COA: City violated Pagcor fund rules

CEBU, Philippines - The Commission on Audit said Cebu City officials did not comply with its recommendation that funds granted by the Philippine Amusement and Gaming Corp. be spent only for projects that promote economic opportunities and help improve the situation of the less privileged.

COA learned that the city requested the Pagcor officials in Manila to give P400,000 every month directly to the Cebu Economic Business Foundation, the registered name of the Cebu Investment and Promotion Center. Pagcor is giving the city P4 million as share of its operation in Cebu City.

The state auditors earlier recommended that the city officials should prioritize the use of Pagcor funds for projects and activities, “which will redound to the social and economic welfare of the less fortunate segments of the community, as envisioned by its grantor, so that the much needed government assistance can reach the intended beneficiaries.”

But state auditors were dismayed after they found out that the recommendation was just taken for granted by the city officials.

COA said verification of transaction documents showed non-compliance of the recommendation. The accounting department explained that every transaction involving the use of Pagcor funds is covered by a resolution from the Cebu City Council, hence they cannot stop it.

COA did not reveal what city projects were funded through the Pagcor funds against the guidelines.

It was learned that when Mayor Michael Rama assumed to his post last year he changed the previous policy that all requests for funding that will be charged to Pagcor funds shall be coursed through only one councilor for screening.

Rama said under his leadership all councilors can approach him for approval of particular expenses that may be charged to the special trust fund of the city from Pagcor.

During the term of former mayor Tomas R. Osmeña, now congressman of the city’s south district, all requests for funding to be charged to Pagcor funds, were coursed through first to City Councilor Augustus Pe Jr. for evaluation.

Under Pagcor guidelines funds donated to the city shall be spent for projects that involved self-sustainable economic livelihood projects, infrastructure projects essential to the community projects related with the delivery of basic health services and peace and order.

Other projects include those designed to prevent widespread disease or epidemics, those for the improvement of peace and order, emergency assistance to victims of natural disasters and calamities and projects for social amelioration.  (FREEMAN)