Lottery funds city social services projects

Thursday, February 9, 2012

THE small town lottery (STL) is helping fund Iloilo City's social services through a 10-percent share from STL income.

STL, a legal game of numbers, is operated by a private firm Iloilo Small Town Lottery Gaming Corp. (ISTLGC) through a franchise awarded by the Philippine Charity Sweepstakes Office (PCSO).

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Aside from the city, share of STL income goes to the Philippine National Police and other charitable organizations.

Under its mandate, only 40 percent of the income goes to the PCSO to cover the winnings, while 60 percent goes to the share of several organizations including its franchised operators and personnel.

However, the local STL franchisee here was reportedly revoked by PCSO general manager Ferdinand Rojas II through an order dated January 16, 2012 for failure to submit financial reports to the PCSO in violation of Section 28(d) of STL's 2005 Implementing Rules and Regulations.

All PCSO-accredited STL operators are required to submit periodic (daily, weekly, monthly) reports of sales, deductions, commissions, remittances, prizes actually disbursed, and cost of operation and other expenses.

Meanwhile, Mayor Jed Patrick Mabilog said he is going to inquire with the PCSO regarding the operational status of STL in the city. Since its operation in September 2006, STL has been giving a monthly share of its earnings to the City Government.

Mabilog said the STL money is being used to fund various social services such as the construction of health centers in the city districts and barangays. If STL stops operations here, the city social services would be greatly affected, the mayor said.

Records from the city treasurer's office showed that the city's share from STL in 2011 amounted to P10,538,774. In 2010, the city collected P10,831,381 as its total monthly share while in 2009, the city was able to receive P8,950,991.

In 2008, the city's share was P7,774,486 while the last quarter of 2006 and the whole of 2007, the city share was P9,031,625.

The PCSO audit team found out that the ISTLGC failed to remit the correct share of PCSO from its revenues. The audit team also noted the poor maintenance of ISTLGC books and records of accounts and not in accordance with generally accepted principles of accounting and auditing.

The franchisee operator failed to pay its employees contributions to the Social Security System and Philippine Health Insurance Corp. and its failure to submit to the PCSO Regional Office daily reports of winnings with attached tickets. (Lydia C. Pendon)