COA: LGUs misusing casino shares
Local government units (LGUs) receiving host city or provincial funds given to localities where casinos operate are misusing the money, a 2018 Commission on Audit (COA) report released last week said.
State auditors said the Philippine Amusement and Gaming Corp. (PAGCOR) should take steps to prevent such improper utilization of “host city shares” and set rules that would sanction the same.
The COA report noted that cities and provinces where casinos are located are given a monthly share of the income and under the guidelines on the handling and disposition of the funds, the money can only be used for projects like self-sustainable economic livelihood programs preferably on the grassroots level, infrastructure projects which are essential to the community, projects connected with the delivery of basic health services and other projects designed to prevent widespread disease or epidemics, projects related to the improvement of peace and order in the locality, projects involving the giving of emergency assistance to victims of natural disasters and calamities and such other projects that would socially ameliorate the poor.
State auditors said PAGCOR did not closely monitor the host city shares released to LGUs, which is why out of the total accumulated releases amounting to P1.203 billion, the amount of P908.729 million or 75.53 percent remained unutilized as of Dec. 31, 2018.
The COA audit team found that in the cases wherein the money was utilized, some LGUs used the funds for items that were not in accordance with the guidelines on the handling and disposition of host city shares from casino earnings.
Records showed that Angeles City used P577,000 for cash awards, trophies and uniforms for the an inter-office basketball tournament in 2018; P2.667 million for tuition fees of several students including those enrolled in private schools.
Bacolod City used the PAGCOR funds to purchase gasoline in the total amount of P5.258 million under the project promotion of peace and order and submitted Quarterly Fund Utilization Reports that were not summary of expenditures showing the particulars on what project the funds were spent for.
Cavite used P652,000 to pay the Bureau of Internal Revenue (BIR) for the month of June 2018 while Cebu spent P7.770 million for community health services like purchase of medicines and financial assistance for hospitalization, medical and burial and/or death “which could not be verified if these disbursements were compliant with the specific guidelines set by the LGU on the grant of the financial assistance, if any.”