THE PHILIPPINE Charity Sweepstakes Office (PCSO) yesterday slammed what it described as a “dubious and highly questionable” graft and plunder complaint filed by the corruption watchdog group Filipinos for Peace, Justice, and Progress Movement Inc (FPJPM) before the Office of the Ombudsman against its top officials in relation to allegations of fraud in the implementation of the e-Lotto operations.
The FPJPM named PCSO general manager Melquiades Robles, PCSO Board of Directors chairperson Felix Reyes and Board members Jennifer Liongson-Guevara and Janet de Leon Mercado as public respondents.
Also named respondents were Pacific Online Systems Corporation (POSC) chairperson Willy Ocier, president and chief executive officer Jackson Ongsip, Board directors Raul de Mesa, Tarcisio Medalla, Henry Ocier, and Armin Antonio Raquel Santos.
The FPJPM, represented by its vice president Richard Rillo, questioned the grant of a 14 percent commission from the e-lotto revenues to POSC based on the August 30, 2023 memorandum of agreement it signed with the PCSO.
In a statement, Robles said Office of the Government Corporate Counsel (OGCC) reviewed the MOA and found it tenable.
Likewise, Robles said the technical rules on the agency’s betting platforms, include e-lotto, were approved by the Office of the President (OP).
“The OP guidance, being an act of the executive, remains valid until amended, revoked, or replaced by its issuing authority,” he said.
Robless said the e-lotto is an exercise of the PCSO Board’s sound business judgment to increase sales revenues, by expanding the market for its games using online and digital betting platforms.
Robles said the PCSO is mulling the filing of complaints against those behind what he described as a “clear smear campaign” against the agency and its officers.
“We will not take this matter sitting down. We will unmask those behind this dubious complaint and file appropriate counter-charges against them,” the PCSO GM said.
“It is unfortunate that the FPJPM filed a complaint without understanding the MOA PCSO entered with a service provider. Our agreement is not final until we get a favorable decision from OGCC,” he said.
In its complaint, the FPJPM noted that in the original 2023 proposal proffered by POSC to PCSO, the private firm made it clear and declared repeatedly that the web-based application betting platform (WAPB) system, POSC’s services, payment gateway, telecommunications cost, service level support, cloud service subscription, maintenance, and service hosting were being offered “for zero commission or at no cost to PCSO.”
By setting aside the original “no cost” proposal and agreeing to pay 14 percent commission on a weekly basis, FPJPM said the PCSO officials “dishonored their oaths as public servants to protect government interest.”
“They entered the MOA, a contract or transaction manifestly and grossly disadvantageous to the Government, through manifest partiality, evident bad faith, or gross inexcusable negligence, causing undue injury to the Government and the Filipino people, and gave POSC unwarranted benefits,” the complainant said.
On the part of the POSC, the group said the private firm “agreed to be a conduit for graft and corruption.”
FPJPM noted that the OGCC Opinion 70 dated dated April 19, 2023 made it clear that POSC “as proponent agent, should not receive any commission” from the sale and marketing of the online game tickets during the experimental run.
Likewise, it pointed out that the OGCC even warned the PCSO that pushing through “may expose the PCSO Board and/or PCSO Officers to criminal and administrative liability under Section 3 (e) of RA 3019 or the Anti-Graft and Corrupt Practices Act.
