2 ex-PCSO execs face graft raps over lotto paper deal
Two former ranking officials of the Philippine Charity Sweepstakes Office (PCSO) who are also main prosecution witnesses and complainants against former President Gloria Macapagal Arroyo in a plunder case for alleged misuse of confidential and intelligence funds (CIF) found themselves facing graft charges for their supposed involvement in an anomaly.
Anthony Karam, an Australian national and the authorized representative of TMA Australia Pty Ltd. and TMA Group Philippines, has filed criminal and administrative complaints against former PCSO chairman Margarita Juico and former PCSO director Aleta Tolentino before the Office of the Ombudsman.
Karam said Juico and Tolentino are being charged for allegedly favoring unqualified lotto terminal operators to supply lotto papers to the PCSO despite an existing valid contract with his firm.
Juico told The STAR in a text message: “I will comment once I receive the complaint officially.”
In the 12-page complaint dated May 4, Karam said TMA Australia, a firm engaged in paper manufacturing, entered into a Contractual Joint Venture Agreement (CJVA) with the PCSO in December 2009 for the production and marketing of thermal coated paper, synthetic substances and other related products for sale to both local and foreign markets, provided that PCSO will not enter into another supply contract with another firm for its paper requirements.
Noting the deal underwent review and approval of the Office of the Government Corporate Counsel (OGCC), Karam said TMA Australia registered its business in the Philippines and relocated its factory in the country.
However, things allegedly began to change when Juico took over the helm of the PCSO in July 2010, as she and Tolentino allegedly disregarded the CJVA and issued a board resolution unilaterally suspending the contract and withdrawing its nominees to the governing board of the joint venture.
Karam said the contract again went through the OGCC for review and the office, through lawyer Raul Creencia, upheld the legality of the contract. But despite this endorsement, Juico and the PCSO board still allegedly refused to implement the CJVA.
TMA Australia then instituted a complaint for specific performance against PCSO and the court issued a 20-day restraining order against PCSO to stop its cancellation of the CJVA. However, despite the issuance of the TRO, the PCSO continued to refuse to implement the contract.
There after, TMA Australia was made aware of another OGCC opinion issued by Creencia reversing his earlier finding and recommending that the contract be cancelled and, based on such opinion, Juico and Tolentino cancelled the CJVA.
After the cancellation, a Makati court issued a preliminary injunction against PCSO stopping it from committing any acts that would violate the CJVA.
But instead of abiding by the court’s decision, Karam said PCSO, in direct contempt of court, entered into a contract with the Philippine Gaming Management Corp. (PGMC) and Pacific Online Systems Corp. (POSC) for the supply of its lotto requirements, including papers.