The Philippine SEA Games organizing committee (PHISGOC) chaired by Alan Peter Cayetano is under fire for its P387-million debt to suppliers. 

The issue was brought up during the Philippine Sports Commission’s (PSC) 2021 budget hearing where executive director Atty Guillermo Iroy requested for the amount from the Department of Budget and Management (DBM). 

“Wala na pong [accounts receivables] (We don’t have any more accounts receivables). In fact, we requested from the DBM an additional P387 million for the remaining payables from the different suppliers from the SEA Games,” said Iroy on Tuesday, October 6. 

“In fact there are too many demand letters that we received. In fact some senators already received demand letters from the suppliers so we expect that this 387 will soon be released by the DBM.”

According to PSC, the amount requested will be given to PHISGOC to disburse to the SEA Games suppliers. 

The PSC also revealed that it requested an additional P800 million that brought the total amount of SEA Games hosting expenses to P6.8 billion. 

A total of P800 million was used for the procurement of sports equipment and for international broadcast needs, which was considered as one of the “big ticket expenses,” according to Iroy. 

Only P5 billion of the P7.5 billion budget was approved by the Senate last year following the questioning of Senator Frank Drilon. 

An additional P1 billion was given to PSC by the Office of the President.

But in a Senate hearing a week before the SEA Games, Cayetano said he had to accept P1.5 billion in “financial assistance” because the PSC and the Philippine Olympic Committee (POC)  lacked procurement lawyers to bid out contracts. 

But this figure excludes infrastructure, including an P11-billion deal between the  Bases Conversion and Development Authority (BCDA) and Malaysian firm MTD Capital Berhad for New Clark City’s sport facilities which government’s corporate counsels found questionable. (READ: How BCDA’s multi-billion New Clark deal slipped through)

‘Unacceptable’

Senator Bong Go, who presided the meeting, emphasized that the debt was “unacceptable.”

“It’s unacceptable that small drivers and businessmen have remained unpaid. We had a grandiose opening and hosting, yet our ordinary countrymen have yet to receive payments,” said Go.

Go also shared his encounter with a van driver in Cavite, who said he has not received payment for his services. 

Senator Nancy Binay also questioned why PHISGOC, being a private entity, was allowed to use government funds to fulfill the contracts it entered. 

“Now, taxpayer money will be used to settle [the balances],” said Binay. 

Although the audited financial statements have to be reported by November, Iroy reported that PHISGOC earned around P194-195 million off P163-164 million from the accommodation subsidy and P32 million from broadcast. 

Iroy said the financial statements are with third-party auditing firm Price Waterhouse & Cooper.

Despite being under fire, Go approved PSC’s 2021 budget amounting to P207 million. 

PSC further requested P250 million for the preparations and expenses for the Tokyo Olympics in 2021, and prepared separate proposals for the Paralympics, Asian Indoor and Martial Arts, and the 2021 SEA Games expenses. 

The country finished as overall champion for the first time in 14 years off a record 149 golds in its hosting of the regional biennial meet. – Rappler.com