Expensive coffee earns ex-PAGCOR chair Genuino and others graft, plunder charges

The Philippine Amusement and Gaming Corporation (PAGCOR) on Tuesday filed graft and plunder charges against its former chairman Efraim Genuino and other PAGCOR former officials and coffee concessionaire Carlota Manalo-Tan for allegedly conniving in a P258-million coffee supply contract in which the government lost a lot of money.

PAGCOR claimed that Genuino, former senior vice president Rene Figueroa and former president Rafael "Butch" Francisco allowed Tan’s Promolabels Specialty Shop to operate in casinos and serve coffee bought over and above the usual selling price.

"PAGCOR's audit team discovered that from 2005-2008 alone, five Casino Filipino branches paid at least P258 million to Promolabels… PAGCOR could have saved at least P78 million if only the prices of Promolabels' Figaro coffee products were the same as those of other Figaro franchises," the gaming firm noted in its complaint filed before the Office of the Ombudsman on Tuesday.

"Respondents Genuino, Francisco, Figueroa acted with manifest partiality, evident bad faith and or gross inexcusable negligence by awarding the concession agreements to Promolabels," read the complaint signed by current directors Jose Tanjuatco and Enriquito Nuguid.

The former PAGCOR officials were in connivance with Tan "with a view of enriching themselves and coffee concessionaire Manalo-Tan through the sale and purchase of overpriced Figaro coffee products."

According to the state-owned PAGCOR which also regulates the gaming industry, Tan's husband, Johnny Tan, is a 'known ally' of Genuino.

As of this posting, GMA could not immediately contact Genuino or his legal counsel for comment.

PAGCOR’s overpriced coffee was first revealed in President Benigno Aquino III’s State of the Nation Address last year. Under Genuino's leadership, the gaming company spent about P1 billion for coffee from August 2001 to June 2010.

It was also discovered that Promolabels, was not registered with the Securities and Exchange Commission.

Tan's Promolabels had a three- to five-year contract to operate Figaro coffee shops in Parañaque, Angeles City, Heritage Hotel, Olongapo City, Manila Pavilion, Tagaytay and the former Casino Filipino Silahis.