COA says PCSO should remit to gov't P8.4 billion in profits from 1994 to 2016

ABS-CBN News

Posted at Jul 10 2019 08:45 PM

MANILA - The Commission on Audit (COA) on Wednesday urged the Philippine Charity Sweepstakes Office (PCSO) to remit to government P8.426 billion in profits, a figure representing half of its P16.852 billion net earnings from 1994 to 2016.

State auditors said in the 2018 audit on PCSO that remittance of its earnings is mandated under Republic Act No. 7656 or "An Act Requiring Government-Owned or Controlled Corporations to Declare Dividends Under Certain Conditions to the National Government."

"This is a reiteration of the audit observations as management has not complied yet with recommendation to remit dividends due the national government,” the COA report said.

The PCSO management, however, pointed out that it does not have annual net earnings but savings, which are deducted from its operating expenses and then allocated in the PCSO charity fund.

It admitted that a letter from the Department of Finance (DOF) says the sweepstakes agency is not exempt from the law but insisted all balances of their funds should be part of its charity fund.

The sweepstakes agency reportedly is still in negotiation with DOF on whether or not PCSO would be required to remit its profits from 1994 to 2016. 

The COA report also noted that the PCSO should collect a deficit of P4.607 billion in profits from the Presumptive Monthly Retail Receipts (PMRR) from small-town lottery operations from 2017 to 2018.

“Had the PMRR shortfalls due of P4.607 billion been promptly remitted to the PCSO, it could have been utilized to finance its various charity programs, particularly the Individual Medical Assistance Program, where many less fortunate individuals depend for their medical needs,” the COA report said.

The PCSO management said it has already instructed department and branch managers to conduct an “aggressive and sustained collection of profit deficits.” 

- Report from Adrian Ayalin, ABS-CBN News