Latest Stories

PCSO agrees to arbitration of dispute with supplier


MANILA, Philippines—The state-owned Philippine Charity Sweepstakes Office has agreed to go into arbitration of its dispute with listed information technology solutions provider DFNN Inc. over a wireless lotto betting contract that was scrapped during the Arroyo administration.

In a disclosure to the Philippine Stock Exchange on Friday, DFNN said it had received a letter from the PCSO reporting that the government agency had nominated Fulgencio Factoran, Jr. as its “arbitrator in the ad hoc arbitral tribunal.”

This is in relation to the arbitration proceedings mandated by the equipment lease agreement dated April 9, 2003 between DFNN and PCSO.

Under the contract that was aborted by the previous PCSO management, DFNN was supposed to provide the wireless technology to enable the state agency to receive lotto bets nationwide via wireless technology. DFNN battled the PCSO in court after the equipment lease agreement was terminated, initiating arbitration proceedings on the matter.

DFNN chair and president Ramon Garcia Jr. said in a text message that this appointment of an arbiter was significant as this reflected the intention of both parties to move forward to a “mutually beneficial” solution.

“It would hopefully restart the stalled project and bring increased revenues to the PCSO for its charitable purposes,” Garcia said.

“For shareholders of DFNN, the management has ensured value for their investments and look forward to a positive outcome and increased and a final revenue stream for the project with PCSO. I believe both managements of the respective parties want to move forward from a situation that was created in a past administration,” Garcia said.

The appointment of Factoran as arbiter was subject to the nomination of the third arbitrator to act as chair by the respective arbitrators of DFNN and PCSO.

Last March, DFNN received a resolution from the Court of Appeals junking the PCSO’s petition to dismiss its complaint over the aborted equipment lease contract.

In 2010, DFNN obtained an injunction from the Regional Trial Court (RTC) of Quezon City that prevented the PCSO from awarding any contract to any entity for wireless betting while DFNN was undergoing arbitration proceedings. It was this RTC ruling that the PCSO had assailed before the CA which, however, dismissed its motion.

In its complaint against the PCSO, DFNN had argued that the unilateral cancellation of the agreement was without cause; that the issuance of the PCSO resolution, approving the revised text betting project, as well as PCSO’s act of negotiating with third parties regarding the implementation of the said project, compounded the violation of the rights of DFNN; and that DFNN would suffer grave and irreparable injury.

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: Arbitration , DFNN Inc. , PCSO , Philippine Charity Sweepstakes Office , Wireless Lotto

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
  1. Gigi Reyes back to face charges
  2. Enrile chief aide back in PH ‘to face charges’
  3. In the know: Gigi Reyes
  4. SC suspends proctor in 2011 bar exams
  5. Senator Pimentel backs German think tank’s stand vs dynasties
  6. Bar proctor suspended for photographing test papers
  7. Collector Danny Garcia says Inquirer worth more than news
  8. Meteor shower to light up PH skies
  9. What Went Before: Enrile denies Gigi Reyes was ‘other woman’
  10. Henares on Pacquiao bashing: I did not start this
  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. ‘No real progress in PH if dynasties not dismantled’
  5. ‘Mom, I love you,’ says text from student on sinking ferry
  6. Fr. Suarez says last Mass on Easter before returning donated land to San Miguel
  7. Enrile chief aide back in PH ‘to face charges’
  8. Massive infra spending set
  9. Henares on Pacquiao bashing: I did not start this
  10. I’ll follow my conscience on Estrada, says JV Ejercito
  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. Malaysia averts another air tragedy; pilot lands troubled plane safely
  5. Revilla says he was joking; Lacson stands by his story
  6. Revilla ‘consulted’ Lacson on how he evaded arrest
  7. Police rule out foul play in Helena Belmonte’s death as boyfriend is ‘traumatized’
  8. Cudia, dismissed for lying, got 99% in conduct
  9. Model Helena Belmonte wished ‘to slash her wrist and hope to die’
  10. Hammer-wielding robbers cause chaos at Philippines’ Mall of Asia


  • Healing priest invites political leaders to join ‘prayer for nation’
  • Tagle: Christ’s resurrection a message of hope to faithful
  • Aquino vows to intensify anti-corruption drive further
  • Unease in Vatican over cardinal’s luxury flat—report
  • Nepal calls off search for missing guides on Everest—official
  • Sports

  • Rain or Shine grabs No.4, sends Ginebra to 8th
  • Red-hot Alaska rips injury-depleted San Mig Coffee
  • Pacquiao courtesy call to Aquino set for Monday
  • Nick Calathes suspension a reminder of supplement risk
  • Teague scores 28 as Hawks soar past Pacers in Game 1
  • Lifestyle

  • Angono petroglyphs in danger of disappearing
  • Britain’s baby Prince George visits Australian zoo
  • Noli Yamsuan, Cardinal Sin’s ‘official’ photographer: ‘I could smell the aftershave lotion of the Pope’
  • Simplifying and lightening life
  • Where to go for Easter night-out
  • Entertainment

  • Show-biz celebrities’ other choices of summer getaway
  • Why ‘Noah’ can’t dock his ark at Philippine theaters
  • Acclaimed artist goes wild while on holiday
  • Believing in this mermaid
  • Missing Xian
  • Business

  • Supper power
  • Condo unit sales boosted Shang Properties earnings
  • ERC mulls over WESM price cap for May, June
  • Whatever happened to the ubiquitous pagers?
  • Huge 2013 net profits seen difficult to surpass in 2014
  • 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

  • Epiphany
  • Unpaid creditor vs distressed debtor
  • Moving on
  • From culinary desert to paradise
  • Response to China: ‘Usjaphil’
  • Global Nation

  • Japan presents $57-B ‘dream plan’ to solve Metro congestion
  • Tim Tebow’s charity hospital in Davao seen to open in 7 months
  • OFW died of Mers-CoV in Saudi Arabia, says family
  • Aquino, Obama to tackle US pivot to Asia during state visit
  • Asia seeks Obama’s assurance in territorial spats
  • Marketplace