MANILA – The prolonged suspension of all gaming operations tied to the Philippine Charity Sweepstakes Office (PCSO) is not going to have a significant impact on funding the universal healthcare program, the Department of Finance (DOF) said Monday.
“Ito pong PCSO share sa universal healthcare financing ay for the first year of implementation na P257 billion ‘yung kailangan natin, P3 billion ‘yung galing sa PCSO. So that’s less than 1.2 percent of the requirement for universal healthcare,” Finance Assistant Secretary Antonio Lambino II said.
The PCSO is a government owned and controlled corporation mandated to raise and provide funds for health programs, medical assistance and services, and charities of national character.
President Rodrigo Duterte signed the Universal Healthcare bill into law, guaranteeing all Filipinos equal access to goods and services in healthcare.
To be implemented in 2020, the law will be funded under the Department of Health’s annual budget, as well as sin tax revenues, Philippine Amusement and Gaming Corp. (PAGCOR), PhilHealth members’ contributions, and PCSO funds.
On Friday, Duterte ordered all gaming operations – including franchises and holders of licenses or permits – related to the PCSO to stop operating.
Under its charter, the PCSO must allocate 55 percent of its revenues to prizes, 30 percent to its charity fund, and 15 percent to operational expenses.
The PCSO has reported P63.55 billion in total revenue last year, up from P52.9 billion in 2017.
“Over five years, ‘yung contribution dapat ng PCSO ay P16.6 billion out of the total budget for universal healthcare na P1.47 trillion – again, less than 1.2 percent,” Lambino said.
The DOF is focusing on boosting sin tax revenues.
“Ang ginagawa namin ngayon, naka-focus kami sa karagdagang sin taxes,” Lambino noted.
Duterte signed into law last Thursday the measure increasing excise taxes on tobacco products.
Once the house-cleaning at PCSO is done, higher revenues are expected from the agency.
“Ang nakikita natin ay ‘pag naayos na po ‘yan ay baka mas malaki pa. It’s very likely that contribution of PCSO to resources na available sa atin para sa pagbigay ng serbisyo sa ating mga kababayan ay mas malaki pa,” he said.
On the part of Pacific Online Systems Corp. (LOTO), the impact of Duterte’s order on its business has yet to be determined at this point. LOTO provides the PCSO with lottery equipment.
“Unfortunately, to date, Pacific Online still has no information on the suspension of PCSO’s gaming operations beyond those that have been conveyed through the public statements made by the President as well as of the PCSO general manager,” it said in a regulatory filing submitted by assistant corporate secretary Jason Nalupta.
“The corporation, however, has been in constant coordination with the PCSO management and is fully supportive of the latter’s efforts to seek the President’s reconsideration of his decision,” it added.
LOTO also provides PCSO with technical support under a maintenance repair agreement, a deal, that is co-terminus with its equipment lease deal. (GMA News)
