The Philippine Charity Sweepstakes Office (PCSO) is trying to cancel a 25-year contractual joint venture under which TMA is set to build a $100m thermal coating plant in Manila.
Under the agreement, which is due to commence on 19 September this year, TMA would exclusively produce all thermal and specialised paper for PCSO over 25 years for an agreed price reviewed every year. PCSO has claimed that the venture is worth 42 billion Philippine pesos, or roughly $1bn.
TMA Group director Anthony Karam said TMA and PCSO would get an 80:20 split under the terms of the contract, which he said was signed on 4 December 2009 by TMA and the previous PCSO board.
The contract was suspended by the incoming PCSO board last August so it could be reviewed by the Office of Government Corporate Council (OGCC). The review centred on claims by the PCSO that the contract is purely a supply contract, not a joint venture.
PCSO board director Aleta Tolentino told ProPrint: "In a joint venture agreement, both parties contribute something. In this case, PCSO did not contribute anything so it becomes a supply contract instead of a joint venture."
She added that TMA would be able to bid on future jobs for the PCSO in September, along with competing companies.
According to TMA's Karam, the OGCC's investigation found that the contract was compliant, effectively binding PCSO to uphold the deal.
Karam told ProPrint that TMA was petitioning a court in the Philippines to allege some PCSO board members acted in contempt of court.
"Our view is very simplistic: our contract has been validated by the court, the contract is valid and binding, and TMA will continue to enforce the compliance to the contract with the PCSO."
According to Philippines newspaper The The Philippine Daily Inquirer, the PCSO has filed charges against five members of the previous board on Friday in relation to their dealings with TMA.
TMA, which is listed on the ASX, was established in 1990. Its expansion into the Philippines came through its acquisition of Mark Sensing Ltd, which has had interests in the Philippines since the early '90s.
Last year, TMA secured the $10m print management contract with Qantas, which had been held by IPMG subsidiary Sync Communications for the past 15 years.
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