Quantcast
Latest Stories

PCSO to pursue lower lease rates for lotto equipment

By

MANILA, Philippines — The state-controlled Philippine Charity Sweepstakes Office (PCSO) is seeking lower lease rates from lotto equipment service contractors, citing the need to boost available charity funds and to comply with directives from the government’s oversight bodies to ensure a fair deal for the government.

This is amid a heated verbal and legal battle with the local gaming unit of large Malaysian conglomerate Berjaya which has been protesting the PCSO’s alleged violation of an exclusive equipment leasing deal and forging of a new contract with Berjaya’s rival firm without a prior bidding.

In a statement on Sunday, PCSO manager for lotto operations Remeliza Gabuyo said the leading operator in Luzon, the Berjaya-owned Philippine Gaming and Management Corporation (PGMC), had yet to agree to lowering the lease rate from the present 10 percent of retail receipts excluding paper supply.

On the other hand, the statement cited that another service provider, the Pacific Online Systems Corp. (POSC) had agreed to the lower lease rate in June, resulting in P9 million in savings for PCSO from June to December 2012.

POSC has signed with the PCSO an agreement to extend its equipment lease, which expired on Sunday (March 31). The extension will be up to July 2015 and the new lease rate will be at 7.7 percent, paper supply included.

From the point of view of the PCSO, the additional reduction in the lease rate will mean more savings and more funds for addressing the medical requirements of the country’s marginalized sectors.

Gaby said that had the PGMC likewise agreed to the same terms, the PCSO would have saved an additional P35 million per month from June to December 2012. She added that the PCSO could have then used the same savings for the urgent medical and health needs of indigent patients, thus arriving at a “win-win” situation beneficial to all stakeholders.

PCSO chair Margarita Juico pointed out that the Senate Blue Ribbon Committee had noted in its official, final report that the lease rate of the lotto equipment was disadvantageous to the government while the Commission on Audit observed the rates to be unjust.

The Senate directed the present PCSO board to seek a rate lower than the present 10 percent, which was negotiated during the term of Manuel Morato who was PCSO chair from 1994 to 1998. Morato has been charged with plunder and electioneering charges before the Sandigbanbayan and the Quezon City Regional Trial Court, respectively, for other transactions, she noted.

Juico added that under their contract, the lessors were supposed to upgrade equipment every two years to keep the terminals and other hardware and software at optimum efficiency.  She noted that the terminals were over 16 years old.

While the PCSO is not a profit-oriented institution, it has to remain viable to fulfill its mandate of being the principal government agency raising funds for health programs, medical assistance and services and charities, which are national in character, according to Juico.

PCSO reported that as a result of its revenue raising initiatives, sales grew by 15 percent last year, grossing P36.4 billion. Gross receipts are divided into three funds: prize (55 percent), operations (15 percent) and charity (30 percent).

Juico pointed out that savings would result in higher allocations for all three funds. Prize money will increase, operations will be more cost-effective and charity activities will expand to reach more people in need, she said.

“PCSO is not an institution for profit. Rather, it was created to extend charity assistance and help partner-institutions become more efficient in living out our shared vision whether this is to help ease the medical burden of the underprivileged or to provide educational grants or to establish low-cost housing in calamity-stricken areas or to promote sports, wellness and healthy lifestyles,” Juico said.

“While we understand and respect that our service providers are business entrepreneurs who naturally need to have certain returns on invested capital, we urge that they be fair, reasonable and have a heightened sensitivity towards PCSO’s own needs to satisfy all our stakeholders both in the government and private sector. At the end of the day, we have a critical mission to fulfill for our people and we do not intend to abdicate that role by, so to speak, dropping the ball at anytime, anywhere,” Juico added.

PGMC said it based its lawsuit on two grounds (1) alleged violation of its exclusivity agreement between PCSO and PGMC over the Luzon area; and (2) prohibition against entering into government contracts without a prior public bidding. PCSO, on the other hand, was effectively claiming that this was not a new contract and that there was no exclusivity in territory under the old contract with PGMC.


Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Government contracts , government lease contracts , lotto equipment , News , online lotto , Pacific Online Systems Corp. , Philippine Charity Sweepstakes Office , Philippine Gaming and Management Corporation




Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
  1. Henares on Pacquiao bashing: I did not start this
  2. ‘Mom, I love you,’ says text from student on sinking ferry
  3. ‘No real progress in PH if dynasties not dismantled’
  4. Massive infra spending set
  5. More legal woes for Cedric Lee
  6. Kim Henares needs a reprimand, says Cayetano
  7. Passengers denied chance to escape sinking South Korea ferry
  8. South Korea president shouted down by distraught parents
  9. Two Popes who would be saints
  10. Lacson’s wife loses diamond earring to thieves but recovers jewelry quickly with police arrest
  1. Kim Henares needs a reprimand, says Cayetano
  2. Suspect in Vhong Navarro mauling tries to leave PH
  3. More legal woes for Cedric Lee
  4. Fr. Suarez says last Mass on Easter before returning donated land to San Miguel
  5. ‘Mom, I love you,’ says text from student on sinking ferry
  6. MH370 co-pilot made mid-flight phone call – report
  7. ‘No real progress in PH if dynasties not dismantled’
  8. I’ll follow my conscience on Estrada, says JV Ejercito
  9. Massive infra spending set
  10. OFW brings MERS virus to Philippines
  1. KL confirms Malaysian Airlines Flight MH370 ended in Indian Ocean
  2. MRT passengers pass the hat for 6-year-old Ashley
  3. Rookie, lady cops lauded for quick response to MOA heist
  4. Model Helena Belmonte wished ‘to slash her wrist and hope to die’
  5. Malaysia averts another air tragedy; pilot lands troubled plane safely
  6. Revilla says he was joking; Lacson stands by his story
  7. Revilla ‘consulted’ Lacson on how he evaded arrest
  8. Police rule out foul play in Helena Belmonte’s death as boyfriend is ‘traumatized’
  9. Cudia, dismissed for lying, got 99% in conduct
  10. Hammer-wielding robbers cause chaos at Philippines’ Mall of Asia
Advertisement

News

  • US teacher fired over comment on black president
  • Magnitude-7.5 earthquake shakes Mexican capital
  • Title of new Hillary Clinton book: ‘Hard Choices’
  • Filipinos, Dutch re-enact crucifixion of Christ
  • 14 killed in car bombing in Homs
  • Sports

  • Nadal ousted by Ferrer in Monte Carlo quarters
  • Pacquiao shorts in Bradley fight sold for P1.7M in LA auction
  • Ryu pitches Dodgers past Giants
  • Alonso sets the pace in Chinese GP practice
  • Heat seek Three-peat but Spurs, Pacers top seeds
  • Lifestyle

  • Levine designs womenswear with help from fiancee
  • Gabriel Garcia Marquez, Nobel laureate, dies at 87
  • Ford Mustang turns 50 atop Empire State Building
  • Pro visual artists, lensmen to judge Pagcor’s photo contest
  • ‘Labahita a la bacalao’
  • Entertainment

  • Myx TV premieres Asian American ‘docu-series’
  • A nutty finale for ‘Scandal,’ TV’s craziest show
  • EXO postpones release of mini album ‘Overdose’
  • ‘X-men’ filmmaker slams ‘fabricated’ sex attack claims
  • Singer Chris Brown’s bodyguard on trial in DC
  • Business

  • US commerce secretary spells out economic facet of ‘pivot to Asia’
  • Italy sells luxury state cars on eBay
  • Asian shares mostly up in quiet trade
  • Dollar up in Asia on US jobs data, Ukraine deal
  • Barbie doll has a problem
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • Las Vegas ‘Pinoy Pride’ fest hails Filipino heritage
  • Marking Jesus’ journey on Good Friday
  • Filipina accomplice arrested for fake bills in Malaysia
  • DoH denies Filipino nurse no longer positive for MERS virus
  • WHO warns vs spread of MERS-Cov, urges vigilance in taking precautions
  • Marketplace
    Advertisement