Department of Justice | PHOTO: INQUIRER.net / Noy Morcoso
The Commission on Audit (COA) can scrutinize the gross gaming receipts (GGR) of Philippine Offshore Gaming Operators (Pogos) upon the request of the Philippine Amusement and Gaming Corporation (Pagcor), according to the Department of Justice (DOJ).
“There appears to be basis and sound fiscal reasons for COA to audit the GGR of the Pogo, while Pagcor is still in the process of procuring the services of a qualified third-party audit platform in accordance with the provisions of Republic Act No. 11590 and RA 9184,” the DOJ said in a legal opinion dated June 30.
The opinion was in response to the query of COA chair Gamaliel Cordoba, who said his agency had been requested by Pagcor to examine Pogo gaming receipts after terminating its contract with third-party auditor Global ComRCI due to “default and violation of RA 9184 and its implementing rules and regulations.”
But the DOJ, in an opinion authored by Undersecretary Raul Vasquez, said that the legal opinion was issued for COA’s “information and guidance only” because of another legal opinion on a similar matter in 1988.
1988 DOJ opinion cited
According to the 1988 opinion, the DOJ “will not pass upon any opinion, ruling and/or actuations of officials/agencies, over which it has no revisory authority.”
“An opinion of the Justice Secretary on the subject matter of your request would amount to a review of the opinion of the Commission on Audit on matters of audit, which is beyond the official competence of any office in the executive department to review,” part of the 1988 DOJ opinion cited by Vasquez said.
He stressed that the COA is “the watchdog of the financial operations of the government” and the DOJ has no reviewing authority over the rulings or official actuations of the COA.
Vasquez also noted that the matter was sub judice because of a pending case before the Supreme Court.
Citing RA 11590, the DOJ said: “The Philippine Amusement and Gaming Corporation or any special economic zone authority or tourism zone authority or freeport authority shall engage the services of a third-party audit platform that would determine the gross gaming revenues or receipts of offshore gaming licensees.”
3rd party auditor
It said the law mandates that the third-party auditor should be “independent, reputable, internationally known, and duly accredited as such by an accrediting or similar agency recognized by industry experts.”
It also said RA 11590 does not prevent “the Bureau of Internal Revenue and the Commission on Audit from undertaking a post-audit or independent verification of the gross gaming revenues determined by the third-party auditor.”
The DOJ said that it was clear in the law that an audit on the gross gaming receipts of Pogos should be done by third party audit platform. It added that the same law provides that the COA may conduct a post-audit or independent verification of the gaming receipts determined by the third-party auditor. INQ