COA to PCSO: 'Slow down on your spending spree,' uncovers over P1B ad expenses, unauthorized in-house cash gifts
Government auditors want top executives and district managers of the Philippine Charity Sweepstakes Office (PCSO) to take a serious look into its spending-spree particularly on advertising and cash rewards awarded to themselves.
While acting as the nation's principal agency for raising and providing funds for health programs, medical assistance and charities, the Commission on Audit (COA) discovered over a billion in questionable and questioned dealings.
From unrecorded deposits of remittances amounting to over P137 million, to nearly P11 million in unliquidated cash advances, COA wants the PCSO Central Office to immediately resolve and fix its cash flows.
And major concern too on the huge advertising expenses incurred in the past year of over P1 billion. The amount as COA now disclosed exceeded what the Department of Budget and Management (DBM) approved.
The Commission further called PCSO's attention as it highlighted how P62.63 million went to sponsorship of programs aired over cable channels.
This, the COA stated were "not easily affordable to the larger segment of the viewing public belonging to the D and E classes. On the other hand, the P137.07 million classified as Miscellaneous Expenses was spent for advocacy programs, public relations and public information."
There was also the matter of "expired" betacam tapes and the P41.27 million telemovie expense. As per COA verification, "unamortized portion" of the cost of telemovie tapes amounted to P248.49 million.
"The amount of payments during the year represents post production costs such as editing, musical scoring and rehabilitation of old betacam tapes," excerpts of the report went.
And while PCSO was granted exemption from the coverage of austerity measures then imposed by the national government as per Administrative Order No. 103, COA noted PCSO's failure to abide by the conditions set.
There was still continuous increase in advertising expenditures, the Commission stated with this year's P1,099,350,827.00 actual advertising PCSO expense 73% higher or some P467 million more.
"PCSO has the exclusive authority over lotto operations thus no competitor to contend with and justify the increase in advertising expenses," COA in its report added. "Furthermore, cursory review of sales reports showed that lotto sales increased whenever jackpot prizes became substantial in amount, hence increases in sales could not be attributable to massive advertising campaigns. It was also noted that there was no media plan to support the budget for advertising costs."
Meantime, more questions on PCSO fringe benefits granted to officials particularly on the car loan and assistance program.
PCSO spent P22.7 million for 47 vehicles with P18.09 million representing the cost of 41 vehicles availed by officers. Worse, the COA found out, necessary papers were not complied "thus PCSO has no security or hold on the vehicle in case of failure of the availee to pay the loan."
COA also called PCSO's attention on payment of unauthorized allowances and benefits while citing discontinuance earlier ordered.
Ironically, PCSO in its mission aimed to be the "model government agency in carrying out its responsibility to provide medical and health services to the disadvantaged sectors of society through a professional workforce with integrity, competence, a deep sense of accountability and transparency in all its official transactions."