Court rules in favour of Berjaya Philippines

PETALING JAYA: The Regional Trial Court of Makati, Philippines has ruled in favour of Berjaya Sports Toto Bhd’s 88.26%-owned subsidiary Berjaya Philippines Inc (BPI), in issuing a writ of preliminary injunction against Philippine Charity Sweepstakes Office (PCSO) to restrain a public bidding process for the supply of lottery equipment.

To recap, BPI’s subsidiary Philippine Gaming Management Corp (PGMC) was granted the right as an exclusive supplier/ lessor of lottery equipment to PCSO in the Luzon territory.

“The court declined to rule on PCSO’s contention that a supplemental status quo agreement signed by PCSO and PGMC in 2015 terminates PGMC’s amended equipment lease agreement (AELA) in 2018 because the issue is pending an arbitration,” said BPI in a filing with the Philippines stock exchange.

PGMC started arbitration with PCSO in order to enforce its exclusive contract to supply an online system in Luzon. In 2012, PCSO permitted Pacific Online Systems Corp to supply terminals in Luzon, which interrupted PGMC’s exclusivity.

Following that, PGMC seeks a restoration of three more years of exclusivity in Luzon in accordance with the AELA entered with PCSO in 2007.

BPI said it is confident that PGMC will prevail in arbitration and restituted of its exclusivity period after August 2018, when the contracts of all other suppliers in Luzon expire, for a period of three years to end in 2021.