Here are some of the attempts made by CIBAC Rep. Joel Villanueva to oppose the extension of PAGCOR Franchise.

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Interpellation on HB 3409 - Extension of PAGCOR Franchise

15 December 2004

REP. ABAYON. I move to recognize the Honorable Villanueva for his interpellation, Mr. Speaker. THE DEPUTY SPEAKER (Rep. Espinosa, E.R.). The Honorable Villanueva is recognized. 

REP. VILLANUEVA. Thank you very much, Mr. Speaker.May I know, Mr. Speaker, Your Honor, if the Gentleman sponsoring the measure would yield to some questions, Mr. Speaker? 

REP. SANDOVAL. Certainly, Mr. Speaker. 

REP. VILLANUEVA. Mr. Speaker, Your Honor, I have been waiting for this measure for such a long time. In fact I was also surprised that a few days ago I received two copies of the committee report and that is why, Mr. Speaker, Your Honor, I am hoping that I am holding the right committee report, not the old or the new. I hope that I am holding the right committee report here with me, Mr. Speaker -- House Bill no. 3409, Committee Report No. 161 -- and there are only two pages in this committee report, Mr. Speaker. Am I correct, Mr. Speaker? 

REP. SANDOVAL. Mr. Speaker, there is only one committee report and that committee report is only two pages long. 

REP. VILLANUEVA. Yes, I raise that matter, Mr. Speaker, Your Honor, especially to make sure that all committee reports being distributed here in this august Chamber, especially on the floor, is an official committee report.Mr. Speaker, Your Honor, may I just ask the distinguished Sponsor how many times did we deliberate this measure in the committee level? 

REP. SANDOVAL. If I am not mistaken, Mr. Speaker, maybe three times. 

REP. VILLANUEVA. Three times, Mr. Speaker? 

REP. SANDOVAL. Yes. 

REP. VILLANUEVA. Mr. Speaker, as Members of this august Chamber, we have taken an oath to uphold and defend the Constitution. As lawmakers, the Constitution serves as our guidepost in drafting, filing, deliberating and passing laws. If the honorable Speaker agrees with me, it would therefore not be a burden upon the honorable Speaker to share with this Body the constitutional basis for this bill -- House Bill No. 3409. May I ask therefore the honorable Speaker to cite exact constitutional provisions, which this bill is grounded upon? 

REP. SANDOVAL. Well, Mr. Speaker, I cannot state exactly a constitutional provision but this is the right of every Representative of the House to file a bill and this Representation filed this bill in order to extend the life of PAGCOR for another 25 years. 

REP. VILLANUEVA. Well, I agree, Mr. Speaker, it is every right of any Representative. Mr. Speaker, is there anything in the Constitution, which declares as a public policy the promotion of gambling as an instrument in national development? 

REP. SANDOVAL. There is no such statement, Mr. Speaker. 

REP. VILLANUEVA. By the way, Mr. Speaker, is this bill certified, just for the record, as urgent by the President because it appears that we are so much in a hurry in passing this measure? In fact, I was surprised that in the previous days of our session, I didn't see anything about this measure in the Order of Business until today when I found out that it is being calendared and now we are deliberating, and I am assuming that the leadership of the House will move heaven and earth to pass this measure right away.Again, Mr. Speaker, for the record, is this bill certified as urgent by the President? 

REP. SANDOVAL. Mr. Speaker, no, this bill is not certified as urgent by the President and I refute the statement of the Gentleman from CIBAC that we are rushing the approval of this bill. In fact, we had several hearings in the committee level. Each member of the committee and each Member of the House of Representatives was given ample time to question this bill that this Representation filed together with Congressman Domogan, and here in the Plenary we are not also rushing it. We are giving each Member who would like to interpellate the author their time in order to be clarified on this matter, Mr. Speaker. 

REP. VILLANUEVA. Well, I admire, Mr. Speaker, the statement made by the Sponsor of this said measure. It just so happened, Mr. Speaker, that this Representation was never invited in the deliberation of this particular measure, this Representation being one of the Deputy Minority Leaders. But, Mr. Speaker, let me just go on. According to the Rules of the House, particularly in its declaration of principles and policies, the involvement of the people in the process of legislation should be encouraged, guaranteed and sustained. And so, if this so, Mr. Speaker, Your Honor, may I ask the distinguished Sponsor how many people's organizations and sectors were consulted, if there is any, and maybe invited when the Committee on Legislative Franchise deliberated on the proposed PAGCOR bill. 

REP. SANDOVAL. Well, Mr. Speaker, this is a re-filed bill already. And in fact, during the 12th Congress, this was approved by the House of Representatives, and this is just a recycled bill. 

REP. VILLANUEVA. May I know if the distinguished Sponsor does agree with this Representation that still there is a need for people's organizations or sectors that should be consulted and be invited in the deliberation of this measure, at least in the committee level? 

REP. SANDOVAL. Well, Mr. Speaker, if we are talking about other provisions other than the extension of the life of PAGCOR, which is currently operating and continues to operate until year 2008, probably. But this is a mere extension, Mr. Speaker, and this Representation does not believe that we need to invite other … 

REP. VILLANUEVA. Well, Mr. Speaker, I will not dwell on that issue. Mr. Speaker, Your Honor, House Bill No. 3409 proposes to amend Section 10 of Presidential Decree No. 1869 or the PAGCOR Charter by granting PAGCOR an extension of its corporate life for another 25 years from the expiration of its original corporate life that would be ending, as the distinguished Sponsor said earlier, on July 11, 2008. Although, I think that our colleague, Congressman Mandanas, has a different school of thought. Aside from this, Mr. Speaker, Your Honor, there is also a provision in the proposed amendment that another 25-year extension of PAGCOR's corporate life would be allowed after the new 25-year extension to be granted by this bill, if passed, would lapse. If this bill is passed, Mr. Speaker, Your Honor, PAGCOR would therefore-and please correct me if I am wrong, Mr. Speaker, Your Honor- would therefore have a corporate existence of 75 years. Mr. Speaker, a corporate life of 75 years is quite long especially given the nature of the morally perilous business PAGCOR is engaged in. Even SEC registered corporations engaged in less morally perilous work are allowed only a maximum of 50 years of corporate existence.  If I am not mistaken, Your Honor, Mr. Speaker, why is there a need to extend PAGCOR's corporate existence to more than 50 years? 

REP. SANDOVAL. Well, Mr. Speaker, the bill that I filed was for 50 years but as per agreement on the committee level, it was actually reduced to 25 years only. 

REP. VILLANUEVA. Pardon me, Mr. Speaker, may I … 

REP. SANDOVAL. As per committee amendments, the PAGCOR life was only given another 25-year extension. 

REP. VILLANUEVA. But, Mr. Speaker, it is again renewable for another 25 years. But when you look at the original Charter of PAGCOR, it says there that it is renewable for another 25 years. Again, we are giving another 25 years, so am I correct, Mr. Speaker, to say that …

REP. SANDOVAL. After 25 years, Mr. Speaker, PAGCOR will have to go again, go back to this august Chamber and ask for that renewal, Mr. Speaker. 

REP. VILLANUEVA. Well, Mr. Speaker, Your Honor, I asked this question because it appears to me that this is an admission by the Philippine government through the Legislative that we are stuck with gambling as a way of life; that there is no way that the vice of gambling can be completely eradicated in this country. Am I correct, Mr. Speaker? 

REP. SANDOVAL. Well, Mr. Speaker, all over the world there is gambling and I think it has been already an accepted fact that a government cannot just fight gambling, and instead of fighting it they regulate it and turn these companies and make income out of it and use it for social projects. 

REP. VILLANUEVA. But the government, Mr. Speaker, is not just a regulator, they act as operators of gambling, Mr. Speaker. 

REP. SANDOVAL. Well, Mr. Speaker, we already came from the time when these casinos are operated by private entities. During the-in the 60's you will see all the casinos in Pasay, Dewey Boulevard-Stardust, Flames and other casinos operating there. But I believe right now, with the government operating it, we are in better shape than before.  

REP. VILLANUEVA. So, Mr. Speaker, does the Gentleman agree with this Representation that the Philippine government cannot somehow provide basic services for its people without gambling, that we have to figuratively, so to speak, dance with the devil for the Philippines to survive? 

REP. SANDOVAL. Well, Mr. Speaker, I don't think the government is just doing that to give social services. I am sure that it was never the intention of government to use gambling as a means to give basic social services to the people, but it is the duty of government to regulate it and make sure that it is operated properly and only the right people with the right income, with the right age and the proper personalities are allowed to enter these gambling places. 

REP. VILLANUEVA. Well, as the distinguished Sponsor mentioned, the right people, the right mechanism in order to protect our people, I think the distinguished Sponsor is talking about the safety measures. May I just ask this question, Mr. Speaker, how are we going to scrutinize the gamblers who will participate in this gambling activity, Mr. Speaker? 

REP. SANDOVAL. Well, I think, Mr. Speaker, PAGCOR has its own ways and regulations how to scrutinize these players. No. 1, they make sure that they are at the right age; No. 2, that they have the right income. In fact, they have show money in order to enter PAGCOR premises. Also, in situations where they have problem gamblers, families can go to PAGCOR and actually ask PAGCOR to ban certain people into the casinos. 

REP. VILLANUEVA. Mr. Speaker, you made mention about right income. May I know how PAGCOR goes after or how they scrutinize gamblers who wanted to go inside this gambling institution, on how they find out as to how much they are earning, for example. I just could not imagine how they will be able to police on who to let in and who to block, Mr. Speaker. 

REP. SANDOVAL. Well, Mr. Speaker, I think one of the ways they do it is to ask for show money. If you don't have the money, then you cannot enter the casino.  

REP. VILLANUEVA. Well, it is easy, Mr. Speaker, to show that you have money for today and you know, maybe tomorrow or … because, Mr. Speaker, I asked this question again because I am still bothered by the fact that I received an old committee report that says, "A Filipino with a monthly salary of P50,000 will be allowed to gamble and go inside the casino premises." That is why I am still wondering as to how they are going to implement this, Mr. Speaker. Are they implementing this right now, Mr. Speaker? 

REP. SANDOVAL. Yes. I would believe that their security personnel are making sure that only those that have money can enter… 

REP. VILLANUEVA. Can afford, Mr. Speaker. 

REP. SANDOVAL. … Can afford, yes. 

REP. VILLANUEVA. Well, I asked this question because in our Constitution, I think, the State must protect not only the rich but also the poor, not only the poor but also the rich. And so, I was just wondering, Mr. Speaker, if it is but fair to the government to just protect the poor and not the rich.  But anyway, Mr. Speaker, Your Honor, based on Section 6 of Presidential Decree No. 1869, the PAGCOR Board shall be composed of five members, three of whom shall come from government sector and shall be appointed by the President while the other two shall be from the private sector who own at least one share of stock in PAGCOR and shall be elected in the annual general meeting or in a special meeting called for such purpose. May the Speaker clarify me as to the composition of the PAGCOR Board of Directors?  

REP. SANDOVAL. Well, Mr. Speaker, the Board of Directors consists of five directors all appointed by the President. There is no private sector representation and... 

REP. VILLANUEVA. No private sector, Mr. Speaker? 

REP. SANDOVAL. No private sector representation. There is no private entity that owns even 1% of the share of PAGCOR, and, therefore, all directors are appointed by the President.. 

REP. VILLANUEVA. Mr. Speaker, who currently compose the PAGCOR Board? And who and--well, you already answered the question, it is only the President who appoints the members of the Board of Directors. Am I correct, Mr. Speaker? 

REP. SANDOVAL. That is correct, Mr. Speaker. 

REP. VILLANUEVA. May we know for the record the names of the Board of Directors, Mr. Speaker? 

REP. SANDOVAL. Well, we have the chairman and executive officer… 

REP. VILLANUEVA. The chairman is… 

REP. SANDOVAL. Chairman Ephraim Genuino and the Directors are Philip Lo, Danilo Gozo, Manuel Roxas and Domingo Kalahati. 

REP. VILLANUEVA. So, there are only five. 

REP. SANDOVAL. There are five, Mr. Speaker. 

REP. VILLANUEVA. Mr. Speaker, how are they appointed? What are the grounds as to how the President appoints a member of the Board of Directors of PAGCOR? 

REP. SANDOVAL. Well, I would believe, Mr. Speaker, that if they enjoy the trust and confidence of the President of the Philippines, then they get appointed as Board of Director of PAGCOR. 

REP. VILLANUEVA. Mr. Speaker, I just wanted to be assured that the provision of PD No. 1869 is being followed, Mr. Speaker, and that is why I asked this question. May I know, Mr. Speaker, how much the Chairman of PAGCOR receives. 

REP. SANDOVAL. I don't have that information right now. However, I will submit to the honorable Gentleman from CIBAC once I get it tomorrow, Mr. Speaker. 

REP. VILLANUEVA. May I know, Mr. Speaker, if the Sponsor happens to know how many vice-presidents do they have? 

REP. SANDOVAL. One vice president, Mr. Speaker. 

REP. VILLANUEVA. Just one, Mr. Speaker, and may I know if the Gentleman is aware of how much he is receiving monthly or… 

REP. SANDOVAL. I am not aware of the remuneration of the officers and the Board of Directors of PAGCOR nor the employees, Mr. Speaker. 

REP. VILLANUEVA. Mr. Speaker, has the allegation that PAGCOR, through its Chairman Ephraim Genuino, contributed millions of pesos in the campaign chest of the present administration anything to do with the seemingly typhoon-swift process of having this bill brought before the plenary on Second Reading, Mr. Speaker? 

REP. SANDOVAL. Pardon me, Mr. Speaker. 

REP. VILLANUEVA. May I know if… because there are allegations, Mr. Speaker, that PAGCOR, through its chairman, has contributed--in the newspapers, in the media--that the chairman has already contributed so much money and millions of pesos being contributed in the campaign chest of the present administration and it is the main reason why we have to sacrifice and we have to stay up late and deliberate this measure. Is that a fair statement, Mr. Speaker? 

REP. SANDOVAL. I am not aware, Mr. Speaker, of any allegations such as that.  

REP. VILLANUEVA. Mr. Speaker, since the name of Chairman Genuino has been mentioned, may I might as well inquire on actions being undertaken by the Ombudsman and the Presidential Anti-Graft Commission on alleged unreported assets of PAGCOR's head. Mr. Speaker, I asked this question because I think the Sponsor would agree with me that it is not wise to continue to allow a person whose integrity has been questioned to continue to be at the helm of a money-making institution like PAGCOR, specially with the possibility of its corporate life being extended. 

REP. SANDOVAL. Well, Mr. Speaker, the charges were dismissed already. 

REP. VILLANUEVA. They are all dismissed, Your Honor. 

REP. SANDOVAL. All dismissed already. 

REP. VILLANUEVA. Mr. Speaker, I would also like to inquire on the basis of the allocation of around 10% of the PAGCOR's earnings, which amounts to more than a billion pesos to the President's social fund. May I know, Mr. Speaker, what law specifically provides for this? 

REP. SANDOVAL. I think that is part of the original charter of PAGCOR, Mr. Speaker. 

REP. VILLANUEVA. The original charter. What is the rationale, Mr. Speaker, of not putting this fund directly in the general fund to allow it to be utilized as how the government actually needs it? 

REP. SANDOVAL. Well, Mr. Speaker, I do not know the real intent of the original crafters of the PAGCOR franchise. However, everything that PAGCOR implements, including the social fund of the President, were all done during its original charter way back during the time of President Marcos. 

REP. VILLANUEVA. So, there was no chance, no attempt, Mr. Speaker, to explain or, at least, put this fund directly in the general fund to allow it to be utilized as the government actually needs it, Mr. Speaker? 

REP. SANDOVAL. Right now, there is no law but any Member of this House may file a bill.  

REP. VILLANUEVA. Would the Gentleman agree with this Representation that it would be better if we will be able to put this in this measure that we are deliberating? 

REP. SANDOVAL. My bill is only for a 25-year extension but that does not stop any Member of this House from further amending this charter. 

REP. VILLANUEVA. Mr. Speaker, what would be more important maybe is to legislate an increase in the share of the government in PAGCOR's earnings rather extending its life span and that's the main reason why I wanted to raise this issue. Maybe that way, we can get the money which we project to collect in the proposed extended period without having to make our people more vulnerable to the ills of gambling. Would you agree with me, Mr. Speaker? 

REP. SANDOVAL. Well, Mr. Speaker, aside from the operating expense and capital expenditures that are used by PAGCOR, not a single cent is retained by PAGCOR. All the other income goes to the national government. Wala pong natitira sa PAGCOR sa mga kinikita nila. 

REP. VILLANUEVA. Mr. Speaker, in PAGCOR's 2002 annual report, PAGCOR reported an amount of P92,941,488.39 as bonuses and other employee benefits. Take note, Mr. Speaker, that this refers only to bonuses and other benefits, P92,941,488.39. I just can imagine, Mr. Speaker, the total personal expenses PAGCOR incurs. May I know, Mr. Speaker, the total personal expenses PAGCOR incurs, Mr. Speaker? 

REP. SANDOVAL. The total personal services on salaries and wages, employee's benefit, total P4.5 billion, Mr. Speaker.

REP. VILLANUEVA. Four point… 

REP. SANDOVAL. 4.5 billion. That includes employees' benefits. 

REP. VILLANUEVA. That's the total personal expenses?

REP. SANDOVAL. Yes. Salaries and wages, allowances and incentive pays. 

REP. VILLANUEVA. This, therefore, Mr. Speaker, brings me to question the total amount a PAGCOR board member receives per diem and as a benefit or allowance every year. How much, Mr. Speaker, does a PAGCOR board member actually receive? 

REP. SANDOVAL. I am not aware of that, Mr. Speaker, but PAGCOR has over 14,000 personnel. And this 4.5 billion is I am sure divided among all these 14,000 personnel. 

REP. VILLANUEVA. Maybe, Mr. Speaker, what we should legislate is not the extension of PAGCOR's existence but rationalizing how its earnings are actually used. Maybe if we rationalize, it's spending there won't be a need to extend it in the first place. But anyway, Mr. Speaker - Your Honor,… 

SUSPENSION OF SESSION 

REP. SANDOVAL. Mr. Speaker, may I move for a one-minute suspension. 

THE DEPUTY SPEAKER (Rep. Espinosa, E.R.). Suspended. 

RESUMPTION OF SESSION 

THE DEPUTY SPEAKER (Rep. Espinosa, E.R.). Session resumed. 

REP. DEFENSOR (A.). Mr. Speaker. 

THE DEPUTY SPEAKER (Rep. Espinosa, E.R.). The Majority Leader.

REP. DEFENSOR (A.). Mr. Speaker, I move that we suspend consideration of Committee Report No. 161. I so move, Mr. Speaker. THE DEPUTY SPEAKER (Rep. Espinosa, E.R.). Any objection? (Silence) Approved.  

Manifestation on Extension of PAGCOR Franchise

December 16, 2004 

REP. VILLANUEVA. Mr. Speaker, can I just make a manifestation. Mr. Speaker.  

THE DEPUTY SPEAKER (Rep. Espinosa, E.R.). Manifestation. Please do so. 

REP. VILLANUEVA. Mr. Speaker, this Representation is so disappointed the way the leadership of this House is operating. Mr. Speaker, why are we so much in a hurry? We are giving away twenty-five (25) years, Mr. Speaker, and yet, pagka dalawang oras ka ng nagtatanong, hindi na puwede, isang oras kang nagtatanong. We are giving away twenty-five (25) years of extension. Another twenty-five (25) years and another twenty-five (25) years. I don't even know, Mr. Speaker, how long are we going to depend on the game of chance. In schools and universities, we are teaching our children, our young people, the virtue of hard work, the virtue of being matiyaga, being masipag, pagkatapos, eto, bibigay. Mr. Speaker, nasa kalagitnaan ako ng katanungan ko kanina, Mr. Speaker, when the Majority Leader approached me. While the distinguished Sponsor is looking for the right answers, Mr. Speaker, I was asked to yield. And I stated it for the record, Mr. Speaker, that I am willing to yield to the honorable Gentleman from Pasig. But what happened now, Mr. Speaker? Wala ho bang interesado sa atin dito sa Kongreso? Walang interesado kung magkano ang sinusuweldo ng Chairman? Magkano ang sinusuweldo ng mga Board of Directors? Ipapasa natin, twenty-five (25) years, pero walang interesado kung magkano ang sinusuweldo nila? Pambihira. Ibang klase po ito. Mabilis pa ito sa bagyong Wiinie at bagyong Yoyong. Mr. Speaker, hindi ko ho naiintindihan. Maging doon sa Committee, Mr. Speaker, nanduon ang mga PAGCOR people, dito, ni wala, wala tayong makitang Chairman, wala tayong makita kung sinuman. Are they interested in this particular measure? Bakit tayo nandito ngayon? Nandito ngayon tayo ngayong araw na ito just to have this special, extra special session for this measure to be passed? Mr. Speaker, I am just so disappointed, Mr. Speaker. Kung ito man ay kagustuhan nang nakararaming Miyembro ng 13th Congress, sana ay hindi po tayo magsisi. At sana, bigyang daan natin iyong konsensya natin. Maraming salamat, Mr. Speaker. 

January 18, 2005 

REP. VILLANUEVA. Thank you very much, Mr. Speaker. Before I ask for my parliamentary inquiry, Mr. Speaker, I would just like to put on record that this Representation is so disappointed that the House leadership did not answer the issues raised by the Honorable Plaza. But, Mr. Speaker, I would like to inquire also, Mr. Speaker, because under the Constitution-Article VI, Section 28 of the Constitution "(1) The rule of taxation shall be uniform and equitable. The Congress shall evolve a progressive system of taxation." And (4), Mr. Speaker, "No law granting any tax exemption shall be passed without the concurrence of a majority of all the Members of the Congress."Mr. Speaker, may I ask if how many Members of this august Chamber voted for this particular measure because, Mr. Speaker, a while ago the Chairman of the Committee on Ways and Means already stated that this particular measure involves tax exemption. It implies that there are tax exemptions being given to PAGCOR and its contractors, Mr. Speaker.  

THE DEPUTY SPEAKER (Rep. Espinosa, E.R.). Will the Majority Leader answer the question. 

REP. ABAYON. For the record, Mr. Speaker, we did not answer because the Honorable Plaza stood only on a manifestation but not on a parliamentary inquiry and considering now that the Honorable Villanueva stood on a parliamentary inquiry, this is now the time that we have to reply to the parliamentary inquiry.  We beg to disagree, Mr. Speaker, that this is a tax measure involving exemption because the title of the bill, indeed, is indicative that this is just an extension of the franchise of PAGCOR and so if it is an extension, it only extends the lifetime of PAGCOR for another 25 years  

REP. VILLANUEVA. But, Mr. Speaker… 

REP. ABAYON. And on the issue that any measure involving tax exemption requires the concurrence of a majority of all the Members, if you will have to take note the provision of Article VI, Section 28, Mr. Speaker, the entire section deals on tax measures. And so, it follows, when there is a grant of a tax exemption on that tax measure, then the concurrence of a majority of the Members is required. But PAGCOR, I repeat, is not a tax measure but a franchise and a franchise, under the Constitution, does not require the concurrence of the majority of all the Members of this House. 

REP. VILLANUEVA. Thank you very much, Mr. Speaker. I am made to believe now, Mr. Speaker, that it does not imply that tax exemption being given to PAGCOR is not part of this particular measure as well as tax exemptions being given to the contractors of PAGCOR.  

REP. ABAYON. In effect, even granting for the sake of argument, we go on the argument of the Honorable Villanueva that this is a tax measure and it grants exemption, the fact remains that we are only extending the life of PAGCOR. The exemptions before were already granted by the previous Congress, so we are not taxing on the tax exemption because it has been previously granted. What we are dealing on this bill, Mr. Speaker, is only the extension. We are not and we have not been discussing even the aspect of tax exemption. 

REP. PARAS. Mr. Speaker. REP. MARIANO. Mr. Speaker. 

THE DEPUTY SPEAKER (Rep. Espinosa, E.R.). The Honorable Paras. 

REP. PARAS. May I know if there is still a quorum. 

SUSPENSION OF SESSION 

REP. ABAYON. One-minute suspension, Mr. Speaker. 

THE DEPUTY SPEAKER (Rep. Espinosa, E.R.). Suspended.It was 8:12 p.m.

RESUMPTION OF SESSION At 8:14 p.m., the session was resumed. 

THE DEPUTY SPEAKER (Rep. Espinosa, E.R.). Session is resumed.

REP. PARAS. Mr. Speaker, I would like to withdraw my previous query as to quorum to allow the Gentleman from Party-List Bayan Muna to.… 

REP. MARIANO. Anakpawis, Mr. Speaker. 

REP. PARAS. …Anakpawis. Kasi pinapawisan na po siya, kanina pa naghihintay.Thank you. 

REP. VILLANUEVA. Mr. Speaker. 

REP. MARIANO. Thank you, Mr. Speaker; thank you, dear colleague. 

REP. VILLANUEVA. Mr. Speaker. 

THE DEPUTY SPEAKER (Rep. Espinosa, E.R.). The Gentleman from…. Whom do we recognize first? 

REP. VILLANUEVA. CIBAC Party List, Mr. Speaker. I think I still have the floor, Mr. Speaker. 

THE DEPUTY SPEAKER (Rep. Espinosa, E.R.). Ah, CIBAC Party List, okay. 

REP. VILLANUEVA. I think, Mr. Speaker, it's so clear that in giving franchise to PAGCOR, we are giving also tax exemptions. And that is why I am asking, Mr. Speaker, if there is a need because after the voting, Mr. Speaker, we only had about 113 votes. Isn't it short, Mr. Speaker, of getting majority vote of all the Members not just present in this House of Representatives. And that is why, Mr. Speaker, I am asking again, when we are extending the franchise of PAGCOR, are we not giving also, Mr. Speaker, exemptions, tax exemptions to PAGCOR and its contractors, Mr. Speaker? 

THE DEPUTY SPEAKER (Rep. Espinosa, E.R.). I think the Majority Leader…. 

REP. ABAYON. Just for the consumption again of the Honorable Villanueva, Mr. Speaker, because I have explained it earlier and I would like to reiterate my explanation, the extension of the PAGCOR to another 25 years is not in effect a tax exemption measure. Why? Because what we are only debating is only on the extension of 25 years but we are not debating and indeed there is no provision in the measure on tax exemption. The stand of the leadership of the House is that this is a franchise bill and this is not a tax measure; therefore, the requirement of the majority of all the Members of this House to effect the passage of this measure is not a requirement. And even assuming arguendo that this is a tax measure, the fact remains that the exemptions on the tax were passed upon by the previous Congress and there is no law that if you extend the period which carries the tax exemption, that is also a tax exemption. Furthermore, Mr. Speaker, the provision of Article VI, Section 28 of the Constitution, if you read all the subsections up to subsection 4, it deals on taxation. Therefore, what is there only is a tax measure. I hope, Mr. Speaker, it has been clearly elucidated by this Representation that the Honorable Villanueva has already clearly understood so that we will put the issue to rest. Thank you, Mr. Speaker. 

REP. VILLANUEVA. I will not debate on the issues raised by the honorable Majority Leader but I would just have to say, Mr. Speaker, that the Chairman of the Committee on Ways and Means then is wrong when he stated a while ago that there was indeed a violation.

Thank you very much, Mr. Speaker.   

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Explanation of Vote on HOUSE BILL 3409 - Extension of PAGCOR Franchise

18 January 2005

Mr. Speaker, I am not surprised, number one, every time pinapasa natin ang PAGCOR, nagkakaroon ng sunog. Number two, I am not surprised because of the P19 billion a year income ng PAGCOR, bakit hindi kayang i-railroad ang measure na ito dito sa Kongreso? But again, Mr. Speaker, Your Honor, this Representation will not and will never be intimidated by the majority of the Members. Mr. Speaker, when the majority of Members of this august Chamber decided to approve on Second Reading House Bill No. 3409, the bill extending the corporate existence of the Philippine Amusement and Gaming Corporation or PAGCOR despite the irregularities surrounding it, Mr. Speaker-may ini-raise po kanina ang Committee Chairman ng Ways and Means, pagkatapos nating ipasa ito, mayroong bill abolishing PAGCOR, what is going to happen? Extending PAGCOR's existence, pero alam naman natin, hindi lang po natin ini-extend iyong charter nila, but we are also giving and opening up a lot of opportunities for this gambling institution to introduce new form of gambling.

Mr. Speaker, despite the irregularities surrounding it and deleterious effects and implications it would have on Philippine society, their approval echoed with deafening resonance inside my head.  Mr. Speaker, House Bill No. 3409 was literally rammed down our throats. Here in the plenary, even valid questions and issues against this bill were suppressed. Mr. Speaker, I ask this question: what is really the policy of this government? What is really our stand as a Body? My question is, are we a pro-gambling House of Representatives? Are we a pro-gambling Congress? I think today, it will be written in the books of history that we are indeed a pro-gambling House of Representatives. 

Mr. Speaker, Your Honor, in the Holy Bible, it was written, money is not the root of all evil, but it is the love for money which is the root of all evil. In this House measure, Mr. Speaker, Your Honor, what are we promoting? Aren't we promoting love for money? We talk about so much money na kinikita ng PAGCOR. But, Mr. Speaker, no one seems to be looking at what expense are we getting these billions. What are we losing in dipping our hands in the moneybag?  Mr. Speaker, Dr. Jose Rizal, Bonifacio, del Pilar, Mabini, and a whole lot more of our acclaimed heroes have said that for our country to flourish, we need to study hard, work hard, and value our virtues. On the other hand, Mr. Speaker, the seeming staunch support of the leadership of this House towards institutionalized gambling leaves a bad taste in the mouth. It appears this House is willing to allow itself to be part of the deterioration and degradation of this nation's virtues-virtues which have been identified by our fathers and great leaders all over to be essential for genuine national development. 

Mr. Speaker, we solemnly swore to uphold and defend the Constitution of our land and our people. Our Constitution mandates the State to protect and serve the moral welfare of our people, specially the young, the rich or poor. I see nothing, Mr. Speaker, I see nothing in our Constitution which tells us to shelve our virtues and bank on a vice like gambling when the going gets tough or even gets worse, for personal and political interests.

PAGCOR's slogan reads: "May liwanag ang bawat bukas. Sama-sama nating abutin ang ating minimithing tagumpay. Kapit-kamay nating tahakin ang landas tungo sa magandang bukas. PAGCOR - tanglaw ng sambayanan, kaagapay sa kaunlaran." Mr. Speaker, sa sugal, walang liwanag ang bukas. Sa sugal, hindi kailanman mararating ang minimithing tagumpay. Ang institusyon ng sugal, hindi kailanman tanglaw ng sambayanan, hindi kailanman kaagapay sa kaunlaran.  Mr. Speaker, again and again, this Representation is against all or any forms of gambling, be it legal or illegal. And I believe that no amount of money will make us sell out our nation's soul.  

I vote no, Mr. Speaker. 

Thank you very much.