Berjaya unit PGMC files contempt suit vs PCSO

MANILA, Philippines - Berjaya-led Prime Gaming and Management Corp. (PGMC) has filed a contempt suit against the Philippine Charity Sweepstakes Office (PCSO) for alleged deliberate disobedience to the injunction order issued by a lower court.

The Makati Regional Trial Court issued a writ of injunction against the implementation of the deal entered into between PCSO and Pacific Online Systems Corp., allowing the latter to lease to PCSO lottery equipment for online lottery operations in Luzon.

PGMC, the local gaming unit of Malaysian conglomerate Berjaya, said the deal allegedly violated the exclusivity agreement between PCSO and PGMC over the Luzon area and a prohibition against entering into government contracts without public bidding.

PGMC and PCSO had entered into an agreement wherein PGMC would be the sole provider or exclusive source for all lottery equipment in Luzon.  The agreement, which provides for PCSO to pay PGMC rentals from all of the state gaming firm’s online lottery operations in Luzon, has yet to expire in August 2015.

In its order, the Makati RTC said “Resolution 445 technically indicated that a public bidding for the operation of the online lottery system was conducted and that the same was awarded only to one bidder, and that is PGMC.”

 “It is bolstered by the approval and execution of the ELA (exclusive lease agreement) and the amended ELA, where it clearly states that PGMC  has exclusive lease rights over the online lottery equipments and software support of PCSO in Luzon,” the Makati RTC pointed out.

In August, PCSO said it would no longer extend the contracts entered into with PGMC and Pacific Online for its lotto operations. These contracts have been the subject of criticism by the Commission on Audit for being disadvantageous to the  gov’t. The Berjaya Group, nevertheless, remains keen on doing business in the Philippines as plans to further expand its hotel properties and investment in the consumer sector are underway.

It is currently on the lookout for a property within central business districts to build its planned five- or six-star hotel.