Genuino disputes graft raps involving Baler movie

Former Philippine Amusement and Gaming Corporation (PAGCOR) chair Efraim Genuino went to the Department of Justice (DOJ) on Monday to debunk one of the three graft suits filed by the current officials of the state-owned gaming firm. Lawyers Benjamin Santos and Ramon Esguerra confirmed that their client, Genuino, had personally submitted and sworn to the authenticity of his counter-affidavit before the DOJ panel handling the preliminary investigation into the graft and malversation charges against him. In an 18-page counter-affidavit, Genuino denied committing wrongdoing when PAGCOR, under his leadership, approved the release of P26.7 million to support the production of the movie "Baler" in 2008 by buying tickets to be awarded to the firm's patrons. Geuino then asked the DOJ panel, led by Assistant State Prosecutor Gino Paolo Santiago, to dismiss the "baseless complaint" against him. "I vehemently deny committing any of the above acts [graft and malversation] for the purpose of defrauding, or causing undue injury to any party, much less the Government. Neither did I conspire with the other respondents named in this investigation, nor did I act with bad faith or gross negligence to effect the alleged irregular and fraudulent disbursement of funds in the amount of P26,700,000.00 in connection with the movie, 'Baler'," he said. He added that the purchase of movie tickets amounting to P26.7 million "was done in utmost good faith and in accordance with the law." Genuino then lashed back at the current PAGCOR leadership for supposedly filing a criminal case against him as part of its political harassment against personalities perceived to be associated with former President Gloria Macapagal-Arroyo. Graft and malversation suit Aside from Genuino, also impleaded as respondents are his son Erwin, 13 former PAGCOR officials, and 14 other officials from BIDA Productions Inc. and VIVA Communications Inc. In its complaint filed last June 14, the current PAGCOR leadership said their former officials approved the release of P26.7 million to support the film "Baler," produced by BIDA and VIVA. Of the movie's production cost of P40 million, BIDA was to shoulder two-thirds (P26.7 million) and VIVA the other third (P13.3 million). The complaint alleged that BIDA paid VIVA its P26.7 million share in five staggered payments, but the amount was supposedly charged to PAGCOR. In its complaint, PAGCOR presented a memorandum of corporate communications head Edward King to the PAGCOR Board of Trustees to show how the amount was charged to PAGCOR's Player Tracking System (PTS) in 12 casinos. In its PTS, PAGCOR awards incentives such as movie tickets to loyal patrons. PAGCOR said its board, led by Genuino, approved the memorandum because there was supposedly a clamor for 'Baler' tickets. But there was no clamor to begin with, PAGCOR said, resulting in the waste of P26.7 million. "The dismal sale of Baler tickets among casino patrons using their PTS points clearly proves that the alleged 'clamor of casino patrons' was a farce/concoction," PAGCOR said. Genuino's rebuttal Addressing allegations that the transaction was irregular, Genuino said the P26.7 million purchase of 'Baler' tickets "was in line with PAGCOR's Corporate Social Responsibility and basic social functions." "Since 'Baler' was a movie about heroism, courage, love of freedom, patriotism and chivalry in time of war, I thought that it was within PAGCOR’s corporate social responsibility and basic corporate function to help promote social, cultural and historical awareness to society by purchasing and distributing 'Baler' tickets to its customers and other persons in the different PAGCOR branches," Genuino said in his counter-affidavit. He added that it has been PAGCOR's practice to support the local entertainment industry. "PAGCOR’s undertaking to purchase 'Baler' tickets was not an isolated endeavor to promote local entertainment. It cannot be said that it was an aberration of PAGCOR’s usual projects," the former PAGCOR chair insisted. No malversation of public funds He added that public funds were not wasted because the P26.7 million in question belonged to PAGCOR's corporate funds and not to the money supposed to be turned over to government coffers. "Complainant failed to show that the P26,700,000.00 the Board approved to purchase Baler tickets was taken from PAGCOR’s gross earnings owing to the Government or that said amount was sourced from PAGCOR’s gross earnings which was previously remitted to or earmarked for the Office of the President," said Genuino. "The truth of the matter is that we purchased Baler tickets from PAGCOR’s corporate funds, sourced from its Operating Expenses (OPEX), particularly its marketing funds. Thus, Complainant’s bare allegation that said P26,700,000.00 was public in character is too presumptuous and deserves no merit," he further said. Genuino also said disputed the current PAGCOR leadership's claim that the movie tickets were charged to the gaming firm's Player Tracking System. "To set the facts straight, the purchase of BALER tickets was not dependent on PTS points. PAGCOR’s purchase of these tickets was chargeable to its OPEX Fund since it was a marketing and promotional expense," he said. No personal gain He likewise argued that the complainants were not able to establish that he personally gained from the purchase of P26.7 million worth of “Baler" tickets. "Since the payment of P26,700,000.00 was clearly made to BIDA, it cannot be automatically assumed that the same redounded to my personal gain or benefit since BIDA possesses a separate juridical personality from its directors, incorporators, members and officers," said Genuino. "Moreover, it is incumbent upon Complainant to prove fraud and that I used BIDA to perpetuate fraud both of which it failed to do in this case," he added. Genuino also said there was no conflict of interest on his part or on the part of the former PAGCOR board because none of them sat as directors or officers of BIDA and VIVA. "It cannot be overemphasized that the Board decided to embark on said endeavor pursuant to PAGCOR’s corporate social responsibility. Thus, it cannot be said that the funding of ‘Baler’ was 'not in any way for any public purpose' or that injury was caused by giving undue advantage to any party," he said. Political harassment He likewise said that the filing of the complaint against him "is merely a political vendetta by PAGCOR's new management" against him because he was closely identified with former President Arroyo and her spouse, Jose Miguel. Genuino added that incumbent PAGCOR chair and chief executive officer Cristino Naguiat Jr. and director Eugene Manalastas have an ax to grind against him because it was during his leadership that the two were asked to resign from PAGCOR. He then asked the DOJ panel to dismiss the complaint agaist him. "In the absence of any clear testimony or other proof that I committed the offenses charged, there exists no probable cause to charge me therefore. Accordingly, this case should not be allowed to continue. I should be spared from undergoing the trauma of trial on the basis of these baseless charges," said Genuino. "Under the circumstances, the present charges against me should be dismissed outright," he added. — KBK, GMA News