Domingo “seeking clarification” on bonuses
The Philippine Amusement and Gaming Corp. (PAGCOR) has responded to reports that it awarded big paydays and lavish perks to its executive staff while underpaying its taxes.
According to a report compiled by the country’s Commission on Audit, the state-run regulator miscalculated the government’s share of its earnings over seven years, causing it to underpay its taxes by PHP21.186 billion (US$393 million).
In the annual report, the commission said that from 2011 to 2017 PAGCOR computed the government’s 50 percent share of its income based on earning from gaming operations and not on “aggregate gross earnings,” as required by law. That share is supposed to be allocated for flood control, infrastructure improvements and social programs, reported the Philippine Star.
Based on the same formula, PAGCOR reportedly also underpaid the Philippine Sports Commission Act, which is supposed to get a 5 percent cut of the regulator’s revenues. The auditor recommended that PAGCOR “seek clarification with higher authorities” such as the office of the president and the Department of Finance as well as Congress to define for good the meaning of the phrase “aggregate gross income from franchise.”
PAGCOR was also found to have overpaid “certain long-serving staff” during 2017, passing out cash bonuses of almost PHP12.5 million to officials with 20 years of service, “plus an 18-carat gold ring as a memento for each staffer,” according to CDC Gaming Reports. The rings cost PHP13 million.
The commission said the rewards were “in excess of the amount provided for” by the government, which calls for PHP5,000 per person after 20 years in a government position. PAGCOR’s own rulebook mentioned a cash payment of PHP10,000 per person for 20 years of service, plus one month of base pay and the gold ring.
In a statement, PAGCOR denied the accusations, and said it stopped giving the gold rings in 2016 on orders from Chairwoman Andrea Domingo. Domingo initially denied that the regulator was paying the outsized amounts, but later walked back from that statement, saying, “We are seeking clarification from the president if this should go on.”
The commission also said that PAGCOR gave out perks like transportation and cost-of-living allowances, car plans and financial loans to its officers.
Domingo denied those accusations, saying, “We only retained what was implemented by the last administration because of the presidential directive as amended in 2008 by PAGCOR. We didn’t add any new benefits.”
After the report was released, a number of PAGCOR executives were sent packing. Attorney Angeline P. Papica-Entienza has been tapped as assistant vice president of PAGCOR and head of the GLDD, replacing Ramon Villaflor, reported Inside Asian Gaming. Rowena Alcaide has been appointed senior manager of the Casino Licensing and Regulatory Unit in place of attorney Dave Sevilla. Angelie Agustin is the new senior manager of the Responsible Gaming and Logistics Unit, assuming the role once held by Luis Dela Concepcion. And attorney Jeremy Luglug has been named acting senior manager of the Remote Gaming Unit, replacing Maria Flor.
