"We were never consulted on this privatization issue," PAGCOR spokesman Edward F. King noted, referring to Trade and Industry Secretary Manuel Roxas’ recent pronouncement that government is considering selling its 50-percent stake in the highly-profitable gaming firm to fund a few vital infrastructure projects.
King revealed that instead of privatization, PAGCOR is now pushing for the implementation of its biggest project, the Bagong Nayon Pilipino, a world-class theme park which will rise in 120 hectares of the premier Bay City area in Roxas Boulevard.
"The development of Bagong Nayon Pilipino, which is included in President Arroyo’s eight-point priority agenda, will provide more benefits to the economy in the long term than if PAGCOR were just privatized," King said.
The large-scale project, he added, is expected to bring in $1.6 billion in direct foreign investments, create more than 270,000 jobs, and increase PAGCOR’s remittances to the National Treasury by P147 billion over the next 10 years.
"This is not to mention the direct multiplier effect Bagong Nayon Pilipino will bring to the construction, tourism, transportation, communications, and food sectors. Most importantly, the project will position the Philippines as a world class entertainment, leisure and gaming hub in Asia," King said.
"Bagong Nayon Pilipino is the reason why we are pushing for the extension of PAGCOR’s franchise which is set to expire in 2008. We cannot wait until 2008 since the international investors for the project need to be assured of a long-term partnership with us. Besides, implementing the first phase of Bagong Nayon Pilipino alone will take six to seven years. At this point the project is all that we need to pump-prime the economy and move the country forward," he added.
"This provision only proves PAGCOR’s significant contributions to nation-building. It will be hard to imagine how the government can sustain all its programs which is now being funded by PAGCOR if the gaming monopoly in the country is controlled by the private sector," King noted.
In 2002 alone, PAGCOR earned P20.21 billion in total income, of which 60.22 percent or P12.17 billion went to the National Government and other mandated beneficiaries.
King said the government cannot just give up its stake in PAGCOR without Congressional approval, "Congress has to enact a new law that will amend P.D. 1869 or the PAGCOR Charter," he said.
"Secondly, government has to draw up an alternative source of revenue, considering that it is the third highest income-generating arm of government," King said.
Aside from contributing substantially to the National Treasury, five percent of PAGCOR’s net winnings go to the BIR as franchise tax, another five percent goes to the Philippine Sports Commission, another fixed amount is given to casino host-cities and the remainder is given to the President’s Social Fund to finance priority projects for the poor.
PAGCOR is also mandated by law to give P400 million or P2 billion for the next five years to the government’s Early Childhood Care and Development program, P300 million to bankroll the Gasoline Station Training and Loan Fund for small entrepreneurs, P250 million to implement the National Museum Act, P30 million for the Children’s TV Act and P5 million a month for the Comprehensive Dangerous Drugs Act. PAGCOR already disbursed P100-million initial funding to the Sports Benefits and Incentives Act which provides cash and non-monetary incentives for national athletes, coaches and trainers.