June 13, 2018

MR. BENJAMIN DIOKNO

Secretary
Department of Budget and Management
General Solano Street
San Miguel, Manila

Dear Secretary Diokno,

The Philippine Racing Commission or PHILRACOM was privileged to be accepted as

affiliate member of the International Federation of Horseracing Authorities (IFHA) in April 2016.
This federation aims to harmonize the rules of the member countries regarding breeding, racing
and wagering and also to provide updates on the recent updates in the horseracing industry.

The PhilRaCom, by virtue of its membership, can now enjoy the privileges accorded to all
IFHA members. Our locally-bred horses and jockeys will have the opportunity to compete in
other member countries. However, being a member will also require us to align our
handicapping rules and regulations with international standards which would mean the
modification of our current handicapping system. Hence, the Commission will be adapting the
Rating- Based Handicapping System which is the standard system used by member countries of
IFHA and other racing countries.

Rating Based Handicapping System or RBHS is a flexible numeric based domestic ratings
system allowing horses to move up and down the rating bands. This method is used to rank
horses based on their actual performances with the purpose of grouping horses with similar
capabilities and which will eventually lead to more balanced races.

Since the RBHS will be introduced for the first time, the Commission tapped the services
of two (2) foreign Technical Consultants who are adept with system. The vast experiences of
these two (2) Foreign Experts were availed already by other racing countries. Their tasks included
the review of the current structure of Philippine Race Program, study the classification of horses,
race distribution and population of horses. Both Consultants also conducted lectures and
dialogues with the Racing Managers of the three (3) Racing Clubs and other sectors of the
industry so that the system could be best explained to them.
 The Philracom is cognizant of Joint Circular No. 1 Series of 2017 issued by the
tripartite body, the Civil Service Commission or CSC, Commission on Audit or COA and
Department of Budget and Management or DBM relative to the Rules and Regulations
Governing Contract of Service and Job Order Workers in Government which states, among
others, that “Government agencies may enter into contract of service with individuals as
consultants/contractors subject to the guidelines and limitations contained in the same
joint circular.

Based on the foregoing, the Commission is requesting authority from your office to
renew the contracts of our three (3) Handicapping Consultants who have undergone training
with our Foreign Consultants that will end this year. While the Commission has a handicapper on
a permanent status, the intricacies and highly technical scope of work of the new system cannot
be performed by a single person. These Handicapping Consultants will assist our Handicapper in
the evaluation of the performances of about 500 horses participating in the races every week
and in updating the ratings of these horses.

We hope that you will find merit in our request.

Thank you.

Very truly yours,

DR. ANDREW ROVIE M. BUENCAMINO

Executive Director III

DIRECTOR, Sir

Draft of our letter to DBM re authority to renew our Handicapping Consultants.

For your correction po. Thanks….eva