The foundation chaired by Speaker still owes P387M to SEA Games providers

MANILA, Philippines – A private foundation led by President Alan Peter Cayetano still owes P387 million to some of the vendors mobilized for the organization of the 30 Southeast Asian Games (SEA) last year, including passenger van operators, an official from the Philippine Sports Commission (PSC) revealed on Tuesday.

At the Senate hearing on the PSC’s proposed P208 million budget for 2021, PSC Executive Director Guillermo Iroy Jr. said that the foundation called the Philippine SEA Games Organizing Committee (Phisgoc) had asked them to apply to the Department of Budget and Management (DBM) the release of additional funds to settle the debts of Phisgoc.

Cayetano’s office, who chairs the foundation, did not immediately respond to the Inquirer’s request for comment.

When questioned by Senator Nancy Binay, Iroy said the government spent a total of P6.8 billion for the biennial regional sporting event, which took place in various locations around the country and led to the construction of P9.5 billion. of sports facilities in Capas, province of Tarlac.

Demand letters

Senate Minority Leader Franklin Drilon had also questioned the role of Phisgoc, which was incorporated as a private entity in 2018 in preparation for the fourth hosting of the SEA Games in the country from November 30 to December 11, 2019.

“Part of payments [was settled] by the PSC. So far, we still have outstanding payments of P387 million, ”Iroy told Binay.

“In fact, we have received too many demand letters. Some senators have also received [demand] supplier letters, ”he said.

Binay noted that Phisgoc was allowed to use public funds despite being a private group that spearheaded the preparations and conduct of the SEA Games, which was marred by logistics and other problems.

“How did the government suddenly go into debt when it was actually Phisgoc (who signed the contracts with the suppliers)?” Binay asked Iroy.

“Now, taxpayer money will be used to pay off their [outstanding balance]”He lamented.

Go: ‘Unacceptable’

Senator Bong Go, who chaired the online hearing, was shocked by Iroy’s admission and questioned why the PSC spent more than was allocated for the SEA Games.

Go said that after having distributed assistance to fire victims in the province of Cavite, he was approached by a truck driver who informed him that he was among those who have not yet received payment for his services.

“As chairman of the (Senate sports committee), I really find this unacceptable,” Go said, visibly upset, to Iroy and PSC chairman William Ramirez.

“It is unacceptable that small drivers and entrepreneurs have not paid. We had a great opening and hosting [of the SEA Games]However, our common compatriots have not yet received payments, ”he said.

“Even the president won’t like this. We were very happy and proud of our hosting, but you didn’t settle [your payables] to ordinary people who are just trying to win even a little bit, “he lamented.

President Rodrigo Duterte himself had ordered an investigation of Phisgoc for alleged corruption before the games began after the foundation was accused of buying uniforms, training equipment and even socks at excessive prices.

However, the investigation never took off after Duterte said in a speech that he was “sure” that the Spokesman “was not involved in corruption.”

Investigation of the Ombudsman

The Ombudsman, Samuel Martires, said in December last year that he had ordered his own investigation for alleged corruption in Phisgoc, which Cayetano welcomed. There has been no news from the Ombudsman’s Office on the results of the investigation.

Iroy said that the total number of athletes who competed in the events, along with the members of the official delegation from the participating countries, surpassed the expected guests from Phisgoc and PSC.

“That is the reason why PSC also launched [another P800 million] beyond the general budget for the SEA Games, ”he said.

Iroy said the funds, including P5 billion from the 2019 national budget and another P1 billion from the Office of the President, were handed over to Phisgoc.

High expenses

When asked by Binay where the additional P800 million from the PSC was spent, Iroy responded, saying the money was used to pay for “international broadcasts and equipment.”

“The opening of SEA Games and the live coverage were [some of] the high expenses of the PSC ”, said Iroy.

The PSC official said the government only raised P196 million for hosting the games, including P164 million for the accommodation of the athletes and P32 million for streaming revenue.

Iroy said that the PSC and Phisgoc had already contracted the audit firm PricewaterhouseCoopers Philippines to conduct a third-party audit of their expenses.

He said that they had also submitted all required documents to the Audit Committee for their own scrutiny of the use of funds for the SEA Games. INQ

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