P22-M PCSO funds for PSC diverted to Philhealth, says Drilon

The Philippine Charity Sweepstakes Office (PCSO) has failed to remit an estimated P22 million to the Philippine Sports Commission (PSC) for the past two years as required by law.

Speaking during plenary debate at the Senate on the PSC’s proposed P108.9 million budget for next year, Commissioner Ambrosio de Luna, PSC officer-in-charge, said the PCSO’s last remittance was in 2004 in the amount of P11 million.

The PSC sent a letter to the PCSO requesting for remittance but they were told that it had no available funds, he added.

The PCSO now owes the PSC around P22 million for 2005 and 2006, De Luna said.

Sen. Franklin Drilon, Senate committee on finance chairman, said the PCSO failed to make the mandatory remittance to the PSC because the funds were used to pay for the enrollment of indigents in the Philhealth card program in the 2004 elections.

"In the 2007 budget, we are going to allocate P500 million (to PCSO) for the funds used to enrol indigents in the (Philhealth) program in 2004," he said.

"Presumably this is the reason why there is no cash available for the PCSO to remit to the PSC, which remittance is by provision of law.

"Hopefully this allocation of P500 million we have in the 2007 budget as payment for the subscription advanced by the PCSO to local government units to enrol indigents in the Philhealth program could be a source of funding to pay these obligations."

Under the PCSO charter, part of its annual revenues goes to the country’s sports development program. Specifically, 30 percent representing the charity fund and proceeds of six sweepstakes or lottery draws every year would automatically be remitted to the PSC to constitute the National Sports Development Fund (NSDF).

The administration’s Philhealth card program became one of the controversial issues used against the administration by the political opposition.

Apart from the PCSO, the NSDF is also financed by remittances from the Philippine Amusement and Gaming Corp. (PAGCOR), income from the rental of the PSC’s facilities, and other donations.