The Aquino administration has left behind an unspent P6.413 billion on the president’s special fund, according to the Commission on Audit.
Based on CoA’s report, the amount came from the P5 billion and proceeds of the sale of the Manila Electric Co. stocks donated in 1990 by the Lopez family-owned Benpres Corp.
The amount should have been used to fund land reform projects, assistance to victims of natural calamities and livelihood assistance for depressed communities.
The Philippine Amusement and Gaming Corp. stopped remitting the Office of the President’s monthly share after the president’s special fund was transferred from the Presidential Management Staff and placed directly under the Office of the President.
From June 2014 to December 2016, Pagcor did not remit a portion of its earnings prompting CoA to issue Audit Observation Memorandum No. 015 on June 15, 2016 to require the remittance of the OP’s share in Pagcor’s net income.
“The assistant vice president of the Accounting Department of Pagcor confirmed that the last remittance of Pagcor for the PSF was in July 2014 for the month of May 2014 amounting to P250,600,136.74,” the report read.
With representations from the OP, Pagcor management turned over the full P5 billion to the Palace on Dec. 29, 2016 covered by Official Receipt No. 7494051.
“We commend the [OP] management for complying with the audit recommendation to make representation with Pagcor Management regarding OP’s share in its net earnings,” the commission said.
The OP’s P1.413-billion fund was a result of a 1990 compromise agreement between the Presidential Commission on Good Government and Meralco Foundation Inc. for a dispute settlement involving 27,776,557 common shares of Meralco.
On Aug. 24, 1990, Benpres Corp., represented by its president Eugenio Lopez Jr., executed a deed of donation giving 3,333,333 Meralco shares in favor of the OP represented by then executive secretary Catalino Macaraig Jr.