Athletes, new management sue former Pagcor chief, et al

MANILA, Philippines –c
The complainants alleged that the money, intended for the training of swimming athletes, was funneled to a school owned by Genuino.

The complaint was filed Tuesday with the Office of the Ombudsman.

Aside from Genuino, also mentioned for alleged violation of the Anti-Graft Law, the Forfeiture Law and the Anti-Money Laundering Act were former Pagcor President/COO Rafael “Butch” Francisco, former directors Philip Lo, Manuel Roxas and Danilo Gozo, former Executive Vice President Rene Figueroa, former Vice President for Accounting Department Ester Hernandez, former Vice President for Corporate Communications and Services Department Edward “Dodie” Ding and former AVP for Internal Audit Department Valente Custodio.

Based on the complaint, Pagcor and the Philippine Sports Commission (PSC) had an agreement in 2007 authorizing Pagcor to deduct from its monthly remittance to the commission the amount incurred by the Philippine Amateur Swimming Association, Inc. (Pasa) like food and accommodation, venue fees and other expenses for the training of national swimmers.

This is illegal since RA 6847 (Philippine Sports Commission Act) states that Pagcor is required to directly remit 5% of its gross income to the PSC, which in turn will allocate portions of the funding assistance from Pagcor to specific national sports development initiatives, including training of national athletes by National Sports Associations (NSAs) like Pasa.

But in Aug. 15, 2007, the Pagcor Board comprised of Genuino, Francisco, Lo, Roxas and Gozo, approved the grant of a monthly financial assistance for three years to Pasa. Succeeding “financial assistance” to Pasa was also approved by the same board on Dec. 4, 2007, April 1, 2008, Feb. 11, 2009 and May 26, 2009.

From September 2007 to December 2008, a total of P34.323 million was released to Pasa by Pagcor, which it charged to the PSC share and subsequently reclassified by the gaming body as “financial assistance”. The re-classification meant charging the amount to Pagcor’s operating expenses.

When a change in PSC leadership came in 2009, the new Chairman Harry Angpin wrote Genuino to inform him that PSC was rescinding the authorization and thus discontinuing the assistance given to Pasa.

On Sept. 23, 2009, concerned swimmers, coaches, parents, members of Pasa and non-members formally requested the Commission on Audit (COA) to review all funds remitted by Pagcor to Pasa.

A review by COA revealed that there was no basis for Pagcor to release the funds directly to Pasa instead of coursing this to the PSC as mandated; the liquidation report submitted by Pagcor was not signed/approved by the authorized Pasa officials; and disbursements stated in the liquidation report in the total amount of P31,858,616.85 was not properly supported by documents.

Further investigation also showed that Pagcor’s financial assistance to Pasa was used to pay the Trace Aquatic Complex (TAC) in Los Banos, Laguna which is owned and operated by the Genuino family.

Former Pagcor Board Members Francisco, Lo, Gozo and Roxas were implicated in the complaint because they allegedly “acted in conspiracy with Genuino in approving the monthly financial assistance to PASA knowing full well that Pasa uses the TRACE Aquatic Center in Los Banos, Laguna in training its swimmers.”

Meanwhile, former Pagcor officials Figueroa, Hernandez and King, and still incumbent officer Custodio were included in the case because of their “indispensable official acts without which the release of “financial assistance” to Pasa and payments by Pasa of its accounts with Trace for the use of the latter’s Aquatic Complex facilities would not have been completed.”