MMDA sued over P82-M film fest funds

MANILA, Philippines - The Film Academy of the Philippines (FAP) yesterday sued the Metropolitan Manila Development Authority (MMDA) for allegedly withholding some P82 million worth of tax proceeds from the Metro Manila Film Festival (MMFF) held in 2002 to 2008.

In a 13-page petition, FAP director general and actor Leo Martinez – through lawyer Antonio Inton – asked the Quezon City Regional Trial Court to order the MMDA to release the alleged withheld funds covered by the report of the Commission on Audit (COA) in 2009.

The petition was based on a special audit on the MMFF funds from 2002 to 2008.

It said that the MMFF executive committee, headed by then MMDA chairman Bayani Fernando, released to identified beneficiaries P130.4 million of the total proceeds of P216.6 million, thus leaving a balance of P82.8 million in amusement tax proceeds from the said years.

“The MMFF Fund, as it has been originally conceived and practiced, is for the benefit of the movie workers,” read the petition.

Named respondent in the mandamus petition is lawyer Francis Tolentino in his capacity as chairman of both the MMDA and the MMFF executive committee.

In a text message, Tolentino – who assumed the MMDA office in 2010 – said the MMFF executive committee “will answer all old rehash issues after the most successful staging of the (festival).”

He said last year’s MMFF broke all records, proving the support of the people to the festival.

In the petition, Inton asked the court to direct Tolentino to conduct full accounting of the other film fest funds from the other years.

He also urged the court to issue a temporary restraining order stopping the National Cinema Association of the Philippines from effecting direct payment of the proceeds representing the amusement tax of the recent festival to the MMDA and MMFF executive committee to avert further damage and prejudice to the petitioner.

“Any such release of amount that would go directly to the coffers of the latter would be additional deprivation of what is rightfully due herein petitioner,” Inton said.

But according to Tolentino, there will be no transmittal of proceeds to MMDA as it is not a beneficiary of the MMFF fund.

Beneficiaries of the fund include the MOWELFUND, FAP, Motion Picture Anti Film Piracy Council, Film Development Council of the Philippines and the Optical Media Board.

The implementing rules of the Executive Order that created the festival said that the MMFF fund “shall be released to the designated beneficiaries after deducting all the operations and incidental expenses of the MMFF.”

Inton said the rules are clear to the effect that no discretion was afforded to the executive committee, which was initially named “trustee” of the fund, to allocate or disburse the said funds.

But citing the COA report, he said that there are “disbursements that are unsupported by necessary documentation that would justify such expenditure.”

“Some of these findings include a disbursement of P22.65 million within the years 2003 to 2006 allegedly for cultural projects and incentives and cash advances amounting to more than P15 million. These disbursements were made without the knowledge of and to the detriment of herein petitioners,” the lawyer said.

The Quezon City council had earlier passed a resolution asking the MMDA to transfer the management and administration of the MMFF to “more qualified” people from the film industry.

“It is common knowledge that the MMDA is saddled with a gigantic problem on traffic, garbage and other public service that will require the agency’s full attention,” read the resolution authored by Councilor Ramon Medalla and co-introduced by celebrity Councilors Anjo Yllana, Roderick Paulate, and Gian Sotto.