THE SENATE Ways and Means Committee chairman has filed a resolution seeking an inquiry into an allegedly anomalous procurement by the Philippine Amusement and Gaming Corp. (PAGCOR) of its third-party auditor.
“The POGOs’ (Philippine Offshore Gaming Operators) questionable selection of its third-party auditor needs to be thoroughly investigated,” Senator Sherwin T. Gatchalian said in Filipino in a statement on Wednesday.
“If there is a violation of the law, it is also necessary to know who is guilty.”
The committee’s recent hearings on PAGCOR showed the government-owned corporation failed to comply with existing procurement rules when it provided a 10-year P6-billion contract to a third-party auditor that did not meet the operating capital requirement.
It was also found to have submitted a bank guarantee from a financial institution that is not registered in the Philippines. Offices declared by the consortium to PAGCOR were also found to be fictitious and inappropriate venues of operation. Building permits were also not secured.
The insufficient technical capability of the third-party auditor to determine the correct gross gaming revenue of POGOs may lead to underpayment of the 2% franchise fee to PAGCOR and the 5% gaming tax to the Bureau of Internal Revenue, Mr. Gatchalian said. — Alyssa Nicole O. Tan