Director General Jesus Verzosa and other high-ranking officials of the Philippine National Police and even Interior and Local Government Secretary Ronaldo Puno were obviously lying from the start when they claimed that the P6.9 million worth of euros brought by the PNP delegation to Russia was intended as a "contingency fund", Sen. Miriam Defensor Santiago said Saturday.

"So this is no longer a contingency fund since this is taken from the intelligence-slash-confidential fund? If that's the case, all of you were lying at the outset, Puno, Verzosa, all of you. How can this be a contingency fund when you got it from the intelligence fund?" she said.

Sen. Rodolfo Biazon added that at least one intelligence officer should have been part of the delegation if that was their original intention.

"If that's really an intelligence fund, how come the police delegation did not include anyone from police intelligence?" he said.

For his part, Sen. Panfilo Lacson, himself a former PNP chief, said that based on regulations, a fiscal officer and not a budget officer or comptroller such as dela Paz, should process the cash advance.

Dela Paz had said earlier that he was designated disbursement officer for the P6.9-million fund.

Verzosa, meanwhile, had claimed that the 105,000 euros seized was an emergency fund for the eight-man delegation to the Interpol conference in St. Petersburg, Russia.

The Commission on Audit (COA) representative Reynaldo Villar, who was at the Senate as a resource person, denied that such a contingency fund exists for official trip abroad. Officials have also said that based on an administrative order signed by President Arroyo, emergency expenses shall be reimbursed upon the officials' return to the country.

Verzosa clarified later that the fund was actually meant for the purchase of PNP's military and intelligence equipment.

Dela Paz seconded Verzosa's statement, saying that there were equipment available for sale during the Interpol meeting.

"There were some [equipment] exhibited in the Interpol and it's possible that you can get some prototypes or softwares which can be used by the PNP," dela Paz said, adding that he had discussed this with Verzosa.

Santiago refuted this claim. She said that based on the existing defense agreement between the Philippines and the United States, the Philippine government can only buy military equipment from the US.

Citing Article 20 of the RP-US Mutual Defense Agreement, Santiago added that the PNP can only purchase supplies from other countries such as Russia if permitted by the US government.

"So what was Verzosa talking about when he said he wanted you to purchase military equipment from Russia?" she said.

PNP euro generals given lesson on truth invention

Dela Paz and other high-ranking PNP officials also took a direct hit from Santiago as she said that they were obviously lying in their statements before the Senate foreign relations committee.

"Dapat kung mag-iimbento ka, may two-thirds of the truth (You should have two-thirds of the truth when inventing a lie)," Santiago told Senior Superintendent Tomas Rentoy III, chief of the PNP budget division, who reportedly authorized the release of nearly P10 million in funds to dela Paz for the trip to Russia in October.

Santiago zeroed in on why Rentoy signed a certification for the funds only on October 10, exactly a week after it was released to dela Paz.

According to the finance officer, he immediately signed the certification upon dela Paz's request. At the time of his request, dela Paz, his wife and several other PNP officials were already being held by Russian customs authorities at the Moscow international airport.

Rentoy's reply prompted Santiago, who is known for her witty one-liners, to quip: "You're playing fast and loose with dates."

The senator said that she suspects that the documents shown by the PNP officials regarding the scandal were all fabricated.

"[You're manufacturing something] out of sheer hot air," Santiago added.

Santiago also cited the fact based on the PNP's report that the funds were already released and taken to the moneychanger identified as Felicia Sacaluran before Rentoy issued a certification.

"Hindi ka pwedeng mag-issue ng certification na nakapaglabas na ng pera (A certification can't be issued if the money has already been released, it should be before)," Santiago said.

Rentoy, however, said that dela Paz was issued a receipt to certify that he had taken the money out of the PNP.