PCSO defies solons’ move to close Isabela STL operations

By Ben Rosario

ILAGAN, Isabela -- Ordered to temporarily close its small town lottery (STL) operations in Isabela, an official of the Philippine Charity Sweepstakes Office on Feb. 16 said they will be forced to defy lawmakers unless specifically ordered by the Office of the President to comply.
    PCSO General Manager Royina Garma stood her ground during a joint congressional inquiry conducted by the House Committees on Good Government and Accountability and on Games and Amusement in Quezon City, pointing out that since the state-run lottery firm is under the OP, she cannot follow what the joint panel wants her to do.
    Garma, a former Cebu City police chief, faced House members and Isabela police officials as she defended STL operator  Sahara Gaming  from accusations hurled by local officials of Cauayan City and the provincial government.
    Sahara, a PCSO authorized agent corporation (AAC),  has reportedly been violating local laws by refusing to pay business fees and local taxes. 
    It was also accused of harassing local law enforcers ordered to stop STL operators for violation of city ordinances.
    “We will wait for instructions from OP to direct me to comply with what you manifested a while ago,” Garma told Abra Rep. Joseph Bernos, chairman of the games and amusement panel.
    Acting on an approved motion, Bernos informed Garma that the Isabela STL must temporarily cease operation while the Lower House is conducting an investigation into the  legality of Sahara’s STL business.
    Isabela Rep. Faustino “Inno” Dy appeared incredulous at Garma’s claim. 
    He said the joint panel must invite an OP representative for clarification.
    The Commission on Audit lists PCSO as a government-owned and/or controlled corporation and not an attached agency of OP.
    Isabela Gov. Rodito Albano said that aside from defying local laws  and refusal to pay business permits and local taxes in      Isabela, Sahara has been shortchanging the PCSO of its share from the STL operations in the province.
    Albano presented to the joint panel what he claimed were bogus betting tickets and receipts allegedly being used by the STL operator.
    Reacting to Albano’s claim, DIWA Partylist Rep. Edgar Aglipay, chairman of the good government panel, said it would be better for PCSO to take over all STL operations since it is being cheated by some of its AAC partners, anyway.
    While admitting that there are indeed instances where AAC’s shortchange the PCSO,  Garma insisted that they are  closely monitoring all its STL operation, adding that it is the lottery firm, not AAC’s, that conduct local draws.
    During the hearing, League of Provinces of the Philippines and Marinduque Gov. Presbitero Velasco assailed PCSO for tapping AACs to run STL outlets, saying that this is against the law.
    Velasco, a retired Supreme Court associate justice, cited the SC ruling in Kilosbayan vs Guingona which ruled that PCSO is prohibited from conducting lotteries “in collaboration, association or joint venture with any person, association, company or entity, whether domestic and foreign.”
    Together with Rep. Dy and Deputy Speaker and Sagip Partylist Rep. Rodante Marcoleta, Velasco stressed that by tapping AACs as partners in the conduct of STL lotteries, the PCSO is already violating the law.
    “We maintain that the operations of the AACs are in clear and blatant violation of Section 1 of Republic Act 1169,” said Velasco.
    The LPP president advised the PCSO to stop STl operations it has assigned to AACs to avoid being accused of defying the law.  
    “Another option is for pCSO to use officials and employes to conduct lotteries.  We also recommend that the PCSO charter and the Local Government Code can probably be amended and add LGUs to enter into arrangements and contracts with PCSO so that they themselves can operate STLs,” said Velasco.