An umbrella network of business organizations voiced its support for the recommendation of economic managers to completely ban POGOs, saying the revenues from the industry are outweighed by its social costs.
While the Philippine Business Groups (PBG) acknowledged the potential job losses associated with the ban, they urged the government to prioritize reskilling initiatives and create alternative job opportunities for affected Filipino workers.
Data from the National Economic and Development Authority showed POGOs contributed a mere 0.2 percent to the country’s gross domestic product (GDP) in 2023.
Previous reports cited concerns that POGOs have been linked to a range of criminal activities, including human trafficking, kidnapping, and money laundering.
In 2022, Philippine National Police data indicated that 55 percent of the 31 kidnapping cases were POGO- related.
NEDA said the crimes related to POGO investments can hinder growth, affect investor perception, and potentially affect bilateral and multilateral relations.
“We want investment inflows that will promote not only the economic but also the social aspects of our development,” said NEDA Secretary Arsenio Balisacan.
The PBG is composed of the Alyansa Agrikultura, Financial Executives Institute of the Philippines, Foundation for Economic Freedom, Institute of Corporate Directors, Justice Reform Initiative, Makati Business Club, Management Association of the Philippines, and the UP School of Economics Alumni Association.
In a letter sent to President Marcos, economic managers earlier recommended a total ban on POGOs despite a potential revenue loss of as much as P20 billion, Finance Secretary Ralph Recto said “It (P20 billion) may be a big number, but the cost and particularly social cost of POGOs are quite high.
We are trying to position our country as a legitimate place for business where we are trying to attract investors to come, tourists to come and so the least that we want is, to have a reputation. The criminals are still here,” Balisacan added.
As this developed, a joint committee of the House of Representatives on Wednesday called for an immediate and decisive crackdown on 402 illegal POGOs across the country to put an end to the widespread criminal activities linked to them.
The call was made during the joint meeting of the Committee on Public Order and Safety and the Committee on Games and Amusements, as it began its motu proprio inquiry into the proliferation of criminal activities associated with illegal POGOs on the instructions of Speaker Martin Romualdez.
Santa Rosa City Lone District Rep. Dan Fernandez, chair of the public order and safety panel, underscored the need for interagency cooperation to address the growing problem involving POGOs, as he highlighted the role of local government units in the effort.
Fernandez said that the mayors and heads of Business Permits and Licensing Offices (BPLO) in cities and municipalities hosting POGO hubs must take responsibility for verifying and enforcing the closure of these illegal operations.
It was revealed during the hearing that while there are 78 legal POGO operations supervised by the Philippine Amusement and Gaming Corp. (PAGCOR), a significant number of illegal operators continue to function.
The Presidential Anti-Organized Crime Commission provided intelligence on the locations and operations of 402 illegal POGOs across the country.
Undersecretary Gilbert Cruz, the PAOCC executive director, said the 402 includes canceled POGOs, as well as identified scam farms.
The role of LGUs was particularly emphasized following recent raids on POGO hubs in Bamban, Tarlac, and Porac, Pampanga.
These operations uncovered extensive illegal activities, including human trafficking and other criminal enterprises, highlighting the need for local authorities to be vigilant and proactive.
Rep. Joey Salceda, meanwhile, said he expects President Marcos to address the issue of POGOs in the latter’s State of the Nation Address on Monday.
The National Security Council (NSC) also on Wednesday said POGOs are not a national security threat that needs direct involvement of defense forces.
During a Senate hearing, NSC Assistant Director General Francis Jude Lauengco said the agency considers several elements before they consider a matter as a national security threat.
Editor’s Note: This is an updated article. Originally posted with the headline: “Philippine Business Groups advocate for total ban on POGOs”
