MANILA, Philippines — The Senate Blue Ribbon Committee asked Monday the Commission on Audit (CoA) to submit to the Upper Chamber the names of congressmen allegedly getting monthly shares from the 2.25 percent of the net receipts of the revenues generated by operators from small-town lottery (STL) designed to fight the decades-old operations of “jueteng,” an illegal numbers game.

Senators demanded stricter monitoring by the Philippine Charity Sweepstakes Office (PCSO) of the shares of the revenues generated from the operation of the PCSO’s  STL project followingadmissions in Monday’s Senate probe
that congressmen were not required to liquidate their shares given by STL operators supposedly for medical and health demands of their constituents.

Senators Panfilo M. Lacson, Francis Escudero, and Teofisto L. Guingona III were surprised by the admission by PCSO officials that current rules only allowed congressmen to give acknowledgment receipts on their receipt as part of the operations of the STL.

Local government units (LGUs) and the Philippine National Police (PNP), who are beneficiaries of part of the 2.25 percent sharing, however, were required to liquidate their shares. The two agencies have checking accounts, while congressmen do not have.

While congressmen had been given this share since the STL started operations in 2006, Escudero asked in a jest why no senator was given a share for the medical and health requirements of their constituencies.

The STL was implemented by the PCSO to fight “jueteng” which had corrupted local government officials and the police through regular payolas (protection money), but Lacson pointed out that giving of STL operators’ share to LGUs, the police, and congressmen is an apparent replica of the illegal operations of “jueteng” operators.

Most “jueteng” operations are in Luzon. Based on current rules, only one STL operation is allowed per province.

Guingona III, chairman of the Senate Blue Ribbon Committee, cited a Commission of Audit (CoA) report representing the congressional districts’ share from Dec. 2006 to March 2007 where “P7 million was directly remitted to individual members of the House of Representatives, instead of releasing the shares to hospitals, health facilities, and institutions.

Ma. Aleta L. Tolentino, PCSO board member, told senators that these disbursements to the congressmen is now being audited by the PCSO.

She said the CoA itself stated that the books of STL operators were not in accordance with auditing principles “and they recommended that we look into the STL operators’ books.”

The CoA further stated that congressmen have not liquidated their receipt of their shares from STL operators.

As a result, Lacson asked the PCSO to suspend the congressmen’s share of the STL operators’ revenues until they have submitted receipt of previous disbursements.

Through the Senate committee, Lacson also asked the PCSO to submit how much and to whom the portions of the 2.25 percent of STL operators’ revenues.

He, likewise, asked what’s the legal basis for the PCSO in giving a portion of the 2.25 percent of the STL operators’ revenues to the congressmen.

He pointed out that there is no provision in the PCSO charter that states that authorized to get funds for the congressmen.

Under the STL charity sharing scheme, revenues accruing to STL would be subdivided as follows: city or municipality, 10 percent; provincial government, five percent; congressional district, 2.25 percent; and PNP, five percent.

By the end of 2007, PCSO had already launched STL in 15 approved test-run areas. These include Quezon province, Angeles city, Bataan, Occidental Mindoro, Pampanga, Laguna, Bulacan, Negros Oriental, Iloilo city, Tarlc, Oriental Mindoro, Ilocos Norte, Albay, Olongapo and Batangas.

During the first year of operations (2006-2007), STL generated revenues totaling more than P3 billion, creating 62,500 jobs, and livelihood for displaced cabos (jueteng workers) and cobradores, as well as for the organic staff of the agent-corporations.

As the committee appeared to wind down its hearing, new PCSO management officials testified that the charity institution had a public relations (PR) expenditure of P7.2 billion from 2005 to 2010, spent mostly for tri-media exposures.

They also revealed that they are reducing their PR expenditures at a rate of two percent this year and a further reduction for next year.

Sen. Franklin M. Drilon said he could not understand why the PCSO spend billions for PR projects as these billions could help the needy, particularly those requiring medical help to hospitals.

Meanwhile, former President and now Pampanga Rep. Gloria Macapagal Arroyo will answer all the charges leveled against her at the right time and at the right forum.

This was stressed Monday by Raul Lambino, one of the lawyers of the former Chief Executive after attending the public hearing conducted by the Senate Blue Ribbon Committee on the fund mess surrounding the state-run Philippine Charity Sweepstakes Office (PCSO) where she allegedly approved the P325 million for the controversial intelligence operations of the PCSO from 2008 to the first four months of 2010, an election year.

“That is her position. At yan ang dapat.(and that is the correct way),” Lambino told Senate reporters.

“We have advised her it is not proper, not advisable that she talks any further on all issues. There are a lot of cases filed (against her) with the Department of Justice (DoJ), the Ombudsman, and the courts. These are legal problems she can properly answer before the courts,” he said.