QC court bars PCSO from awarding wireless betting contract

A Quezon City court has prevented the Philippine Charity Sweepstakes Office (PCSO) from tapping other companies for its wireless betting system pending arbitration proceedings between it and listed Diversified Financial Network, Inc. (DFNN). "DFNN is currently commencing arbitration proceedings in connection with the cancellation of its Equipment Lease Agreement with the PCSO dated April 9, 2003," the listed firm told the Philippine Stock Exchange (PSE) on Thursday The deal allowed DFNN to provide the PCSO with wireless technology so it can receive lotto bets nationwide. “The PCSO’s unilateral termination and the subsequent issuance of the PCSO resolution may violate the contractual rights of the petitioner, which may lead to irreparable loss or injury on its part," DFNN quoted the court as saying in a resolution. "If the temporary order of protection prayed for by [DFNN] is not issued pending the completion of the summary hearings on its petition for preliminary injunction, the said petition may be rendered illusory," it added. Patricia de las Cagigas, DFNN corporate information officer, told GMANews.TV the company would file the arbitration case shortly. "DFNN has a valid contract with the PCSO and it merely wants to preserve its rights under that contract," she said in an e-mail. The PCSO issued Resolution 1210 allowing other companies, including the Philippine Gaming Management Corporation and Pacific Online Systems Corporation, to implement the wireless betting system for 20 days. In an interview, PCSO spokesman Larry Cedro said they have yet to receive a copy of the court order. — Nikka Corsino, GMANews.TV