The Philippine Amusement and Gaming Corp. (PAGCOR) has declined to abolish the country’s Offshore Gaming Operators (POGOs), despite their association with serious crimes including kidnapping. In related news, the regulator is also facing criticism for engaging an unlicensed auditor to audit the POGOs.
According to Inside Asian Gaming, instead of shutting down the offshore industry, PAGCOR has said it will “nurture” its development.
In a statement released January 24, PAGCOR defended its decision, noting it’s been more than three months since POGOs have been linked to criminal activities. The regulator also said it is cooperating with the Philippine National Police, the National Bureau of Investigation, the Department of Justice (DOJ) and the Department of Interior and Local Government in an intra-agency fight against illegal gaming operations of all kinds.
“The offshore gaming industry has only been in existence in the Philippines under PAGCOR over the last five years,” the regulator stated. “Aside from the taxes to the national and local governments, it currently employs an estimated 25,000 Filipinos and contributes billions of pesos to the local economy through real estate activities, consumption and indirect employment.
“It is PAGCOR’s aim to nurture this industry, as it believes it has much more to contribute to the Philippine economy and nation-building.”
Asked about the unlicensed company hired to audit POGOs, PAGCOR said Global ComRCI went through a fair and legal bidding process and met all the requirements of the country’s procurement law.
According to Gambling News, Global ComRCI won the PHP26 billion (US$477 million) auditing contract in 2017, though it’s not registered in the Philippines, did not supply correct documentation in its bid and used a bank that is unlicensed in the Philippines to certify it met PAGCOR’s capital requirements.
The regulator added that it is “currently assessing the contract’s terms and conditions and the company’s performance.”
But Senator Sherwin Gatchalian, chairman of the Ways and Means Committee, said the third-party auditor “is not credible, is not capable … and is not qualified.”
“Simple things like address and business permit they don’t have, so how do you expect us to believe what they’re supplying to us, in the form of information, is accurate?” he asked.
Gatchalian also pointed out that two POGOs once implicated in kidnappings continue to do business. One is under investigation and the case against the other has been dismissed, reported Gambling News.
“Do you think this is effective regulation?” Gatchalian demanded. “There is no sense of urgency within PAGCOR in so far as dealing with crimes. None of the POGO operators, especially those involved in crimes, respect us because we’re slow and our punishment is [small].”
Gatchalian and other lawmakers have called for all POGOs to be banned, arguing they are not worth the risk. PAGCOR continues to resist their demands, though it’s pledged to take action against POGOs that break the law. The PAGCOR statement reiterated that the regulator “does not take these reports lightly, and it will ensure that all gaming licensees abide by the law.
“PAGCOR reassures the public that it is conscientiously looking into the matter and will take the necessary actions, including the cancellation of licenses and service provider accreditations, if found warranted.”
