Representatives from the province of Isabela led by 6th District Rep. Faustino “Inno” Dy V are calling for an inquiry into the conduct of the Philippine Charity Sweepstakes Office (PCSO) Small Town Lottery (STL) operations, citing legal issues surrounding the PCSO’s 2020 STL Revised Implementing Rules and Regulations (RIRR) and its effect on the ability of local government units (LGUs) to protect the welfare of their constituents.
In a privilege speech delivered on the floor of the House on Tuesday, Dy revealed that Isabela’s experiences with regard to STL operations in the province “highlight the need to clarify the laws and regulations regarding the conduct of STL operations.”
Dy said permits are “a basic requirement for all those who conduct business within a particular area, and are a means by which LGUs can ensure that business operations satisfy and comply with the laws and regulations what we in Congress or in their Sanggunian pass.”
Dy was referring to the issues that have been raised regarding STL operations in Cauayan City, Isabela, which have been shut down by the LGU for the failure of the local STL operator––Sahara Games and Amusement Philippines Corporation––to secure required business permits and for violating COVID-19 quarantine protocols in the province.
The lawmaker pointed out that the said permits “are a basic requirement for all those who conduct business within a particular area, and are a means by which LGUs can ensure that business operations satisfy and comply with the laws and regulations what we in Congress or in their Sanggunian pass.”
“Aside from the absence of required permits, Cauayan City officials also discovered that Sahara personnel from outside Isabela had not been respecting and complying with Covid protocols in place to keep Isabelinos safe from the dreaded disease,” said the freshman legislator.
According to the solon, “consistent with IATF guidelines, Isabela LGUs have been strictly enforcing quarantines for overseas Filipino workers and locally stranded individuals who enter the province––quarantine restrictions that Sahara personnel have disregarded, putting at risk my province mates, a worrisome concern is given the growing number of Covid-19 cases in Isabela.”
“In light of these violations, the Cauayan City government had no choice but to fulfill its duties and shut down STL operations in the city.”
The closures, however, are now being questioned in court, shared Dy––and cases have been filed against Isabela LGU officials for essentially doing their jobs.
“What this representation finds troublesome, Mr. Speaker, is that these LGU officials are being taken to task for doing their jobs, with groundless allegations being made against the Cauayan City Mayor––and even officials of the provincial government––for enforcing the law,” stressed Dy, the former national president of the League of Barangays.
The local Isabela STL operator contends Dy, has argued that the 2020 STL RIRR does not require them to secure local business permits. Dy disputed this, explaining in his privilege speech that Sahara, the PCSO’s AAC (authorized agent corporation) in Isabela, “is a juridical person, a corporation or a cooperative, with a personality distinct and separate from PCSO.”
“It is a private entity which must secure a business permit from the municipalities or cities to where they intend to operate their lotteries.”
The Isabela solons have also questioned why the 2020 STL RIRR no longer specifies the share of LGUs in the breakdown of the charity fund, a departure from the 2016 STL IRR that explicitly states that LGUs are allocated a share from the charity funds.
“The grant of an agency agreement by the PCSO to Sahara does not make the latter a government agency or an instrumentality, nor can they be considered as a mere extension for the simple reason that their personality is distinct,” added Dy.
Dy likewise pointed out that “not only is SAHARA distinct from the PCSO, but their Agency Agreement with the PCSO to conduct STL operations is illegal.”
The legislator cited the Supreme Court in Kilos Bayan et al. v. Teofisto Guingona, Jr et al., which ruled that Section 1 of R.A. No. 1169 as amended by BP Blg. 42, prohibits the PCSO from holding and conducting lotteries “in collaboration, association or joint venture with any person, association, company or entity, whether domestic and foreign”
The Isabela solons have also questioned why the 2020 STL RIRR no longer specifies the share of LGUs in the breakdown of the charity fund, a departure from the 2016 STL IRR that explicitly states that LGUs are allocated a share from the charity funds.
Given these issues, members of the Isabela Bloc will be filing a resolution calling for an inquiry, in aid of legislation, into the PCSO’s 2020 STL RIRR.
“We need to review these sooner rather than later if the supposed objectives of the STL are to be achieved; we need to review these sooner rather than later because as it stands, LGUs believe they do not stand to benefit from the STL because LGUs do not receive revenues from STL, and thus their own constituents cannot even benefit from the finances generated by the games they themselves play,” lamented Dy.
“This issue goes beyond the STL––it speaks to our LGUs’ right and responsibility to uphold the welfare of their constituents, a mandate that should not be compromised with revenue-generating programs and projects like the STL.”