Pagcor appeals court decision on jai alai money

A state-run gambling firm asked the Court of Appeals yesterday to reconsider its decision upholding a Manila court’s order for it to return P1.562 in "goodwill money" and investments paid by two private companies for the operation of a shelved jai alai fronton in Manila.

In its motion for reconsideration, the Philippine Amusement and Gaming Corp. (Pagcor) said government funds may be lost if the order of Judge Romulo Lopez of the Manila Regional Trial Court, branch 34, would be enforced.

"The grim reality of this case is that approximately One billion five hundred million (P1,500,000,000.00) of Pagcor funds, government funds for that matter, might be lost as a result of a decision rendered by the Honorable public respondent who issued the same with grave abuse of discretion amounting to lack or excess of jurisdiction, unless the Honorable Court of Appeals exercises its power to judicial review in the interest of substantial justice and paramount public interest," read the seven-page motion.

Pagcor said the refund of P1.562 billion to the Belle Jai Alai Corporation and Filipinas Gaming International Totalizer Corporation involves "overriding" public interest.

"A cursory review of the decision would crystal clearly manifest that the same was afflicted with intentional procedural as well as substantive lapses showing the apparent partiality in favor of the private respondents," read the motion.

"The rendition of the assailed decision is tantamount to whimsical abuse of discretion by the Honorable public respondent. It is therefore humbly prayed of this Honorable Court of Appeals to reconsider its resolution dated June 16, 2003, and to reinstate the petition in the interest of substantial justice and the speedy and inexpensive resolution of petitioner’s cause."

Handling the case for Pagcor is Gloria Victoria Yap-Taruc, government corporate attorney of the Office of the Government Corporate Counsel.

Lopez had ordered Pagcor to return P1,562,145,661.87 in "pre-operating expenses and/or investment, including goodwill money" to the Belle Jai Alai Corporation and Filipinas Gaming International Totalizer Corporation.

Belle had entered into an agreement with Pagcor for the operation of a jai alai fronton in Manila, riding on the government firm’s gambling franchise.

Under the contract, Pagcor would act as managing partner, while Belle, a Filipino-owned company, would invest money in the venture.

Belle agreed to fund the enterprise and provide Pagcor with equipment and technical services necessary for the fronton’s operation.

However, on Nov. 29, 2000, the Supreme Court voided the agreement between Pagcor and Belle, after Malabon-Navotas Rep. Ricky Sandoval questioned the authority of the gaming firm to grant a franchise to Belle. – Cecille Suerte Felipe