Authorized Agent Corporations (AACs) operating Small Town Lottery (STL) in the city and province of Iloilo are facing termination of their operations for failing to pay their dues.

Royina Garma, Philippine Charity Sweepstakes Office (PCSO) general manager, said they have already sent notifications to Red Subay Gaming Corp. and ZFIC Gaming Corp. relative to the revocation of their contracts.

Red Subay is the STL operator in the province while ZFIC operates in the city.

“The bond that they posted for PCSO will be forfeited and eventually ma-te-terminate na yung authority nila to operate. We will terminate the contract already so we can open the area sa ibang pang corporation that can deliver whatever they have committed,” Garma told local reporters.

Garma was in Iloilo. yesterday, Nov. 14 to lead the turnover ceremony of PCSO’s P58.1 million mandatory contribution to the Commission on Education (CHED).

Garma said Red Subay’s dues reached P400 million while ZFIC’s dues amounted to P300 million.

Garma said they are just waiting for the implementing rules and regulations (IRR) to be signed by President Rodrigo Duterte and once it is signed, they will start accepting applicants.

Garma said Red Subay and ZFIC can contest their termination through arbitrations once it takes effect.

“There is a process. Under the previous IRR that was crafted by the previous Board of Directors and the management, pwede pangdumaan ng arbitration, if they will challenge it. It will take some time,” said Garma.

But this time (under the would-be new IRR), Garma said there will be no more arbitration as per instruction of the President.

“So once it is in the contract, you have to pay. If you failed to pay, then out,” she stressed.

They will also be blacklisted and be banned from applying again.

“Even the names of the incorporators are no longer allowed. Kahit magcreate pa sila, even ibang area. Hindi na pwede. ‘Yan ang instruction ng Presidente. Eh niloko na nga tayo, payag ba kayo na may utang sila sa atin tapos papalitan lang ang name, apply sila ulit?,” she said.

Garma called the STL operators “arrogant” and slammed them for blaming the PCSO why they could not pay their dues.

Kasalanan nila, sila ang nagbid eh. Eh mayabang. Lagi nilang sinasabi ‘malaki’, sino ba nag set ng amount? It was them. They thought that if they will set the amount, they could eventually be able to request for the reduction. How can they request for a reduction, there is a contract already and COA will definitely not accept any reduction,” Garma refuted.

Hindi ‘yan pwede sa gobyerno kaya dumaan yan sa tamang proseso, bidding. We set the minimum amount. Mayabang, sabi nila ‘ah kaya ko’, dinoble pa seguro, eh hindi naman kaya. Ngayon sisingilin, they will blame PCSO, excuse me. They should never blame PCSO because we never ask for that amount, it was them who actually give a commitment that they will be able to deliver that specific amount,” she added.

As former police official, Garma stressed that she knew what is happening when it comes to STL operations.

Police din ako, galing ako sa baba. Alam ko ‘yan kung kumikita or hindi kaya hindi nila ako pwedeng lokohin. Inuuna pa kasi nila yung binibigay outside eh…I was telling them na you better pay first what is due to government because there is contract,” said Garma.IMT