The Small Town Lottery (STL) is allegedly being used as "front" by jueteng operators to hide their illegal activities in many parts of the country, according to two lawmakers.
This prompted Reps. Rufus B. Rodriguez (2nd District, Cagayan de Oro) and Maximo B. Rodriguez Jr. (Party-list, Abante Mindanao) to file House Bill 3750, which requires STL operators to get the approval of the Philippine Charity Sweepstakes Office (PCSO) and the local government units (LGUs) before they can start their operations.
"PCSO general manager Ferdinand Rojas II himself admitted that the STL was being used as a front by some jueteng operators," Rodriguez said.
Rodriguez said some governors and mayors have ordered the stoppage or suspension of STL operations in their areas invoking their alleged absolute decentralized powers to regulate any business within their territorial jurisdiction pursuant to the Local Government Code of 1991.
"However, upon the request of PCSO Chairperson Margarita Juico, the Department of Justice issued an opinion ruling that LGUs have no power to stop the operations of the STL and other similar lotteries in cities and towns," Rodriguez said.
Rodriguez said the DOJ further ruled that the authority of city or municipal governments to regulate businesses within their respective areas of jurisdiction under Section 447 and 458 of the Local Government Code of 1991 does not include the power over operations of national government agencies and its instrumentalities.
"It means that LGUs have no power to issue business permits, licenses to the agencies and instrumentalities of the State, of which PCSO is one, nor demand a permit or collect license fees incidental to the issuance of such permits or licenses," Rodriguez said.
"The DOJ opinion may have weakened the LGUs because they are now powerless to act against gambling lords who use the legal STL as a front for illegal gambling, like jueteng," Rodriguez said.
Under the bill, operators of STL and other lotteries sanctioned by the PCSO are mandated to first secure a permit from the LGU where they plan to operate before they can start their operations.
The measure mandates the PCSO to first secure from applicants of STL franchises the approval of the LGU where they plan to operate before granting the franchise.
The bill further provides that all STL franchise holders upon the approval of the proposed act are given 60 days to secure the necessary permit from the LGU where they are operating in order for them to be able to continue their operations.
source: http://www.congress.gov.ph
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