Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE RESOLUTION No. 98

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Introduced by Reps. TEODORO A. CASIÑO and NERI JAVIER COLMENARES

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RESOLUTION
DIRECTING THE COMMITTEE ON GOOD GOVERNMENT AND PUBLIC
ACCOUNTABILITY TO CONDUCT AN INVESTIGATION, IN AID OF
LEGISLATION, INTO THE VARIOUS MULTI-MILLION ANOMALIES
ATTENDING THE PHILIPPINE AMUSEMENT AND GAMING CORP.
(PAGCOR) THAT WAS PRACTICALLY MADE A MILKING COW BY THE
GENUINO-LED MANAGEMENT UNDER THE MACAPAGAL-ARROYO
ADMINISTRATION

WHEREAS, former President Gloria Macapagal-Arroyo appointed Efraim Genuino to

chair the Philippine Amusement and Gaming Corp. (Pagcor) in 2001;

WHEREAS, as exposed by various media reports so far, the former management of Pagcor
is attended by various anomalous fund releases that clearly favored the family of its previous
chair Efraim Genuino and the Macapagal-Arroyo administration;

WHEREAS, the Philippine Daily Inquirer reported on July 19, 2010 that former chair
Genuino approved a PhP 21.119 million check payable to former Pagcor president and chief
operating officer Rafael Francisco two days before President Aquino took office on June 30
for food purchases in a period of eight (8) days from the American fast-food chain
McDonald’s donated to the Philippine National Police (PNP) “for their activities and
operations in line with their thrust to provide security to the population;”

WHEREAS, Pagcor is not mandated to finance the budgetary requirements of the country’s
police force, as this is the duty of Congress;

WHEREAS, on June 12, 2010, the Failon Ngayon TV program, citing Pagcor documents,
exposed that Pagcor issued various checks to the Batang Iwas Droga (BIDA) Foundation
for various expenses that benefitted the said organization founded by Genuino and
composed of Genuino family members and associates. BIDA also illegally entered the party-
list polls in the 2010 elections and fielded Genuino’s daughter Sheryl Genuino-See as its first
nominee;
WHEREAS, Pagcor funds were used to pay BIDA Foundation Inc. a total of P28.2 million
in check payments – P26.7 million on Dec. 23, 2008 and P1.5 million on March 17, 2009 –
for production expenses for the film Baler and for food packs, respectively;

WHEREAS, Pagcor also paid BIDA Production Incorporated, a total of P24.98 million for
services rendered for the Pagcor project Maligayang Barangay, as well as for promotional
and video materials for the same project; promotional materials and judging for the
Pinakamaligayang Barangay project; and BIDA members’ IDs and pins, as well as tarpaulins
and collaterals. Payments for BIDA members’ pins alone amount to P8.82 million;

WHEREAS, former Chair Genuino also has unaccounted assets since 2008 and were due
for restitution including 11 high-end cellular phones, a Toshiba laptop computer, four (4) 9
mm submachine guns, and one (1) 9mm Glock pistol, among others;

WHEREAS, former Chair Genuino, a close ally of former Pres. Macapagal-Arroyo, and his
family members, ostensibly abused and misused Pagcor funds – that are government funds –
for their own benefit;

WHEREAS, it is imperative for Congress, the government institution that extended

Pagcor’s franchise in 2007, to exercise its oversight powers in the name of good governance,
parallel to the efforts of the ongoing Pagcor audit of its books that focus on the midnight
deals and cash disbursements in the final days of Genuino’s tenure that include the following
anomalies: P5-million monthly allowances given to over 200 consultants of the agency, and
other cash donations to the campaigns of Genuino’s children in the last elections;

WHEREAS, these anomalies may only be the tip of the iceberg since Genuino spent
practically nine years as Pagcor chairman and was in fact re-appointed by former Pres.
Macapagal-Arroyo on March 9, 2010 the eve of an election ban on appointments, for
another year. Genuino only resigned on June 16 after being criticized for accepting the
midnight appointment from Arroyo;

NOW THEREFORE BE IT RESOLVED, that the Committee on Good Government

and Public Accountability conduct an investigation, in aid of legislation, into the various
multi-million anomalies attending the Philippine Amusement and Gaming Corp. (Pagcor)
that was practically made a milking cow by the Genuino-led management under the
Macapagal-Arroyo Administration.

Adopted,

REP. TEODORO A. CASIÑO REP. NERI JAVIER COLMENARES

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