Palace slows down on ‘STL’

Malacañang put the brakes yesterday on efforts to revive the small-town lottery (STL) to replace jueteng, claiming the lottery’s mechanics were vague in the absence of input from concerned stakeholders and the Catholic Church.

Presidential chief of staff Michael Defensor said Interior Secretary Ronaldo Puno and Philippine National Police (PNP) chief Director General Arturo Lomibao had ordered a stop to the "pilot testing" of the STL operations in some areas of the country.

"Secretary Puno and PNP chief Lomibao want to discuss the details of the implementation first. The guidelines and the parameters on how the operations will be conducted should be clear," Defensor said.

He said an ideal setup for the STL should be undertaken by "a credible business proposal or business venture."

"We should also see to it that there are no shadowy deals that will allow the simultaneous operation of illegal jueteng," he said.

Puerto Princesa City Mayor Edward Hagedorn, anti-jueteng task force chief, has identified some areas where the illegal numbers game has been rampant.

Hagedorn admitted having had difficulty putting a stop to jueteng as he tried to convince suspected gambling lords and their protectors in the local government to shelve their illicit operations.

Defensor said he would set up a meeting between concerned government officials to determine how the STL operations should be effectively supervised.

"Maybe there should be an experimental run in one place first. There should be a dry run so they can see the problems and they can fine-tune the operations," he said.

Defensor said he had a discussion with Hagedorn who agreed to draft the mechanics of STL with those who would implement the numbers game.

He said the government should meet with the Catholic Church and other concerned groups to explain the project to them.

For his part, Puno said the government had yet to issue clear-cut guidelines on how to operate the lottery.

He said guidelines for the STL must be drafted to ensure that earnings from the new lottery game would go directly to government coffers.

Puno earlier recommended the deferment of the STL citing the absence of implementing guidelines for its operations.

The PNP has been ordered to monitor and cease all STL operations following the directive of the National Police Commission (Napolcom) under Puno pending issuance of the guidelines, PNP spokesman Senior Superintendent Samuel Pagdilao added.

Hagedorn, for his part, stressed yesterday that the STL project had merely been deferred.

Hagedorn said he and Puno agreed that STL operations would have to be suspended for now in order to give the Philippine Charity Sweepstakes Office (PCSO), the PNP and local government units time to come up with safeguards against possible cheating and to prevent gambling syndicates and illegal bookies from using the new numbers game to conduct illicit activities.

"Monitoring teams will have to be established. Mayors can help," Hagedorn, also chairman of the League of Cities and Municipalities, told his colleagues.

Hagedorn pointed out there were no clear-cut guidelines in the earlier version of the STL, which was the reason it failed against illegal jueteng.

The scheme was earlier introduced during the administration of former President Corazon Aquino as an alternative to jueteng but did not fare well against the more popular illegal game.

The government has discreetly revived the STL in its effort to neutralize jueteng operations still prevalent in some areas in Luzon.

The STL was pilot-tested in Quezon province, Quezon City and Angeles City in Pampanga.

Hagedorn, who headed the defunct National Anti-Jueteng Task Force, had proposed the reintroduction of the STL to curb jueteng.

He also suggested that a team be formed to monitor the STL to ensure its proper implementation.

The Puerto Princesa Mayor hired controversial witness Michaelangelo Zuce as a consultant, citing his knowledge of how the illegal numbers game works and why it was so popular with the poor and the masses.

Hagedorn had proposed a revival of the STL in his exit report last September.

The game’s mechanics are said to be as simple and bettor-friendly as jueteng, and draws must be transparent to prevent cheating.

In this way, Hagedorn explained, the proceeds of STL would directly finance the government’s socio-civic projects unlike in jueteng where only a few people enjoy the benefits.

But after receiving flak from the public, Malacañang shifted its STL plans back to low gear.

The revived STL raised even more controversy with the inclusion of Zuce, who testified in Congress against President Arroyo last year.

Zuce resurfaced on Monday along with Hagedorn who announced his newest role — this time as part of the government’s STL operations.

Turning over

Defensor, for his part, was not able to explain why Zuce had been hired to monitor the STL.

Zuce, a former Malacañang staffer, accused President Arroyo last year of bribing election officials in exchange for helping her to win the 2004 presidential election.

Zuce had claimed Mrs. Arroyo met with several election officials at her house in Quezon City and that former Lubao mayor Lilia Pineda, wife of suspected jueteng Lord Rodolfo "Bong" Pineda, distributed bribe money to the poll officials.

Defensor stressed the opposition witness was working "specifically for Mayor Hagedorn."

"It is clear from what he (Zuce) said that it was Mayor Hagedorn who talked to him. So let’s just respect that," he said.

"I just heard the news about (his alleged) turnaround. But I didn’t care much. I am indifferent to such developments."

Defensor denied Malacañang used a carrot-and-stick approach to lure Zuce back from the opposition.

"There was no case at all against the President in the first place," he said.

Lawmakers also lauded the decision to revive the STL and the hiring of Zuce.

"It will certainly put illegal gambling out. It’s the same banana, only this time, it’s legal and government will get its share. Putting up an STL is an admission that the government can lick jueteng so much better," House Majority Leader Prospero Nograles said.

Nograles also lauded Zuce for his decision to join the government’s efforts to eradicate jueteng.

Bacolod City Rep. Monico Puentevella and Eastern Samar Rep. Marcelino Libanan claimed Zuce’s decision to rejoin the government was a "big setback" to the opposition.

"Though Zuce may not be recanting his words, his testimony can no longer stand against the President," Puentevella stressed.

Libanan, for his part, claimed Zuce’s "departure dealt a big blow to the opposition, making the opposition’s credibility more questionable."

Opposition Sen. Aquilino Pimentel Jr. said he was not surprised by Zuce’s decision to join the government in the STL project. He said Zuce might have been looking for a job.

"I guess he is having a hard time now because he is unemployed and has a family to support. So I don’t blame him at all (for taking the job). The poor guy is looking for a living but it’s okay," Pimentel said.

Pimentel pointed out, however, that Zuce could not recant his testimony against the President. He noted that Zuce had testified voluntarily.

Administration critic and anti-jueteng crusader Lingayen-Dagupan Archbishop Oscar Cruz, for his part, hit the government for reviving the STL and hiring Zuce.

Cruz branded STL as a "camouflaged jueteng" and criticized Zuce for what he believed was a "more convenient" decision for the erstwhile opposition witness "to side with those in power and have the influence."

Cruz believes STL will not replace the popularity of jueteng. He also claimed STL will be operated by the same jueteng lords under dummy firms and personalities, using the same administrators and collectors.

It will be "doble kabig" (double earnings) for the operators of the STL, Cruz said, since they would earn from both the legal and illegal lottery at the same time.

Unlucky seven

Meanwhile, sources from the PCSO revealed seven operators had been granted franchises to operate STL, mostly in Luzon.

Sources disclosed the STL operator in Lucena City started in Feb. 28; Lake Tahoe Gaming Corp. in Angeles City started last March 8; and Benchmark Corp. in Quezon City started March 11. Others granted franchises were Sunset Bay in Bataan; Sun Globe in Pampanga, Royal Viva in Mindoro Occidental; and Ray Lloyd in Laguna.

Insiders claimed the seven STL operators participated in a bidding and an outlet in Quezon province, based in Lucena City, is now earning a total of P150,000 a day in its initial run.

Firms applying for an STL franchise have been required to post a P20-million bond and put up P5 million in paid-up capital.

Applicants for the STL franchise should be authorized to operate in the areas of their choice through a city ordinance.

Franchise holders will get half of the earnings while the other half — or five percent of gross revenues — would go to the government through the Bureau of Internal Revenue (BIR) as collecting agency.

Net revenues will go to the prize, which is at 55 percent; 30 percent will go to the government’s charity programs; and the remaining 15 percent will be allocated to the President’s Social Fund.

Of charity’s 30 percent, 10 percent will go to the host local government unit; five percent to the provincial government; the congressional districts get 2.5 percent; the PNP gets five percent; while the remaining 7.5 percent goes to the PCSO.

With the directive to suspend all STL operations, Quezon City Police District (QCPD) director Chief Superintendent Nicasio Radovan has put on hold the P171,000 proceeds of the STL operation in the city.

Quezon City is one of the supposed pilot areas for the STL operations. — With Cecille Suerte Felipe, Michael Punongbayan, Delon Porcalla, Marvin Sy, Eva Visperas