MANILA, Philippines — The body which regulates government-owned and -controlled corporations (GOCC) is pushing for the separation of the regulatory and commercial functions of the Philippine Amusement Gaming Corp. (Pagcor), citing issues in competitive neutrality.
In a statement, the Governance Commission for GOCCs (GCG) said it has submitted a recommendation to President Duterte, seeking for the overhaul of Pagcor’s mandate as the state firm’s operation of casinos is in direct conflict with its functions as a gaming regulator.
The recommendation was made following the review of the mandates of 12 GOCCs as part of the GCG’s commitment to the Philippine Development Plan (PDP) 2017 to 2022.
“The Governance Commission has reviewed the mandates of 12 GOCCs in relation to competitive neutrality issues,” the agency said.
“Among the 12 is Pagcor, which the GCG has recommended to President Duterte for separation of commercial and regulatory functions, in which its operation of casinos conflicts with its functions as a gaming regulator,” it said.
PDP 2017 to 2022 calls for the review on the mandate, quality of services, and specific markets of GOCCs to ensure that their proprietary activities are not in conflict with their regulatory functions and that procedures are streamlined.
GCG is committed to finish the review of the mandates of all 123 GOCCs under its jurisdiction, and implement appropriate measures for those identified with competitive neutrality issues, before the end of Duterte’s term.
The GCG would work with the Philippine Competition Commission, the National Economic and Development Authority, the Department of Justice and the Department of Trade and Industry to review the mandates of GOCCs and initiate their privatization or transfer of regulatory functions to the appropriate government agency.
“It is the firm belief of the Governance Commission that there should be a level playing field between GOCCs and corporations in the private sector performing similar commercial activities,” the GCG said.
Competitive neutrality for GOCCs is pursuant to Republic Act 10149, also known as the GOCC Governance Act of 2011, as well as the Ownership and Operations Manual Governing the GOCC Sector.
Earlier, Socioeconomic Planning Secretary Ernesto Pernia said state corporations must separate their regulatory and profit making functions as it creates a conflict of interest for the entity.
He also cited the National Food Authority (NFA) and the Philippine Ports Authority (PPA) which have conflicting regulatory and proprietary functions.
Meanwhile, the Department of Finance (DOF) has been pushing for the sale of Pagcor-operated casinos so that it can focus on its regulatory functions and remove any conflict of interest. Pagcor operates 46 casino properties in the country.