MANILA - The Bureau of Treasury (BTr) failed to collect over P24-billion from the Philippine Amusement and Gaming Corporation (PAGCOR), a Commission on Audit report stated.

According to the 2015 COA Annual Audit report on BTr, PAGCOR’s remittance to the BTr from 2011 to 2014 was short by P24,053,929,055.82.

The Charter of PAGCOR states that as part of the special condition of franchise, the government must receive 50 percent share in the aggregate gross earnings of the corporation after deducting 5 percent franchise tax. The money will be allocated for infrastructure and socio-civic projects in Metro Manila.

However, COA said the funds PAGCOR submitted to the government was insufficient due to BTr’s failure to account and bill the corporation of its under-remittances despite the audit agency’s recommendations to do so in recent years.

BTr also allegedly failed to require PAGCOR to submit the certified monthly statements of gross earnings.

COA said, the under-remittances “(deprived) the National Government of the needed resources for the implementation of its programs/projects.”

Based on the financial statement, PAGCOR should have remitted P76.300 billion from its total gross earnings of P158.1 billion from 2011 to 2014. But records showed, only P50.8 billion was wired to BTr, leaving around P5.843 billion under-remittance in 2011, P6.702 billion in 2012, P6.743 billion in 2013, and P5.043 billion in 2014.

Upon recommendations of COA, the BTr has sent a letter to PAGCOR, requiring the corporation to complete the P24.053-million under-remittance, and to submit the certified monthly statements of gross earnings.

But, the separate audit report on PAGCOR stated that its under-remittance is only 15.401 billion, after the corporation had an over-remittance of P10.561 billion.

GROSS EARNINGS

The difference in the computed amount of total under-remittance was due to the varied interpretation of "gross earnings," the total amount where the 50 percent share of the national government shall be deducted. The PAGCOR state auditor said that since the law does not define “aggregate gross earnings,” they relied on their interpretation of which sees it as the “entire earnings or receipts of such person or corporation.”

“As a result of the differing interpretation of what constitutes aggregate gross earnings, the total amount remitted by PAGCOR from CYs 2011 to 2015 was P72.559 billion only, instead of P98.521 billion resulting in deficient remittance totaling P25.962 billion,” the audit report on PAGCOR read.

“However, this amount was reduced by the over-remittance of the 50 percent dividends paid to the National Government…in the total amount of P10.561 billion as a result of the revised computation. Therefore, the net under-remittance…was P15.401 billion.”

The legal service of BTr already suggested a meeting with PAGCOR, COA-BTr and COA-PAGCOR "to discuss the matter if PAGCOR would insist that it had correctly remitted the NG share and is not liable for the under remittance."