COA tells Osmeña: Explain P2.5M in Pagcor fund spending

OSMEÑA

CEBU City Mayor Tomas Osmeña and 19 other city officials were asked to explain the alleged unauthorized spending of Philippine Amusement and Gaming Corporation (Pagcor) funds amounting to P2.5 million.

This after the Commission on Audit (COA) issued a notice of suspension against the city spending P2,579,163.60 after the amount was found to have been spent for purchases not included in the list of items or projects that the Pagcor donation could be used for by the city government.

The other city officials included in the COA notice were Cebu City Vice Mayor Edgardo Labella, City Accountant Arlene Rentuza and the city’s 17 councilors.

The notice, dated March 14 and signed by COA-Cebu City State Auditor IV Maria Daisy Bercede, said the amount was suspended in audit because this was charged by the city government against the Pagcor trust fund even if this was not covered under its proper handling and utilization.

Bercede pointed to Section 4.3 of Presidential Decree (PD) 1445 which states that “trust funds shall be available and may be only for the specific purpose for which the trust was created or the funds received.”

Pagcor remits P4 million a month to the city government as the latter’s share in revenue from the casinos operated in Cebu by the state-run gaming corporation.

The Pagcor guidelines for the assistance provides that the funds should be used for scholarship, self-sustainable economic livelihood projects, infrastructure projects, projects involving the delivery of basic health services, among others.

However, COA noted that the city spent the Pagcor funds on the payment of the electric bill for a public school, to buy monobloc chairs, tents for some barangays and payment for a brand-new car.

Half of the questioned spending was done by the administration of former mayor Michael Rama and the rest were spent by the current administration.

Sought for his comment, Osmeña said that he has yet to receive the order but is ready to explain the spending.

“If COA is asking me to explain, then I am willing to explain. I don’t have problem with that,” Osmeña said.

Osmeña stressed that the Pagcor fund was put to good use. Also, the city still has around P90 million in Pagcor funds.

“We don’t use th(e) (Pagcor fund) for traveling. We don’t use this for whatever. So we are subject for scrutiny, I don’t have (any) problem,” Osmeña added.

The city was given 90 days by the COA to explain the spending. Failure to comply with the requirement can result in disallowance, the COA said, as provided under Presidential Decree 1445, or the Government Auditing Code of the Philippines.