Proper disposition of government share from PAGCOR’s earnings pushed

Thursday, 22 September 2011 01:21

A veteran lawmaker today urged the government to use a portion of its share from the total gross earnings of the Philippine Amusement and Gaming Corporation’s (PAGCOR) for Metro Manila's infrastructure and socio-civic projects. Rep. Rodolfo Biazon (Lone District, Muntinlupa City) authored House Bill 5029, which will also monitor the financial situation of other government-owned and controlled corporations (GOCCs) to prevent the misuse of public funds.

Biazon said under the bill, the gross earnings of PAGCOR shall be remitted to the Bureau of Treasury where a special trust fund shall be created for the PAGCOR which shall be utilized only to support its mandated activities as stated in its charter, and under such policies and rules and regulations the Department of Budget and Management (DBM) may promulgate.

Under PAGCOR's charter, the government will get an annual 5-percent franchise tax from the total gross earnings of the agency.

"The recent congressional investigations into the activities of GOCCs and government financial institutions (GFIs), showed that some of its officials have conspired to spend and dispose the funds of their institutions, for their own personal ends or for other nefarious activities," Biazon said.

"This is in utter disregard of the public trust imposed upon them and which contravenes and violates the law," Biazon said.

Biazon added that the PAGCOR is one of the GOCCs guilty of malversation of funds in the past years, with its former officials facing graft and plunder cases.

"This could only have been possible because of the immediate availability of its earnings for disposition by its officials," he said.

Biazon said there is a need to provide some form of control over the earnings of PAGCOR to prevent any discretionary abuses by its officials and to ensure the proper disposition of its funds.

Under the bill, the 50 percent share of the government in the aggregate gross earnings of the Corporation from the franchise shall be immediately set aside and allocated to fund priority infrastructure and socio-civic projects within the Metro Manila area, such as flood control, sewerage and sewage, nutritional control, population control, Tulungan ng Bayan Centers, beautification, and Kilusang Kabuhayan at Kaunlaran (KKK) projects.

Biazon said the share of the government from the earnings of PAGCOR may also be allocated to fund infrastructure and socio-civic projects all over the Philippines as may be directed and authorized by the Office of the President of the Philippines.

Biazon said several House inquiries disclosed malicious and rampant misapplication and utilization of earnings of certain government agencies by some officials and cronies, which is in direct violation of accounting and auditing laws, rules and regulations of the government.

"Recently some GOCCs and revenue generating agencies were in the news and whose officials have been perceived to have misused the funds they have raised for activities other than that provided for in the mandate of the corporations which is to the detriment of the people as it affects government's capability to provide social and welfare services and enhance economic development," Biazon said.

"Funds of these corporations are either inappropriately or scandalously misused for the benefit of these officials or for their patrons and friends," Biazon said.