Miriam seeks inquiry into use of Pagcor funds

MANILA, Philippines - Sen. Miriam Defensor-Santiago called for a Senate inquiry into the use of funds by the Philippine Amusement and Gaming Corp. (Pagcor) to amend the agency’s charter and ensure efficiency and transparency.

The resolution calling for the inquiry was actually filed last Sept. 27 but it has not yet been referred to the appropriate Senate committee.

The Commission on Audit (COA) recently questioned Pagcor’s purchase of P268-million worth of condominium units, which it deemed unnecessary and unwise.

The COA also found out that Pagcor’s deal with Philweb Corp. for the operation of Internet casinos is allegedly disadvantageous to the government.

According to the resolution of Santiago, the COA could only look into the use of 50 percent of the gross earnings of Pagcor and five percent of its franchise tax.

“Only half of Pagcor’s earnings are subject to government audit and the Pagcor charter is silent on providing for an independent audit on the other half of the Pagcor’s funds,” the resolution stated.

Santiago noted that section 12 of the Pagcor charter allows the appropriation of the corporation’s funds for infrastructure and/or socio-civic projects as directed and authorized by the Office of the President.

However, she said that there is a need to update the charter in order to ensure that the funds are allocated to projects that are “appropriate and applicable to the present national situation and policy.”

“Pagcor funds should be earmarked (for) legally promulgated and institutionalized projects and that the Pagcor charter should be amended to specifically state such priority projects,” according to the resolution.

“The language of the provision on the Pagcor submitting a list of projects that might have been financed from the corporation’s earnings is subject to misinterpretation and presents itself as a possible loophole that can be abused by its officers and therefore should be amended,” it added.

Santiago said that an amendment of the Pagcor charter would institute accountability mechanisms by requiring an independent audit to improve transparency in its operations.