COA orders Philsoc to settle P74 million SEAG debt

MANILA, Philippines - The Commission on Audit yesterday ordered the Philippine Southeast Asian Games Organizing Committee (Philsoc) to liquidate its outstanding balance amounting to P74,634,507.50 incurred in the country’s hosting of the 2005 Manila SEA Games.

In a letter sent to Philsoc president Jose “Peping” Cojuangco Jr. last March 9, COA auditor Mario Lipana demanded the Philsoc to settle the amount within 15 days or face legal action.

“We reiterate our demand to liquidate the amount with the PSC within 15 days upon receipt of this letter,” said Lipana. “Failure to do so, this office shall be constrained to recommend appropriate legal action on this matter.”

The Philsoc received P167,634,507.50 from the government which it used to fund the staging of the 23rd edition of the biennial, 11-nation multi-sports meet.

The Philsoc submitted liquidation reports last Jan. 27 amounting to P93 million plus the sports equipment it turned over to the PSC worth P99,011,903.31 and claimed it has no more accountability and unliquidated advances.

But in documents disclosed by the PSC, the sports agency released an advance funding of P100 million to the Philsoc needed in opening Letters of Credit for the procurement of competition and venue equipment.

Lipana, however, contended that this meant the Philsoc still has P74,634,507.50 to liquidate.

Philippine Olympic Committee spokesman Joey Romasanta said everything should be settled by the accountants of the parties involved.

“We’re just relying on the memorandum of agreement signed by the Philsoc and the PSC,” said Romasanta. “If it (COA) will not accept it, an audit conference is in order. We hope all these things would be adequately clarified.”

Meanwhile, former Philippine Sports Commission chair William “Butch” Ramirez clarified that the PSC approved only P3 million for Pagcor to remit directly to the swimming association or PASA to pay for the athletes’ legitimate expenses such as food, accommodation and venue fees.

The PSC earlier said that the PASA drew P29 million in direct funding from Pagcor.

“The P29 million that went to PASA was on an installment basis from what I know. What I approved was for Pagcor to give P3 million directly to PASA to pay for athletes’ meals at Trace Aquatics Center,” said Ramirez.

“I was one of those who always argued that Pagcor should give the PSC its five-percent share so it’s unfair to say that I was part of this,” he said.

He also said that the PSC under his watch failed to reimburse expenses of Fil-Am netter Cecil Mamiit amounting to P1 million for failure of the player to submit the necessary documents.

“The officials said we were holding on to Mamiit’s reimbursement amounting to almost P1 million. But how can we give it back to him when it was not properly documented, from plane tickets to other receipts.”    – Joey Villar