Last week, the Financial Executives Institute of the Philippines (FINEX) joined seven other business organizations in calling for a total ban on Philippine Offshore Gaming Operations (POGOs). The joint statement supported the nationwide ban that Finance Secretary Ralph Recto and National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan recommended.
Signatories include the Institute of Corporate Directors (ICD), the Makati Business Club (MBC), the Management Association of the Philippines (MAP), the Judicial Reform Initiative (JRI), the Foundation for Economic Freedom (FEF), the Alyansa Agrikultura (AA), and the University of the Philippines School of Economics Alumni Association (UPSEAA).
“The contribution of POGO investments to the Philippine economy is minimal at 0.2 percent of GDP [gross domestic product] in 2023, according to former NEDA Undersecretary Sarah Dacanay. Compare this to the social costs which have direct effects on economic growth,” the eight business groups explained.
They cited recent Senate hearings and NEDA statements that POGOs have been linked to negative externalities, specifically their involvement in crimes such as kidnapping, human trafficking and money laundering. As of 2022, data from the Philippine National Police showed that 55 percent of kidnappings were POGO-related. Thus, they believe that crimes associated with POGO investments can hinder growth, affect investor perception, and potentially adversely affect the country’s bilateral and multilateral relations.
Balisacan had previously said “we want investment inflows that will promote not only the economic but also the social aspects of our development.” FINEX, ICD, MBC, MAP, JRI, FEF, AA, and UPSEAA agreed with him, saying they support foreign investments that are legitimate and will facilitate knowledge and skills transfer while providing quality jobs for Filipinos. “The government should also help re-skill and ensure opportunities for Filipino workers who may lose their jobs due to the ban and allow industries affected by POGOs to find alternative uses for their assets,” they appealed.
Their urgent request has not fallen on deaf ears, as President Ferdinand Marcos Jr. announced the immediate and total ban on POGOs during his State of the Nation Address (SONA) last July 22. He pointed out their grave abuse and disrespect of Philippine laws, the social disorder they create, and the country’s desecration that should be stopped. That was the most applauded part of his SONA, and he received a lengthy standing ovation.
Recently, a Pandora’s box was uncovered when the Senate investigated the raids by law enforcement agencies against POGO facilities in Bamban, Tarlac, and Porac, Pampanga. At the center of this national controversy is Bamban Mayor Alice Guo, whose Filipino citizenship is being questioned by Senators Risa Hontiveros and Sherwin Gatchalian.
Guo has since been suspended by the Office of the Ombudsman over her alleged links to the raided POGOs. A separate probe by the National Bureau of Investigation (NBI) has led to the NBI Dactyloscopy Division’s conclusion that Guo’s fingerprints match those of a Chinese national named Guo Hua Ping.
Even the Chinese Embassy in the Philippines has expressed its opposition to the POGOs. When asked to comment about this issue, its spokesperson stated: “Chinese law prohibits all forms of gambling. The Chinese government strictly cracks down on Chinese citizens engaging in gambling business abroad including POGO. Ample evidence shows that POGO breeds serious crimes such as kidnapping for ransom, human trafficking, and murder. POGO is detrimental to both Philippine and Chinese interests as well as China-Philippines relations.”
During the SONA, Marcos ordered the Philippine Amusement and Gaming Corp. (Pgacor) to “wind down and cease the operations of POGOs by the end of the year.” However, Pagcor Chairman and CEO Al Tengco reportedly told GMA Network’s DZBB radio on July 23 that he has yet to discuss the presidential directive on POGOs with Marcos and wants to seek clarification since PAGCOR no longer has any POGO under its jurisdiction. So which POGOs are going to be banned?
It may be recalled that Tengco disclosed in September 2023 that licensed POGOs have been renamed as “internet gaming licensees” or IGLs. He revealed in the DZBB interview that as of two days ago, there are only 43 legal IGLs in the country that directly employ 31,000 Filipino workers.
Although most Filipinos welcomed the complete ban on the POGOs, netizens are concerned about their rebranding into IGLs – which might mean that their operations won’t be entirely prohibited. Is this a case of the same dog with a different collar?
J. Albert Gamboa is a Life Member of the Financial Executives Institute of the Philippines (FINEX) and Vice-Chair of the FINEX Ethics Committee. The opinion expressed herein does not necessarily reflect the views of FINEX and the Manila Bulletin. #FinexPhils www.finex.org.ph