Juico sued for graft by Aussie firm for canceling paper deal at PCSO

A YEAR after her resignation, former Philippine Charity Sweepstakes Office (PCSO) Chairperson Margarita Juico found herself the subject of a graft complaint before the Ombudsman for setting aside a contract entered into by the agency during the previous Arroyo administration.

Juico and former PCSO director Aleta Tolentino were accused by an Australian paper manufacturer of revoking their existing joint venture agreement and awarding the contract to supply lotto paper to other contractors.

Former PCSO chairman Margarita Juico INQUIRER FILE PHOTO

The graft complaint was filed by TMA Australia Pty. Ltd. and TMA Group Philippines, represented by Anthony Kiram, an Australian national.

A former appointments secretary of the late president Corazon Aquino, Juico was among President Aquino’s first appointees in July 2010.

She resigned a year ago reportedly over differences with the President, who recently replaced her with former Cavite governor and Liberal Party stalwart Erineo Maliksi.

Kiram said TMA Australia entered into a contractual joint venture agreement with the PCSO in December 2009 to supply thermal coated paper, synthetic substances and related products.

He said the agreement provided that PCSO would not enter into another supply contract with another firm for its paper requirements.

Kiram said because of the agreement, TMA Australia registered its business in the Philippines and relocated its factory in the country.

He said when Juico took over the PCSO in July 2010, she and Tolentino issued a board resolution suspending the agreement and withdrawing the PCSO nominees to the governing board of the joint venture.

TMA Australia secured a restraining order and eventually a preliminary injunction from the Makati Regional Trial Court to stop PCSO from canceling the joint venture.

After canceling the contract with TMA Australia, the PCSO board entered into a contract with Philippine Gaming Management Corp. (PGMC) and Pacific Online Systems Corp. (POSC) to supply lotto paper.

Kiram claimed the PCSO board’s action violated the Anti-Graft and Corrupt Practices Act (Republic Act 3019) because it caused undue injury to TMA Australia and entered into a contract grossly disadvantageous to the government because the new contractors were not paper manufacturers.

The PGMC and POSC’s businesses are leasing and operating lotto terminals, according to Kiram.

“The PCSO entered into a contract or transaction manifestly and grossly disadvantageous to the government,” he said.

“They knowingly granted the right to provide lotto papers in favor of PGMC and POSC despite the fact that (they) are not qualified or not legally entitled to such license, permit, privilege or advantage,” Kiram added.

He said Juico and Tolentino cancelled the contract based on the opinion made by the Office of the Government Corporate Counsel through lawyer Raul Creencia.

But he claimed Creencia originally upheld the legality of the contract.

Aside from holding them criminally liable, TMA Australia also asked the Ombudsman to hold Juico and Tolentino administratively liable for grave misconduct, abuse of authority and conduct prejudicial to the best interest of service. SFM/AC