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Enrile admits PCSO contractor was law firm client in SC case

InterAksyon.com
The online news portal of TV5

MANILA, Philippines -- Senate President Juan Ponce Enrile on Thursday threatened to cite former Philippine Charity Sweepstakes Office (PCSO) chairman Manuel “Manoling” Morato in contempt after a heated argument on the lease contract for lottery machines between the PCSO and Philippine Gaming Management Corporation (PGMC).

At the Senate blue ribbon committee, Morato said Enrile’s law firm, the Pecabar Law Office, worked for PGMC and the senator should thus inhibit himself from the proceedings.

“I am sorry Mr. Morato, you’re misleading this committee. We are not the lawyer of PGMC, but Pecabar was hired by PGMC for a case in the Supreme Court lodged by the Kilos-Bayan questioning the lease contract (entered into by PCSO with PGMC),” Enrile said.

“Don’t mislead the committee. I would like to file a motion to cite you in contempt,” Enrile threatened Morato.

In his testimony, Morato said that he was earlier advised by Enrile not to talk too much about the PCSO-PGMC lease contract; in exchange, Enrile will defend him.

Enrile denied Morato’s accusation but the former PCSO chairman maintained that Enrile assured him of his defense.

“It was on the record, your honor,” Morato said, noting that the exchange was made in the previous hearing, the proceedings of which were recorded.

Enrile clarified that Pecabar is not the legal counsel of PGMC per se, but only for one particular case before the high tribunal.

The senator also asked the blue-ribbon committee to summon former PCSO Chairman Dr. Fernando Carrascozo to shed light on the $147-million PCSO-PGMC lease contract.

Enrile said the equipment cost only $25 million in 2007, but PCSO instead chose to pay $147 million, or almost six times the purchase amount.

In defense, Morato said that at the time, the government had neither the money to buy the machine nor the technical expertise to use it.

But Enrile insisted that in 2007, when it already had the money, the PCSO did not exercise its option to buy the machine, inclusive of both hardware and software, for $25 million. He said PCSO went on to pay $147 million over the years.