SURIGAO del Norte Rep. Robert Ace Barbers yesterday filed a resolution proposing a congressional investigation into the alleged disadvantageous contract between the Philippine Charity Sweepstakes Office (PCSO) and the Pacific Online Corporation for its e-lotto operations.
Barbers filed House Resolution No. 1547 asking the House Committee on Public Accounts to probe, in aid of legislation, the alleged lopsided contract entered into by the (PCSO) with the Pacific Online Systems Corporation, and the role played by the Office of the Government Corporate Counsel (OGCC).
“It is now becoming clear that even without the approval by the OGCC, (PCSO General Manager Melquiades) Robles proceeded with the implementation of the contract. I hope he has a valid reason for doing so despite the findings by the OGCC that such contract is disadvantageous to the government, therefore violative of the Graft and Corrupt Practices Act,” Barbers said.
The resolution noted that the OGCC, which reviewed the proposal submitted by Pacific Online Systems Corporation in connection with its web-based application betting platform (WABP), “already took notice of several disadvantageous conditions therein.”
It said the memorandum of agreement (MOA) signed between the PCSO and the private service provider, “by its very nature, clearly falls within the purview of 2023 Revise Guidelines and Procedures for Entering into Joint Venture Agreements between Government and Private Entities.”
The resolution also cited Sections 13(3) and 13(9) of Republic Act No. 1459, otherwise known as the “The Corporation Law,” which defines, among others, the corporate powers of the PCSO.
“(RA) No. 2327, which created the Office of the Government Corporate Counsel mandates the OGCC to ‘safeguard the legal interest of all government-owned and controlled corporations (GOCCs), government instrumentalities with corporate powers (GICPs), government corporate entities (GCEs) as defined in (RA) No. 10149, otherwise known as the ‘GOCC Governance Act of 2011,’ as well as their subsidiaries, and corporate offsprings, including ecozones and water districts, all collectively referred to as ‘government corporations,’” the resolution said.
Barbers said Robles “has put the PCSO in a bind and exposes it to lawsuits. Instead of heeding the OGCC call, he threw all cautions to the wind and wantonly implemented the contract.”
The lawmaker pointed out that the recently implemented e-lotto has become very controversial in the light of the January 16 6/49 lotto draw with the allegedly lone online winning bettor getting the P640 million jackpot.
“The purpose of the investigation is to find out the reasons for the findings of the OGCC and the reasons why the PCSO GM disregarded such findings, to the great disadvantage of the government,” Barbers said.
