Witness: Questioned PCSO funds were liquidated

MANILA, Philippines - While claiming there were irregularities in the release of the confidential and intelligence funds (CIF) of the Philippine Charity Sweepstakes Office (PCSO), a member of the agency’s board admitted the disbursements were liquidated by former PCSO officials who handled the money.

During the resumption of her direct testimony on the petitions for bail filed by former PCSO Chairman Sergio Valencia, Director Manuel Morato, and Budget Officer Benigno Aguas before the Sandiganbayan, lawyer Aleta Tolentino said the more than P300-million disbursements of CIF to Uriarte and Valencia from 2008 to 2010 were liquidated based on a Commission on Audit (COA) certification.

The three PCSO officials, along with former president now Pampanga Rep. Gloria Macapagal-Arroyo, former PCSO directors Raymundo Roquero, Jose Taruc  V and Fatima Valdes; former COA chairman Reynaldo Villar and COA Region V head Nilda Plaras, have been charged with plunder for allegedly conspiring to divert the P366-million in CIF “for personal gain” during the three-year period.

The accused, however, insisted the CIF did not go to their pockets but were used for various government projects, and duly liquidated as certified by the COA.

Uriarte had earlier stated that the CIF was used to promote and protect the Small Town Lottery (STL), a government program designed to stop the illegal numbers game jueteng.

Tolentino, taking the witness stand again at the Sandiganbayan First Division last Friday, said Uriarte and Valencia, both payees of the checks for CIF disbursements, were late in filing their liquidation, a violation of the COA rules even though the policy allows a more relaxed liquidation of the same, considering the nature of the fund.

In an earlier testimony, Tolentino admitted that Arroyo, then as president, was required by law and COA rules to sign the approval of requests for additional CIF of PCSO.

PCSO records showed Valencia only spent P13.31 million in CIF from 2008 to 2010 which is below the authorized P15-million allocation for his office.

Documents signed by Mercedes Hinayon, acting manager of PCSO treasury department, showed Valencia withdrew P 4.8 million from the CIF in 2008, P5.6 million in 2009 and P 2.7 million in 2010.

Records also revealed that Uriarte withdrew P352.68 million from the PCSO’s CIF from 2008 to June 2010, including P138.22 million from January to June of 2010.