Pangasinan STL doomed after PCSO nixes permit

By Mortz C. Ortigoza

 DAGUPAN CITY – Are bettors’ chances to win and get their prizes in doubt after the franchise of a small town lottery (STL) in Pangasinan was revoked?

According to General Manager Alexander F. Balutan of the Philippine Charity Sweepstakes, the Board of Directors of the PCSO terminated the authority of Golden Go Rapid Gaming Corporation (GGRGC) to operate the STL after its failure to remit the sum it promised on the presumptive monthly retail receipt (PMRR).

“Article VII, Section 27, item g of the STL – IRR provides that failure to attain and /or remit the PMRR shall be subject to termination of your authority to conduct STL operation. It may be recalled that we have given several considerations and demand for payment on this matter but to no avail. Likewise, no settlement of your sales shortfall has been made despite notices,” Balutan wrote, on his November 6, 2017 letter, Geronomina Choi the President of GGRGC based in this city.

“In this regard, you are given five days upon receipt of this notice to file for a motion for reconsideration otherwise the termination of your STL agreement and authority shall be final and unappeasable as stipulated in Section 28 of the STL-IRR,” the General Manager continued.

Michael A. Medado, board secretary of the PCSO, said  on October 25, 2017 the Board of Directors of the PCSO during its 20^th Regular Board Meeting held at Sun Plaza Building, Shaw Boulevard in Mandaluyong City, recommended the cancellation, revocation, and termination of Golden Go Rapid Gaming Corporation including the forfeiture of its cash bond to cover the sales shortfall of the Authorized Agent Corporation (AAC), pursuant to Sections 15 and 27 of the 2016 Revised Implementing Rules and Regulation.

 The deficit of GGRGC ensued since April 28 last year after it could not meet its PMRR when it was authorized to operate in Pangasinan.

The STL franchise in the province is one of the biggest in the Philippines.

A source who asked anonymity said that the franchisee promised to remit P7.5 million a day or P225 million a month.

The Branch Operations Sector (BOS) of the PCSO reported that the authorized agent corporation has a sales shortfall amounting to P430, 305, 287.74 as of September 30 this year.

The same source cited that arrears reached almost P1 billion if the PCSO’s added the P225 million  October 2017 PMRR and the deposit that runs to hundreds of millions of pesos.

The BOS reported that despite repeated demands, GGRGC has failed, and has continually refused to pay and remit its PMRR, as required under the pertinent provision of the 2016 IRR for STL.

The Branch Operation Sector also ordered the forfeiture of its cash bond to cover the sales shortfall of the AAC, pursuant to Sections 15 and 27 of the 2016 Revised IRR.

Golden Go Rapid Gaming Corporation covers almost all of the 44 towns and four cities of Pangasinan on its gambling number games operation where bettors pay a combination of numbers 1 to 38.

According to Medado, the Board of Directors resolved to terminate and cancel the STL Agreement with GGRGC and its authorization as the AAC for the operations of the STL in the province.

“To forfeit the cash bond of GGRGC to answer to any and all its liabilities, including but not limited to taxes, penalties and charges, damages for default or violation of any of its obligation under this IRR and the STL Agency Agreement, such as non-remittance/under-remittance, shortfall from PMRR, among others,” he continued.

The source said GGRGC is doomed already as it could not repay its shortfall since April last year and its bond that was used by PCSO to pay some of its PMRR.

 “After 10 days Golden Rapid received the November 6 letter of Baluyot,  it has five days to appeal and hand carry it to Manila, then PCSO’s board of directors finally resolved it, say, after 15 days then the nailing of the coffin of GGRC  will be in the middle of this coming December,” another source computed.

The new set of rules embodied in the revised 2016 STL’s rules where PMRR, bonds, and others were incorporated resulted in high collections of the government in the first few months of its operation in the entire country, according to Justice Secretary Vitaliano Aguirre.

Balutan said the 56 franchisee-corporations of the lottery nationwide could collect as much as P30 billion this year where the sum finance President Rodrigo Duterte’s charity projects and medical programs.