Batangas businessman clarifies STL scam report

LIPA CITY, Batangas, Philippines  – A prominent businessman has clarified published reports alleging his involvement in under-reporting sales of Small Town Lottery (STL) in Batangas.

In a statement, Cesar Reyes, former president of Batangas Enchanted Technology Systems Inc. (BETS), an STL franchise holder in Batangas, said that to his personal knowledge, the under-reporting of sales is not true.

“In my experience, the main problem lies on the proliferation of bookies and joints that take or divide the collection of collectors and cabos before they are brought to the STL agents,” he said.

Reyes added that these bookies pay more commissions and payouts.

It is estimated that “these bookies take more than triple the sales of the authorized STL agents. The various under-reporting of sales agents in the area is also rampant, resulting in less collections,” he said.

Reyes also said that BETS has been in continuous coordination with the police and appropriate government agencies to stop these bookies and “guerrilla jueteng” operators if ever they operate in the area.

BETS’ sales performance has compared favorably with other STL agent companies. Reyes said their cabos and collectors are all self-employed individuals and have no employer-employee relationship with the STL operator.

“They submit their collections without any commissions to be paid by the STL agent in the area so there is nothing to withhold in terms of taxes. These collections rely heavily on the commissions given by winning bettors,” he said.

Reyes added that BETS has been a pioneer of reforms in STL operations.

“In fact, I have made substantial investments in the development of an STL platform and own the intellectual property rights for it. I have submitted a proposal to PCSO (Philippine Charity Sweepstakes Office) on the use of this technology using wireless and computers to minimize errors and controversies in the game, professionalize collections and operations, minimize bookies and for the PCSO to monitor the operation and collections. But this proposal has remained unacted upon,” he said.

Reyes said he suspects that those behind the smear report were former stakeholders who are part of a plot to destroy the reputation of the company and individuals.

“These stakeholders wanted to sell shares they do not own and failing to do that, are resorting to these underhanded tactics. There were reports that they acted as bookies and wanted to control the legal operation of the STL so that they can mask their illegal operation,” he said.