Lawmaker wants to probe the Berjaya-PCSO lottery equipment lease contract

HOUSE Minority Leader Danilo Suarez (3rd District, Quezon) has called for a congressional inquiry on the alleged “breach of contract” committed by the Philippine Charity Sweepstakes Office (PCSO) against Berjaya Philippines, a local unit of a Malaysian conglomerate.

“This possible breach by the state gaming agency could deal a big blow to the country’s reputation as an investor haven,” said Suarez, author of House Resolution 2835.

Suarez said Berjaya Philippines and the PCSO had an agreement under which the former’s subsidiary, the Philippine Gaming Management Corp. (PGMC), as the exclusive provider, leased to the state gaming firm its specialized lottery equipment for PCSO’s online lottery in Luzon.

Under the agreement, PGMC is the sole provider or exclusive source of lottery equipment for Luzon until its expiration in August 2015.

Suarez said Berjaya Philippines made a disclosure to the Philippine Stock Exchange (PSE) that its subsidiary had authorized the filing of criminal, civil and administrative cases against the state-owned PCSO.

According to Suarez, there was a violation of the exclusive leasing agreement with Berjaya after the PCSO signed a contract with another company, whose name he did not yet disclose in the resolution, without public bidding.

“The people should know what really happened.  The PCSO should use the probe, in aid of legislation, to clear the air, because if proven that a violation had been committed, this would surely stain the reputation of the country as an investors’ haven,” Suarez said.

Berjaya Philippines, Inc. (PSE: BCOR) is a publicly-listed company engaged in the business of leasing of online lottery equipment and providing software support through its subsidiary the Philippine Gaming Management Corporation; and hotel services through another subsidiary Perdana Hotel Philippines, Inc.

The Company is 68%-owned by Berjaya Lottery Management (HK) Limited of Hong Kong and its ultimate parent is Berjaya Sports Toto Berhad of Malaysia, a publicly listed company in the Main Board of Bursa Malaysia Securities Berhad.


About accounting

You must be logged in to post a comment Login

Leave a Reply