The Philippine Commission on Audit (COA) urged PAGCOR to consider closing Casino Filipino Manila Bay or device a strategy that would prevent the casino from bleeding any more money.
State auditors also rebuked last week the nation’s gambling regulator for failing to disclose the financial state of the gambling venue.
According to its annual audit report, the COA said that the casino generated PHP10.6 billion in 2018, but costs proved considerably higher, including operating expenses worth PHP6.5 billion and contributions of the government totaling PHP5.26 billion.
For the past five years, losses have kept mounting at the Manila branch of the Casino Filipino brand, which is operated by PAGCOR, the Philippines gambling regulator and state-run casino operator. The property reported loss of PHP352 million in 2014 that steadily rose to PHP502 million in 2018.
Aggregate net loss of PHP2.113 billion was thus incurred by Casino Filipino Manila Bay for five consecutive years, the COA said in its 2018 annual audit report for PAGCOR.
Audit authorities further pointed out that “the existence of adverse financial conditions for five consecutive years [of Casino Filipino Manila Bay] casts doubt on its ability to operate as a going concern.”
The COA urged PAGCOR to come up with “realistic development plans and strategies” for the property to be able to generate sufficient funds or consider closing it to “avert continuous losses.”
Failing School Building Program
The Audit Commission also pointed to serious lapses in the implementation of a school building project that includes the development of classrooms. The agency noted that 457 classrooms financed through a massive donation have not been completed.
PAGCOR has also failed to liquidate a remaining balance of PHP1.189 billion in funds released to the agencies implementing the project.
In addition to that, PAGCOR has also been rebuked for “deficient monitoring of the implementation of 211 classrooms.” That prevented the implementing agencies from completing the school buildings. PAGCOR financed the project through a PHP393.45 million budget.
The classrooms project started back in 2011 with an estimated budget of PHP12 billion. The scheme involves the construction of 10,000 classrooms for schools around the country.
The Audit Commission said in its annual report that due to “increments in the benchmark cost, space limitations and upgrade of building standard,” the estimated number of classrooms had to be reduced from 10,000 to 6,928.
The agency told PAGCOR to coordinate its work with the Department of Public Works and Highways and the Department of Education to immediately take proper actions on the deficiencies surrounding the implementation of the school building program.
News about PAGCOR being scolded by the COA come as Philippine President Rodrigo Duterte praised the state-run gambling regulator and casino operator for record high income due to higher gaming revenue recorded in 2018.
Last year, income from gaming operations, including online activities and brick-and-mortar casinos amounted to PHP67.9 billion, up 18.5% from PHP57.3 billion in 2017.
President Duterte, who is otherwise a staunch opponent of any form of gambling, told PAGCOR Chairwoman Andrea Domingo to “push gambling some more.”
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