SEVENTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHIILIPPINES )
First Regular Session 
)
SENATE
811
•16 
JUL21 
P 2 : 2 4
S. No,
H ! ■ . . 
fW -
Introduced by Senator Ralph G. Recto
AN ACT
MODERNIZING HEALTHCARE AND HEALTH INFRASTRUCTURE BY EARMARKING 
THE ENTIRE PHILIPPINE CHARITY SWEEPSTAKES OFFICE CHARITY FUND FOR 
SUCH PURPOSE, THEREBY AMENDING REPUBLIC ACT NO. 1169, AS AMENDED BY 
BATAS PAMBANSA BLG. 42
Explanatory Note
The p e s o  has previously been mired in controversies over the alleged misuse of its Charity 
Fund - a billion pesos fund utilized to undertake medical and other social welfare program and 
projects of the PCSO and implemented through the services of Non-Government Organizations 
(NGOs), the Church and other program partners as conduits of funds for charity projects to the 
people.
Given the discretionary nature of the Charity Fund and the lack of clear accountability 
provided in the PCSO charter, the disbursement of the Charity Fund has not been in accordance with 
specific standards and is only subject to the approval of the PCSO board.
Furthermore, the public is left in the dark as to the magnitude and allocation of the PCSO 
Charity Fund. There is no transparency in the use of the fund because it does not go through the usual 
budget scrutiny as it is considered an off-budget item and, therefore, not discussed in the 
congressional public hearings on the General Appropriations Bill.
For as long as we leave the disbursement of the Charity Fund in the hands of the PCSO 
board, allegations of abuse in its utilization will continue to be a thorny problem for the institution.
This bill intends to amend the charter of the PCSO. The Charity Fund which constitutes 30% 
of the net receipts of the PCSO, under the bill, shall be used for the following: Universal coverage of 
the National Health Insurance Program (NHIP) under the Philippine Health Insurance Corporation 
(Philhealth) and repair, maintenance and improvement of facilities and upgrading of services of each 
of the 622 district hospitals and 70 provincial hospitals nationwide1.
The equivalent amount shall be included in the General Appropriations Act (GAA) as a 
Special Purpose Fund to be directly released by the Department of Budget and Management (DBM) 
to Philhealth and each of the district and regional hospitals in the country. Thus, “What you see is 
what you get" as reflected in the GAA and no more “pork barrel” for the PCSO board.
The provision of PCSO funds for the NHIP will help in meeting and sustaining the goal of 
universal healthcare coverage for every Filipino, especially the marginalized ones. This will provide 
all Filipinos, including the poorest of the poor, the access to needed healthcare services without out 
of pocket spending on their end. In like manner, the provision of PCSO funds for the repair, 
maintenance and improvement of facilities and upgrading of services of all district and provincial 
hospitals in the country to enable them to deliver better medical and health care services to the 
public. As such, people in the provinces will no longer need to travel to the cities for emergency and 
specialized medical procedures, thus, saving more lives and resources.
In view of the foregoing, the approval of the bill is earnestly sought.
Department of Health Bureau of Health Facilities.