SEVENTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHIILIPPINES )
First Regular Session 
)
<®it«rt of thf 
■'I-1 I ' t
*16 .11121 
P2:47
SENATE
824
S. No.
K I v .  » .i ' 
TW :
Introduced by Senator Ralph G. Recto
AN ACT
IMPROVING THE QUALITY OF EDUCATION BY AUGMENTING THE BUDGET 
FOR THE K TO 12 PROGRAM OF THE DEPARTMENT OF EDUCATION (DEPED), 
PROVIDING FUNDS FROM THE PHILIPPINE AMUSEMENT AND GAMING 
CORPORATION 
(PAGCOR) 
INCOME, 
AMENDING 
FOR 
THE 
PURPOSE 
PRESIDENTIAL DECREE NO. 1869, AS AMENDED BY REPUBLIC ACT NO. 9487
Explanatory Note
The Philippine Amusement and Gaming Corporation (PAGCOR) in the recent past 
shares the spotlight with other Government Owned and Controlled Corporations (GOCCs) in a 
spate of controversies involving the alleged misuse of their funds, thereby shortchanging the 
National Government and their mandated beneficiaries.
Based on recent findings of the current management, former PAGCOR officials are 
indicted for transgressions in the proper use of the income generated by the corporation in the 
past few years. These anomalous transactions include the use of generated revenues to finance 
partisan activities in the previous elections, and failure to allocate and remit the mandatory 
contributions to beneficiaries, among others. More importantly, the overall financial statements 
of PAGCOR remains concealed to the public eye, as government audit is limited to the 5% 
franchise tax and the 50% net government share of winnings.
At present, PAGCOR contributes to a number of government agencies performing 
various services, and to development programs on sports, early childhood care, micro, small and 
medium enterprises, and the arts, as mandated by existing laws. Aside from the national 
government share of the income, cities hosting the casinos also benefit from the income 
generated by PAGCOR. Finally, the net income of the corporation goes to the Social Fund of the 
President of the Philippines.
The public finds itself unapprised of the financial status of PAGCOR. With the limited 
coverage of the audit, as mandated by the existing charter, transparency in the utilization of the 
funds PAGCOR generates becomes intractable. Moreover, the funds of PAGCOR is considered 
an off-budget item and not included among those evaluated during public hearings on the 
General Appropriations Bill, hence it is devoid of any Congressional scrutiny.
This bill intends to amend the charter of PAGCOR. Under the bill, the 50% share of the 
government in the aggregate gross earnings of the government corporation shall be allocated to 
fund the K to 12 Program of the Department of Education (DepEd). This allocation is meant to 
improve the quality of education in all public schools nationwide by augmenting funds for the 
following: construction of needed classrooms, hiring of teachers, provision of additional chalk 
allowances for all public teachers, conduct of supplementary feeding program in all public 
elementary schools, continuing education program for public school teachers, provision of 
internet access in all public schools, and acquisition of equipment and facilities for the technical- 
vocational courses under the K tol2 program.