“The VAT exemption of these medicines for cancer, hypertension, and mental illness is a step towards a healthier country. The BIR shares the noble intention behind more affordable medicines for the public,” said BIR Commissioner Romeo Lumagui.

This is an update to the list of VAT-exempt drugs and medicines of the National Internal Revenue Code of 1997, as amended by the TRAIN Law and CREATE Act.

– Rappler.com

Yup, assuming that staff is correct, a pickup truck isn’t a pickup if it has a canopy, even if it’s removable, and even if it’s from a company that has been installing canopies – also called camper shells – on pickups here in the Philippines for nearly 30 years. 

I even showed the staff the clamps that can be removed to prove that the canopy isn’t welded onto the back. But he wouldn’t budge; it’s still not a pickup. (If I had the time and the tools, I would have removed the canopy right there and then and the issue would have been put to rest, but I didn’t.)

I pushed the issue and asked why, and he told me it’s because the computer camera is going to see the canopy and detect that it’s not a pickup. 

Now how do you argue with a computer? 

So, realizing that I’ve been actually driving a sedan and not a pickup truck, I decided to go back home. 

Now, I checked issuances of the Land Transportation Office (LTO) on the definition of a pickup truck and this is what I found.  

The most relevant is Republic Act 4136 or An Act to Compile the Laws Relative to Land Transportation and Traffic Rules, to Create a Land Transportation Commission and for other Purposes that took effect in 1964.

Since this law took effect 60 years ago, it actually does not have the word pickup truck. It appears that pickup trucks were probably not yet widely used in the Philippines at that time. 

Article II on Definitions as used in this law has Section 3 (b) which says: “The distinction between ‘passenger truck’ and ‘passenger automobile’ shall be that of common usage.”  

I guess people 60 years ago were more intelligent than they are today so there was no need to be more specific. 

How smuggled ultraluxury Bugatti Chirons expose flaws in LTO

Another relevant provision is Section 7 on Registration Classification which has the following that applies to private vehicles: (a) private passenger automobiles; (b) private trucks; and (c) private motorcycles, scooters, or motor wheel attachments. 

“Motor vehicles registered under these classifications shall not be used for hire under any circumstances and shall not be used to solicit, accept, or be used to transport passengers or freight for pay,” it reads.

From my reading of this provision, my pickup truck would fall under “private trucks.” 

Since my problem is the canopy, another relevant provision is Article 4 on Accessories of Motor Vehicles, Section 34, which outlines following accessories: 

• a) Tires of motor vehicles
• b) Brakes
• b-1) Horns
• c) Headlights
• d) Taillights
• e) Stop lights
• f) Motorcycle and other vehicle lights
• g) Lights when parked or disabled
• h) Windshield wiper
• i) Use of red flag
• j) Mufflers

Unfortunately, nothing on canopies or camper shells. 

Modification and safety

A further search led me to why the issue of accessories is important: modification of a vehicle affects safety. This is why the Department of Transportation (DOTr) issued Department Order (DO) 2010-32 fourteen years ago.

Is adding a canopy on a pickup truck a modification that is allowed or not?

Section 5 of DO 2010-32 is on Guidelines and Requirements in the Reclassification and/or Registration of Modified Motor Vehicles. It states: “All modified motor vehicles either brand new or in-use may be subject of reclassification and registration subject to the following: 

“5.1: The modifications of the brake system, steering wheel assembly, air conditioning system, suspension and interior and exterior trimmings shall not be construed as a change in vehicle type classification.”

I’m not a lawyer but I would classify a canopy/camper shell as an exterior trimming, which means it does not change the type of a car, especially if it’s from a company that’s been putting them on cars for 28 years.

Under 5.2, the following modifications that involve safety and environment are NOT allowed: 

• Axle modification;
• Chassis modification;
• Extended chassis/body;
• Additional siding of dump trucks;
• Extended overhang;
• Change of rim size;
• Modification of handle bar and muffler; and
• Reconfiguration of body dimension and design.

Would a canopy/camper shell fall under “reconfiguration of body dimension and design?” Possibly. 

To make sure, I asked our transport beat reporter to check his source in the LTO if a pickup truck can be registered with its canopy/camper shell.

The reply? Yes, it can be registered with the canopy, there’s just an additional P100. 

There you have it. 

So, don’t let those guys at the emission center/motor vehicle inspection center fool you. Perhaps you know why I was told my pickup truck isn’t a pickup! – Rappler.com

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Mind you, this incident may be just the tip of the iceberg: many travelers wouldn’t bother complaining about it either officially or through social media. 

This surot incident is a classic example of why the Philippines is a laggard in regional and global tourism. It goes to the heart of why no tourism slogan will ever work to make the Philippines a major player in global and regional tourism: customer satisfaction. 

Successful countries and companies are those that are able to satisfy customers with positive experiences – and vice-versa. They succeed because they outperform their competitors in terms of customer satisfaction. 

Because of these positive experiences, customers become repeat customers. In tourism, they visit the country again or recommend it to others because of good experiences. 

In business, they buy the product again and again (think Jollibee Chicken Joy) or they visit the same place repeatedly (think SM Malls) or they watch a show every night (think ABS-CBN’s FPJ’s Ang Probinsyano or Batang Quiapo) or buy the same clothing brand several times (think Uniqlo), use the same car (think Toyota), or patronize the same coffee shop (think Starbucks). 

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The same could apply to politics and elections, but that’s another story. 

How badly is the Philippines doing in tourism?

Globally, the Philippines is nowhere near the leaders, such as France, Italy, Spain, and the US. As of 2022, for instance, France got 79.4 million tourists; Spain, 71.7 million; US, 50.9 million; and Italy, 49 million, according to the United Nations World Tourism Organization (UN WTO) latest global data. 

The Philippines? 5 million, as of 2023 (also using UN WTO data), many of whom were actually Filipino balikbayans. 

Within the ASEAN region, the more reliable indicator is tourist arrivals in 2019 or the year before the pandemic hit global tourism. Here’s how we scored, using ASEANstatsDataPortal, an official regional website where ASEAN members submit statistical indicators: 

• Thailand: 39.9 million 
• Malaysia: 26.1 million 
• Singapore: 19.1 million
• Vietnam: 18 million
• Indonesia: 16.1 million
• Philippines: 8.3 million
• Cambodia: 6.6 million
• Laos: 4.8 million

We’re the last among the ASEAN-6, which includes Thailand, Malaysia, Singapore, Vietnam, and Indonesia. All these countries get at least two times more tourist arrivals than we do. 

Positive experience in airports is an important factor in getting tourists to come – and visit again – since it’s the first main space that travelers have experiences with in a country or territory. Unfortunately, we’ve had several negative experiences at the Ninoy Aquino International Airport (NAIA) that have gone viral through the years, including the laglag bala, dirty toilets, theft by transport security personnel, and inappropriate or illegal acts by immigration personnel.

Singapore’s Changi is currently number one on the World’s Best Airport list by Skytrax, which is based on airport customer satisfaction surveys that include topics such as airport website, ease of access, public transport options, taxi prices, terminal comfort, terminal cleanliness, immigration efficiency and attitude, ease of transit, cleanliness of washrooms, hygiene standards, entertainment facilities, children’s play area, duty-free outlets, choice of cafés and restaurants, WiFi service, ATM facilities, smoking lounges, lost luggage services, perception of security standards, among others.

In terms of World’s Cleanest Airport, Skytrax has Tokyo Haneda as number one, followed by Singapore’s Changi. 

To be able to maintain high ratings, these airports have the right systems in place, including, of course, regular fumigation and frequent cleaning to get rid of bed bugs and other pests.

Taylor Swift in Singapore

In the global or regional competition to attract tourist arrivals, countries must think of what they can offer travelers, and to be a leader they have to think of what they can offer better than others, or offer something that others don’t have. 

And this is where Singapore’s successful pitch to pop superstar Taylor Swift comes in. 

Reuters reported that the city-state went all out to get her to perform in Singapore, which is her only stop in Southeast Asia. 

Thai Prime Minister Srettha Thavasin was quoted as telling a business forum that Singapore paid Swift $2.77 million per show on condition that it would be the only country in Southeast Asia where she would perform. 

“It is likely to generate significant benefits to the Singapore economy, especially to tourism activities such as hospitality, retail, travel and dining, as has happened in other cities in which Taylor Swift has performed,” said concert promoter AEG Presents. 

Over 300,000 tickets have reportedly been sold for Swift’s concerts from March 2 to 9. 

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This successful pitch is what countries that are leaders in regional and global tourism do for country and people.

I am sure the $2.7 million paid to Swift by Singapore can easily be recouped via the tourist arrivals, the revenues in accommodations, the food that will be consumed by Swifties, the souvenirs and other goods that will be bought, the additional trips to other tourist spots that many fans will be visiting. 

So, San Miguel Corporation (SMC) chief Ramon Ang and his consortium have their work cut out for them following their successful bid to rehabilitate NAIA. It’s not just upgrading the terminals but also making sure that travelers will have positive experiences. I’m sure he’s up to it because the SMC conglomerate is the biggest, if not among the biggest, in the businesses where they compete – from beer (San Miguel Brewery) to oil refining and marketing (Petron) to food (Purefoods, Magnolia, Dari Creme, to name a few). 

Not having bed bugs or surot should be high on the list of what needs to be done in the rehabilitated airport (or any of our airports for that matter), and that requires perhaps not having furniture where bed bugs can thrive. (NAIA management has reportedly permanently removed the rattan chairs where the surot hid and has apologized to the traveler.)

Imagine what would happen if Taylor Swift, in case she visits the Philippines when she’s no longer as famous as she is now, gets bitten by bed bugs! Shake them off, now! – Rappler.com

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I bought three on February 13, Tuesday, that cost me P450 or P150 each, double the wholesale price at Dangwa Market.

Date night inflation: Cost of flowers and condoms this Valentine’s Day 2024

On Tuesday, a Department of Agriculture (DA) official proposed that instead of buying flowers this Valentine’s Day, people should gift their loved ones with rice instead. 

“Ang dapat iregalo natin sa Valentine’s Day sa ating mahal sa buhay ay bigas, huwag na ‘yung flowers. Kasi hindi makain ‘yun, matinik pati. Kasi ang rosas ay matinik, pero matamis ang bigas. Bigas pa more,” Agriculture Undersecretary for Operations Roger Navarro was quoted as having said in a Palace briefing.

(We should give rice instead of flowers to our loved ones on Valentine’s Day. Because you can’t eat roses, and it’s thorny too. Roses are thorny but rice is sweet. Let’s have more rice.)

Navarro claimed that the rice supply in the country had improved and would lead to more stable prices in the coming months. Rice inflation was still high last December at 19.6%.

The steep prices of roses on Valentine’s Day is a good case to explain a number of economic principles. 

First, the law of supply and demand. Roses are expensive on Valentine’s Day because demand is steep, while supply is limited. When demand falls the following day and thereafter, the prices of roses fall sharply.

Flower producers, distributors, and market sellers also hire more workers to meet the high demand in mid-February, and this increases the costs that they have to recover.

In the case of rice in the Philippines, President Ferdinand Marcos Jr. wants to bring the price of rice down to P20 per kilo, but it’s been a tall order because demand for rice remains high, while supply has not kept up with demand. 

In the ’90s, for instance, national rice production was at 1.9% per year, while annual population growth was at 2.3%. 

The Philippines has thus had to import rice to keep up with demand. If rice exporting countries, such as Vietnam, Thailand, and India, limit their exports, this affects supply leading to higher rice prices. 

The Philippines is now the world’s largest rice importer.

Second, price inelastic or inelastic demand.

Roses on Valentine’s Day is a classic example of a product that is highly price inelastic. This simply means that people will still buy roses on February 13 and 14 even if the prices are steep. 

For most buyers, they probably thought of buying something else, but had no choice because roses – not rice for many – symbolize love for one’s partner. Giving rice may not be a good idea too since eating too much white rice causes Type 2 diabetes.

Other products whose prices are inelastic are medicines, cigarettes, and oil. 

Third, consumer behavior in economics. 

The choices that consumers make affect scarcity of goods, which in turn affect prices. 

Some of the Nobel Prize winners in economics have produced groundbreaking work on behaviorial economics. 

If there comes a time when Filipinos will be giving rice instead of roses on Valentine’s Day, then that may lead to lower prices of roses during Valentine’s. Hopefully, the price of rice by then will be P20 per kilo, as the chief executive has promised. 

However, changing consumer behavior takes a lot of work, especially in marketing. Since it’s been a long tradition to give flowers or chocolates on Valentine’s Day, don’t expect the prices of roses to fall on this day in the coming years. 

In the meantime, there’s an interesting food for thought that has emerged from a recent survey by polling outfit Social Weather Stations (SWS).

In a December 8 to 11, 2023 national survey, 1,200 Filipino adult respondents were asked to give one answer to this open-ended question: Ano pong regalo ang gusto niyong matanggap mula sa inyong minamahal sa darating na Valentine’s Day? (What gift do you want to receive from your loved one this coming Valentine’s Day?)

The top 5 answers? 

• Money: 16% 
• Love and companionship: 11% 
• Flower: 10% 
• Apparel: 9%
• Any gift: 5% 

So, why not give money in small red envelopes, like what the Chinese do during Lunar New Year? – Rappler.com 

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MANILA, Philippines – CNN Philippines, the only predominantly English-language channel on free TV in the Philippines, shut down on Monday, January 29, amid the company’s financial losses.

Employees officially received the news in a general assembly held Monday morning.

In a statement, CNN Philippines said it will discontinue operations on all media platforms effective January 31.

“It is with deep regret that the management of Nine Media Corporation (NMC) announces the discontinuation of its news and production operations on all media platforms, branded as CNN Philippines (CNNPH), effective 31 January 2024. The decision follows significant financial losses sustained over the past years, despite rigorous efforts to adapt and innovate in a rapidly evolving and challenging media landscape,” the company said.

It also vowed to provide “severance packages” to all its 300 employees and talents.

In a TV broadcast, CNN PH said: “To our staff, we thank you for your commitment and dedication. To our partners, including CNN Worldwide/Turner Broadcasting Corporation, we are grateful for your support. And to our viewers, our sincerest gratitude for your loyalty and trust over the past nine years.”

Rappler earlier reviewed the latest financial statement of Nine Media Corporation, the TV company which has the rights to carry the CNN brand. Auditors cast doubt on its ability to continue as a business, according to documents from the Securities and Exchange Commission.

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Nine Media struck a deal with Turner Broadcasting System Asia Pacific in 2014 for the former to use CNN-branded materials. The five-year deal was renewed up to December 2024, but Nine Media opted to end it at an earlier date.

Financial documents show that license fees that Nine Media had to pay Turner Broadcasting System increased from P108 million in 2021 to P139.3 million, up by 29%. – Rappler.com

Guido David, who became known in the Philippines for his work with OCTA Research during the pandemic, weighed in on Friday, January 26, on the PCSO lotto controversy.

In an interview with DWPM Radyo 630, David, a professor at the UP Institute of Mathematics, said the chances of winning in the 6/42 is one in 5 million; one in 14 million in 6/49; and one in 29 million in 6/55. 

When asked on the chances of the lotto games being won successively in less than a month, like what happened in PCSO’s “Handog Pakabog” promo draws, David replied: 

“Nagbigay ako ng scenario na a few hundred thousand ang pumupusta kada bola. So, every bola, ang probability na may tatama is nasa 2% or less than 2%. Pero pag sunod-sunod yan, kunyari, dalawang bola, it’s 2% x 2% so 0.04%, so, paliit ng paliit. Kunyari, sampung sunod-sunod, napakaliiit ng probability nun. Hindi imposible, napakaliit. It’s a rare occurence pero maliit yung probability.”

(I assumed a scenario of a few hundred thousand betting in every draw. So, every draw, the probability of winning is 2% or less than 2%. But if it’s in succession, for example, if two draws, it’s 2% times 2% so 0.04%, so, it gets smaller and smaller. For example, ten in succession, the probability of that is very small. It’s not impossible, but very small. It’s a rare occurrence but the probability is small.) 

He also qualified that the chances of the lotto game being won depends on how many people bet. For instance, in the 6/42, there’s a higher chance that someone will win if 5 million people bet than if only a few people bet. 

None of big winners in PCSO’s Christmas, New Year lotto games bet on all combinations, says GM

When asked whether he agreed with Senator Koko Pimentel’s observation that it was an “anomaly,” David said what happened in PCSO’s recent promo draws “raises eybrows” due to its rarity but that “statistics will never prove” that there was cheating. 

“So kailangan i-audit, if ever, they should look at the process. Were the draws fair?…Kung gusto nilang iinvestigate, I guess, may statistical basis, kunyari medyo rare na occurrence,” he added. “Yung pag audit, dun nila malalaman, hindi sa numbers.:

(So, there’s a need for an audit, if ever, they should look at the process. Were the draws fair?…If they want to investigate, I guess, there’s statistical basis [for it], for example, the occurrence here is rare. They’ll find out in the audit, not in the numbers.)

David agreed with PCSO General Manager Mel Robles that PCSO’s lottery is a “game of chance.” 

David teaches numerical analysis, game theory, mathematical biology, and machine learning in UP Diliman. He is member of OCTA Research and of the academic group Mathematical Finance and Acturial Science. 

During the COVID-19 pandemic, Guido provided daily analyses of the country’s positivity rate, testing statistics, and other important pandemic-related data. 

In the Senate Games and Amusement hearing last Thursday, January 25, committee chair Raffy Tulfo asked the Department of Information and Communications Technology’s Cybercrime Investigation and Coordinating Center (DICT-CICC) to look into the PCSO controversy. 

Drexx Laggui, a technical consultant of the DICT-CICC, said they will have to check the PCSO’s system, such as how it creates logs, and other processes.

He said the DICT-CICC can also look into PCSO’s ISO documents and also compare the PCSO’s system with the gaming rules in Nevada, USA. PCSO officials said its lotto system is ISO-certified.

“We can employ digital forensics,” Laggui said. 

Play Video

In a press release last January 19, the PCSO said it “churned out multi-millionaires one after the other to the delight of millions of Filipino bettors,” after the PCSO board augmented the jackpot draws for its “Handog Pakabog” Christmas and New Year draws.

The PCSO raised on December 16, 2023 the minimum guaranteed jackpot for the Grand Lotto 6/55, Ultra Lotto 6/58, Super Lotto 6/49 by P500 million each, and P100 million each for Lotto 6/42 and MegaLotto 6/45 as part of its Christmas and New Year draws.

On December 29, 2023, a lone bettor won P571 million in the Ultra Lotto 6/58, the biggest jackpot in 2023.

On January 16, 2024, a bettor won P640 million with the combination 26-33-14-48-06-42 in the Super Lotto 6/49 draw.

On January 17, another lone bettor won P698 million in the Grand Lotto 6/55 with the correct combination of 24-50-52-09-51-03 through PCSO’s new e-Lotto platform.

Three bettors, meantime, won in the Lotto 6/42 jackpot on January 2 with a prize of P108 million. 

Two people split the Megalotto 6/45 jackpot of P121 million on January 8.

Pimentel said during the Senate hearing that based on the history of PCSO’s lotto draws, it usually took months before lotto games with a jackpot prize of P500 million or more were won, but in this recent series of draws, which he described as an “anomaly,” all the games with big prizes produced winners in less than month. 

“In less than one month, limang laro ang tinamaan…itong nangyari ng December is really an anomaly. Hindi lang one [lotto] game, limang games,” he said. (In less than one month, 5 games were won…what happened this December is really an anomaly.)

Robles, however, told the committee that no cheating is being done. “We would like to assure you that you can never, never manipulate it, kaya nga po (that’s why) allowed kami mag-bet (even PCSO personnel can bet), Mr. Chair. Even I can bet because it’s beyond me.” – Rappler.com 

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In a Senate Games and Amusement committee hearing on Thursday, January 25, Philippine Online Lottery Agents Association Incorporated (POLAAI) president Evelyn Javier brought up the poor quality paper used in lotto receipts. 

She said the old, orange-colored PCSO ticket was better than the pink ones now being used. She said the pink tickets usually fade in six to seven months, depending on the “handling.”

Two senators pressed the state-run lottery corporation to address this, especially since a winning bettor has one year to collect his prize. 

Arnel Casas, PCSO assistant general manager for gaming, product development and marketing, was asked what would happen if a jackpot winner presents a no-longer-readable ticket. 

Casas said there would be no winner because the PCSO must be able to validate and recognize the winning numbers on the ticket. 

This prompted senators Aquilino “Koko” Pimentel III and committee chair Raffy Tulfo to inquire why the lotto tickets fade. 

Casas said this was because PCSO tickets use thermal paper, not the normal paper printed with ink. 

None of big winners in PCSO’s Christmas, New Year lotto games bet on all combinations, says GM

According to websites of companies that sell thermal paper, this type of paper fades when exposed to direct sunlight. They also absorb moisture in areas with high levels of humidity. If the thermal paper gets wet, it reacts with the coating and discolors it. 

It’s also not advisable to keep the ticket inside a car since it exposes the ticket to sunlight and extreme temperatures. 

Heat inside kitchens could also make the colors fade, says Chinese thermal paper maker, PandaPaperRoll. 

Frequent touching of the ticket degrades it, and dust also affects the “sheen” or the gloss on thermal paper rolls. 

Casas said thermal paper does not use ink, so the problem is not with the quality of the ink. 

According to the website pospaper.com, another thermal paper seller, “thermal receipt paper is coated in chemicals that allow images to be produced when heat is applied to the surface.” 

“While this is an efficient way of printing receipts, it also leaves receipts susceptible to damage or degradation from a number of chemicals and heat sources,” the site says. 

It recommends not touching it often since the oil on a person’s hands “[facilitates] chemical reactions that cause the printing on the receipt to fade.” 

It also suggests not to store receipts in bright areas since ultraviolet light from sunlight would cause it to fade “incredibly fast.” Tape should also not be used on receipts as the chemicals used in the glue on tape react with the thermal paper. 

PCSO officials said the old, orange-colored PCSO tickets were printed by the government printing facility Apo Production Unit, while the pink ones in use are based on thermal paper supplied by the winning bidder which they identified as DTM Philippines. 

Casas said the PCSO has technical specifications that bidders have to follow, and that the materials used undergo “quality testing,” including an “aging test.”

He presented a December 2022 ticket to prove that it lasts over a year. 

Tulfo said he would ask the thermal paper provider to testify in the next hearing since they want to make sure that the Philippines’ lottery system meets “general or global standards.”

PCSO officials said not all is lost on winners who may have no-longer-readable tickets, citing the Supreme Court’s ruling last September which ordered the PCSO to give winning bettor Antonio Mendoza his 6/42 jackpot prize of P12.3 million, after nine years of legal battle. 

Mendoza won via a lucky pick, but his granddaughter had crumpled his winning ticket and ironed it with a piece of cloth covering it in an attempt to straighten the ticket. It ended up black instead. Read the story here: Give lotto winner with damaged ticket his P12-M prize, SC orders PCSO – Rappler.com

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PCSO General Manager Melquiades “Mel” Robles told a Senate Games and Amusement committee hearing that while it is a bettor’s right to bet on all combinations in its lotto games, none of the winners in their “Handog Pakabog” promo draws did this. 

“Our records show na hindi naman po binetan ang lahat ng combinations on the day po na tinamaan,” he said. (Our records show that a bet was not placed on all combinations on the day the jackpot was hit.)

“Opo (Yes),” Robles replied when committee chair Senator Raffy Tulfo asked him whether this applied to all the recent winners. He promised to turn over to the committee PCSO records to prove this. 

The PCSO raised on December 16, 2023 the minimum guaranteed jackpot for the Grand Lotto 6/55, Ultra Lotto 6/58, Super Lotto 6/49 by P500 million each, and P100 million each for Lotto 6/42 and MegaLotto 6/45 as part of its Christmas and New Year draws.

On December 29, 2023, a lone bettor won P571 million in the Ultra Lotto 6/58, the biggest jackpot in 2023.

On January 16, 2024, a bettor won P640 million with the combination 26-33-14-48-06-42 in the Super Lotto 6/49 draw.

On January 17, another lone bettor won P698 million in the Grand Lotto 6/55 with the correct combination of 24-50-52-09-51-03 through PCSO’s new e-Lotto platform.

Three bettors, meantime, won in the Lotto 6/42 jackpot on January 2 with a prize of P108 million. 

Two people split the Megalotto 6/45 jackpot of P121 million on January 8.

Tulfo suspects that the PCSO intentionally boosted the jackpot to reduce the risks for wealthy bettors, who are then able to bet on all combinations to win. For instance, in the 6/49 lotto, he said there are 14 million combinations and at P20 for each bet, a wealthy bettor can spend P240 million to win, and he can recover his investment if the prize is boosted.

Tulfo claimed that PCSO had someone bet on all combinations that was won via e-lotto, and that a machine generated all combinations, a charge that Robles denied. 

Is someone gaming the PCSO lotto?

Senator Aquilino “Koko” Pimentel III said that based on the history of PCSO’s lotto draws, it usually took months before lotto games with a jackpot prize of P500 million or more were won, but in this recent series of draws, which he described as an “anomaly,” all the games with big prizes produced winners in less than month. 

“In less than one month, limang laro ang tinamaan…itong nangyari ng December is really an anomaly. Hindi lang one [lotto] game, limang games,” he said. (In less than one month, 5 games were won…what happened this December is really an anomaly.)

Robles, however, told the committee that no cheating is being done. “We would like to assure you that you can never, never manipulate it, kaya nga po (that’s why) allowed kami mag-bet (even PCSO personnel can bet), Mr. Chair. Even I can bet because it’s beyond me.”

Tulfo said he will push to revise the PCSO charter that allows it to use its prize reserve fund to augment the jackpot, arguing that it is better to use the money for charity and other social welfare needs instead of having only one or several persons end up as millionaires. 

Tulfo said the usual practice in countries that have lotteries is to allow the jackpot to grow from the bets, a process which Robles said is called “snowballing.” 

Robles agreed this was the usual way to grow the pot and not by augmenting it, but added that the “Handog Pakabog” was a promo that is done “once in a while” by lotteries. 

He said the marketing promo generated public interest in lotto betting, and this allowed the PCSO to recover the P1.3 billion it used for the “Handog Pakabog” after generating total sales of P2.2 billion. As a result, he said the PCSO made P800 million in a month plus an additional P240 million for charity.

Robles also said in a television interview last week that betting on all carries a big risk because if there’s more than one winner, the wealthy bettor stands to lose big.

“In the case of 6/49, interesting ito, 14 million ang odds. At P20, that’s only P280 million, eh ang pot mo ay P600 million. Kaya po talaga theoretically [to bet on all combinations and win]. Kaya lang, ‘pag may nakahati ka, dalawa o tatlo, lugi ka na, so talagang chance pa rin,” he told GMA-7’s Unang Hirit on January 18. 

(In the case of 6/49, this is interesting, the odds are 14 million. At P20, that’s only P280 million, but your pot is P600 million. That’s why theoretically, it’s really possible [to bet on all combinations and win]. But if you have to share it with two, or three, you already lose, so it’s really still chance.)

‘No manipulation,’ says PCSO

During the hearing, May Cerelles, officer-in-charge (OIC) manager of PCSO’s Information Technology Services department, belied Tulfo’s theory that someone who has “route access” to the PCSO’s system could change the winning numbers. 

She said the PCSO has an ISO-certified system that includes safeguards. There are also Commission on Audit (COA) personnel during lotto draws. 

Cerelles said lotto betting is closed at 8:30 pm, and by 8:32 pm, the data on the bets are stored in a USB drive. There’s also a CCTV that records each and every draw. 

Robles said no one can “manipulate” the system, but added that the PCSO was open to Tulfo’s suggestion of having additional observers during the lotto draws. 

Tulfo asked the PCSO and the Bureau of Internal Revenue to turn over their records so they can see whether the winners in the recent draws match with the taxes withheld from the winning bettors. 

Arnel Casas, PCSO assistant general manager for gaming, product development and marketing, said the PCSO has not yet submitted to the BIR its “alpha list” indicating the lotto winners for its Christmas and New Year draws, but he promised to turn over the records to the Senate later. 

The BIR asked Tulfo to issue a subpoena for these records so they can turn over tax records to the committee, noting that these are protected under the Data Privacy Act. – Rappler.com

(Editor’s note: An earlier version of this story missed an important quote from PCSO General Manager Mel Robles. It read that Robles replied “yes” to Senate committee chair Senator Raffy Tulfo when asked whether any one of the winners bet an all combinations. This should have been preceded by this quote:

“Our records show na hindi naman po binetan ang lahat ng combinations on the day po na tinamaan,” Robles said. (Our records show that a bet was not placed on all combinations on the day the jackpot was hit.)  

The corrected succeeding paragraph to this now reads: “Opo (Yes),” Robles replied when committee chair Senator Raffy Tulfo asked him whether this applied to all the recent winners. He promised to turn over to the committee PCSO records to prove this.) – Rappler.com

Company behind Philippine lotto system hits jackpot in 2023

On his radio show Tulfo in Action on Friday, January 19, the first-term senator said he wants to dig deeper into why the PCSO raised the jackpot by huge amounts for each for its major lotto games in December and early January instead of letting the pot grow from the lotto bets.

The PCSO raised on December 16, 2023 the minimum guaranteed jackpot for the Grand Lotto 6/55, Ultra Lotto 6/58, Super Lotto 6/49 by P500 million each, and P100 million each for Lotto 6/42 and MegaLotto 6/45 as part of its Christmas and New Year draws.

On December 29, 2023, a lone bettor won P571 million in the Ultra Lotto 6/58, the biggest jackpot in 2023.

On Tuesday, January 16, 2024, a bettor won P640 million with the combination 26-33-14-48-06-42 in the Super Lotto 6/49 draw.

On Wednesday, January 17, another lone bettor hit the Grand Lotto 6/55 with the correct combination of 24-50-52-09-51-03 through PCSO’s new E-Lotto platform.

Three bettors, meantime, won in the Lotto 6/42 jackpot on January 2 with a prize of P108 million. 

Two people split the Megalotto 6/45 jackpot of P121 million on January 8.

Tulfo said boosting the jackpot allows wealthy bettors to win the big lotto prizes.

“Ang purpose nila, kaya nila dinagdagan, para magkaroon ng excitement at maraming tataya. Na usually, dapat, hayaan mo lang tumaas ‘yung pot base dun sa mga tumataya. Habang tumatagal, tumataas ‘yung pot. Ang ginawa nung December, pinalobo ‘yung pot, especially ‘yung 6/49. Dinagdagan ng P500 million – boom. ‘Pag dagdag ng P500 million, may nanalo,” he said.

(Their purpose in boosting the pot is to have excitement so that many will bet. Usually, they should just let the pot grow big from the bets. As the betting goes on, the pot expands. What they did last December, they ballooned the pot, especially the 6/49. They added P500 million, boom. When they added P500 million, someone won.)

Tulfo, who admitted that he used to play lotto and had once won around P500,000 around a decade ago, said a bettor can place bets on all 14 million combinations in the 6/49. At P20 per combination, a rich bettor would need P280 million to win. If he is the sole winner of P640 million, he or she takes home a whopping P360 million before tax (20%).

“Kung ‘di nagdagdag ng P500 million, ang pot lang dapat was only P130 million-something. So kung P120 million or something ang pot, tumaya ka ng P280 million, lugi ka pa. Kaya ang ginawa, nagdagdag ng P500 million para may ganansiya,” he said. 

(If they did not add P500 million, the pot would have been just P130 million-something, So if it’s just P120 million and you spend P280 million, you lose. So, what they did, they added P500 million to generate interest.)

Nothing wrong, says PCSO GM

PCSO General Manager Mel Robles, in an interview on GMA’s Unang Hirit on Thursday, said betting on all combinations to win is allowed, but it carries a big risk because if there’s more than one winner, the wealthy bettor stands to lose big.

“In the case of 6/49, interesting ito, 14 million ang odds. At P20, that’s only P280 million, eh ang pot mo ay P600 million. Kaya po talaga theoretically [to bet on all combinations and win]. Kaya lang, ‘pag may nakahati ka, dalawa o tatlo, lugi ka na, so talagang chance pa rin,” he said. (In the case of 6/49, this is interesting, the odds are 14 million. At P20, that’s only P280 million, but your pot is P600 million. That’s why theoretically, it’s really possible [to bet on all combinations and win]. But if you have to share it with two, or three, you already lose, so it’s really still chance.)

Robles told Radyo5 on Friday that the PCSO used its prize reserve fund to jack up the pot last December to generate interest in the games. He said this strategy was also done by his predecessors, and he expects the PCSO to generate a billion in revenues in December alone and possibly in January too as more people joined the games. For instance, the PCSO recorded P265 million in one-day sales on Tuesday, the state-owned gaming firm said.

Robles denied that someone was rigging the system, and lamented that not an “iota of evidence” has been presented.

“Having frequent winners is not an indication na may nangyayaring masama. Meron din naman time na ang tagal-tagal walang nananalo eh what do you call that?” Robles said.

(Having frequent winners is not an indication that something bad is happening. There are times when it takes a long time to have winners, so what do you call that?)

Tulfo, however, wants to stop PCSO from using this strategy of boosting the pot since it’s helping wealthy bettors get rich. He suggested using PCSO’s reserve fund to help those in need.

“Ang tanong: legal ba ‘yun base sa charter ng PCSO? Patatanggal ko po ‘yan, na ‘wag ka nang magdagdag sa prize fund. Bigay mo na lang sa mahirap, sa charity, ospital, nangangailangan ng gamot, dialysis, imbes na isa lang ang manalo,” he said.

(Question is: is it legal to do that based on the PCSO charter? I will have that removed, they should not add to the prize fund. Just give it to the poor, to charity, hospitals, those who need medicines, dialysis, instead of having just one winner.)

A Senate hearing will be held on this on Thursday, January 25, Tulfo said.

Meantime, Senate Minority Leader Koko Pimentel said they will also probe whether PCSO’s e-lotto platform can be used to bet on all combinations. 

“Iniimbestiga na natin yan. Nagiging mas madali ba sa bettor na magtaya nga ng ganyan na all combinations? Yan ang magandang tanong….,” Pimentel told Radyo5 on Monday, January 22. “That is one of the angles na dapat tingnan.” 

(We’re investigating that. Is it now easier for a bettor to bet on all combinations? That’s a good question…That’s one of the angles that should be looked into.) 

It’s also possible, he said, that it’s not just one person placing a bet on all combinations in order to win but that it could be a group. 

“Ang sabi ko nga, ‘wag lang magisip na isang tao lang s’ya, what if you’re a group? Let us say wala yung feature [in e-lotto] na you can place your bets on all combinations pero if you’re a group, nagtutulungan ba kayo para cover n’yo all bets, all possible combinations?” Pimentel said.

(As I said, don’t think that it’s just one person, what if you’re a group? Let us say there’s no feature [in e-lotto] that you can place your bets on all combinations but if you’re a group, are you helping each other in order to cover all bets, all possible combinations?) – Rappler.com

Company behind Philippine lotto system hits jackpot in 2023

Historically, fraud rates jump during the holiday season as scammers exploit the influx of consumer activity. In 2022, digital payments provider Visa found that holiday fraud rates rose by 8% compared to 2021 and also went up 11% compared to non-holiday fraud rates. (READ: Filipinos lose P155 million to scams in 2023 as authorities try to catch up)

In a recent report, Visa warned that from November 2023 to January 2024, fraudsters will take advantage of consumers racing to tick off their shopping list and get “one-of-a-kind gifts.”

“[A]ctors will conduct tried and tested tactics that are often seen across the payments ecosystem to facilitate fraud during the holiday season, but will take advantage of season-specific commerce, such as an increase in travel, and discounted goods and services, to facilitate fraud during the holiday season,” Visa wrote in its fraud disruption report.

So what exactly should you watch out for? Visa identified six tactics that could be the most exploited this holiday season:

1. Digital skimming
2. Phishing and social engineering
3. ATM and POS skimming
4. Physical theft
5. OTP bypass and provisioning fraud
6. Shopping bots

Schemes: From digital to physical

A digital skimming attack is when fraudsters use malicious code on a merchant website that can scan and steal sensitive payment account data entered by customers on the checkout page. Fraudsters can steal a primary account number, card verification value, expiration date, and other personal information. This tactic could be deployed on websites selling “in-demand goods or services” that get high customer traffic, according to Visa.

The second tactic, phishing and social engineering, preys on customers looking for a good deal. Fraudsters using this may impersonate well-known retailers supposedly offering tempting discounts and sales. Once a customer enters and makes a purchase on the fake website, the fraudster will then steal the sensitive payment information that the customer inputted. 

According to Visa, merchants who deal with electronics, airlines, travel booking, hotels, and luxury goods are the most likely to be spoofed and exploited for phishing. With the rise of artificial intelligence tools, fraudsters may now also create “highly customized phishing campaigns” that mimic brands well and don’t have the common red flags, like grammatical errors.

Meanwhile, ATM and POS skimming has been around for decades, with fraudsters taking advantage of the surge in foot traffic in physical stores and automated teller machines during the holiday season. Fraudsters may attach a “skimmer” – a removable device that can steal payment information – on ATMs and store point-of-sale terminals to harvest customer data.

Skimmers have also evolved from the bulky, obvious devices attached onto ATMs. Now, fraudsters are using thin “deep insert” skimmers that are placed inside the ATM or POS card reader. Visa warned that bad actors could use the “cover of a crowded shop” or an “armful of large products” to distract store employees while they install skimmers.

When it comes to shopping in brick-and-mortar stores, customers also have to be wary of criminals physically stealing cards, phones, or other items from them. For instance, unattended bags in shopping carts could be stolen. Another tactic is to pickpocket a payment card from a customer as they leave the store and then return to the store to make a pricey purchase using the card.

Back online, bad actors can make fraudulent purchases by “bypassing” a one-time passcode through a variety of schemes. For instance, a fraudster could pretend to be part of a bank fraud center and then ask for the customer’s OTP.

Finally, bad actors are also using complex bots – capable of beating security measures like IP blockers and CAPTCHAs – to overwhelm online retailers. Visa identified “Grinch bots” that snap up popular toys and gifts this holiday season, only to resell them at a higher price. Some bots are also used to buy limited-edition items in bulk to resell at higher prices as well. There are also “freebie bots” that scan the web for items mismarked at low prices.

EXPLAINER: What is digital fraud and how do you protect yourself from scams?

How to protect yourself

With the rise in scams during the holidays, Visa advised customers to follow some best practices:

• Don’t click on links or hyperlinks in emails and text messages when they come from questionable sources.
• When paying online, check the URL and look for the “s” in “https://” as it indicates a secure connection. 
• Avoid public Wi-Fi networks when shopping online since they’re often unsecured, making it possible for hackers to steal your personal information.
• Be suspicious of deals that seem “too good to be true,” such as websites that offer very low prices for expensive or rare items.
• Use purchase alerts on your card to confirm purchases and be notified of suspicious activity.
• Enable multi-factor authentication on your accounts and use unique, strong passwords.
• Contact your bank using the phone number or email address listed on your card, rather than following information in an email or text message.
• Never give your OTP through a call, email, or text message.
• Keep up-to-date with system and application software updates to prevent exploitable software security loopholes.

“Crooks prepare all year for the holiday shopping season, taking advantage of increased activity and consumers who let their guard down searching for the perfect gift,” said Jeff Navarro, Visa’s country manager for the Philippines. – Rappler.com