The government is at the losing end of the multi-million lease deal that the state-run Philippine Amusement and Gaming Corporation (PAGCOR) entered with a private developer in connection with the Army Navy Club casino conversion project.

This was the findings of the Philippine Commission on Audit (COA) as it disallowed the PHP234 million (U$4.6 million) disbursement made by the PAGCOR, according to a report of The Manila Bulletin.

It would be recalled that PAGCOR and Vanderwood Management Corporation inked a PHP3.2 billion (US$63.16 million) deal in 2016 but PAGCOR chair Andrea Domingo approved the use of PHP234 million as advanced payments for the Army and Navy Club rental.

COA, however, pointed out that the disbursement of the PHP234 million was irregular since “there was no leased premises to speak of.” Citing Executive Order No. 201, the state auditor scolded PAGCOR’s Bids and Awards Committee for entering into a lease contract with a sub-lessee.