P7.2 billion in PCSO fund used for ads
By Llanesca T. Panti
At least P7.2 billion of the Philippine Charity Sweepstakes Office’s (PCSO) charity fund from 2001 to 2010 was spent for the agency’s advertising and public relations, according to a lawmaker.
Rep. Neri Colmenares of Bayan Muna party-list made the statement a day after he exposed alleged PCSO anomalies under the previous management before the plenary on Monday.
The lawmaker said that the fund diversion was highly possible, considering that a former PCSO official, Director Manuel Garcia, was recently charged for allegedly demanding at least 40 percent commission from advertising agencies that were given contracts under the agency’s billion-peso public relations and advertising fund.
Colmenares questioned how much of the charity fund was allegedly malversed to pay expensive media advertising, overpriced contracts and perks of the old PCSO board, and why the agency’s board members were given control of disposing of millions in public-relations (PR) fund.
“This is irregular. 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 board members were given millions of PR funds for their disposal,” he said.
In bolstering his claims, Colmenares argued that under Republic Act 1169, 30 percent of gross receipts of PCSO should be devoted to the charity fund while 55 percent should go to prizes and 15 percent toor operations.
Savings from the operation fund must be remitted to the charity fund.
“By bloating the public-relations fund beyond the 15-percent operation fund, PCSO (under the previous management) essentially diverted funds intended for charity. Congress must investigate deeper on whether these advertisements were shown at all,” Colmenares said.
The party-list legislator added that he had been informed that the previous PCSO board did not even bother to have concrete media plans or monitor the airing of ads.
As a result, the board failed to present any report on whether the spots it bought by the billions were aired as contracted.
Graft complaints
Two advertising agencies have slapped graft complaints against Garcia for allegedly demanding a total of nearly P29 million in exchange for payment of advertising placements and commercial spots of PCSO.
Alexander Quisumbing and Ludovico Yuseco last month filed the complaints against the former PCSO official, who used to be the advertising and promotions manager of the PCSO, for allegedly raking up commissions that totaled P28.71 million.
The complainants, both block-time promoters selling advertising placements, accused Garcia of demanding bribe money in exchange for the payment of their services.
Quisumbing alleged in his five-page complaint that Garcia received P16.1 million.
In Yuseco’s two-page complaint, the former PCSO official allegedly got P12.61 million.
Both complainants said that Garcia “threatened” them to pay an amount representing his “share” in the payment of commercial spots.
“Every time we collected payments from [PCSO], Manuel C. Garcia demanded his ‘share’ from us, under threat that our proposals and collections would not be acted on unless his ‘share’ shall have been paid,” Yuseco complained.
The two complainants were accompanied by Ed Araullo, PCSO Board Secretary, in the filing of the complaints.
Quisumbing and Yuseco were backed by the current PCSO management, which said that Garcia was issued checks that were later encashed.
Yuseco, who had 30 bank deposits of Banco de Oro used to pay to Garcia, said that he was “paying” the PCSO official from 2003 until June 2010.
Quisumbing, meanwhile, presented 56 checks from the Bank of Commerce and PhilTrust dated 2006 to 2008 as Garcia’s share.
Araullo said that Garcia had a share of 40 to 50 percent for every payment.
The complaints came at a time when PCSO had a staggering debt of around P3 to P4 billion, he added, despite overwhelming patronage of Filipinos of sweepstakes and lottery draws.
Araullo disclosed that Garcia once proposed a media plan that would cost around P255 million, more than half of the budget of the charitable institution pegged at around P500 million only.
He said that PCSO was about to axe Garcia from his position but the advertising official filed immediately for medical leave even before the agency’s administration could file administrative charges against him.
WITH REPORT FROM John Constantine C. Cordon
Source: http://www.manilatimes.net/news/topstories/p7-2-billion-in-pcso-fund-used-for-ads/
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