Makati court asked to cite PCSO officials for contempt

PCSO chairperson Margarita Juico: Ignored court order?

MANILA, Philippines—The lotto operator holding the exclusive rights for Luzon operations has asked the Makati Regional Trial Court to cite for contempt officials of the Philippine Charity Sweepstakes Office for defying an order barring the agency from allowing another firm to encroach in its geographic franchise.

Philippine Gaming and Management Corp. (PGMC), a local unit of Malaysia’s Berjaya Group, claimed that PCSO officials led by its chairperson, Margarita Juico, ignored the court order and in effect violated the exclusive equipment lease agreement between PCSO and PGMC.

The injunction stemmed from PGMC’s petition in June that questioned PCSO’s decision to allow Pacific Online Systems Corp.—whose exclusive territory is Visayas and Mindanao—to supposedly install and lease lottery equipment in Luzon without bidding and in violation of PGMC’s exclusivity contract.

PGMC’s contract with PCSO expires in August 2015, while the exclusivity contract between PCSO and Pacific Online for Visayas and Mindanao ends in March 2013.

Contacted for comment on the issue, PCSO general manager Ferdinand Rojas told the Inquirer that the issue “is now the subject matter in litigation.”

“PCSO is confident of its position, which will be advantageous to and in the best interests of the public, the agency and the government,” he said.

In a resolution dated July 12, 2012, the Makati court confirmed PGMC’s exclusive arrangement, and granted its application for preliminary injunction. A writ was issued on Sept. 5, ordering PCSO not to engage the services of Pacific Online for Luzon.

“However, despite being served with copies of the writ, respondents deliberately and arrogantly defied the same by continuing to lease and operate and by allowing third persons to lease and operate lottery equipment in Luzon that was not supplied by PGMC,” PGMC said in its petition.

Lottery tickets that were different from those issued by PGMC’s lottery equipment were evidence that other equipment were being used, it added.