Pagcor stops releasing money to SRP's marketing arm

CEBU, Philippines -  The Philippine Amusement and Gaming Corporation (Pagcor) will no longer release the monthly P400,000 directly to the Cebu Economic and Business Foundation, the marketing arm of the South Road Properties founded by Rep. Tomas Osmeña when he was still mayor.

With Cebu Investment and Promotions Center (CIPC) as its other name and Joel Mari Yu as its head, this nongovernment organization has been getting a portion of the Cebu City’s Government’s P4-million monthly share from Pagcor’s operations as authorized by the Cebu City Council.

The Pagcor’s practice of releasing funds directly to the NGO was reportedly unknown to many, even to former city treasurer Ofelia Oliva.

Cebu City South District Rep. Tomas R. Osmeña explained that the Cebu Economic and Business Foundation is the city’s marketing arm for the South Road Properties.

During the past few years, the CIPC received an annual P3-million financial assistance directly from Cebu City. But the Commission on Audit (COA) had prohibited local government units and other government agencies from giving monetary aid to NGOs founded or managed by its incumbent officials.

It prompted the previous administration to ask Pagcor to release directly to CIPC a portion of the City’s P4-million share every month.

Pagcor chairman and chief executive officer Cristino L. Naguiat Jr. said the decision to suspend the release the portion of the city’s share to the Cebu Economic and Business Foundation is in response to the memorandum order issued by COA on August 22, 2011.

In his letter addressed to the Cebu City Council, Naguiat said Pagcor’s remittance to the Cebu Economic and Business Foundation “shall henceforth be discontinued.”

The amount would now be released directly to the Cebu City Treasurer’s Office after the City submitted the utilization reports of the previously released amounts.

Naguiat said the utilization report of the City of Cebu shall be submitted to the COA for further scrutiny.

The City’s financial assistance to the CIPC is for it to market the 290-hectare SRP.

Based on the guidelines, the use of Pagcor funds should only be for sustainable economic and infrastructure projects that is essential to the community including health and peace and order-related projects.

Pagcor funds are also being used for emergency assistance to victims of natural disasters and calamities. — (FREEMAN)