Ex-Pagcor officials face plunder, graft raps

MANILA (Updated 1:30 p.m.) — The Philippine Amusement and Gaming Corporation (Pagcor) filed Tuesday plunder and graft charges against its former chairman Efraim Genuino and three others in relation to the excessively priced coffee products that were sold in at least five Casino Filipino branches.
Named respondents in the case filed before the Office of the Ombudsman are former Pagcor officials Rafael Francisco (president), Rene Figueroa (senior vice president and senior managing head of Research Development Department), and Promolabels owner Carlota Cristi Manalo-Tan.
A report on government website www.gov.ph said the 25-page complaint was initiated by the current Pagcor Board. The agency’s Board authorized incumbent Directors Jose Tanjuatco and Enriquito Nuguid to sign and file the complaint.
According to the complaint, from 2001 to 2010, Genuino, Francisco and Figueroa, in their capacities as officials and/or employees of Pagcor, directed Casino Filipino branches “to enter into concession agreements with Promolabels with a view towards enriching themselves and coffee concessionaire Manalo-Tan through the sale and purchase of overpriced Figaro coffee products, to the damage and prejudice of the Filipino people.”
Documents obtained by the present Pagcor management revealed that the previous Board headed by Genuino approved a resolution on May 16, 2001, granting the proposal of Figaro Coffee Company to set up coffee kiosks in its Casino Filipino branches wherein the prices of beverages “will be similar to the prices in the malls.”
Pursuant to the said resolution, the previous Pagcor Board gave Figaro franchisee Promolabels concession agreements in seven Casino Filipino branches.
Manalo-Tan signed the agreements on behalf of Promolabels, while Genuino and Francisco signed/co-signed most of these contracts on behalf of the casino branches.
Manalo-Tan is the wife of Johnny Tan, a known ally of Genuino. Johnny Tan was in fact the second nominee of the Bida party-list, a political group identified with Genuino, during the 2010 national elections.
All seven contracts, which gave Promolabels a virtual monopoly as coffee supplier in Pagcor’s casinos, were awarded to Manalo-Tan without public bidding, which is prescribed by law.
Promolabels was initially given three- to five-year contracts that were renewed and/or extended following the expiration of their original terms, likewise without the benefit of public bidding, the complaint said.
In the original contracts with Pagcor, it was stated that Promolabels was a duly registered corporation. However, Pagcor found out upon verification that it was not registered with the Securities and Exchange Commission.
The current Pagcor management called for an exhaustive audit following the discovery of the billion-peso coffee expenses incurred by the previous administration, the bulk of which went to Manalo-Tan’s Promolabels.
Pagcor’s audit team discovered that from 2005 to 2008 alone, five Casino Filipino branches paid at least P258 million to Promolabels for coffee products.
The prices charged by Promolabels for its Figaro coffee products were much higher than the prices at which the exact same products were sold by Figaro coffee shops operating outside the Casino Filipino branches during this four-year period.
This contradicted the original resolution issued by the Genuino-led Pagcor Board on May 16, 2001, that the selling price of Figaro coffee beverages will be similar to the prices of these products inside the malls.
“For the years 2005 to 2008 alone, Pagcor could have saved at least P78 million if only the prices of Promolabels’ Figaro coffee products were the same as those of other Figaro franchisees,” the state-owned gaming firm cited in its complaint.
The Pagcor complaint also cited that Genuino, Francisco and Figueroa were “repeatedly informed of the losses being suffered or incurred by the Casino Filipino branches as a result of their transactions with Promolabels, and they refused or otherwise failed to act to stem or prevent further losses.”
Several Audit Observation Memoranda (AOM) prepared by COA Auditors assigned to the Casino Filipino branches and/or the Pagcor Head Office revealed that sometime in 2006, the Auditors already raised several concerns regarding the validity and implementation of the concession agreements with Promolabels. They stated that Pagcor should have conducted a public or competitive bidding as required by government procurement laws prior to awarding of the said agreements to Promolabels.
The AOMs also noted the material disparities between the prices of Promolabels’ Figaro coffee products and those of other Figaro franchisees operating outside, the casinos that went as high as 74 percent. The AOMs stated that Pagcor could have saved considerable amounts of money if only Promolabels sold the products at the same prevailing prices of Figaro franchisees outside Casino Filipino at that time.
Pagcor also stated in its complaint that despite knowing the audit observations, “the respondents refused or failed to demand price reductions from Promolabels, and even went out of their way to give several justifications for Promolabels’ higher prices.”
Moreover, the justifications were prepared in a matter of days from the respondents’ receipt of the AOMs “which leads to a conclusion that the respondents did not even bother to conduct a full and exhaustive review of Promolabels’ justifications for its excessively priced coffee products.”
What made matters worse was when respondent Figueroa still allowed Promolabels to increase further the prices of its coffee products a year after despite COA’s issuance of the AOMs, the complaint said.
“The respondents’ acts of procuring coffee from, and “leasing” spaces to Promolabels without observing government procurement laws and their refusal to demand price reductions from Promolabels despite notices of irregularities affecting the concession agreement and the losses being suffered by the Casino Filipino branches under these contracts caused undue injury to the government and gave Manalo-Tan unwarranted benefits, advantages and preferences,” the Pagcor complaint pointed out.
In filing the complaint, the current Pagcor management had to work back on all the documents pertaining to Promolabels transactions. The agency’s Auditors had to validate and verify every invoice and receipt of Promolabels, particularly for the period covering 2005 to 2008.
The billion-peso coffee issue was first exposed by President Benigno Aquino III during his first State Nation Address last July 2011.
http://www.sunstar.com.ph/breaking-news/2012/07/17/ex-pagcor-officials-face-plunder-graft-raps-232446

As Clark becomes a popular holiday and vacation destination for Manila residents as well as tourists from nearby Asian cities, Clearwater Resort welcomes more and more guests to enjoy its outdoor facilities where family bonding takes place frequently. This is one of the good hotels in Pampanga that Manila residents choose to spend their holidays and vacations simply to relax and unwind away from the stress of living and working in a city like Manila. Clearwater appears frequently on the top of a list of the best hotels in Pampanga. This hotel in Clark is regarded by many Manila residents to be one of the best resorts in Pampanga for family bonding, retreats, vacation and holidays. This hotel in Clark is also a favorite holiday destination near Manila during Holy Week, Easter, Christmas and New Year holidays.

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Tourists from Europe and America laud Clearwater as the best resort in Pampanga citing in particular the hotel’s faithful rendition of the laidback lifestyle that has made Clark famous among travel agencies and event organizers of Manila. Philippines Tourist Guides list Clearwater Resort and Country Club as one of the top five Pampanga resorts and the top three resorts near Manila for family travelers with children. This is also one of the best resorts in Pampanga that offers good picnic spots near Manila.

For inquiries and bookings, Please click here to contact Clearwater Resort for inquiries and reservations now

Clearwater Resort and Country Club, Clark Pampanga
Creekside Road near Centennial Expo,
Clark Freeport, Pampanga Philippines 2023
(045) 889-5151 0917-520-4403 0922-870-5177
Joanne or Jeremy or Loydha

Getting to this lake and beach resort in Pampanga Angeles City Clark Philippines

After entering Clark Freeport from Dau and Angeles City, proceed straight along the main highway MA Roxas, passing the stand-along wine shop called Clark Wine Center on the right, continue to bear right making no turns at all, go past Mimosa Leisure Estate on the opposite side of the road, one will hit a major intersection. Go straight and the road becomes Creekside Road. YATS Clearwater Resort and Country Club is on the right just 200m down.

Family Bonding by the famous lake of Clark Pampanga

http://www.ClearwaterPhilippines.com

Manila Sales Office
3003C East Tower, Phil Stock Exchange Center,
Exchange Rd Ortigas Metro Manila, Philippines 1605
(632) 637-5019 0917-520-4393 Rea or Chay

Email: Inquiry@ClearwaterPhilippines.com

Please click here to contact Clearwater Resort to reserve a venue for your upcoming event now

Wedding couples looking for wedding reception venues and beach wedding venues can log on to this Philippines Wedding Venue web site for free information and assistance:

http://www.PhilippinesWeddingVenue.com

While in Clark, it might be a good idea to enjoy an evening of wine-and-dine in the fine dining Yats Restaurant and Wine Bar that features an award winning 2700-line wine list. It is located in Mimosa Leisure Estate of Clark Freeport Zone. For more information, visit http://www.YatsRestaurant.com

YATS Leisure Philippines is a developer and operator of clubs, resorts and high-class restaurants and wine shops in Clark Angeles Philippines http://www.YatsLeisure.com

While in Clark, one might as well add to the itinerary a visit to the famous Clark Wine Center, the largest wine shop in Philippines which offers over 2000 selections of fine vintage wine from all wine regions, vintages spanning over 50 years covering all price ranges.
http://www.ClarkWineCenter.com

Looking for famous tourists spots, places to visit and see, relax and unwind in Clark, Pampanga, Philippines? You may want to check out these sites also:

http://www.LondonPubClark.com

http://www.HotelClarkPhilippines.com

http://www.ClarkPhilippines.com

http://www.YatsWineCellars.com

For jobs and business investment opportunities in the Philippines please visit http://www.yilp.com

Hot Line for what’s happening in Clark: 045 889-5151 or 0927-940-2669 ask for Loydha

0915-542-6250 (Jeramie)