Conditions on STL operations meant to curb graft —Palace

The new conditions imposed by the government on Small Town Lottery (STL) operations were meant to prevent corruption, Malacañang said on Friday.

President Rodrigo Duterte on Thursday lifted the nearly month-long suspension on STL operations following a recommendation of the Philippine Charity Sweepstakes Office (PCSO) which runs the betting scheme.

“In fact the conditions will prevent the corruption kasi you have to sign, at tsaka may forfeiture. Andaming conditions mahihirapan na sila,” presidential spokesperson Salvador Panelo told reporters.

The PCSO said authorized agent corporations (AACs) compliant with the conditions of their STL agency agreement and which had been remitting their guaranteed minimum monthly retail receipts may operate, provided that they comply with  several conditions.

The conditions include the AACs having to pay a cash bond equivalent to three months of the PCSO’s share in the Guaranteed Minimum Monthly Retail Receipts (GMMRR) on top of their existing cash bonds and that failure to timely and fully remit their GMMRR would mean forfeiture of the cash bond.

Each AAC is also required to execute a written undertaking that it will comply with its obligations under the STL agency agreement and will not institute any claims, monetary or otherwise, against the government, and/or apply for a temporary restraining order or injunction from any court to prevent the government from exercising its rights and prerogatives.

The STL agency agreement will also automatically be terminated upon violation of the conditions of their franchise and/or any of the conditions without prejudice to the other remedies that may be availed by the government.

Panelo said STL operators would no longer have an “excuse to swindle the government” because of the conditions.

The government lost at least P1.25 billion in revenue due to the suspension of STL operations, PCSO General Manager Royina Garma told a House inquiry on Friday

However, Garma was confident that STL revenue would still reach P25 billion with the implementation of new rules aimed at making sure STL agents remit the required collections to the PCSO.

There are at least 86 STL agents across the country.

Duterte in July suspended all of PCSO's gaming operations due to alleged massive corruption.

A few days later, he lifted the suspension of the PCSO's lotto game after the Palace found no irregularities in its operations. —NB, GMA News