Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
FIFTEENTH CONGRESS

Second Regular Session

House Bill No, 5029

Introduced by Hon, Rodolfo G. Biazon

EXPLANATORY NOTE

Recent inquiries into the activities of government financial institutions
disclosed that some of its officials, in utter disregard of the public trust imposed
upon them, have conspired and caballed to spend, dispose and utilize the funds
of their institutions for their own personal ends and advancement or for other
nefarious activities which contravene and violate the law. This situation
becomes even more serious when these same officials perform such unlawful
acts at the behest and directive of a higher authority to be used for some illegal
purpose/s.

In the current limelight are some government-owned and controlled
corporations and revenue generating agencies whose officials have been
perceived to have applied the funds they have raised for activities other than that
provided in the mandate of the corporations to the detriment of the people as it
affects the capability of government to provide social and welfare services for
them and enhance economic development. Funds are either inappropriately and
scandalously misused for the benefit of these officials and/or for their patrons
and friends.

The Philippine Games and Amusement Corporation ( PAGCOR ) is one
of these. The revelations unearthed in several hearings and inquiries disclosed a
malicious and rampant misapplication and utilization of its earnings to the
personal benefits of some of its officials and their cronies in direct violation of
accounting and auditing laws, rules and regulations. This could only have been


possible because of the immediate availability of its earnings for disposition by
its officials.

‘There is, therefore, a need to provide some form control over the earnings of
PAGCOR to prevent any discretionary abuses by its officials thereby ensuring
its proper utilization. Hence, the need for this proposed bill to amend the
PAGCOR law.

Due to the foregoing, early passage of this bill is earnestly sought.

Re G. BIAZON

Representative
Lone District, Muntinlupa City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS

Second Regular Session

House'BitNo. 5029

Introduced by Hon, Rodolfo G. Biazon

AN ACT
FURTHER AMENDING PRESIDENTAL DECREE NO. 1869, AS AMENDED,
OTHERWISE KNOWN AS THE PAGCOR CHARTER, AND FOR OTHER
PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION ONE. Section 12 of Presidential Decree No. 1869, is hereby amended to
read as follows:

“Section 12. Special Condition of Franchise. — After deducting five (5%) percent as
Franchise Tax, the Fifty (50%) percent share of the Government in the aggregate
gross earnings of the Corporation from this Franchise shall be immediately set aside
and allocated to fund the following infrastructure and socio-civil projects within the
Metropolitan Manila Area:

(a) Flood Control

(b) Sewerage and Sewage

(©) Nutritional Control

(@) Population Control

(e) Tulungan ng Bayan Centers

(f) Beautification

(g) Kilusang Kabuhayan at Kaunlaran (KKK) projects; provided, that should the

aggregate gross eaming be less than P150,000,000.00, the amount to be

allocated to fund the above-mentioned project shall be equivalent to sixty
(60%) percent of the aggregate gross earning.


In addition to the priority infrastructure and socio-civic projects with the Metropolitan
Manila specifically enumerated above, the share of the Government in the aggregate
gross earnings derived by the Corporate from this Franchise may also be appropriated
and allocated to fund and finance infrastructure and/or socio-civie projects throughout
the Philippines as may be directed and authorized by the Office of the President of the
Philippines|.J; PROVIDED, THAT SAID GROSS EARNINGS SHALL BE
REMITTED TO THE BUREAU OF TREASURY WHERE A SPECIAL
TRUST FUND SHALL BE CREATED FOR THE PAGCOR WHICH SHALL
BE UTILIZED ONLY TO SUPPORT ITS MANDATED ACTIVITIES AS
ENUMERATED HEREIN, UNDER SUCH POLICIES AND RULES AND
REGULATIONS THE DEPARTMENT OF THE BUDGET AND
MANAGEMENT MAY PROMULGATE.”

Sec. 2. Repealing Clause. — All laws, executive orders, rules and regulations
inconsistent with or contrary to this Act, are hereby deemed accordingly repealed or

amended,

Sec. 3. Separability Clause. ~ If, for any reason, any section or provision of this
Act is declared unconstitutional or invalid, the other sections or provisions not affected

thereby shall remain in full force and effect.

Sec. 4. Effectivity Clause.
publication in at least two (2) newspapers of national circulation.

This Act shall take effect after fifteen (15) days from its