Press Release
May 11, 2009

JINGGOY SLAMS MMDA FOR MMFF PROCEEDS MISUSE

Senate President Pro Tempore Jinggoy Ejercito Estrada hits Metropolitan Manila Development Authority (MMDA) for the mismanagement of the proceeds of the annual Metro Manila Film Festival (MMFF).

In a privilege speech entitled "Katas ng MMFF" slated to be delivered today before the plenary, Sen. Estrada exposes how MMFF proceeds are spent and illegally distributed, who benefits from them and how MMDA Secretary Bayani Fernando diverted funds for himself.

Disbursement vouchers, among other documents which reached the office of Sen. Estrada showed that two five hundred thousand peso - checks and another one hundred thousand peso - check were detailed as cash gifts for Chairman Fernando for his birthday on 2003, 2005 and 2006.

According to the same documents, these were chargeable against the shares of the three beneficiaries from the proceeds of the festival, and against MMFFP non-tax revenues.

"One who pillages and continues to loot and divert for other purposes the funds of the MMFF should be held accountable for technical malversation of government funds," Estrada asserted.

MMFF was created in 1975 through Presidential Decree 1459 by then Pres. Ferdinand Marcos, which also instituted an executive committee (later reconstituted to become the Metro Manila Commission) as its management arm in fund-raising activities to benefit the Movie Workers Welfare Foundation, Inc. (Mowelfund) founded by former President and then premier movie actor Joseph Estrada.

For 10 years since its inception, i.e. from 1975 to 1985, all of the proceeds go to the Mowelfund. In 1985, then Governor of Metro Manila and First Lady Imelda Marcos even authorized Mowelfund to manage MMFF and all accrued amusement taxes. Film Academy of the Philippines and the Anti-Film Piracy Council later became part of the beneficiaries. Later on, during the reign of Chairman Fernando starting 2002, Presidential Social Fund, Optical Media Board and the Film Development Council of the Philippines were added as beneficiaries from the amusement tax of the MMFF.

At present, the amusement tax for the MMFF is divided among the following entities as follows: Mowelfund - 35%, Presidential Social Fund - 35%, Film Academy - 10%, Film Development Council of the Philippines - 10%, Anti-film Piracy Council - 5% and Optical Media Board - 5%.

"From the period of 1998-2001, the three (3) original beneficiaries received a 15-20% amusement tax or an average of 17.4% out of the gross income of the MMFF. But from 2002 onwards, when Chairman Fernando took over, the percentage of the amusement tax went down to a staggering 9.9% to as low as 5.7% in 2007," Estrada said.

"Habang lumalaki ang kinikita ng MMFF kada taon, nakapagtatakang paliit nang paliit ang pondong naibibigay sa MowelFund, at iba pang organisasyong umaasa dito. Bukod pa riyan, hindi rin naipapamigay nang tama sa paraang itinakda ng ating batas ang kita ng MMFF. Saan napunta ang perang dapat sana'y napapakinabangan ng ating mga kasamahan sa entertainment industry? Sa pondong iyon, maaari sanang natulungan ang mga manggagawa ng pelikula na mapaunlad ang kanilang kakayahan, at nabigyan ng assistance ang mga kasamahan nating walang permanenteng trabaho," Estrada, Chairman of the Senate Committee on Labor, Employment and Human Resources Development, said of the anomalous release of MMFF proceeds.

Lastly, Sen. Estrada reiterated his call to transfer the administration of the MMFF from the MMDA to the members of the entertainment, like the Mowelfund.

"MMFF should be in the hands of the people who toil in the movie industry and whose hearts are resolved to revive its golden years. And so I make this appeal to Mrs. Arroyo that she reverts the management and operation of the Metro Manila Film Festival from the MMDA to the Mowelfund so that it could start to revive itself and be competitive once more."

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