Ex-PAGCOR Chairman, four others get 100 years in jail for graft, malversation cases
The Sandiganbayan’s Third Division has convicted former Philippine Amusement and Gaming Corporation (PAGCOR) chairman Efraim Genuino and four former senior officials for multiple counts of graft and malversation over the alleged misuse of more than PHP50 million (€806,850) in public funds. Sandiganbayan is a special appellate collegial court in the Philippines that has jurisdiction over criminal and civil cases involving graft and corrupt practices.
The court handed down its 257-page ruling on 9 May, sentencing Genuino along with former PAGCOR President Rafael Francisco, former Senior Vice President for Administration Rene Figueroa, former SVP for Corporate Communications Edward King, and former Assistant Vice President for Internal Audit Valente Custodio. Each was found guilty of five counts of violating the Anti-Graft and Corrupt Practices Act and five counts of malversation under the Revised Penal Code of the Philippines.
The charges stemmed from various projects conducted between 2005 and 2009 involving BIDA Production and the BIDA Foundation, an organisation reportedly founded by Genuino. The court ruled that the accused facilitated the direct awarding of contracts and disbursement of funds without competitive bidding or adherence to procurement laws.
No bidding, excessive disbursements, and misused funds
The court noted irregularities in several BIDA-related projects. In two separate criminal cases, the officials were found to have approved contracts to BIDA Production for 2005 and 2006 programmes without the required public bidding. The services provided, such as lantern-making and choral contests, were not classified as highly specialised and could have been sourced from other providers.
In other cases, the court found that public funds were used for BIDA Comics and the BIDA Caravan against illegal drugs. These activities were considered socio-civic and within PAGCOR’s purview, but the release of funds bypassed procurement rules. Disbursements exceeded allowable limits for alternative procurement methods, with individual transactions reaching millions of pesos for promotional items, including tarpaulins and identification materials.
In another project, nearly PHP20 million (€322,740) was spent on the Grand BIDA March, a rally held in 2009 to raise awareness about illegal drugs. While the rally’s objective was deemed public, the prosecution demonstrated that multiple procedural violations occurred in how the funds were disbursed.
Malversation convictions and total sentences
The five officials were also convicted in five separate cases of malversation. Two counts carried prison terms of 10 to 17 years, one count six to 11 years, and two counts were met with reclusion perpetua—20 to 40 years in prison. They were also ordered to pay PHP45.17 million (€728,908) in fines.
Although the cumulative sentences total over 100 years, Philippine law caps the maximum imprisonment period for a felony at 40 years. The court also imposed perpetual disqualification from holding public office on all five individuals.
Partial acquittal and archived charges
The acquitted the accused of 14 other counts of graft and 15 counts of malversation, including donations to private entities. The court cited the prosecution’s failure to prove guilt beyond reasonable doubt in these instances.
Meanwhile, charges against former PAGCOR Vice President for Accounting Ester Hernandez were ordered archived. She remains at large, and her cases may be revived upon arrest or voluntary surrender.
