Discussions continue over the dissolution of PAGCOR (Philippine Amusement and Gaming Corporation), the Philippine gaming regulator and casino operator.A conflict of interest issue has been raised by some lawmakers, and new charges have fueled the debate.
The topic has popped up a few times over the last few years, but last year it resurfaced in earnest.Lawmakers are calling for more changes following adverse press coverage of the operation of the Philippine Offshore Gaming Operator (POGO) and e-sabong.
The debate heated up in Senate hearings this week. Some questions have been asked that do not impress PAGCOR and discredit PAGCOR's ability to fairly regulate its industry.
PAGCOR does not take its job seriously
Some lawmakers believe PAGCOR is not taking its role as a gaming regulator seriously enough.Senator Sherwin Gatchalian, chairman of the Philippines' Ways and Means Committee, is one of them.
Gatchalian on Monday accused the group of failing to take action against two companies that it may have engaged in illegal activities.He refers to Brickhartz Technology Inc. and MOA Cloudzone Corp., both POGOs, that have been credited with the near-collapse of the entire gaming sector.
POGO has come under fire due to many operators cheating.The Philippines introduced new tax regimes in this segment, causing many companies to relinquish their licenses.
However, they did not give up their activities.They continued their online gaming business, but are said to have resorted to slave labor and kidnapping to secure a workforce.According to Senator Grace Poe's statement last year, two companies, Brickhartz Technology and MOA Cloudzone, were implicated in the act.
Both companies are still in operation, and PAGCOR has reportedly taken no action against them. Brickhartz was fined PHP500,000 (US$10,000) but not stripped of his license.According to the media "Philstar Global", PAGCOR did not take any action against MOA Cloudzone.
According to Gacharian, this is unacceptable.He accused PAGCOR on Monday of being "unsafe" in dealing with crime.
If PAGCOR wants to stay intact, it is not giving decision makers that image.Pugkor continues to go deeper and deeper, offering lawmakers new reasons to break up the company.
illegal partnership
Gacharian also pointed out Pugkor's lax audit of business relationships.He cited as an example the deal with Global ComRCI, which received a 2017-year deal worth PHP60 billion (US$1 million) in 1016 with the regulator.
Although it is labeled as a “bank,” it is not actually a registered bank.It is neither registered with the central bank of the Philippines nor with the Internal Revenue Service and cannot enter into legally binding financial agreements.
Global ComRCI is said to have been brought in to audit taxes paid by POGO to PAGCOR and the government.However, according to Gacharian, the company does not have an office or operating license.However, Gacharian said the company does not have an office or operating license and cannot be trusted.
It also found that Global ComRCI would need a minimum capitalization of Php10 billion (US$1836 million) to meet the guidelines of third-party auditors.But a closer look reveals that the three entities that make up the company are only about $3 million in combined capital. This is despite submitting documents to PAGCOR to confirm the minimum capital.
So I checked the source of the document.As a result, it turned out that Soleil Chartered Bank provided the authentication information.Soleil, as the name suggests, is also not a bank.
It has nothing to do with the Philippine Central Bank or the IRS and is not registered in the Philippines.In fact, according to its website, the New York-based company's purpose is to act as a supplier of corporate financial documents.
The regulator has yet to respond to all concerns raised about the company's operations, but admits it was unable to review the company. PAGCOR representatives added at the hearing that they would address the senators' concerns.
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