Pagcor to reduce intelligence expenses following criticisms
Screengrab from https://www.pagcor.ph/index.php
MANILA, Philippines – The Philippine Amusement and Gaming Corporation (Pagcor) is projecting a “much lower” disbursement of its intelligence funds this year as it vowed to find ways to further reduce its intelligence expenses.
Pagcor said its projected disbursement for intelligence operations in 2014 “would fall below the 1999 levels in absolute amounts and much lower by 46 percent compared to the highest annual intelligence expense incurred by the previous Pagcor administration.”
“Also, we are still looking for ways on how to reduce Pagcor’s intelligence expenses,” it said in a statement over the weekend.
Pagcor issued the statement in response to critics’ allegations that the agency could not explain where it spent its P110 million intelligence funds.
The issue was among those raised in a letter of opposition filed at the Governance Commission for Government-Owned or Controlled Corporation (GCG) by several personalities led by Bayan Muna Representative Neri Colmenares against the re-appointment of entire board of Pagcor.
Article continues after this advertisementBut Pagcor said its intelligence operations had been in place since 1993 and had always had presidential approval.
Article continues after this advertisement“The liquidation of cash advances being made for intelligence operations has always been done by the special disbursing officers in accordance with COA Circular 2003-002 which only required the submission of certifications of fund utilization,” it said. COA is Commission on Audit.
“Recently, however, the COA has requested the submission of additional documentary requirements beyond those required by COA Circular 2003-002.”
Pagcor said it has already complied with the requirements and was just awaiting the guidelines being prepared jointly by the GCG, COA, and the Department of Budget and Management to cover intelligence and confidential funds of government entities.
The state gaming firm also addressed questions about its P5.14 billion alleged unpaid cash dividends.
It was only last February 17, 2014 that Pagcor said that the Department of Finance (DOF) informed the agency that it has to remit P5.88 billion in unpaid cash dividends since 2005.
“We immediately reconciled the figures and informed DOF that based on our own computation, Pagcor only owes the National Treasury P5.14 billion and this amount pertains to the unremitted cash dividends of the previous Pagcor administration,” it said.
“To date, we have already paid P2.44 billion or almost half of these arrears. We already informed the DOF that Pagcor will settle the remaining arrears amounting to P2.71 billion by next year,” it added.
Aside from the cash dividends that this administration started paying in 2011, Pagcor said it has also settled P856.98 million in back taxes (P657.18 million in Corporate Income Tax and P199.80 million in Fringe Benefits Taxes) incurred by the previous Pagcor administration from 2004 to June 2010.
“It should also be noted that our administration accelerated the payment for loans made by the past Pagcor management for the acquisition of various properties. These loans amounted to P1.65 billion as of June 30, 2010. We were able to settle this amount in less than a year after our new management assumed leadership of Pagcor.”
“It is also worth noting that due to the judicious management of funds of the incumbent Pagcor administration, the state-owned gaming firm was able to give a P5 billion funding to the Department of Education (DepEd) for the construction of thousands of classrooms in public schools nationwide,” said the agency.
Pagcor pointed out that it has been a “responsible corporate citizen” under its incumbent management.
“It is only under the state-owned gaming firm’s present administration that Pagcor has actually started remitting cash dividends to the National Treasury and began paying Corporate Income Tax and Fringe Benefits Tax to the Bureau of Internal Revenue (BIR),” it further noted.
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