FORMER Philippine Amusement and Gaming Corporation (Pagcor) chairman Efraim Genuino would have to refund the government the sum of P550,000 released in 2008 as donation to a private residential subdivision in Makati City.
The Commission on Audit has denied Genuino’s motion for reconsideration challenging the 2019 decision of the commission, which upheld the issuance of a notice of disallowance against the cash donation.
Records showed that Pagcor released the amount to the Magallanes Village Association Inc. (MVAI) as financial assistance for the installation of street signs and repainting of street gutters and curbs. This was disallowed in audit as an irregular expenditure.
In his appeal, Genuino argued the sum came from Pagcor’s public relations fund, which made it private in character and outside the jurisdiction of the COA. He also asserted there was no basis to hold him liable since the financial assistance went to public purpose.
COA Chair Michael G. Aguinaldo and Commissioner Roland C. Pondoc ruled otherwise, noting that since Pagcor is a government-owned or controlled corporation (GOCC), the commission has audit jurisdiction over its funds.
“The determination of COA’s jurisdiction over a specific entity does not merely require an examination of the nature of the entity. Should the entity be found to be non-governmental, further determination must be made as to the source of its funds. Pagcor being a government entity, its funds are considered government funds regardless of its source,” the COA said.
At the same time, the commission held that Genuino’s contention of donating to a public purpose is untenable, noting the recipient organization was a private homeowners’ group.
“The MVAI is a private subdivision and its sidewalks remain privately-owned. Delineated roads and streets, whether part of a subdivision or segregated for public use, remain private and will remain as such until conveyed to the government by donation or through expropriation proceedings. The subject property is still considered private until the City Government of Makati acquires the property by donation, purchase, or expropriation,” the COA pointed out.
It added that as the chairman of Pagcor’s Board of Directors, Genuino was expected to possess legal knowledge of the implications of granting the financial assistance, hence his actions cannot be deemed committed in good faith.
