The Philippine Amusement and Gaming Corp. rejected the claim of the Commission on Audit that its Casino Filipino Manila Bay branch lost P2.11-billion income in the last five years.
“The P2.11 billion worth of losses cited by COA, which dated back to 2014, was not accurate as it included the revenue deficits of CF Pavilion, which ceased operations last March 2018,” Pagcor said in a statement.
“CF Manila Bay only commenced operations in August 2017, less than two years to date.”
In its audit report, COA said: “the aggregate net losses of P2.113 billion incurred by CF-Manila Bay cast doubt on its ability to continue.”
“The decrease in the net income is a combination of a declining total income and a steady rate of mandated contributions and Corporate Social Responsibility financial assistance,” state auditors said.
But Pagcor clarified that CF Pavilion is a branch independent of CF Manila Bay.
The state gaming firm said it cannot cease its operations in CF Manila Bay because of an existing contract entered into by the previous Pagcor management with Vanderwood Management Corp.
“It may be noted that CF Manila Bay’s gross gaming revenue has in fact been steadily increasing since it opened 23 months ago. This has resulted to a rise in net operating income from a monthly average of P4.22 million in 2017 to P13.38 million in 2018,” Pagcor said.
“It is only after deducting the mandated contributions and corporate social responsibility financial assistance, which are independent on the income from gaming operations, that negative figures are registered.”
Since the start of its operations in 2017, CF Manila Bay has contributed a total of P875.58 million for Pagcor’s mandated beneficiaries.
“PAGCOR maintains that its casinos, which have a distinct gaming market, continuously contribute to its overall income, thereby supplementing efforts in fulfilling its mandated commitment to build the nation,” it said.
