Arroyo may get to control a 'cash cow' even beyond June

MANILA, Philippines - Bills that would grant the Philippine Amusement and Gaming Corp. (PAGCOR) chief a fixed term of 3 to 7 years may still get passed even if there are only a few session days left before Congress adjourns for the May 10 elections.

If passed, the law would allow President Gloria Macapagal-Arroyo to appoint an ally in the crucial revenue-generating government corporation with only around one month left before the election appointment ban starts.

Asked by abs-cbnNEWS.com/Newsbreak if the bill will be passed, House Speaker Prospero Nograles said there’s “lack of material time,” and there are “many objections” to the bill.

However, Nograles added: “It’s hard to predict. The mood of the members change from day to day and dusk to dawn.”

Opposition senators, including presidential survey frontrunner Benigno 'Noynoy' Aquino III, had earlier opposed the measure since it would give the PAGCOR the same status as constitutional bodies such as the Commission on Human Rights (CHR).

Two separate sources of abs-cbnNEWS.com/Newsbreak said incumbent PAGCOR chairman and chief executive officer Efraim Genuino, is the one pushing for the bill, and he expects to get reappointed by Mrs. Arroyo.

Genuino is a close ally of First Gentleman Jose Miguel Arroyo.

The Daily Tribune, an opposition newspaper, has tagged the bill as "Genuino tenure bill."

'Traditional milking cow'

Sought for comment on implications of the bill, former National Treasurer Leonor Briones said the next president may not be able to take advantage of PAGCOR as much as President Arroyo has.

PAGCOR is the government's 3rd highest revenue generating unit.

"Traditionally, PAGCOR is the milking cow of all presidents. I would imagine if she (Arroyo) is not president anymore, her ally in PAGCOR will not agree to give the next president as much as she got. She will be in Congress. She can still assert her influence," Briones said.

PAGCOR is a big source of discretionary funds for the Office of the President. A big chunk of its revenues is directly remitted to the President's Social Fund.

Briones said previous presidents have used PAGCOR for good and bad projects.

PAGCOR also makes substantial contributions to the Catholic church in the Philippines, which is against gambling.

Remit to gov't

Briones has been advocating that PAGCOR revenues should not be directly remitted to the Office of the President. She said these funds should go directly to the treasury similar to the collections of the Bureau of Internal Revenue and Bureau of Customs.

She added that PAGCOR projects should be rationalized through the General Appropriations Act.

"This is the challenge to the next president: review the PAGCOR law as a built-in cash cow of the Office of the President; remit to government to rationalize projects funded by PAGCOR," Briones said. "It [PAGCOR money] is important to the President. It should be made important to government."

"The issues are bigger. Magkano ba talaga ang kinikita ng PAGCOR. It's a bigger issue than who is going to head it," she added.

Briones is also a co-convenor of Social Watch, an NGO watchdog network monitoring government spending and the budget, poverty eradication, and gender equality, among others.

No need to go through bicam?

The bills that would give the PAGCOR chief a fixed term are being pushed by no less than by Speaker Nograles and Senate President Juan Ponce Enrile. The bills were filed only in the last quarter of 2009.

In the House of Representatives, House bill 8969 was filed on Nov. 16, 2009 . Only 2 days later, it was approved on first and second reading.

House bill 6989 proposes to give the PAGCOR chief a fixed term of 3 years. It has been calendared for third and final approval since the session resumed on January 18, but it has not been taken up.

A total of 45 congressmen from various political parties co-authored the bill. (See bill status)

Nograles: It won't benefit GMA

Nograles dismissed fears that the bill seeks to benefit President Arroyo.

“When you are not president, you do not control government agencies. Whoever is president has the say. Former presidents like FVR (Fidel Valdez Ramos) or Erap (Joseph Estrada) do not control [government agencies], do they? Come on. These critics are always seeing ghosts and maybe hallucinations,” he said.

Congress has 6 remaining session days left before it adjourns on February 5 for the campaign period. If the leaders of both Houses really want to get the measure approved, they may still be able to do so.

If House bill 6989 is passed, it sends a signal to the Senate to fast track action on the counterpart measure.

Senate versions

Two similar bills are pending in the Senate.

Although both bills are still at the committee level, the Senate can decide to adopt the House version of the bill without amendments. If this happens, there would be no need to go to the bicameral conference committee to resolve conflicting provisions. The measure can be sent to President Arroyo for signing.

Senate bill 3469 seeks to give the PAGCOR chief a fixed term of 6 years. It was co-authored by Senate President Juan Ponce Enrile and Senator Richard Gordon. (See bill)

Senate bill 3476, which aims to grant the PAGCOR chief a fixed term of 7 years, was authored by Senator Lito Lapid (See bill).

The bills were filed 2 days apart in October 2009. The explanatory notes of the two bills are exactly the same.

“To maintain the trust and confidence of the investors and to ensure continuity in the [ Entertainment City ], the need to fix the terms of office of the members of PAGCOR board of directors, its chairman and chief executive officer, and president and chief operating officer becomes imperative. PAGCOR’s vision to be a catalyst for economic growth and national development will gain headway if there is continuity in its thrusts and programs,” the explanatory notes say.

The Bagong Nayong Pilipino Entertainment City Manila along Manila Bay in Parañaque City seeks to attract investments in integrated casino-entertainment complexes.