COA: Pagcor had P21-B under-remittance to treasury
THE Philippine Amusement and Gaming Corporation (Pagcor) had a net under-remittance of P21.186 billion to the Bureau of Treasury (BTr), according to state auditors.
In its report on Pagcor for 2017, the Commission on Audit (COA) said that it asked the state-run gaming firm in 2016 to comply with Section 13 of Presidential Decree (PD) 1869 and consider its entire income in computing the 50-percent government share.
But COA noted in 2017 that Pagcor “continuously computed the 50 per cent government share based on its income from gaming operations only.”
“The computation of the 50 per cent National Government (NG) share and cash dividend due the NG was not based on the ‘aggregate gross earning’ from its Franchise contrary to Section 12 of PD No. 1869 and Section 3 of RA [Republic Act] No. 7656, respectively, resulting in the net under remittance to the Bureau of the Treasury (BTr) of P21.186 billion,” COA said.
According to the same audit report, Pagcor had a P1.6-billion under-remittance to the Philippine Sports Commission (PSC).
“The computation of the five per cent share of [PSC] from Pagcor earnings for CY [Calendar Year] 2017 was not based on the gross income of Pagcor contrary to Section 26, par. 2 of RA 6847, otherwise known as ‘The Philippine Sports Commission Act’ which resulted in the under remittance to PSC in the total amount of P1.631 billion,” COA said.
COA asked Pagcor to compute the 50-percent government share and the PSC’s five-percent share based on its aggregate gross income from gaming operations, other related services and other income, and to remit the P21.186 billion to the BTr and the P1.6 billion to the PSC. The auditors recommended Pagcor seek revision or repeal of the law if it found it to be impractical. REINA TOLENTINO
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