LOCAL chief executives in Cebu could face administrative cases should they insist on regulating operations of Small Town Lottery (STL) backed by the Philippine Charity Sweepstakes Office (PCSO), a lawyer warned.
In a forum, Atty. Joan Largo, corporate counsel for Saturn Gaming N' Amusement Corp., said the city or town mayor cannot compel lotto agents to secure business permits or licenses from local government units (LGUs) pursuant to Republic Act 1169, or the Philippine Charity Sweepstakes Office Charter.
The PCSO and its lottery ticket sellers, including lotto sales agents, are also exempted from paying taxes, fees, or charges to the LGUs, Largo said.
"No mayor in his right mind will order their police chiefs to stop STL operations in his municipality (or city)," she said.
Largo said that Saturn is the lone authorized agent corporation of PCSO in the province.
Police chiefs from various police stations in Cebu attended a forum on STL operations in the Cebu Grand Hotel in Cebu City last July 10.
Present during the forum were officials from Saturn, PCSO-Cebu and the Cebu Provincial Police Office.
The police officials aired their concerns about the STL operations in their jurisdiction, including whether or not lotto sales agents are required to secure business or mayor's permits as well as barangay and police clearances.
Hernando Sta. Ana Jr., Saturn operations manager, said the forum was designed to orient, enlighten and educate the chiefs of police in the province.
He recalled several instances when the mayors in the cities of Toledo and Bogo issued a cease-and-desist order against STL operations.
Sta. Ana said their operations are pursuant to the national law and only the PCSO has the authority to suspend, cancel or revoke their franchise.
In a legal opinion issued by the Department of Justice (DOJ) on July 26, 1995, it states that: "the PCSO and its lottery ticket sellers, including lotto sales agents, are not required to secure business permits/licenses from the province, city or municipality where they may operate and are also exempt from the authority of the local government units to impose taxes, fees or charges on the PCSO lotto ticket outlets."
In its decision dated Feb. 13, 1998, the Supreme Court declared as null and void the decision of former Cebu City mayor Alvin Garcia and the City Council for closing lotto outlets for failure to secure business permits and pay license fees to the local government. (GMD)