Pagcor files another graft case vs former chairman

MANILA, Philippines - The Philippine Amusement and Gaming Corp. (Pagcor) filed yesterday another graft case with the Department of Justice (DOJ) against its former chair Ephraim Genuino for alleged diversion of over P3 million in cash and rice donations to his two sons’ campaign kitty in the 2010 elections.

In its complaint, Pagcor alleged that Genuino conspired with his sons and other officials in using a 300-metric ton rice donation from a Japanese firm worth P1.4 million and another P1.7 million in assistance for victims of typhoon “Frank” for the campaign of his sons Anthony and Erwin. 

“Our investigation and records show that Genuino and four others connived to misappropriate more than P3.1-million worth of public funds and property from Pagcor by diverting part of the rice donation to bolster the political ambitions of his two sons during the 2010 elections,” Pagcor president and chief operating officer Jorge Sarmiento explained.

Genuino’s sons Anthony, who won as mayor of Los Baños, Laguna; and Erwin, who lost in the Makati City mayoralty race, were named as respondents in the complaint along with former Pagcor senior vice president for corporate communications Edward King, and Los Baños city administrator Mai Mai Tado, also an official of the Genuino-owned Trace Computer College.

According to the complaint, Genuino secured the donation of Thai rice from Aruze Corp., one of the proponents of Pagcor’s Entertainment City project.

It was found that of the 10,000 sacks of donated rice, only 6,500 ended up with the Department of Social Welfare and Development for distribution to typhoon victims, while 3,500 sack were “withdrawn, delivered and ended up at the Pagcor warehouse in Imus, Cavite.” Sarmiento said the 3,500 sacks were replaced with a cheaper variety of rice through a barter agreement between Pagcor and a private rice mill.

“From that point onwards and up to the rundown to the 2010 national elections, several hundreds of bags of rice were repacked in sacks bearing the images of Ton (Anthony) and Erwin Genuino as electoral candidates,” the complaint read.

The repacked sacks of rice, Pagcor alleged, were delivered to Trace Computer College and to various individuals representing Genuino’s sons, and eventually distributed during the election period.

Sarmiento said the total cost of rice released to the Genuino brothers was P1.4 million while expenses incurred for logistics including shipment, trucking, storage and repacking, reportedly amounted to around P1.7 million.

It was the third graft and malversation complaint filed with the DOJ against Genuino and other former Pagcor officials.

The first two involved the production of the film “Baler” in 2008 and the alleged diversion of funds to Batang Iwas Droga (BIDA) Foundation, a party-list group with Genuino’s daughter Sheryl Genuino-See as its first nominee, which ran but lost in the last elections.

“We just want to prove to our countrymen that in Pagcor, there are no big names when it comes to search for truth and justice,” the Pagcor official told reporters in an interview.

Another complaint has been filed with the Office of the Ombudsman in connection with the alleged anomalous release of P34 million in funding assistance to the Philippine Amateur Swimming Association, Inc. 

Meanwhile, Justice Secretary Leila de Lima has designated a three-member panel of prosecutors to handle the plunder complaint against Genuino and 40 others in connection with the alleged misuse of Pagcor funds for the BIDA foundation. 

In Department Order No. 578 dated July 13, De Lima designated Assistant State Prosecutor Edna Valenzuela as chair with Assistant State Prosecutors Christine Perolino and Zenamar Machacon-Caparos as members.