Unregistered business benefited from P1B PAGCOR coffee bills

The bulk of the P1 billion the Philippine Amusement and Gaming Corp. (PAGCOR) spent on coffee before the Aquino administration took over went to an unregistered business, current PAGCOR chairman Cristino Naguiat Jr. said in a statement Tuesday. President Benigno Aquino III revealed during his State of the Nation Address (SONA) on Monday that PAGCOR, under former chairman Efraim Genuino, had spent P1 billion for coffee from August 2001 to June 2010. The PAGCOR chairman called the expense “scandalous," “outrageous," and “offensively excessive." Naguiat also revealed that P700 million of the P1 billion went to concessionaire “Promolabels Specialty Shop" which had a three- to five-year contract for operations of Figaro coffee shops in Parañaque, Angeles City, Heritage, Olongapo City, Manila Pavilion, Tagaytay and the former Casino Filipino Silahis. Despite the huge sum paid to Promolabels, however, Naguiat revealed that the company was not registered with the Securities and Exchange Commission (SEC). He also said a “Lot Manalo" signed the contract. Manalo was later identified as Carlota Cristi Manalo Tan, the wife of Johnny Tan, a friend of Genuino’s. “So sa umpisa palang, may deceit na — hindi siya SEC registered at ‘yung maiden name ‘yung ginamit, hindi totoong pangalan ang ginamit niya [even if] she was married at that time," said Naguiat on GMA News TV’s “State of the Nation."
For the latest Philippine news stories and videos, visit GMANews.TV Naguiat added that Johnny Tan was BIDA partylist’s second nominee during the last elections, next only to Genuino’s daughter Sheryl Genuino-See. Tan is among the 40 respondents, which includes Genuino, in a P186 million plunder case for questionable BIDA transactions. The PAGCOR chief also alleged that Promolabels attendants were urged to reach a quota of P3,000 worth of coffee a day, or P90,000 a month, adding that a Commission on Audit report said that Figaro coffee prices in PAGCOR’s casinos were “excessively priced" compared to their branches outside the casinos. According to presidential spokesman Edwin Lacierda, PAGCOR’s “coffee shop expenditures" reached P1,007,408,908.86. The total consisted of P933,664.57 from August to December 2001, P22,204,609.23 in 2002 and P29,804,628.60 in 2003. The coffee charges then jumped to P83,714,154.02 in 2004, P172,819,600.96 in 2005, and P167,379,603.74 in 2006. It declined slightly to P119,670,645.01 in 2007 but rose to P164,561,181.88 in 2008, P162,917,571.58 in 2009, and P83,403,251.29 in January to June 2010. Naguiat added that PAGCOR under his administration only spent a maximum of P36 million a year for 12 branches compared to over P100 million for seven Casino Filipino branches during Genuino’s time. According to the “State of the Nation" report, incumbent PAGCOR officials are thinking of filing a plunder case against the Promolabels owner and the former PAGCOR board. Genuino, as of posting, has declined to give a comment. In a statement, Johnny Tan denied any anomalies in PAGCOR's expenses, saying that the P1 billion reflects expenses over a course of nine years across 13 PAGCOR branches. — BC/ELR/VS, GMA News