Malay conglomerate takes PCSO to court

The local gaming unit of Malaysian conglomerate Berjaya will file a petition in court against state-owned Philippine Charity Sweepstakes Office (PCSO) for disregarding a writ of preliminary injunction issued in relation to a dispute on lottery operations in Luzon.

An injunction is meant to preserve the status quo.

Publicly listed Berjaya Philippines on Thursday told the Philippine Stock Exchange that its wholly owned subsidiary Philippine Gaming Management Corp. (PGMC) had passed a board resolution to file cases against the PCSO.

PGMC wants PCSO board members cited in contempt for alleged “disobsedience or resistance” to the writ of preliminary injunction issued by Judge Rommel Baybay of the Makati Regional Trial Court dated Sept. 5.

Respondents were PCSO board members Margarito Juico, Ma. Aleta Tolentino, Betty Nantes, Mabel Mamba and Francisco Joaquin III.

Earlier this year, PGMC had taken the PCSO to court for alleged violation of an exclusive equipment leasing deal and forging a new contract with another company without prior bidding.

PGMC based its lawsuit on the alleged violation of its agreement between PCSO and PGMC over the Luzon area and a prohibition against entering into government contracts without public bidding.

PGMC and PCSO, as lessee, entered into an agreement wherein the former, as an exclusive provider, leased to the state gaming firm specialized lottery equipment for the operation by PCSO of an online lottery in Luzon.

The Berjaya group said the agreement stipulated that PGMC would be the sole provider or exclusive source for all lottery equipment in Luzon.

But citing a disclosure from Pacific Online Systems Corp. dated June 1, the Berjaya group said the PCSO and Pacific Online had entered into an agreement allowing the latter to lease PCSO lottery equipment for PCSO’s online lottery operations in Luzon.