P5.6-M Pagcor overpayment in slot machine center uncovered-A A +A
Tuesday, August 21, 2012
THE Philippine Amusement and Gaming Corporation (Pagcor), a government-controlled company that regulates all games of chance, particularly casinos in the country, was discovered to have overpaid the lease in its Iloilo City gaming center located in Iznart-Delgado Streets.
Uncovered by senior state auditors, the findings formed part of the latest Annual Audit Report (AAR) made on the operations of Pagcor.
The said overpayment was P5,689,600 and was made to La Filipina Uygongco Corporation, owner of the Amigo Terrace Hotel and Mall Complex.
With monthly rent of P3.048 million, total space leased by Pagcor for the slot machine games is 2,032 square meters.
The discovery in the overpayment came as the Commission on Audit (COA) reviewed the lease contract entered into by Pagcor and La Filipina Uygongco Corporation.
COA validated and confirmed that the actual use of the leased space was only made in January 4, 2012. Yet based on Pagcor’s advance payment of over P18.2 million, covering the first six-month lease, the corporation was 56 days late in its turnover.
“As a result there was an overpayment of the advance lease rental…” COA reported as it called on Pagcor management to apply all P5.6 million to future rent.
Pagcor, for its part, heeded COA’s recommendation, saving said government-controlled company from a Notice of Disallowance by the Commission.
“We did not issue Notice of Disallowance because Management agreed and accepted the audit finding and commented that they will implement the recommendation,” said COA as it added that the government based on that action suffered “no pecuniary loss.”
Pagcor, in the same AAR, said that of over P36.6 billion in 2011 revenues, the biggest thus far in the past 11 years. (Florence F. Hibionada)