Escudero urges GMA to settle fund stalemate

Senator Francis “Chiz” Escudero yesterday urged President Arroyo to diffuse the stalemate in Pagcor’s assistance to the Philippine Sports Commission (PSC), saying history of Malacañang involvement in National Sports Development Fund remittances proved crucial in the success of government sports projects.

The PSC has long been seeking the return to previous computation of its five percent share from incomes generated through casino operations by the Philippine Amusements and Gaming Corp.

The Pagcor, however, stopped giving the PSC’s full five percent share from its gross earnings after only two years since the sports agency was founded in 1990. At present, PSC computations place Pagcor’s remittances at 2.5 percent, or half of what it should receive from Pagcor as mandated by RA 6847, the law that created the PSC.

“Pagcor’s remittances have shrunk to half of what the PSC used to receive after deductions of franchise fees and other payables by Pagcor from its gross revenues,” Escudero said. “The result is devastating to RP sports, and we saw what happened in the Beijing Olympics. Maybe President Arroyo should diffuse the stalemate in the interpretation of the law and make sports among her priorities.”

According to Escudero, all-out government support was last felt by Filipino athletes in 2005, when the PSC received nearly P450 million “on paper.” The result was the Philippines’ overall championship in the Southeast Asian Games.

Escudero, however, said clarifications with PSC officials revealed the PSC did not receive the P450 million in full.

“A percentage of it was deducted for PSC advances. More was deducted to represent advances and sports assistance costs by Malacañang, Pagcor and a number of lawmakers seeking trophies, balls etc. from the PSC. But P450 million in full or less, more funding for Philippine sports guarantee success at a certain level, especially if funds are spent wisely,” Escudero said.

Escudero also noted Pagcor’s assistance to the NSDF was more than P665 million from 1990-1992, reiterating another successful hosting of the SEA Games in 1991 had the Philippines falling short of just one gold medal that would have toppled once mighty Indonesia from the overall championship.

“These are proofs that even if the PSC did not receive these amounts in full, but as long as it receives enough to fund its projects, there is a chance to elevate our performance in international meets. And so, there’s a chance we could dream of having a Filipino athlete winning an Olympic gold, too,” Escudero said.

“President Arroyo could step in, but she needs to make sports among her priorities to send the message across,” Escudero added.

On the average, the PSC receives only P30 million in Pagcor share, the only bright spot coming from July to September, when the PSC received a total P120 million.

Pagcor used to deduct the PSC’s five percent share from its gross revenue. Former President Ramos, however, changed the nature of NSDF remittances with Malacanang having control of the funds, prompting Pagcor to deduct government’s 50 percent share from Pagcor’s gross earnings, then franchise fees and other taxes are deducted from the remaining 50 percent before the PSC shrinking share is computed. Banking rate interests are also being deducted from PSC advances, leaving the agency with very little to spread among its various projects.