Kilosbayan Vs Morato
Kilosbayan Vs Morato
FACTS
In Jan. 25, 1995, PCSO and PGMC signed an Equipment Lease
Agreement (ELA) wherein PGMC leased online lottery equipment and
accessories to PCSO (Rental of 4.3% of the gross amount of ticket or
at least P35, 000 per terminal annually). 30% of the net receipts is
allotted to charity. Term of lease is for 8years. PCSO is to employ its
own personnel and responsible for the facilities. Upon the expiration of
lease, PCSO may purchase the equipment for P25 million.
Feb. 21,
1995. A petition was filed to declare ELA invalid because it is the same
as the Contract of Lease Petitioner's Contentions:
1. ELA was same to the Contract of Lease.
2. It is still violative of PCSOs charter.
3. It is violative of the law regarding public bidding.
4. It violates Sec. 2(2) of Art. 9-D of the 1987 Constitution
5. Standing can no longer be questioned because it has become the
law of the case.
Accordingly, respondents reply that:
1. ELA is different from the Contract of Lease
2. There is no bidding required
3. The power to determine if ELA is advantageous is vested in the
Board of Directors of PCSO
4. PCSO does not have funds
5. Petitioners seek to further their moral crusade
6. Petitioners do not have a legal standing because they were not
parties to the contract
ISSUES