The Commission on Audit (CoA) has asked the Philippine Charity Sweepstake Office (PCSO) to settle its more than P2.072 billion suspension and disallowances in 2018.
In its 2018 annual audit report, the PCSO was urged to settle P4,350,400.18 notice of suspension (NoS) and P2,067,686,833.22 notice of disallowances (NoD).
The NoD is from P13.502 million in outstanding balance of PCSO from previous years’ accounts less P9.150 million settlement in 2018.
The CoA issued the NoD last 5 February 2016 after the PCSO failed to submit the disbursement vouchers (DV) for the charity fund together with its supporting documents.
The PCSO asked CoA to extend the deadline for the submission of the DV and supporting documents on the expenses.
Meanwhile, P811.463 million disallowance was incurred in 2018 broken down into P519.925 million unauthorized benefits, P291.482 million unnecessary expenses and P56,540 extravagant expenses.
In 2018, CoA issued an NoD to PCSO after the agency granted officials and employees P519.925 million in various allowances, bonuses and other personal benefits. The CoA Corporate Government Sector Cluster 6 affirmed the disallowance in its decision dated 11 June 2018.
The state-owned corporation also incurred P291.482 million in unnecessary expenses for purchasing allegedly overpriced lotto paper supplies from TMA Pty Limited, through its subsidiary TMA Group Philippines. PCSO has appealed the NoD.
CoA also flagged extravagant expenses and released an NoD amounting P56,540 which was spent for 12 pieces of San Miguel Beer Light and 30 liters of draft beer consumed by PCSO employees during their Christmas celebration last 19 December 2017.
The P811.463 million NoD recorded in the 2018 audit report was in addition to the P1,256,296,390.11 balance of disallowance incurred from previous years.
“The cases are under appeal with the CoA Commission proper,” CoA said in its audit report.