‘Pagcor aid suspension limited to NGO’

CEBU City Mayor Michael Rama clarified yesterday that the suspension of the release of financial assistance from the Philippine Gaming Corporation (Pagcor) would not affect the city government.

He said Pagcor financial assistance would only be withheld from the Cebu Economic and Business Foundation—the foundation behind the Cebu Investment and Promotions Center (CIPC) headed by Joel Yu.

The CIPC is the marketing arm of the city’s 300-hectare South Road Properties reclamation project.

Outlays for the foundation will be channeled through the Cebu city government for proper monitoring.

“The suspension only refers to the NGO. It does not talk about having the rest suffer,” said Rama.

Rama asked the City Council to reread the Pagcor letter for the correct interpretation.

“Pagcor officials might say that we do not know how to read,” he said.

Council members expressed worry during their session on Wednesday about how Pagcor chairman Cristino Naguiat Jr.’s leadership would affect the city.

The council approved several resolutions to charge purchases and programs to the city’s Pagcor funds of P4 million a month.

Councilor Augustus Pe Jr. asked for an inventory of all transactions charged to the city’s Pagcor funds under the Rama administration.

Cebu City, as host of a state-run casino, receives P4 million a month as financial assistance from Pagcor.

Of the amount, P3.5 million goes to the city government while P.5 million goes to the Cebu Economic and Business Foundation, the city’s designated NGO beneficiary.

Pagcor aid was suspended based on a Commission on Audit memorandum dated Aug. 22.

COA lawyer Ressurrecion Quieta of COA called the attention of Naguiat on the release of financial aid for host cities of Manila, Pasay, Angeles, Bacolod, Laog and Paranaque through their designated NGOs as approved by their city councils.

In Cebu City, former mayor Tomas Osmeña and ditectors of the CIPC used to receive a monthly share of P0.5 million from Pagcor.

Quieta said this should be corrected for proper control and monitoring of fund use. Naguiat wrote host cities to inform them that all Pagcor assistance would be given directly to the treasurer’s offices of recipient local government units.