MANILA, Philippines?A top Malacañang official Sunday defended the recent reappointment of Efraim Genuino as chair of Philippine Amusement and Gaming Corp. (Pagcor), extending his term into the incoming administration of presumptive president-elect Benigno ?Noynoy? Aquino III.

?I don?t understand why this became a problem,? Elena Bautista, chief of the Presidential Management Staff, told the Philippine Daily Inquirer by phone. ?We have nothing to hide. It?s above-board.?

The discovery of Genuino?s term extension was denounced by Senate Minority Leader Aquilino Pimentel and other senators as another move by President Gloria Macapagal-Arroyo to create problems for the incoming administration.

Pagcor, which runs casinos, is a crucial revenue-generating corporation of the government. It is the source of the President?s Social Fund. The Palace is also known to have a say in the charity projects it funds.

Bautista said the extension of Genuino?s term could not be considered a ?midnight? appointment because it was made on March 9, the day before the constitutional ban on appointments during an election period took effect.

She said the appointment was also based on the Pagcor charter or Presidential Decree 1869, which allows President Arroyo to extend Genuino?s term for another year.

Based on the government corporation?s charter, the term of a Pagcor chairperson is to be renewed annually, she said.

?What?s the problem? It?s within the charter, based on our study. The problem emanates only from speculations or what people think the appointee would do,? Bautista said.

In a text message to the Inquirer Sunday, Aquino said, ?Midnight appointments will be reviewed as provided for by the Constitution.?

?As a professional and technical arm of the President, we (at PMS) just look (at the legal provisions). We would say the same thing if the president were someone else. There?s no politics in our work,? Bautista said.

She said the constitutional prohibition covered only the President, who is barred from making permanent appointments two months before an election.

Practical point of view

?It does not say there that a person cannot accept an appointment within that period,? Bautista explained. ?I?m looking at it from a practical point of view,? she stressed.

?My job is to see if what we?re doing is within the (Pagcor) charter. It?s within the charter so whatever story people might want to create out of the appointment, it?s outside of me.?

Test of legality

According to Pimentel, Ms Arroyo is ?posing challenges to Senator Noynoy to test the legality of her moves.?

Previously, President Arroyo appointed Renato Corona as Chief Justice of the Supreme Court, which would test whether Aquino would make good his campaign promise not to honor her appointee when he becomes president, Pimentel said.

In a phone interview, Pimentel said that with less than a month to go before she steps down, Ms Arroyo should have left to the new administration the appointment of key government officials.