SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S.No. 
1918 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
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'13 
NOV 14 P 4 :12 
In:C'I~I\'ElJ BY. __ ~ 
j 
The present lottery system of the Philippine Charity Offices (PCSO) has been plagued by 
allegations of graft and corruption, especially in connection with the authority of this agency to 
, 
' 
. . 
conduct lotteries and other similar activities, in collaboration, association, or joint venture with 
any person, association, company, or entity, whether domestic or foreign, including any 
arrangements that bears an identifiable resemblance to the subsisting Equipment Lease 
Agreement (ELA). 
It is necessary to pass a law in order to make it completely clear that the prohibition 
.. 
against a joint venture applies not only to investment, but also to programs, projects, and 
activities. Hence, there is a need to amend the PCSO Charter, or Republic Act No. 1169, to 
remove from the agency the authority to conduct lotteries or other similar activities, in 
collaboration, association, or joint venture with any person, association,. company, or entity, -
whether domestic or foreign, including any arrangement that bears an identifiable resemblance to 
the existing ELA.' 
~\o, ~~~)~ 
MIRIAM DEF 
SOR SANTI40 
()tit" 
, This bill was originally filed during the Thirteenth Congress, First Regular Session. 
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SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'13 
NOV 14 P4 :12 
SENATE •. 
S.No. 
1918 
Introduced by Senator Miriam Defensor Santiago 
1 
AN ACT 
2 
AMENDING SECTION ONE OF REPUBLIC ACT NO. 1169, OTHERWISE KNOWN AS 
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THE CHARTER OF THE PHILIPPINE CHARITY SWEEPSTAKES OFFICE 
Be it enacted by the Senate and the House of the Representative of the Philippines in 
Congress assembled: 
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SECTION 1. Section 1 of RepubJic Act No. 1169, otherwise known as the Charter of the 
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Philippine Charity Sweepstakes Office, is hereby amended to read as follows: 
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"Sec. 1. The Philippine Charity Sweepstakes Office. - The Philippine 
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Charity Sweepstakes Office, hereinafter designated the Office, shall be the 
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principal government agency for raising and providing for funds for health 
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programs, medical assistance and services, and charities of national character, and 
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as such shall have the general powers conferred in section thirteen of Act 
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Numbered One Thousand Four Hundred Fifty-Nine, as am~nded, and shall have 
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the authority: 
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A. To hold and conduct charity sweepstakes races, lotteries, and other 
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similar activities, in such frequency and manner, as shall be determined, and 
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subject to such rules and regulations as shall be promulgated by the Board of 
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Directors. 
.. 
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B. [Subject to the approval of the Minister of Human Settlements, to] TO 
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engage in health and welfare-related investments, programs, projects and 
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activities which may be profit-oriented, by itself or in collaboration, association or 
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joint venture with any person, association, company or entity, whether domestic 
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or foreign, except [for the activities mentioned in the preceding paragraph (A), for 
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the purpose of providing for permanent and continuing sources of funds for health 
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programs, including the expansion of existing ones, medical assistance and 
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services, and/or charitable grants: Provided, That such investments will not 
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compete with the private sector in areas vyhere investments are adequate, as may 
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be determined by the National Economic and Development Authority) 
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CHARITY 
SWEEPSTAKES, 
RACES, 
LOTTERIES, 
AND 
OTHER 
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SIMILAR ACTIVITIES. 
, 
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C. To undertake any other activity that will enhance its funds generation 
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operations and funds management capabilities, subject to the same limitations 
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provided for in the preceding paragraph. 
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It shall have a Board of Directors, hereinafter designated the Board, 
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composed of five members who shall be appointed, and whose compensation and 
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term of office shall be fixed, by the President." 
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SECTION 2. Repealing Clause. - All laws, decrees, orders, proclamation, rules and 
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regulations or parts thereof inconsistent with the provisions o(this Act 'are hereby repealed, 
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amended, or modified accordingly. 
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SECTION 3. Effectivity Clause. - This Act shall take effect fifteen days (15) days after its 
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publication in at least two (2) newspapers of general circulation. 
• 
Approved, 
2