No green light for PCSO mobile betting systems deal

MANILA, Philippines — A Filipino-Chinese joint venture failed in its bid to compel the Philippine Charity Sweepstakes Office to implement a contract for it to provide information and communications technology systems allowing mobile betting for the PCSO’s lotto games.

Mandaluyong Regional Trial Court Branch 212 Judge Rizalina Capco-Umali, during a May 19 hearing on a mandamus petition filed by the of SmartInfo Philippines Inc. and China LotSynergy Enterprises Ltd., advised the “unincorporated joint venture” that she was about to go on leave for several weeks and told them to either wait for her return or transfer the plea to the RTC’s executive judge for resolution.

The joint venture filed the petition against PCSO, particularly general manager and vice chairperson of the board Royina Garma, before the court to get the integrated sales agency agreement (ISAA) implemented by the PCSO.

The ISAA was signed by PCSO board chairman Anselmo Pinili on April 12, 2021.

The PCSO’s legal department, however, warned the board of directors against implementing the ISAA, citing what it described as serious legal and technical issues.

Among the issues raised by the PCSO’s legal department was the alleged failure to follow due process as a public-private partnership project with a private sector joint venture partner. As a PPP deal, the National Economic Development Authority must approve the project.

In a June 14, 2021 memorandum, Executive Secretary Salvador Medialdea said while the PCSO had the authority to determine the adoption of information technology systems or platforms, he urged the agency to “secure a favorable finding” from the Office of the Government Corporate Counsel on technical, operation, expertise and financial discretion issues the OGCC has raised.

The OGCC, in a July 13, 2021 letter, said it “defers to the PCSO management and board of directors’ management discretion” to address the issues.

The OGCC also noted that the PCSO confirmed that Pinili had signed a supposed “duly executed” contract with the joint venture.

PCSO officers, who spoke on condition of anonymity, said the five-year, P5.8-billion Philippine Lottery System contract of the joint venture of Pacific Online Systems Corp., Philippine Gaming Management Corp. and US-based International Lottery and Totalizator Systems, Inc., for the installation of mobile lotto betting systems rendered the systems of SmartInfo-China LotSynergy unnecessary, if not redundant.

PCSO director Ramon Seneres has reportedly been pushing for the implementation of the ISAA.

As chairperson of the PCSO oversight committee on product and development and marketing management on business proposals, Seneres is asking from the PCSO board the authority to oversee the implementation of the agreement.