PCSO told: Follow Court of Appeals order on 'Peryahan Ng Bayan' games

MANILA, Philippines — The Office of the Government Corporate Counsel (OGCC) has directed the Philippine Charity Sweepstakes Office (PCSO) to abide by a recent order of the Court of Appeals (CA) allowing the Peryahan Ng Bayan (PNB) numbers game to proceed pending resolution of the legal dispute involving its terminated contract.

In a five-page legal opinion, the OGCC urged the PCSO to comply with the decision of the appellate court’s Eighth Division “to continue sending representatives daily to the draw centers of Globaltech for the conduct of Peryahan games.”

“The PCSO needs to comply with the CA ruling, otherwise the Board of Directors may be cited in contempt,” read the letter signed by Assistant Government Corporate Counsel Efren Gonzales.

The CA upheld on Jan. 15 the status quo ante order issued by the Pasig City Regional Trial Court (RTC) Branch 161 in May 2016, which stopped the PCSO’s revocation of the deed of authority for PNB operations.

The CA dismissed the petition filed by the PCSO questioning the RTC order.

The OGCC, statutory counsel of government-owned and controlled corporations, explained that while the PCSO may opt to appeal the CA decision or pursue arbitration with Globaltech, the charity agency has to abide by the order for the meantime. 

The OGCC advised the PCSO to stop its crackdown on the operations of Globaltech.

“Like a preliminary injunction or temporary restraining order, the status quo ante order issued by the CA is immediately executory,” the OGCC explained.

“The PCSO should temporarily suspend arrests, searches and seizures against the operators of Peryahan games with the assistance of the National Bureau of Investigation and Philippine National Police,” it added.

The charity agency failed to appeal the CA ruling on Feb. 13, according to the OGCC.

The OGCC issued the legal opinion upon the request of PCSO general manager Alexander Balutan.

Records showed that the RTC ordered both parties to resolve the dispute through arbitration while allowing Globaltech to continue its operations.

The trial court also required Globaltech to post a P50-million bond for its bid to legalize its operations, which were based only on renewable deed of authority with the PCSO.

The PCSO terminated Globaltech’s contract in February 2016 due to the firm’s alleged failure to remit P50 million in revenue to the gaming regulatory agency.