Solons seek probe of PCSO fund use

Two congressmen sought yesterday a House investigation into the alleged misuse of P430 million in charity funds of the Philippine Charity Sweepstakes Office (PCSO).

In Resolution 1447, Isabela Rep. Heherson Alvarez, who is Lakas secretary general, said lawmakers cannot ignore the claims of former PCSO board member Sister Christine Tan that the bulk of the agency's charity funds has been transferred to Malacañang.

Alvarez said the money was reportedly diverted to the Office of the President, Office of the First Lady and the League of Municipalities headed by presidential son and San Juan Mayor Jinggoy Estrada to fund various political programs.

For his part, Rep. Ernesto Herrera (LAMP, Bohol) said lawmakers should look into allegations of Sister Tan, whom he described as a "respected social worker and human rights advocate."

He said the House should look in particular into the claim that part of the PCSO money intended for charity was used to accommodate congressmen's requests for financial assistance.

"The appropriate committees should shed light on this issue because the reputation of the legislature is at stake here," he said.

Alvarez said besides Sister Tan, former Supreme Court Justice Cecilia Muñoz Palma and lawyer Ulpiano Sarmiento III were also unceremoniously replaced as chairperson and board director, respectively.

"As we come close to the elections in May (next year), we have a new set of Malacañang loyalists out to milk our national coffers dry for their own personal political gains. Even the authority to distribute ambulances was transferred from the PCSO to the League of Municipalities chaired by Jinggoy," he said.

In a letter dated March 5, Sister Tan complained that because P430.3 million of PCSO funds had been turned over to Malacañang, only P65.3 million was left for the agency's charity projects, including financial aid to hospitals, orphanages and the needy.

"To comply with requests from the President and First Lady ... P430,279,581.28 was authorized within a span of one year. Compare this to the amount earmarked for our regular beneficiaries ... serving thousands of sick, aged, children, orphans, and unfortunate, which was P65,364,400," she said.

She said she learned to object to the requests, and that her objections led to her ouster from the PCSO board last Feb. 28.

She said the board is now composed of Palace-friendly personalities, including a personality from the movie industry, a protégé of presidential son Joseph Victor Ejercito, a friend of First Lady Dr. Luisa Estrada, and a relative of new PCSO Chairwoman Rosario Lopez.

She explained that she accepted the PCSO job because she wanted "to help channel funds to the truly poor."

"After a few months in office, though, I observed that requests from congressmen and mayors, from the President and the First Lady, were becoming more frequent, while funds for our regular hospitals and institutions were becoming extremely difficult to secure," she said.

"Why the haste of the chairman of the PCSO board to advise the President to replace us? The answer came logically. National elections are coming, and I have not learned to steal," she added.

For her part, Lopez said the decision to replace members of the PCSO board was made by no less than the President who saw the need for the agency to generate more income for its operations and charitable functions of the government.

Lopez, who just arrived from Rome, said she was saddened that Sister Tan blamed her for her removal.

"It is clear that it is the President who has the authority to appoint members of the board and likewise the authority to accept the members' resignation," she said.

Lopez noted that the present PCSO board members were appointed based on their competence and track record. She said that members of the past board failed to perform well, as evidenced by the P6.4 million loss the PCSO incurred in 1998.

She added that the present PCSO leadership was able to improve the agency's financial condition. The PCSO, she said, is now showing signs of a possible 45-percent increase in income for this year.