Junked paper deal saves PCSO P16.2 billion

MANILA, Philippines - The Philippine Charity Sweepstakes Office (PCSO) has saved P16.2-B after junking the 50-year contract worth P42 billion which its previous administration had entered into with an Australian firm for the supply of thermal papers used for lotto stubs.

“By now purchasing our lotto paper from other suppliers, we are saving P27-million monthly. This amount translates into additional 5,400 poor patients monthly which we are serving,” PCSO Chairperson Margie Juico said.

She pointed out: “In effect, these additional 5,400 monthly poor patients are the same number which the agency had deprived service during the administration of President Arroyo.”

In a resolution approved on April 15, the PCSO board of directors declared the joint venture agreement between the agency and TMA Group of Companies null and void “for patent violation of applicable laws, rules and regulations.”

“Wherefore, the board resolved to revoke Resolution No. 2171, Series of 2009, dated Nov. 24, 2009 approving the JVA between PCSO and TMA,” part of the resolution reads. Juico, directors Francisco Joaquin III, Aleta Tolentino and Betty Nantes approved the board resolution.

The resolution cited the opinion of the Office of the Government Corporate Counsel (OGCC) which declared the supply agreement in guise of contractual joint venture is void and non-existing because it is undertaken to circumvent Republic Act 9184 in the procurement of supplies and evaded COA audit. The resolution also revoked an earlier Resolution 2171, Series of 2009 which approved the 50-year, P42-billion deal.

Tolentino stressed the mandate of PCSO is limited to fund-raising for charity, from horse races and lottery and not on the production for supply of thermal papers for lotto tickets. 

“The mere fact that you are tying down PCSO for 50 years for the supply of paper exclusively from this particular group is indeed questionable. It is patently disadvantageous to the government,” Tolentino said.

She added that the agency’s decision to declare the contract null and void had prompted TMA to file a case against PCSO. “They want us to honor the contract, but they cannot force us. It’s illegal,” she stressed.

As early as 2009, former Sen. Jovito Salonga representing Bantay Katarungan, a group of lawyers monitoring Philippine courts and quasi-judicial bodies, has been questioning the propriety of the deal.