KickbacksWhile the new management had uncovered scams perpetrated by board members and top officials who got kickbacks from media contracts and fictitious medical claims and hospital bills, the PCSO has to honor the contracts as long as media outfits and medical facilities could show documents to back them up, PCSO General Manager Jose Ferdinand Rojas II said.
Rojas, a son-in-law of Ignacio Bunye, Arroyo’s press secretary, said that when he took over the general manager’s office a year ago, he found nine boxes with P329 million worth of guarantee letters that could be used by beneficiaries to offset their medical and hospital liabilities (excluding doctor’s fees).
“Everybody in the PCSO were issuing guarantee letters left and right when it should have been centralized to protect the charity funds,†Rojas said.
Lack of documentationRojas pointed out that only P4 million of the P329 million worth of guaranteed letters had complete documentation.
Rojas said his office was compiling a list of the media entities that got a windfall from contracts with the PCSO, especially in the last two years of the Arroyo board.
The contracts include the P1.5-billion, five-year deal with film director Carlo J. Caparas, which the PCSO has no choice but to honor after this was upheld by the Office of the Government Corporate Counsel. [The Bureau of Internal Revenue has filed a tax evasion case against Caparas in connection with his contract with the PCSO.]
Juico said that while the 2010 budget for public relations was pegged at P900 million, the board spent P1.7 billion.
She said the current PCSO management had trimmed the budget to P550 million, but it had to ask for a supplemental budget to pay for the PR debts piled up last year.
Media members“(Arroyo) appointed a lot of media members on the board, and they brought in a lot of contracts, which is probably why the ad budget shot up,†Juico said.
While Rojas, a lawyer, reckoned that it would be difficult to include Arroyo in a plunder case being planned against the former board members, Juico said some documents showed that the former President had a direct hand in the finances of the PCSO.
Arroyo signed OKJuico said Arroyo signed “OK†on the Jan. 4, 2010, letter of former PCSO Vice Chair Rosario Uriarte, who requested at least P150 million of the PR fund to be moved to the intelligence fund, which is not audited.
“It’s her board. She’s responsible for their actions,†Juico said, referring to Arroyo, now a Pampanga representative.
Linkback:
https://tubagbohol.mikeligalig.com/index.php?topic=41926.0