Palace: POGO ban up to Congress

BEIJING — President Duterte is ready to listen to Chinese President Xi Jinping should he bring up Beijing’s request to ban online gaming in the Philippines, Malacañang said yesterday, even as it noted that such a ban may require congressional approval.

Duterte, who is scheduled to meet with Xi here today as part of a five-day visit, has not issued a statement on the Chinese Foreign Ministry’s call for the Philippines to ban online gambling, which is said to be fueling money laundering and the entry of illegal workers.

Gambling, including online and offshore gaming, is illegal in China.

Presidential spokesman Salvador Panelo, however, said Duterte had noted that online gambling is permitted in the Philippines.

Upon learning of China’s appeal, “the reaction I heard from (Duterte) was, ‘that’s legal here,’ ” Panelo said in a press briefing here.

“I do not know if (the request) would be considered. What I know is that he is open to what the other side will say, to the explanation of the other side,” Panelo added.

Nothing much can be done as long as online gaming is legal in the Philippines, according to Panelo.

“’Di naman siya pupuwedeng mag-declare illegal kasi Kongreso ’yon (He cannot declare it illegal because it’s up to Congress),” Panelo said. “If they declare all gambling to be illegal, then there would be no more online gaming.”

The Bangko Sentral ng Pilipinas (BSP) and the Anti-Money Laundering Council (AMLC) are now studying the impact of Philippine offshore gaming operations in the country. There are about 130,000 Chinese nationals working for POGOs.

Panelo expressed belief that China would be the one to raise the issue on POGOs during the bilateral meetings.

“They are the ones interested and concerned because their subjects are the objects of gaming operation,” he said.

The Chinese embassy has asked the Philippines to protect the rights of Chinese POGO workers, saying many of them were illegally recruited and exploited.

Support from senators

Senate Minority Leader Franklin Drilon expressed support for the AMLC and BSP’s move to thoroughly examine the activities of POGOs in the country, which, he said, are a legitimate concern of the monetary authorities and the AMLC.

“I support that move of the AMLC and BSP because just listening to media, the matter of POGOs transgressing the rule of the money laundering law is not something that we can just brush off as unfounded,” Drilon said during the Kapihan sa Maynila forum yesterday.

BSP Governor Benjamin Diokno wants the AMLC and BSP to thoroughly examine the activities of online gaming firms operating in the country to allow policymakers to decide on a future course of action in response to criticism against the booming industry.

Diokno said he had asked the AMLC, which he also chairs in an ex-officio capacity, to come up with a report on POGOs in light of the Chinese government’s request for local authorities to clamp down on illegal online games of chance.

China and Cambodia have banned online gambling, thus, such operations in the two countries are considered illegal, according to the senator.

“In China, online gambling is illegal. Cambodia said, enough of illegal. There is a reason for our monetary authorities taking a good look at the operations. I am glad they are doing it… how are they behaving? Is there good conduct? But yes, the contract of the POGO industry is a legitimate concern of our monetary authorities and our anti-money laundering council.”

Sen. Joel Villanueva also welcomed the AMLC and BSP’s move.

Villanueva, who filed a resolution seeking an investigation on the POGOs and the influx of mostly-Chinese foreign workers, said he would ask the AMLC and BSP to share their findings with the Senate.

“We raised the importance of putting the POGO sector under closer scrutiny to establish its impact to the country. We maintain that the sector does very little to benefit the country,” the senator said.

POGOs do not create jobs for Filipinos, and the influx of foreign workers has driven property prices upwards to the detriment of local businesses and workers, according to Villanueva.

“Until last month, our revenue collection from the sector is minimal at best, considering that POGO firms only agreed to pay income taxes last month, nearly three years since operations went full blast in 2016,” Villanueva said.

“It’s also worth noting that POGOs are a fertile ground for illicit transactions, such as money laundering, among other crimes. If our government does not put in safeguards on this sector as soon as possible, we risk being branded as another money laundering hotspot. We do not want another Bangladeshi bank heist happening on our shores,” he said.

Meanwhile, Sen. Francis Pangilinan called on the Philippine government to revoke the licenses of POGOs in the country.

“China is correct here. Cancel the POGO licenses on concerns of criminality and corruption. Gambling is illegal in China. This means that Chinese criminals run the POGOs here in the Philippines,” Pangilinan said.

“The sincerity of the anti-crime and anti-corruption campaign of this administration is placed in serious doubt with Chinese criminal syndicates being allowed to conduct illegal businesses freely in our midst,” he added.

Pangilinan also noted that the last few months saw an increase in crime reports involving POGO players and financiers who break the law but do not allow themselves to be subjected to Philippine laws.

“There were even reports of local police being detained and were not allowed to investigate crime scenes. This is the height of disrespect, which we should not take sitting down,” he said.

Pangilinan also pointed out that the pervasive presence of Chinese POGO workers in local neighborhoods has also fueled racial antagonism among residents, who rightfully detest some of the foreigners’ dirty habits such as smoking.

“There are issues as well of exploited Chinese workers, fly-by-night operators, and non-payment of taxes in this industry. All these should not be ignored,” he said.

At the same time, Pangilinan stressed that no less than Philippine defense officials have raised the possibility of these POGOs being used to spy on Filipinos.

“The complex issues connected to POGO operations are critical and could outweigh the earnings government rakes in,” the senator said. – With Cecille Suerte Felipe, Paolo Romero