In hot water, again

The board of directors of the Philippine Charity Sweepstakes Office (PCSO) is once again in hot water.

The Commission on Audit (COA) has just asked the PCSO to immediately stop using proceeds from its Charity Fund for its employees’ medical benefits, saying this reduces the financial assistance available for the poor who are the real beneficiaries of the fund.

The COA emphasized that the Charity Fund is intended solely for national health programs and medical assistance to indigent patients and taking any amount from it for other purposes “is discriminatory to the indigent patients who are the true beneficiaries of the fund.”

It made this recommendation after a review showed that the PCSO’s annual medical benefits under its Employees Medical Assistance (EMAP) amounting to  P92.4 million in 2011 were charged to the agency’s Charity Fund instead of the Operating Fund.

This, the COA said in its 2011 Audit Report on the PCSO, resulted in the improper disbursement of government funds and reduced the financial assistance granted to the indigents who are the true beneficiaries of the Charity Fund of the PCSO.

The Employees Medical Assistance Plan (EMAP), which is granted to qualified PCSO employees and their dependents, is a benefit that should be taken from the 15-percent Operating Fund and charged against the agency’s savings.

COA asked PCSO to immediately stop charging the EMAP benefits to the Charity Fund and instead, payments of said benefits should be sourced from the 15-percent operating fund.

The PCSO has a Charity Fund equivalent to 30 percent of its net receipts. It is a trust and liability account that is used exclusively to finance and support health programs, medical assistance and services and/or charities of national character, COA explained.

The COA report also found that PCSO gave to its employees P302.8 million in grocery bonus and Christmas assistance in 2011 in violation of prescribed guidelines.

It said the “excessive” amount was an “irregular expenditure” because it was taken from the PCSO Provident Fund. The audit body asked the agency to discontinue the practice.

Audit of the PCSO Provident Fund account revealed the grant of 2011 CNA Grocery Assistance Program, CNA Christmas Assistance Program (two months Christmas bonus), CNA Grocery bonus and 2011 CNA Employees Mutual Fund Projects (rice allowance, draw allowance, medicine) through the Provident Fund account in the total amount of P302.7 million was contrary to COA Circular No. 85-55-A, and payment of allowances and other forms of additional compensation was without proper authority, COA said.

The PCSO Board is composed of Margarita Juico as chairperson and Joaquin Francisco III, Betty Nantes, Ma. Aleta Tolentino and Mabel Mamba as members.

Recently, Juico came under heavy fire after she admitted that she and the rest of the board erred in accusing the Catholic bishops of violating the law.

Newspapers reported that Juico admitted before the Senate Blue Ribbon Committee hearing that there were no luxury vehicles bought by the seven bishops of the Catholic Church, contrary to her earlier claim.

There were no “Pajeros” or luxury vehicles given to the Catholic church as a donation. And even if the Church officials did get luxury vehicles, there was nothing illegal about it, says Senator Miriam Defensor-Santiago.

Santiago, who heads the Senate’s constitutional amendments committee, lambasted the PCSO board and hinted that the PCSO board is just trying to divert the issue since certain irregularities have been committed by the present board.

Former PCSO chairman Manoling Morato filed cases against the current PCSO board for their decision to transfer the PCSO offices to PICC and for transferring PCSO funds to a private bank, allegedly a violation of the PCSO charter.

An online petition seeking the ouster of the present PCSO board claimed that since Juico assumed office, more than 35 kidney patients have died and scores of kids left uncared for due to the sudden stoppage of funds from the PCSO to orphanages.

It also noted that the PCSO board erred in deciding to break the 50-year agreement with the Quezon Institute, in transferring public funds to a private bank, in allegedly allowing illicit transactions in the Loterya ng Bayan, among others.

Defensor-Santiago wants the agency cleansed of misfits and irregularities by overhauling its charter.

Isn’t it about time that President Aquino and his advisers take these accusations seriously?

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