An Office of the Inspector General report highlighted deficiencies in the printing of tickets, handling of duplicates, destruction of tickets, handling of security paper, lapses in physical access control, and authentication of the printer used.
Puerto Rico.- The Office of the Inspector General of Puerto Rico (OIG) published a report on the deficiencies found in the internal controls implemented by the Puerto Rico Lottery in the printing of Traditional Lottery tickets.
The report highlighted deficiencies in the printing of tickets, handling of duplicates, destruction of tickets, handling of security paper, lapses in physical access control, and authentication of the printer used.
The OIG issued an Order demanding prompt corrective action to the situations noted in the report. This measure requires the Lottery to rapidly implement controls to remedy the identified failures.
The analysis, which covered the period from January 1, 2021, to May 16, 2024, was conducted following a referral from the Office of the Comptroller of Puerto Rico, and due to deficiencies notified by the OIG auditors as part of the lottery draw observation processes.
The OIG identified that lottery ticket printer operators often ignored proper procedures to resume printing after an interruption, resulting in ticket duplication. Inadequate management in the destruction of discarded tickets was also observed, increasing the risk of duplicated or defective tickets circulating. Additionally, it was revealed that, during the examination period, the Lottery conducted 135 draws, and in 63 of them (47 percent) duplicated tickets were detected. Of the 111 duplicated tickets presented for payment, 18 turned out to be winners or had a refund.
In a test conducted in the Payments Section, irregularities were discovered in the processes for paying winning tickets. Failures were also detected in the implementation of effective controls during the printing and preparation of tickets, increasing the risk of errors. The lack of a proper maintenance job log for the printer, as well as the absence of formalized quality controls, resulted in the incorrect printing of thousands of tickets.
The examination also revealed that there was no adequate inventory for handling security paper, facilitating its misuse. During a test in the Payments Section, fractions of counterfeit tickets were accepted as originals, demonstrating the urgent need to improve mechanisms for identifying fake tickets.
See also: Puerto Rico updates regulations for physical slot machine licenses
Another significant finding was that the ticket printer lacked adequate authentication controls, allowing unauthorized use and lack of tracking of user activities. The OIG also identified significant failures in access control to critical areas of the Lottery. People with continuous access to these areas did not belong to the direct staff of the sections, and it was found that gates and vaults were often open or poorly secured, increasing the risk of improper manipulations and unauthorized access.
Joseph Ejercito urged the senate to quickly conclude the investigation to focus on identifying the international crime groups behind the operations.
The Philippines.- Senator Joseph Victor Ejercito has called for a swift conclusion to the Senate inquiry into illegal offshore gaming operators in order to focus on identifying the masterminds. In a press release, Ejercito said it was concerned that a delay could divert attention.
He stated: “Sometimes it seems like it’s becoming a talk show. I hope it would be wrapped up soon because it might deviate from our real goal of identifying the international crime syndicate, that we think is really behind this.”
Ejercito said any further investigations should be managed by the relevant agencies to ensure swift action. He expressed confidence in the leadership of senate deputy minority leader Risa Hontiveros, who heads the Committee on Women, Children, Family Relations, and Gender Equality. The panel has scheduled the next public hearing on offshore gaming operators for today.
Ejercito urged all stakeholders, particularly Alice Guo, the suspended mayor of Bamban, Tarlac, to provide the necessary information to conclude the investigation. A week ago, Guo revealed the name of a key figure linked to illegal offshore gaming operators during a closed-door session. Hontiveros did not make the name public but said the information provided by Guo corroborates a theory the committee has been working on.
“I believe Ms. Guo is a mere front and I hope she’ll come clean soon. I hope she feels sorry for the victims of POGO,” Ejercito concluded.
A group of senators are opposing the possibility that Alice Guo could stand for election next year. Senator Sherwin Gatchalian issued a statement saying such a move would be “another brazen attempt to undermine the country’s laws.”
He said: “The Commission on Elections (Comelec) itself approved the recommendation of its Law Department to take action against Guo for violating the Omnibus Election Code through blatant misrepresentation. One of the key findings is the matching fingerprints between Alice Guo and Chinese passport holder Guo Hua Ping.
“Also, she falsely claimed to be a Filipino born in Tarlac, while official records show that she is a Chinese national, born in Fujian to her Chinese mother, Lin Wenyi.”
Senate president pro tempore Jinggoy Estrada noted that candidates must be Filipino and must provide accurate information about themselves. Estrada said: “This privilege stated in our Constitution is only for our fellow citizens and can never be given to fake Filipinos.”
