23/01/2024
LOOK | PCSO GM Robles defied OGCC legal opinion and arrogated BBM’s power to himself on E-Lotto scheme-Barbers"
Philippine Charity Sweepstakes Office General Manager Mel Robles has blatantly defied the Office of Government Corporate Counsel’s (OGCC) legal opinion and arrogated upon himself the power of the President in approving and implementing the agency’s online Lotto betting scheme, Surigao del Norte Rep. Robert Ace Barbers said.
Barbers, chair of the House Committee on Dangerous Drugs, said the currently scandal-ridden PCSO contracted the services of a third party, the Pacific Online Systems Corporation (POSC) bereft of a public bidding and despite non-approval of the OGCC.
He said that for a one-year test-run, the PCSO and POSC executed a memorandum of agreement (MOA) whereby PCSO granted POSC 14% commission based on the generated daily sales, instead of reasonable return or reimbursement of its operating costs.
“These are all prohibited transactions made by the PCSO under Mr. Robles’ helm. The contract with POSC was done without bidding; with great advantage in the 14% commission to the favored party (POSC), and worse, without the approval of the Office of the Government Corporate Counsel, and implemented without the prior approval of the Office of the President, as required by law,” Barbers said.
“Clearly, the PCSO violated laws under its own charter, blatantly defied the OGCC’s legal opinion on the E-Lotto scheme, and Mr. Robles virtually arrogating upon himself President Marcos Jr.’s powers to approve it prior to its implementation,” he stressed.
The solon from Mindanao said recent series of events raised doubts on the integrity of the PCSO, and they include the publication of a poorly-edited photo of an alleged Lotto winner; the P236 million Lotto draw where 433 bettors won at the same time; more than a billion pesos have been on in a span of three weeks, with one bettor winning, and the use of the un-approved new E-Lotto platform. “Only in the Philippines, indeed.”
“Now, people apparently distrust the whole system. Without them betting, how can PCSO raise funds for the poor Juan dela Cruz who needs medicine, food and government care? PCSO’s credibility is now tainted because of poor management,” Barbers said.
In Resolution 1547, has asked the Committee on Public Accounts to investigate the legality of the PCSO-POSC contract despite non-approval thereof of the OGCC and without the President’s approval prior to its implementation.
Citing the OGCC legal opinion on the issue, he said the former found very damaging and damning evidence of graft and other violations by the PCSO, to the great disadvantage of the government.
These include violation of Section 1 of RA 1169 (PCSO Charter) as amended, which prohibits PCSO from holding and conducting lotteries “in collaboration, association or joint venture with any person or company ###”.
“Jurisprudence on the same matter further prohibited the PCSO from investing in a business engaged in sweepstakes, lotteries and other similar activities, whether in collaboration or joint venture with others. This prohibition did not deter GM Mel Robles of PCSO from contracting with POSC for the e-lotto platform,” Barbers said.
Instead of conducting a public bidding, PCSO directly contracted with POSC, in violation of the Government Procurement Act and its Revised IRR on Direct Contracting, as the proposal did not fall within the exceptions enumerated in the Revised IRR; ex*****on of a PCSO-POSC MOA granting POSC 14% commission based on the generated daily sales, instead of reasonable return or reimbursement of its operating costs.
“This Agreement makes the Board and officials of the PCSO liable under the Anti-Graft and Corrupt Practices Act, RA 3019, for giving unwarranted benefit, advantage or preference to POSC during the test-run period. Since the platform is merely experimental, there appears to be no justifiable reason for the grant of 14% commission, based on the sale and marketing of game tickets,” he said.
Barbers said as required under Section 10 of RA 1169, the Web-based Application Betting Platform (WABP/E-LOTTO) must have the approval of the Office of the President for its implementation. “There was none. What GM Robles read in the Senate hearing was an approval by the Office of the President of a betting platform …. In 2021, on another matter and signed by Executive Secretary Medialdea. This was way before the e-lotto was conceptualized and implemented in 2023. Robles seems to have made a fool out of some Senators,” he said.
In June 1954, RA 1169 or the PCSO Charters was enacted. Since then, PCSO remained an indispensable charity arm of the government, frequently summoned to fund essential health and welfare projects nationwide. In 1995, in order to raise more funds and finance more health and welfare projects, PCSO launched the first on-line lottery, better known as the lotto. The people welcomed it and patronized it, raising much needed revenues for charity programs.
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