GSI not POGO, just Sino firm’s partner, says Ou

Grapefruit Service Inc. has denied being involved in illegal online gambling or any illegal online activities, and insisted that it is the authorized service provider of a corporation that operates a cryptocurrency business that is legitimate and legal in the Philippines.

GSI was raided by operatives of the National Capital Regional Police Office and Bureau of Immigration last Sept. 11.

In his letter to Immigration Commissioner Jaime Morente dated Sept 16., Xingfeng Ou, Chief Operations Officer of GSI, said the mission order from the Immigration bureau was directed only against four Chinese nationals who are allegedly fugitives from justice and hiding in the Philippines.

Only three of the Chinese, namely Chen Xianfeng, Qi Heng and Wang Changsen, were arrested during the raid, Ou noted.

“It is clear that only Chen Xianfeng, Qi Heng, Wang Changsen, and Qin Shuxin are the subjects of Mission Order No. JHM-2019-270. Thus, the arrest of other persons pursuant thereto is illegal unless the same falls under the rule of warrantless arrest,” he argued.

GSI is located at the 37th floor of One Corporate Center in Julia Vargas Avenue cor. Meralco Avenue, Barangay San Antonio, Pasig City, where the raid took place.

He pointed out that GSI is not a Philippine Offshore Gaming Operator and not in any way involved in online gambling activities. 

Ou insisted that their company is a service provider of another CEZA licensed company involved in financial technology solutions offering offshore virtual currency exchange service. 

He said that GSI is a “qualified Cagayan Special Economic Zone and Freeport Enterprise” and was authorized to do business pursuant to Certificate of Registration CSEZFP Enterprise No. CF-426 issued by CEZA.

Accordingly, and being the authorized service provider of Golden Millenial Quickpay Inc. Limited, it may perform business at CEZA-accredited premises like the One Corporate Center in Orgtigas.

Ou insisted the company had no knowledge the Chinese nationals were fugitives, because when they applied for work at GSI, the company only relied on the documents they submitted, i.e. valid passports, valid visas, among others. 

GSI presumed that they are not fugitives from justice, since they were issued passports by the Chinese government and they were given visas to enter the Philippines, he added

“Also, the fact that they were able to pass through Chinese and Philippine immigration presupposes that they are not fugitives and/or that their names are not included in the watchlist of Interpol, otherwise, they should have been arrested at the airports,” Ou said.

Regarding the other 274 Chinese nationals arrested by BI’s Fugitive Search Unit, Ou said they have valid passports and Cagayan Economic Zone Authority working visas. The others have pending applications with CEZA, and the rest are just visitors or relatives of the employees, he added.

“Hence, they should not have been arrested because they were not violating any law during the raid. But after the raid, their passports were immediately canceled by the Chinese Embassy, which is a classic example of a flawed postscript or afterthought designed to justify their illegal arrest,” Ou said.

He said that the arrest of the Chinese “is an unfortunate incident that creates an impression to other CEZA accredited establishments that the same can happen to them” despite being given licenses by the Philippine government and their employees being holders of duly issued passports and visas.

Ou argued that the incident should not be allowed by the Philippine government since CEZA was created by Republic Act No. 7922 to attract foreign investors. 

He requested Commissioner Morente to consider the given facts and circumstances surrounding the incident and to resolve the case against the arrested 274 Chinese nationals based on the legal documents or evidence they provided.

Topics: Grapefruit Service Inc. , Philippine Offshore Gaming Operator , POGO , illegal online gambling , cryptocurrency , National Capital Regional Police Office , Bureau of Immigration
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