PCSO told to reject compromise deal with lotto paper supplier

MANILA, Philippines — The Office of the Government Corporate Counsel (OGCC) has advised the Philippine Charity Sweepstakes Office (PCSO) against entering into a compromise agreement with its lotto thermal paper supplier TMA Group Philippines Inc.

In a letter to PCSO General Manager Royina Garma, the OGCC advised the agency not to execute a memorandum of agreement (MOA) with the Australian paper supplier, saying it would effectively enter the PCSO into a supply contract without a competitive bidding.

“The MOA is in effect entering into a supply contract for the purchase of lotto papers and bet slips in the absence of a competitive process/bidding,” said Government Corporate Counsel Elpidio Vega.

On Aug. 28, 2019, the Supreme Court upheld the PCSO’s cancellation of its P4.4-billion contractual joint venture agreement signed with TMA Group in 2009 for the supply of thermal paper and overturned a Court of Appeals ruling that sustained a Makati City regional trial court’s decisions that prevented the PCSO from canceling the contract and even approving the garnishment of P707.2 million worth of paper assets of the PCSO in favor of TMA.

“In entering the contemplated MOA, PCSO will not only abandon its win but will make it defy the very same Supreme Court decision,” the OGCC said.

The Supreme Court Special Third Division had ordered TMA to return to the PCSO the P707.2-million assets it seized from the state charitable agency.

“Rather than accepting P707 million worth of lotto papers by way of compromise, PCSO should instead demand from TMA to pay P707 million in compliance with the Supreme Court’s directive in its August 2019 decision. Lastly, PCSO should conduct a competitive process/bidding in securing its lotto paper supplies,” the OGCC said.