AUGUST 1, 2011

NR # 2482

Probe PCSO scam - solon

A lawmaker today urged the House Committee on Government Enterprises and Privatization to investigate the alleged use of the Philippine Charity Sweepstakes Office (PCSO) as a milking cow leaving it in debt of P4 billion. Rep. Winston Castelo (2nd District, Quezon City), author of House Resolution 1430, said a congressional inquiry is in order to enable Congress to initiate proper action on a scam of this magnitude. Castelo said officials of PCSO have exposed alleged spurious media contracts and bogus medical claims that consequently reduced the charity institution as milking cow to the extent that these left the agency indebted for P4 billion during the previous administration. The allegations of co-mingled funds for operating expenses with those for charity work resulted in the agencys spending more than its budget especially in the last two years that the former appointees in the Board held office, Castelo said. Castelo said these acts appeared to have violated an agency rule that separates charity funds from other accounts or the general expense in possible violation of Commission on Audit (COA) accounting rules and regulations. Citing the PCSO expos, Castelo said the former appointees entered into millionpeso contracts with favored media groups and issued hundreds of guarantee letters to hospitals. It appeared that P1 billion had become payable to media groups and another P3 billion in obligations to hospitals, Castelo said. In a meeting with selected reporters, PCSO Chair Margarita Juico said the directors appointed by the President Gloria Macapagal-Arroyo to the PCSO board, used up its operational funds and broke the agency rule that separate charity funds from its general expense account. (30) lvc