the transcripts on the hearing:

Napoles denies ordering relatives and maids to creat NGOs and add them as incorporators. Benhur Luy: Nagsisinungaling po siya.

Merlina Suñas: I was advised by Napoles to create 20 NGOs one in the name of her mother. (Magdalena Luy-Lim Foundation)

Napoles: Totoo po yung Magdalena Luy-Lim Foundation. [Yung iba hindi.]

Napoles on whistleblowers' allegations: Di ko alam kung ano ang gusto nila... Nasa Ombudsman na [yung kaso na yun].

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Benhur Luy: Bago pa ako pumasok, 2002, meron nang 3 NGO. Paghawak ko ng records, meron nang listahan ng transaction sa gobyerno

Napoles: Nakakaawa nga yung mga senador na da-drag yung mga panagalan [sa issue na ito].

Napoles denies 50%-50% PDAF sharing scheme with lawmakers.

Napoles also denies receiving 35% kickback from PDAF-funded projects. But Suñas stands by her allegation.

Napoles: Do you think ang isang mambabatas at chief of staff, pipirma ng voucher? Kasinungalingan yan, walang bigayan ng pera.

Marina Sula: Ako ang nagfa-file ng mga voucher mula nung nag umpisa ako magtrabaho kay Napoles hanggang August 2013.

Guingona: Ano ba yung totoo? Napoles: Di ko alam sa kanila.

Marina Sula says they shredded copies of the vouchers in Napoles' Pacific Plaza unit to eliminate evidence.

Guingona to Napoles: Andun yung mga shredder sa opisina ninyo, pano mo nasabi na di nagshred [ng papeles]?

Sen. Guingona: Ms. Napoles, you're under oath. Napoles: Opo.

Benhur Luy says he personally gives the money to lawmakers who go to their office.

Benhur Luy names Rep. Valdez, Ruby Tuason as some of those who went to their office.

Napoles: Kilala ko o personal na kilala ko? Yung mga senador, kilala ko kasi binoboto natin. Pero sila di nila ako kilala.

Benhur Luy: Pinupuntahan ko ang mga bahay ng lawmakers para mag-deliver ng pera.

Benhur Luy now detailing how PDAF allegedly shared by some lawmakers, their chiefs of staff and Napoles.

Luy again implicates Sens. Revilla and Estrada in PDAF scam. Says lawmakers also get extra savings from JLN Corp.

Benhur luy: Nakakakuha rin po ng savings, congressional insertions si [Napoles]

Napoles denies existence of bank account abroad.

Benhur Luy: Sa COA report, may findings na [tunay] yung mga tao na [ginamit as beneficiaries ng NGO] pero di nila pirma yun.

Sen. Miriam Santiago is now in the Senate Session Hall.

Sen. Santiago to Napoles: "Oh, there you are. Let me take a good look at you."

Santiago: Right against self- incrimination only applies to a criminal case. This isn't a criminal case, this is admin.

Santiago to Napoles: I won't bully you, I won't out-shout you... [Pero] pag magsinungaling ka, lagot ka...Nagsumpa ka e.

Sen. Santiago lays down reservations on Napoles' appearance in the Senate hearing before questioning.

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Santiago to Napoles: You can afford counsel. Kagustuhan mo lang na wala kang abugado. Di ka puwedeng bigyan ng libreng abugado.

Santiago: Iba ang "di ko alam" sa self-incrimination.

Santiago to Napoles: Anong di mo alam? Alam mo e. Sabihin mo right against self incrimination.

Santiago: Pag ganyan ka sumagot na "I invoke my right", sinasabi mo sa publiko na may alam ka pero ayaw mo sagutin ang totoo.

Santiago: Tinatanong lang sino kilala mo, self incrimination kagad? Tapos na halloween, wala nang multo.

Sen. Santiago: Ano alam mo? Naka-dedma ka sa akin, pa'no tayo makarating sa katotohanan?

Santiago: Mamili ka, mawalan ka ng sala o makulong ka ng 20-40 years?

Santiago outlines requirements for being a state witness: You can't be state witness if you are most guilty.

Santiago to Napoles: Kung tingin mo di ikaw ang most guilty, ipaalam mo kung sino ang most guilty. Sabihin mo na [lahat].

Santiago to Napoles: Sabi mo di ikaw ang most guilty. Naniniwala ako sa yo.

Santiago: Habang buhay ka pa, nasa panganib ang mga ito...So ngayon pa lang, sino ang most guilty?

Santiago: Kung si Enrile ang most guilty, sabihin mo na para di ka ipapatay.

Santiago to Napoles: Naniniwala ka ba sa commandment "You should not steal?" And yet you steal... Magdasal ka na lang.

Santiago to Napoles: Baka ipapatay ka, kawawa ka naman. Gantihan mo na habang buhay ka pa.

Santiago: Kailan nagsimula yung pera mo? Nung nagkaroon ka ng NGO diba? Napoles: I invoke my right against self-incrimination

Santiago to Napoles: Tell the truth before the senators have you assassinated.

Sen. ACayetano: As far as you're concerned, are you innocent or guilty? Napoles: Innocent.

Senate hearing suspended for lunch. Napoles says she is diabetic. "Nahihilo na ako."=============================================================

Sen. Miriam Santiago holds press conference during senate recess

Sen. Santiago says it was already expected that Napoles will not talk so much during the senate hearing.

Sen. Santiago says some senators might use the hearing to gain "pogi" points for 2016 elections.

Q: May motibo ba na ipa-assassinate si Napoles? @senmiriam: Yes, kasi baka magdaldal yan, baka madaming isangkot yan.

Atty. Levito Baligod, lawyer of the whistle-blowers, is in favor of making Janet Lim-Napoles a state witness. =============================================================

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Senate resumes hearing on PDAF scam.

Sen. ACayetano: Proteksyon para kay Napoles kung ilalahad niya ang buong katotohanan.

Napoles denies she has "dealings" with PDAF and fertilizer fund.

Sen. A.Cayetano: Kailan po kayo nagstart mag-deal with gov't? Napoles: Hindi ko po matandaan.

Napoles: Peke ang mga dokumentong nagdidiin sa akin sa fertilizer fund scam.

Q. @alanpcayetano: Mayaman ba kayo? A. Napoles: Tama lang sa buhay.

Q. @alanpcayetano: Bakit yung mga malalapit sa iyo ay nagtetestify against you? A. Napoles: 'Di ko po alam.

Napoles insists that there was no feud between her and her cousin, whistleblower Benhur Luy.

Napoles admits that her husband tried to enter congress through a party list for OFWs

Napoles: Magkamag-anak pero 'di kami gaanong malapit sa isa't isa ni Benhur Luy.

Q. @alanpcayetano : kailan mo naging Assistant si Benhur Luy? A. Napoles: di ko matandaan, pero bago lang.

Q. @SayChiz: Sinabi niyo sa interview niyo, may boss si Benhur Luy na babae, sino yun? A. Napoles: Hindi ko maalala

According to Napoles, it was only through TV that she learned that she is involved in PDAF scam

Q. @SayChiz: Hiningan mo ba ng pera si Napoles? Atty. Baligod: Hindi po, sila po ang nag o-offer pero I declined.

Q. Sen. Chiz Escudero: Magkano ang inoffer po sa inyo? Atty. Baligod: Nasa P250-300M

Q. Sen. Bam Aquino: Kung mage-executive session po ba tayo, pareho pa rin po ba ang iyong magiging mga sagot? Napoles: Opo.

Sen. Grace Poe to Napoles: Ang taumbayan po, sila po ang isipin n'yong may poot sa inyo.

Sen. Guingona to Janet Napoles: Mukhang selective ang memory ninyo.

Q. Sen.Poe: Kahanga-hanga po na naiahon mo ang iyong pamilya sa hirap, may damdamin po ba kayo sa taumbayan? A. Napoles: Opo.

Napoles insists that she does not know anything about the fertilizer scam.

Q. Sen. Trillanes IV: May dagdag pa po ba kayo sa depensa ninyo? A. Napoles: Wala na po, nasabi ko na po lahat.

Q. Sen.Trillanes: Ano pong masasabi nyo sa affidavit ni Benhur? A. Napoles: Nasa Ombudsman na po 'yung aming kaso.

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Q.Sen.Cayetano: Bakit sinasabi mong kawawa yung 3 senador kung wala kang alam sa PDAF? A.Napoles: Opinyon ko lang na kawawa yung nadadawit

After Sen. Guingona thanked everyone present, and told Janet Napoles that he will see her again, he suspended the Senate Blue Ribbon Committee hearing on the PDAF scam suspended until further notice.

Issue of the case

WHETHER OR NOT JANET LIM NAPOLES CAN BE A STATE WITNESS?

Discussion

First of all, she is not as “Big” a Fish as any of the Senators, Congressmen, and other public officials from implementing agencies who could be prosecuted and convicted with the help of the testimonial, documentary, and other relevant evidence that she will provide.  State Witnesses are used precisely to go after the “Big Fish”.

Secondly, Napoles does not appear to be the “most guilty” as envisioned by the anti-graft, anti-corruption, and plunder law. The law is primarily directed to prosecute corrupt public officers and others who participate in the commission of the crime by the said public officers.

A Senator or a Congressman who is suspected of Plunder is a public officer entrusted by the electorate with the responsibility of safeguarding and protecting public funds.  He is empowered under the Pork Barrel system to appropriate funds to satisfy some identified needs of his constituency.  Misappropriating such funds for self-aggrandizement at the expense of a trusting electorate numbering millions is an offense of the highest order punishable by life imprisonment.

The principal power of discretion and judgment is with the Senator or Congressman. Correspondingly, the ultimate responsibility is with him.  In the crime of Plunder, he is the principal suspect with private parties like Napoles as willing participants and beneficiaries.  

Napoles could not have been the “most guilty”.  While she was an effective and efficient executor of the legislator’s greedy wish to misappropriate public funds, she was not indispensable.  As cited by COA and as reported by GMA Research News, she was not the only person who was used by the legislators to implement such a scheme.   There were others involving more lawmakers, fake NGOs, and probably more money.  It is just that her operation was the first to be exposed because of whistleblowers that included a relative who accused her of serious illegal detention.  

COA, DOJ, BIR, SEC, AMLC and Ombudsman are not done.  Expect many more patriotic whistleblowers to come out.  More corrupt public officers and participating offenders will still surface.

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She will be discharged from the information or complaint involving Plunder.  But she will remain charged for serious illegal detention. She could also be charged for tax evasion and probably more as the probe and investigation continues.

The Pork Barrel Scam deeply targets the very center of PNoy’s slogan and correspondingly the two campaigns.  First, it is corruption involving high public officials entrusted with public funds.  Second, it deprived the people of substantial resources for projects meant to benefit them.  

PLUNDER

The crime allegedly committed is Plunder whereby certain Senators and Congressmen who, by themselves or their families, relatives by affinity or consanguinity, business associates, subordinates or other persons, amass, accumulate or acquire ill-gotten wealth through a combination or series of criminal acts.   This could be “By receiving, directly or indirectly, any commission, gift, share, percentage, kickbacks from any person or entity in connection with any government contract or project or by reason of the office or position of the public officer concerned” or any other act enumerated in the Plunder law.

Under the pork barrel system, each lawmaker is allotted some funds annually (P200M per Senator and P70M per Congressman) to be released to and spent by his chosen beneficiaries.  The discretion and judgment belongs to the lawmaker.  The allegation is that the beneficiaries were chosen based on the percentage of commission or kickbacks that the lawmaker receives directly or indirectly.  

In the early days, the kickbacks supposedly amounted to 20% of either P200M (Senator) or P70M (Congressman).  The recent expose as detailed by whistleblowers now alleges kickbacks ranging from 50%-70% going to the lawmaker concerned.   If proven as alleged, based on the amounts misappropriated, and series of acts committed, it would really constitute the crime of Plunder.

The crime is punishable by reclusion perpetua (life imprisonment), which makes it non-bailable.   So, once the lawmaker is charged, he is detained and in fact, under the law (R.A. 7080), he is also suspended from office.  The law also provides that “Any person who participated with the said public officer in the commission of an offense contributing to the crime of plunder shall likewise be punished for such offense.”

This is why Janet Napoles and other private parties including whistleblowers, front men and fake NGOs/entities who participated in the commission of the plundering acts may also be criminally charged.

Napoles is currently under government custody initially for allegedly committing the crime of illegal detention.  But unlike others similarly charged, she certainly is

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getting full security and protection from the Philippine government.  This is primarily because, as the government contends, she is key to determining the whole truth on the Pork Barrel Scam.  She possesses vital information – personal direct, documentary, circumstantial as well as corroborating evidence to support various cases of Plunder and/or violations of the Anti-Graft and Corrupt Practices Act.

Who can be a state witness?

REQUIREMENTS OF DISCHARGE:

Who can be a state witness? This query is addressed by Section 9, Rule 119 of the Rules of Court, to wit:

“Sec. 9. Discharge of accused to be state witness.

When two or more persons are jointly charged with the commission of any offense, upon motion of the prosecution before resting its case, the court may direct one or more of the accused to be discharged with their consent so that they may be witnesses for the state when after requiring the prosecution to present evidence and the sworn statement of each proposed state witness at a hearing in support of the discharge, the court is satisfied that:

(a) There is absolute necessity for the testimony of the accused whose discharge is requested;

(b) There is no other direct evidence available for the proper prosecution of the offense committed, except the testimony of said accused;

(c) The testimony of said accused can be substantially corroborated in its material points;

(d) Said accused does not appear to be the most guilty;

(e) Said accused has not at any time been convicted of any offense involving moral turpitude.

Evidence adduced in support of the discharge shall automatically form part of the trial. If the court denies the motion for discharge of the accused as state witness, his sworn statement shall be inadmissible in evidence.”

As can be gleaned from above, there are five qualifications in order for a person to be a state witness. We shall now discuss each qualification one by one:

1. There is absolute necessity for the testimony of the accused whose discharge is requested.

This requirement is aimed to curtail miscarriage of justice.  Absolute necessity of the testimony of the defendant, whose discharge is requested must be shown, if

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the discharge is to be allowed, and it is the court upon which the power to determine the necessity is lodged.

2.  There is no other direct evidence available for the proper prosecution of the offense committed, except the testimony of said accused.

The discharge of the witness may only be made if he alone has knowledge of the crime and not when his testimony would simply corroborate or otherwise strengthen the evidence in the hands of the prosecution.

3.  The testimony of said accused can be substantially corroborated in its material points.

This is an indispensable requirement because it is a known fact in human nature that a culprit confessing a crime is likely to put the blame on others rather than himself.

4.   Said accused does not appear to be the most guilty.

The law only requires is that the defendant whose exclusion is requested does not appear to be the most guilty, not necessarily that he is the least guilty.

5.  Said accused has not at any time been convicted of any offense involving moral turpitude.

Moral turpitude is defined as anything done contrary to justice, honesty, principle or good morals. In this requirement prior conviction is necessary, so if the witness being discharged was merely accused of a crime involving moral turpitude or has been acquitted of the same, he is still eligible for discharge

EFFECT OF DISCHARGE:

The discharge of an accused operates as acquittal and shall be a bar to future prosecution for the same offense, unless the accused fails or refuses to testify against his co-accused in accordance with his sworn statement constituting the basis for his discharge.

Napoles owes the Filipino people more than 10 years worth of explanation of every peso that went to nowhere. Let her bare her soul and tell the truth. Some would want her to become state witness because they can’t handle the shock and awe of hat Napoles might reveal. All of us must maintain our vigilance.

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