THE Philippine Amusement and Gaming Corporation (PAGCOR) has registered P2.2 billion in “losses” from Philippine Offshore Gaming Operations (POGO) firm that has closed shop.
At a budget hearing of the House appropriations committee, PAGCOR chief Alejandro Tengco made the statement to legislators in reference to the over P2 billion of PAGCOR collectibles that the Commission on Audit (COA) reported in June 2022.
“The amount was not collected in the past administration… it was a P2.2-billion receivables from a POGO licensee during the last administration.
During the pandemic, nawala na lang po parang bula iyong POGO,” Tengco told the panel chaired by Ako Bicol Rep. Elizaldy Co.
The Co panel deliberated Monday on the Pagcor’s proposed P5.768-trillion budget for 2024.
“I had an exit conference with COA about a month ago, and I made a manifestation to the supervisor of COA in PAGCOR and there is no way we can collect that said P2 billion anymore,” Tengco added.
When he assumed office last year, he said he formed a team that would look into the case of the missing POGO.
Unfortunately he said the investigating team probe failed to track down the individuals involved in the said POGO licensee as they were all foreign nationals who have already left the country.
“Our investigation revealed the officers of the licensee already left the country, and that such licensee did not have a local incorporator. That is why during the last exit conference with COA, we asked them, (if it’s possible, that receivable be stricken off),” Tengco said.
Tengco said the questioned licensee operated for only eight months in the country. “We could no longer go after them. We were told they are out of the country already,” he said.
But added however that the missing POGO has been blacklisted by the government regulator and its license revoked. “We have definitely leveled up our monitoring and collection efforts and were able to close down around 150 service providers so far,” Tengco said.
Tengco stressed that from zero fines and penalties during the last administration, PAGCOR already slapped fines and penalties to 70 licensees of overseas gaming operations for the last six months, totaling US$1.5 million. At the same time, PAGCOR already suspended six POGO licensees in 2023, including one in Clark which said to have been allegedly involved in scam and human trafficking activities, he added.
“We are really trying our best to make sure all licensees follow our rules and regulations,” Tengco said.
Meanwhile, Co highlighted the crucial economic importance of PAGCOR in generating substantial revenues for the government.
He cited the steady source of funds that PAGCOR’s remittances have provided for essential public services.
“These funds, derived from various gambling and gaming activities, have supported critical sectors including education, healthcare, infrastructure development, and public safety. Notably, they have also contributed to the implementation of the Universal Health Care (UHC) Act under RA 11223,” Co said.
“This consistent financial influx not only alleviates the burden on taxpayers but also promotes a balanced distribution of financial responsibilities,” Co added.
When properly regulated and integrated, Co said the gambling and gaming industry can emerge as a robust revenue source for the government.
The multifaceted revenues generated from these activities extend to various sectors, enhancing societal well-being, he added.
He further highlighted the positive impact of PAGCOR’s operations on employment opportunities, fostering skill development and professional growth within the local workforce.
Recognizing the importance of effective regulation, Co said “comprehensive regulatory frameworks are essential to ensure fair play, responsible gambling, and the prevention of criminal activities such as money laundering.”
“A well-structured regulatory framework not only safeguards public interests but also fosters a positive industry image that attracts responsible gamblers and investors,” Co asserted.
While acknowledging the financial benefits of the industry, Co also addressed the need to balance them by acknowledging potential negative social consequences.