PCSO Invites Suits on Stance with Globaltech’s Peryahan

By Mortz C. Ortigoza 

MANDALUYONG CITY – The Board of Directors (BOD) of the Philippine Charity Sweepstakes Office flirt with criminal and administrative charges if they will not amend their resolution allowing Globaltech Mobile Online Corporation to continue its operation in violation of the court order, a lawyer for an Authorized Agent Corporation (AAC) of the Small Time Lottery of the PCSO cited.

Globaltech runs the controversial Peryahan ng Bayan’s numbers betting game.

In an opinion requested by a president of an AAC, a lawyer, who asked for anonymity, opined on the decision of the Court of Appeals (CA) and PCSO Resolution No. 0059 that PCSO must issue an amended resolution revising the Resolution by deleting the implementation of the Status Quo Ante Order (SQAO) in favor of Globaltech.

Board of Directors of the Philippines Charity Sweepstakes Office. Clockwise from left: Chairperson / OIC-General Manager Anselmo Simeon P. Pinili; Members of the Board Marlon U. Balite, Sandra M. Cam, and Ramon Ike V. Señeres.

The lawyer said that PCSO should resolve to authorize the filing of a motion for execution before the RTC to execute the directive for Globaltech to post a bond equivalent to Php 50, 336, 029 as based on RTC order in April 24, 2017. He added that PCSO will submit itself to arbitration conformably with the terms of their written agreement and A.M No. 07-11-08-SC or the Special Rules of Court on Alternative Dispute Resolution as Court of Appeals’ decision in January 14, 2019.

The lawyer said that failure of the PCSO to obey the CA will make the members the BOD liable for possible sanctions.

He cited these penalty and punishment are contempt of court to administrative and criminal prosecution and conviction under the Anti-Graft and Corrupt Practices or Republic Act 3019.

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The lawyer explained that the BOD through Resolution No. 0059 Series of 2019 relies solely on the opinion of the Office Government Corporate Counsel (OGCC) that the SQAO was immediately executory from the Regional Trial Court’s Order of May 17, 2016 and the PCSO was obliged to implement it.

He explained that the OGCC and the PCSO trimmed the interpretation of the whole disposition.

“So must the RTC Order dated 17 May 2016, which cannot be read in isolation and should be understood together with the RTC Orders dated October 11, 2016 and April 24, 2017, which were all affirmed by the Court of Appeals,” the lawyer explained.

Recall that both PCSO and Globaltech filed with each other at the CA a Petition for Certiorari under Rule 65 of the Rules of Court.

Docketed as CA-G.R. SP No. 151727, PCSO assailed the orders dated May 17, 2016, October 11, 2016, and April 24, 2017 of Judge Nicanor A. Manalo of Regional Trial Court Branch 161 in Pasig City. 

Docketed as CA-G.R. SP No. 154056, Globaltech blasted the order dated October 13, 2017 of the same judge.

In a decision rendered by the Court of Appeals in January 14, 2019, it dismissed both petitions.

In the October 11, 2016 order, the RTC modified its decision on May 17, 2016 by directing the PCSO to suspend its Notice of Termination to Globaltech, to observe the SQAO and send PCSO representatives to draw centers of the plaintiff daily to conduct the Peryahan ng Bayan’s game.

“Where premises considered, the instant motion is partially granted and the subject Order dated May 17, 2016 is modified as follows: 1. The plaintiff is directed to pay defendant-movant the amount of Php50, 336, 029. 73 within thirty (30) days from receipt hereof; 2. The Plaintiff is directed to post an additional amount of Fifty Million (Php50,000,000.00) upon compliance with the above; 3. Thereafter, upon payment of Ph50,336,029.73 and the posting of the additional bond amounting to Fifty Million (Php50,000,000.00), the parties are directed to submit the issue/dispute controversy for arbitration in accordance with the terms of the arbitration clause specified in the DOA. The parties are directed to submit to this Court within thirty (30) days the status of the arbitration proceedings initiated by them. The Order dated May 17, 2016 directing the suspension of the notice of termination dated February 19, 2016 is in the meantime deferred till after the result of the arbitration proceedings”.

 The lawyer said PCSO no longer need to obey the SQAO because of the changes in the October 11, 2016 order of the RTC.

The lawyer cited that the penultimate April 24, 2017 order of Judge Manalo neither reinstated the SQAO when it modified the October 11, 2017 Order nor set aside the deferment of the suspension of the PCSO’s notice of termination on February 19, 2016.

The April 24, 2017 order stated:

“Wherefore, premises considered, the assailed Order dated October 17, 2016 is hereby modified. Plaintiff is directed to post a bond equivalent to the amount of Php50, 336, 029.73. Meantime, send the instant case to the Arbitration Court for immediate arbitration to determine the rights, interests and obligations of the parties once and for all pursuant to their contract (DOA)”.

In October 13, 2017, the RTC on its last order denied for lack of merits Globaltech’s motion to issue a Writ of Injunction on the basis of the alleged refusal of the PCSO to arbitrate and to observe the SQAO.

The lawyer summed up the judicial directives for Globaltech to post a bond equivalent to the amount of Php50, 336, 029.73 as per RTC Order dated April 24, 2017 and the parties to immediately submit themselves to arbitration conformably with the terms of their written agreement and A.M. No. 07-11-08-SC or the Special Rules of Court on Alternative Dispute Resolution as per Court of Appeals’ decision dated January 14, 2019.

“Neither can the OGCC rely on the portion of the Court of Appeals decision discussing the validity of the SQAO. Despite the discussion of the Court of Appeals did not reinstate the SQAO in the dispositive portion of its decision. Had the Court of Appeals intended to extend the relief contained in the SQAO to Globaltech, it would have been easy for it to state so. It did not”.

The lawyer called the PCSO to amend Resolution No. 0059 by striking out the necessity of SQAO and instead for Globaltech to post the Php50, 336, 029. 73 bond.

This amount is exclusive of the Php50, 336, 029.73 that remain an unpaid obligation of Globaltech in the October 17 decision of the RTC.

PCSO said that the defendant has an unremitted obligation to the former by P50, 290, 447.96 as of December 10, 2015 that caused PCSO to terminate Globaltech’s Deed of Authority (DOA).