MANILA, Philippines—All it took for former Philippine Charity Sweepstakes Office (PCSO) general manager Rosario Uriarte was to personally deliver letters asking for “additional intelligence funds” to then president Gloria Macapagal-Arroyo and the requests would be approved on the spot.
Trouble now is that senators suspect Uriarte, who was also former vice chairperson of the PCSO, was not being forthright about a P150-million intelligence allotment released during the final months of the Arroyo administration.
Senators who attended the second hearing of the blue ribbon committee probe on PCSO funds suspected that the P138 million taken from the sum was actually used to fund the campaign of Lakas-Kampi candidates in 2010.
In the early portion of her two-hour grilling, Uriarte said the funds were used in the government’s anti-illegal gambling efforts. Portions were also used to go after those behind text scams, she added.
Blue ribbon chairman Teofisto Guingona III’s slide presentation established that Uriarte controlled intelligence funds totaling P325 million from April 2008 to Feb. 25, 2010.
What made the senators unusually curious was a letter with the PCSO letterhead dated Jan. 4, 2010, where Uriarte asked Mrs. Arroyo to give her office “at most twenty percent (20%) of the Public Relations Fund or a minimum of 150 million pesos, to be used as intelligence/confidential fund.”
Uriarte said only P138 million was spent and the rest turned over to the appointees of the new administration.
Senator Franklin Drilon, in a separate slide presentation, presented seven letters that showed Uriarte, as PCSO general manager, asking sums ranging from P10 million to the P150 million being questioned as “additional intelligence fund” for specific periods.
Uriarte justified these requests in her letters saying the PCSO “has been constantly encountering a number of fraudulent schemes and nefarious activities” such as the sale of donated medicines, unofficial use of PCSO ambulances, unauthorized use of expenditures meant for charity patients and the apprehension of fixers targeting the agency’s beneficiaries.
Most of the letters Drilon presented bore barcodes or “received” stamps indicating they were officially received by the Office of the President.
Uriarte confirmed it was Arroyo’s signature or initials that appeared near the marking “OK” in a letter to indicate that the former president approved her request.
Sen. Francis Escudero noted that in at least two letters, no “received” stamps were seen.
“At least two letters indicate you went directly to the president because there was no stamp in the letter saying it was formally received by Malacañang,” Escudero said in English and Filipino.
“There is only the president’s signature. Does this mean you are close to her (malapit ka sa kaniya)?” the senator asked.
“Opo (Yes),” Uriarte replied.
Guingona noted that the letters asking for additional funds stated similar excuses for doing so.
“The same reasons are always used. It seems there is a template. If you spent so much to suppress illegal activities, who are these offenders? How many have been arrested? What is the status of their cases?” Guingona asked.
Singling out the Jan. 4, 2010, letter, the blue ribbon chairman wondered, “Why did you ask for such a big amount, (which is) nearly the same as the intelligence fund of the (Armed Forces of the Philippines)? And why released during the election period? What was the purpose?”
Uriarte’s designation as “Special Disbursing Officer” for the PCSO’s “Confidential/Intelligence Fund” also drew scrutiny. “Did you really spend all that money within that period? Who was your intelligence operator?” Sen. Juan Ponce Enrile asked.
“I cannot say that,” Uriarte said.
Pressed about the huge amount for intelligence activities, she added: “The administration is about to end, we need the budget for projects during that period (to combat) the illegal numbers game and (promote small time lotto).”
STL is the government-sponsored numbers game that the PCSO has offered as a means to neutralize “jueteng” and “masiao,” especially in the provinces.
Uriarte herself revealed that her office was supposed to have an annual corporate operations budget of only P60 million. This fact was supported by the new PCSO board.
“You are going to get into trouble (mabubuhol ka dito),“ Enrile warned.
“If you already have P60 million, why did you still ask for big sums of money? What event were you preparing for? An insurgency? A rebellion within the PCSO?”
Sen. Panfilo Lacson, a former director general of the Philippine National Police, noted that in intelligence operations he supervised, “a P5 million project proposal is already big and you can accomplish a lot, at most P10 million. With P150 million, how many project proposals were (involved)?”
Uriarte said the P150 million was necessary since “it’s for the nationwide operations of STL.”
Lacson pointed out that the amount was greater than the AFP’s intelligence fund of P124.3 million for 2011.
Uriarte assured senators that her entire expense report relating to these funds have been submitted to the Commission on Audit.
“How many project officers did you have?” Lacson asked.
Uriarte said she served as the lone intelligence project officer.
“Did you undergo intelligence training? Were you subjected to schooling before the project? Lacson lashed back.
“I only have advocacy and development work. This project was meant to combat the illegal numbers game and (fund) ongoing projects to benefit the people,” Uriarte replied.
“An intelligence project is not run that way, it cannot be managed that way,” the senator protested.
This exchange prompted Enrile to ask who Uriarte’s project custodian was.
“And where are your documents?” he demanded.
“I don’t have copies,” Uriarte answered. “I turned over the documents to President Arroyo.”
“But that is not a national security problem, you made the report just for the sake of the PCSO. Your answers indicate you don’t understand intelligence operations and I don’t believe you are an intelligence operator. Sorry to tell you,” Enrile said.
“Tell us, who is the intelligence project officer of this operation?” he added.
Uriarte refused to name her custodian, prompting Enrile to turn to Manuel Morato, the outspoken former board member who has been critical of current PCSO chairperson Margarita Juico.
Morato only shifted in his seat. Enrile called ex-board members Jose Taruc V and Raymundo Roquero who both answered: “I’m not aware, your honor.”
Former PCSO chairman Sergio Valencia was also of no help.
“I am aware of the problems in the implementation of STL but I am not aware of the entire nature of the problem,” Valencia answered evasively.
“You cannot know the problem without knowing its nature, my goodness,” Enrile fumed.
Addressing the board, Enrile said: “You just approved or confirmed the disbursement of money by your general manager without scrutinizing the purpose for which it was used!”
Valencia defended his board saying it “has been the practice since I came.”
Uriarte said that since her job description included documentation of all intelligence projects, she submitted all records to “Ma’am,” referring to then president Arroyo or the Office of the President.
Uriarte added she did not keep any records of her accomplishments. “I don’t have a logbook, everything I submitted is with Malacañang.”
At this point, Morato came to Uriarte’s defense, saying the intelligence groups of the military and the PCSO worked differently.
Enrile and Lacson dismissed this explanation, saying the intelligence groups of the National Bureau of Investigation, Bureau of Internal Revenue, Bureau of Customs, the Intelligence Service of the AFP and the National Intelligence Coordinating Agency have always observed the same procedures.
“It’s better to keep identities of confidential agents secret,” Morato pleaded.
But Enrile cut him short. “I haven’t heard of any PCSO intelligence agent being killed,” he said.