Ex-Pagcor chief faces new graft raps

MANILA, Philippines -  Athletes, coaches and sports enthusiasts in swimming led by former senator Nikki Coseteng filed yesterday graft, money laundering, technical malversation and forfeiture complaints against former Philippine Amusement and Gaming Corp. (Pagcor) chairman Efraim Genuino at the Office of the Ombudsman.

Also named respondents were former Philippine Sports Commission (PSC) chairman William Ramirez, Philippine Amateur Swimming Association Inc. (PASA) president Mark Joseph, and seven other former Pagcor officials.

The charges stemmed from the alleged misuse of over P38.8 million in government funds which was illegally released to PASA from 2007 to 2009 supposedly as financial assistance for the development and training of swimmers for the 2012 Olympic Games in London.

Pagcor funds worth P38,860,050.60 were allegedly released to Trace College Inc. (TRACE), a school founded by Genuino and his wife Aurora initially as a computer school in 1986.

The money was supposedly used to pay for the maintenance and upkeep of the swimming pools of the Trace Aquatic Center in Laguna and other expenses for the training of athletes.

Coseteng, now president of the Diliman Preparatory School in Quezon City and manager of its swimming team, said Genuino “maintains a direct pecuniary and financial interest” in TRACE that had received Pagcor funds.

Records showed that aside from being the founder of TRACE, Genuino was a former member of the school’s Board of Trustees before he was replaced by his daughter Sheryl in 2004.

Genuino’s son Erwin, a defeated candidate for mayor in Makati City in last year’s elections, also became a member of the school’s Board in 2007 while his wife served as president from 2002 until 2007.

Coseteng and the other complainants, who are represented by lawyer Harry Roque, said Genuino’s daughter is chief financial officer while his son serves as president and his wife is chairman of the school board.

The illegal release of government funds allegedly started sometime in February 2007 when PASA’s Joseph asked Genuino for the “funding” of the development and training of swimmers for the 2012 London Olympics.

In a letter dated Aug. 1, 2007, then PSC chairman Ramirez allegedly unlawfully “authorized” Pagcor to deduct from its monthly remittance the “legitimate expenses of PASA Inc., including food accommodation, venue fees and other expenses of national athletes undergoing training.”

The complainants said that in a memorandum dated Aug. 16, 2007, Genuino and other officials approved the release of “monthly financial assistance” to the organization for a period of three years for training of athletes.

Thereafter, fund releases in the amounts of P5.2 million in March 2008; P36 million and $48,834.60 from September 2007 to December 2008; P29.8 million in February 2009; P3 million from February 2009 to May 2009, were made.

In a letter dated Jan. 19, 2009, Genuino allegedly forwarded Pagcor Check No. 153948 in the amount of P30 million, P14 million of which was allegedly released directly to PASA.

The complainants said no less than the Commission on Audit (COA), in its 2008 report, noticed the “authorized direct releases of financial assistance by Pagcor to PASA without approval of the PSC Board of Commissioners” and in violation of Section 26 of Republic Act 6847 or the Philippine Sports Commission Act.

As of Dec. 31, 2008, state auditors said fund releases totaling P74,401,921.68 and P26,165,550.82, respectively, remained unliquidated.

In November 2009, the complainants said COA required Genuino and other officials to explain direct fund releases to PASA covered by seven checks amounting to P27,744,084.71.

Even though Pagcor’s Internal Audit Department submitted a liquidation report, state auditors, in its audit of the transactions and documents dated Jan. 18, 2010, said “no document or basis of authority was presented by Pagcor to release funds directly to PASA Inc., instead of to the PSC as mandated by law.”

Among others, COA also stated that “the disbursements were not properly supported by documents” that would “justify the expenses or charges.”

Also named respondents to the case were Rafael Francisco, former president and chief operating officer of Pagcor; Philip Lo, Danilo Gozo, and Manuel Roxas as former members of the Pagcor Board of Directors; Ester Hernandez, former vice president for the Accounting department; Valente Custodio, former assistant vice president for the Internal Audit department; and Edward King, former senior vice president for Corporate Communications and Services department along with Ramirez as former PSC chairman and Joseph as PASA president.

Aside from Coseteng, those who filed the complaint were Susan Papa, president of the Philippine Swim League; Jairulla Jaituilla, a former Olympian and participant at the Asian Games; Emilio Amago Jr., president of the Philippine Aquatic Sports Coaches Association, Inc.; Edgardo Galeno, coach of the ESGaleno Swim Team and the Patio Isabel Swim Club; Augusto Bonilla, swimming coach at the University of San Carlos Cebu; Dennis Cordero, coach of the DAC Swim Team and former PASA Inc. national coach; Susana Ong Berino, parent of former PASA member Gian Daniel Berino; Nunilon Moreno, president of Pasay City Amateur Swimming Association; and Dave San Juan, a teacher at the Pasay City West.