The government plans to privatize the lottery operations of state-run Philippine Charity and Sweepstakes Office, a Cabinet secretary said Thursday.
Economic Planning Secretary Ernesto Pernia told reporters at the sidelines of the Chamber of Thrift Banks general membership meeting in Makati City the Cabinet secretaries comprising the National Economic and Development Authority board tackled the possible liberalization of the operations of PCSO.
“[It had] something to do with, small time gambling—lotto [and] what to do with it. [The plan was to] privatize and then regulate. It needs to be regulated,” Pernia said.
“It will be liberalized. Those who want to set up, they can also set up,” he said.
PCSO, created in March 1935 by Act 4130 issued by Commonwealth president Manuel Quezon, has the authority “to hold and conduct lotteries and similar activities” to generate funds.
Lottery is defined “as a scheme for the distribution of prizes by chance among persons who have paid, or agreed to pay a valuable consideration for the chance to obtain a prize.”
Senator Franklin Drilon has a long-standing proposal to privatize PCSO and Philippine Amusement and Gaming Corp. to avoid misuse of the so-called intelligence funds.
President Rodrigo Duterte earlier tagged PCSO as among the most corrupt government agencies.
Meanwhile, Pernia also said the Cabinet members also discussed the streamlining of process in approving government projects.
This includes updating of the economic hurdle rate from 15 percent to 10 percent, amid the improved Philippine economic conditions, which reduced the cost of domestic and foreign capital.
Another plan is to raise the ICC project cost floor from P1 billion to P5 billion to declog the pipeline of projects for ICC approval and promote greater decision flexibility and accountability of line departments.
Approval of projects worth less than P5 billion will be delegated to heads of agencies, but will be reported by these agencies to the ICC prior to implementation.
The Neda board also approved the streamlining of ICC review procedures for minor changes in scope, design, cost, and extension of implementation or loan/grant validity of projects.