Group hits PCSO lease deal extension

MANILA, Philippines - A group questioned yesterday a move by the Philippine Charity Sweepstakes Office (PCSO) to extend an agreement to lease online lottery operations equipment rather than hold a new bidding.

In a letter to PCSO chairman Erineo Maliksi, Anti-Trapo Movement (ATM) chairman Leon Estrella challenged why the PCSO chose to extend its contract, which expires this month, with the Berjaya Philippines Inc.-controlled Philippine Gaming Management Corp.

“Given the fast advances of the technology, other companies of similar nature could provide the same technology at a lower rate or even a more advanced and modern technology at the same price,” Estrella said.

He alleged that by extending the contract, PCSO violated the government procurement law, Republic Act 9184.             

Estrella said the contract should have been offered “for public bidding and the terms of reference published for interested bidders.”

The ATM said it continues the advocacy first taken up by militant group Kilosbayan and former senator Jovito Salonga.

The group said that in 1995, the PCSO entered into an eight-year equipment lease agreement with PGMC for the online lottery operations in Luzon, Visayas and Mindanao and has reportedly extended the ELA repeatedly instead of holding a new public bidding.

This practice was the subject of a Senate Blue Ribbon committee hearing in July 2011, Estrella said.