MANILA, Philippines (UPDATED) - President Gloria Macapagal has re-appointed her close ally Philippine Amusement and Gaming Corporation (PAGCOR) Chairman Efraim Genuino as well as 4 members of its board of directors.

Genuino said he accepted his re-appointment, confirming a document obtained by ABS-CBN News that he had been re-appointed for another 1-year term.

Others who were re-appointed, based on the document from the Office of the Executive Secretary dated March 9, were Rafael Francisco, Philip Lo, Manuel C. Roxas and Ester Alano Laconico-Feria.

Genuino said the reappointment only proves PAGCOR is doing well under his leadership.

“Alam mo naman na naging napakaganda ang performance namin, halos more than double ang kita namin at wala kaming iskandalo,” said Genuino in a phone interview.

But for Citizens Battle Against Corruption (CIBAC) Rep. Joel Villanueva, the re-appointment made by President Arroyo is illegal.

Villanueva cited the constitutional provision banning midnight appointments by a sitting president 2 months before the presidential elections.

Section 15 of Article VII of the Constitution states: “Two months immediately before the next presidential elections and up to the end of his term, a President or Acting President shall not make appointments, except temporary appointments to executive positions when continued vacancies therein will prejudice public service or endanger public safety.”

A bill in Congress filed in 2007 proposing to extend the term of the PAGCOR chairman to 3 or more years was also not passed.

"Nakakalungkot na parang ang Pangulo natin ay parang balewala na sa kanya ang mag-appoint ng midnight appointments, parang ginawa niyang ordinary act of the president na kung sino ang ia-appoint sa iba't ibang posisyon like PCSCO at PAGCOR na alam natin na juicy positions iyan," said Villanueva.

Senator Francis Escudero also slammed President Arroyo’s re-appointment of Genuino.

“Intensyon ng Konstitusyon dapat merong malayang kamay ang sinumang magiging Pangulo kaugnay sa ilang sensitibong puwesto sa pamahalaan at GOCCs [government-owned and controlled corporations],” said Escudero,

Genuino, however, explained that President Arroyo merely complied with the law.

He cited Section 6 of the PAGCOR Charter which states that a director “shall serve for a term of one (1) year and until his successor shall have been duly appointed and qualified.”

He said the chairman and members of the PAGCOR Board of Directors have to be appointed every year so that the programs of the agency, which are 100% government-owned, can continue.

“Iyong ginawa ng Malacañang is part lamang ng compliance doon sa batas,” said Genuino.

Villanueva and Escudero said that the recent case of midnight appointments is frightening if it will be implemented.

They said that this is another way for President Arroyo, who won as representative of a Pampanga congressional district in the May 10 elections, to maintain power even after her presidential term by controlling important agencies such as PAGCOR.

Early this year, former National Treasurer Leonor Briones, had warned that 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. -- Report from Apples Jalandoni , ABS-CBN News