The state-run Philippine Gaming Corp. has been too generous to a fault, according to recent findings released by the Commission on Audit.
In its findings, the CoA listed down the “excesses” committed by Pagcor officials and employees since last year.
In 2017, the CoA questioned the P13.020 million worth of 18 karat gold memento rings for 20-year loyalty awardees, as well as cash awards amounting to P12.495 million.
The CoA said the award scheme was actually contained in the Pagcor’s employee’s handbook, but the amount that it has given to its loyal employees were too excessive since a circular issued in 2013 provides a maximum award of P10,000 for loyalty awardees.
Pagcor chairperson and chief executive officer Andrea Domingo, however, stood her ground and turned to the Office of the President for clarification.
“We recommended and management agreed to seek clarification/approval from the Office of the President on the grant of benefits particularly the loyalty awards to its Pagcor employees,” the CoA said.
Other than the awards, state auditors also questioned the P643,000 cash advances made by Pagcor for its Circle of Extraordinaire Awards, which reportedly has not been approved by the Civil Service Commission.
The CoA said the list of CEO awardees should be submitted first to the CSC but Pagcor management insisted that their board of directors had the authority to set personnel management policies, under Presidential Decree No. 1869 or the Pagcor charter.
Also questioned was the P58.334-million Representation and Transportation Allowance granted to officers as well as car plans amounting to P29.167 million which are supposedly not allowed under the General Appropriations Act of 2017.
Under the 2017 GAA, government officials such as department secretaries can only receive a total of P28,000 RATA a month. But the Pagcor chairman and CEO reportedly received as high as P110,000.
The CoA said car plans were also excessive as those who had availed of such were already claiming transportation allowance, also a violation of the 2017 GAA.
Even the interchangeability of car plans and housing benefits, amounting to P125.954 million in 2016 and P121.289 million in 2017, were also questioned by the CoA as they were based only on a Board of Directors resolution and without clear presidential approval.
The officials were entitled to at least 950,00 loan, with a maximum amount of P3.5 million for the Chairman and CEO.
Meanwhile, CoA and Pagcor agreed that Pagcor should seek post-facto from the Office of the President to avoid future audit suspensions or disallowance.
“We recommended and management agreed to seek post facto approval from the Office of the President and ensure that officers who have availed of the car plan will no longer claim transportation allowance to avoid possible audit suspension and/or disallowance,” the CoA said.
The CoA also flagged Pagcor on the P3.113-million Cost of Living Allowance of Casino Filipino Davao officers and employees, in addition to their P9.977 Personal Economic Relief Allowance, resulting in double compensation.
The Pagcor management said the Government Corporate Counsel approved their total compensation package, which includes both COLA and PERA, in 2011, but the CoA still insisted that the grant of both allowances was tantamount to double compensation.
Also, the Pagcor was found to be favoring politicians as well.
Based on a separate CoA report, Pagcor has released 5,050 sets of backpacks with a total amount of P2.557 million directly to politicians or their representatives, with no assurance of receipt by the targeted beneficiaries as there were no available documents.
“Granting also that the intended beneficiaries received the items, the practice, however, suggests an impression to the beneficiaries that such donations were endowed by the politicians themselves, and not by PAGCOR,” the COA said.
PAGCOR, however, did not extend to same generosity to the national government and to national athletes.
According to CoA, PAGCOR had an under remittance amounting to P21.186 billion to the Bureau of Treasury because it refused to share 50% of its earnings with the national government.
The COA said the computation should be based on “aggregate gross earning” but PAGCOR has based its remittance from gaming operations only.
“If it is impractical due to huge amount involved as settlement would result to the abrupt depletion of PAGCOR earnings, we further recommend that management request for the revision or repeal of the law through legislative process specifically on the basis of the 50% government share to conform to the changing times and complement with the level of PAGCOR earnings.”
Also, the computation of the 5 percent share of the Philippine Sports Commission was not based on the gross income of PAGCOR, resulting in under-remittance of P1.631 billion.