MANILA, Philippines - Almost P50-billion worth of anomalous contracts involving the Philippine Charity Sweepstakes Office (PCSO) have been submitted for investigation in the House of Representatives.
Bayan Muna party-list Rep. Neri Javier Colmenares revealed that an approximately P42-billion worth of thermal paper contract was entered into by PCSO and an Australian company TMA. The contract had a life span of 50 years.
Colmenares questioned the rationale for the agreement being tied up for half a century, and alleged that the contract was approved without proper bidding procedures.
Former PCSO Chairman Manoling Morato was quick to deny the allegations. He said the contract was legal and was even approved by the NEDA due to the benefits the government will gain. Morato said the contract includes provisions that the company TMA will build its thermal paper production plant in Clark, Pampanga without cost from PCSO. He added that the contract includes a 20% commission for the PCSO on every sale that the TMA will get from abroad.
Morato explained that even if thermal papers quality improves in the next 50 years, TMA will be the pioneering company to produce such since they are the global leader in thermal papers.
"They are the best in the world, walang ilalabas na pera ang PCSO, sila gagastos sa P3 billion plant na itatayo nila, bababaan nila presyo, at lahat ng benta all over the world, may commission na 20% ang PCSO," he added.
Morato also said TMA products' quality is way better than any local and international competitor.
"Ito isang taon hindi kumukupas ang mga numero, yung ibang thermal paper 3 months lang nabubura na ang mga numbers," he added.
Under PCSO rules, a winning lotto ticket holder has one year from the date of draw to claim prizes.
However, Colmenares said the idea of getting an Australian firm to supply thermal papers for 50 years is extremely disadvantageous to local corporations that may be able to produce the same kind of quality products. Colmenares said, "Bakit ita-tie-up half a century, wala ba Pilipino corporation na pwedeng magproduce niyan, paano kung may mas mura, lahat tayo wala na sa mundo, itong kontrata andun pa din."
Aside from the thermal paper contract, Colmenares also revealed that huge amounts of funds, amounting to approximately P7.2 billion during from 2001 to 2010, were surreptitiously spent on advertising and public relations.
Colmenares said, "Bakit advertise eh wala namang competition, lahat naman bumibili ng ticket kapag tumataas ang pot, so whats the use?"
The solon added, "The former PCSO chairman admitted that he had a P25-million PR fund but he did not use it. This means that the previous PCSO boards were given millions of PR funds for their disposal."
Colmenares also uncovered a letter addressed to then President Gloria Arroyo asking approval for the realignment of 50% or at least P150 million of the PR fund to "intelligence funds," an item which the PCSO does not even need.
The letter-request by PCSO General Manager Rosario Uriarte dated January 4, 2010, or just before the 2010 presidential elections, was approved by Arroyo, according to Colmenares.
He added that Congress must find out whether this is legal considering budgets cannot be realigned to an item which the PCSO is not authorized to have, and worse, without the approval of its board.
Congress will now investigate if the President has the authority to realign these funds, especially just before the elections and where these funds went.
Under RA 1169, savings from operations shall directly go to the charity fund and realigning the same is in violation of charter, the lawmaker said.
PCSO Chairperson Margie Juico, meanwhile, said they will review the contracts. PCSO lawyers will look into it and the agency will undertake appropriate actions, she added. Juico refused to further comment on the issue, pending the results of their investigation. If proven that funds have been mismanaged, Colmenares said members of the previous PCSO board of directors must be held liable and cases against them can be filed at the Ombudsman and at the Department of Justice.
