FORMER Chairman Efraim Genuino of the Philippine Amusement and Gaming Corp. (Pagcor) and four other former officers of the agency are facing another criminal case, this time for alleged malversation of 300 metric tons (MT) of rice donated by a Japanese company to the government in 2008.

“Our investigation and records show that Genuino and four others connived to misappropriate more than P3.1 million worth of public funds and property from Pagcor by diverting part of the rice donation to bolster the political ambitions of his two sons during the 2010 elections,” said Pagcor president and chief operating officer Jorge Sarmiento.

The complaint-affidavit was filed with the Department of Justice (DOJ) on Monday.

Also named respondents are Edward King, former Pagcor senior vice president for corporate communications and services; Mai Mai Tado, a ranking executive of Trace Computer College owned by the Genuinos; Anthony Genuino and Erwin Genuino, sons of the former Pagcor chief who ran for mayor in Los Baños, Laguna, and Makati City, respectively.

Tado is now the city administrator of Los Baños.

The complaint said in June 2008 Genuino was able to secure a donation of 300 MT of Thai rice from Aruze Corporation, one of the proponents for Pagcor’s Entertainment City Project in Manila, for the victims of Typhoon Frank that hit the Philippines and wrought substantial damage.

To facilitate the entry of the rice into the Philippines and to avail of exemption from taxes and duties, the donation was made in favor of Department of the Social Welfare and Development (DSWD). A Deed of Donation dated July 8, 2008, was executed by Aruze Corp. through its chairman, Kazuo Okada, in favor of the DSWD, through then-Secretary Esperanza Cabral.

The Office of the President issued Memorandum Order 36 Clearance stating that “the rice donation was intended to augment the prevailing rice shortage and to assist the victims of Typhoon Frank. The taxes and import duties for the said rice donation were deemed automatically appropriated and considered as expenditure of the government,” the complaint said.

On July 15, 2008, the complaint added, the donated rice to the DSWD was withdrawn from the port and placed in the custody and full control of Pagcor and delivered to a private warehouse in Cabuyao, Laguna. On the same day, the former Pagcor Board of Directors approved a budget of P1.35 million to be used for the forwarding, storage and brokerage fees of the donated rice.

A few days after, Pagcor came out with a press release about the formal turnover of said rice donation, which was witnessed by former National Disaster Coordinating Council Chairman Gilbert Teodoro.

Based on records, only 6,500 of the 10,000 donated sacks of rice were given to the DSWD for distribution to calamity victims. The balance of 3,500 sacks were withdrawn, delivered and ended up at the Pagcor warehouse in Imus, Cavite, the complaint said.

Sometime in September 2008, the complaint said, King coordinated with the National Food Authority (NFA) to request that the remaining bags of rice be transferred to the NFA warehouse in Cavite in order to protect the donated rice from pest infestation. The request was granted and on October 2008, the remaining donated bags were transferred to the NFA warehouse.

Upon learning that the prolonged storage might lead to the rice’s deterioration, Pagcor entered into a barter agreement with a private rice mill wherein the donated rice was replaced with a cheaper variety of rice. From that point onward and up to the rundown to the 2010 national elections, several hundreds of bags of the rice were repacked in sacks bearing the images of Anthony and Erwin Genuino as electoral candidates, the complaint said.

Sarmiento said the repacked bags of rice were turned over to and received by Trace Computer College, owned by the family of Genuino, and various individuals representing Genuino’s sons. These sacks were eventually distributed during the election period to bolster the candidacies of the Genuino brothers.

 “What Genuino did is a clear case of diverting the officially donated rice to the DSWD-Philippine government, intended to augment the prevailing rice shortage at that time, and for the victims of Typhoon Frank, to his two sons’ 2010 electoral campaigns when they ran for elective public offices,” Sarmiento added.

He said the total cost of rice released to the Genuino brothers was P1.40 million, while the expenses incurred for logistics, such as shipment, trucking, storage and repacking, amounted to P1.69 million.