Supreme Court Upholds a Commission on Audit Ruling that Disallowed Pagcor’s Financial Assistance for a Flood Control Project in Laguna

MANILA, Philippines (August 28, 2023) — According to local media outlets the Supreme Court (SC) has upheld a Commission on Audit (CoA) ruling that disallowed financial assistance paid by former high-ranking officials of the Philippine Amusement and Gaming Corp. (PAGCOR) worth P2 million for a flood control project in a subdivision in Laguna. 

Business World reported that in a 24-page decision dated Aug. 18 and made public last Thursday, SC said the disallowance was proper since state funds could not be used for private projects, in this case, the Pleasant Village Homeowners Association’s (PVHA) flood control project. 

Although it was established that PAGCOR is allowed to fund infrastructure and sociocivic projects, it must be public in nature and not as an “incidental advantage to the public or to the state” that results from the promotion of the interests of a private entity. 

“The provision is clear and absolute in requiring government funds to be spent or used solely for public purposes,” Associate Justice Ramon Paul L. Hernando wrote in the ruling, citing the Government Auditing Code.

SOURCE: Business World.