Government can’t track source of P6.1 billion for Bamban POGO

MANILA, Philippines — Government agencies including the Anti-Money Laundering Council (AMLC) were unable to trace the source of the estimated P6.1 billion spent for the construction of the expansive Philippine offshore gaming operation (POGO) hub in Bamban, Tarlac, according to Sen. Sherwin Gatchalian.

“The POGO hub in Bamban is no small development. That’s a 10-hectare property, there’s a shopping mall, there’s condominiums and there are 37 buildings in that POGO hub… P6.1 billion was ploughed in. The concerning part is, government did not detect anything in terms of money flows,” Gatchalian said in an interview on “Storycon” over One News yesterday.

He said senators asked representatives from the AMLC on the matter during an executive session held on Wednesday.

Bamban Mayor Alice Guo, business permit and licensing officer Edwin Ocampo and municipal legal officer Adenn Sigua have been placed under preventive suspension by the Office of the Ombudsman based on the results of an investigation by the Department of the Interior and Local Government linking the POGO hub to illegal activities.

“When we were doing our own investigation, we couldn’t find any trace on how the P6.1 billion landed on our shores. We couldn’t find any trace on who built the facilities,” said Gatchalian.

“We were very disappointed with the answers of the Anti-Money Laundering Council because they couldn’t trace how the money came in and they couldn’t trace who received the money and dispensed the money during the construction stage,” he said.

“It’s quite disappointing because the job of the Anti-Money Laundering Council is to detect all of these things,” he added.

Gatchalian has urged President Marcos, as chair of the National Security Council (NSC), to declare POGOs as a national security threat.

He cited information from security and intelligence agencies, which reported the extent of influence of POGOs in the country.

He noted that those behind the operations “managed to increase their influence to different personalities and groups, particularly political personalities, enforcement groups and enforcement agencies, as well as local criminal syndicates.”

“POGOs are run by foreign criminal syndicates, and based on their intelligence, they are now aligning themselves with local criminal syndicates,” the senator said.

He warned that the money coming into the Philippines can be used to gain influence or protection from local officials.

“Big sums of money are coming in our country undetected and that can be used for whatever purpose, to build more POGO hubs, but definitely it will also go to political personalities and other personalities in order for them to gain protection for their illegal activities,” said Gatchalian.

“Once they get a foothold to all our decision makers, then it’s very difficult now to fight POGOs or to untangle all of the criminal activities of POGOs because they have deeper influence in our government system,” he added.

Once declared a national security threat, Gatchalian said Marcos would have the power to cancel existing licenses and prevent future licenses from being issued.

He also underscored the need to hold local agencies to account, particularly the Philippine Amusement and Gaming Corp. (PAGCOR), which is mandated to regulate POGO operations in the country.

Guo appeals suspension

The camp of Guo, meanwhile, is asking the Office of the Ombudsman to lift her six-month preventive suspension over her alleged link to a POGO hub in her municipality.

In her 31-page motion for reconsideration, Guo argued that the conditions for her preventive suspension are not present in the case against her and that contrary to assertions of the Ombudsman and the Department of the Interior and Local Government (DILG), the evidence of her guilt “is not strong.”

The mayor also asserted there was no substantial evidence to prove all elements of the charges against her: grave misconduct, serious dishonesty, gross neglect of duty, and conduct prejudicial to the best interest of the service.

“It is most respectfully submitted that none of the above-mentioned elements of the administrative charges are present in the instant case. All of the acts complained of, albeit extremely distorted and exaggerated, are done within the bounds of law and as part of the sworn duty of respondent Guo as the local chief executive of her municipality,” the motion read.

“The evidence against respondent Guo does not rest on substantial evidence considering that the allegations in the complaint have no basis either in fact and in law, based on mere surmises, speculations, opinions, and questionable findings without the required quantum of evidence,” it added.

The Ombudsman ordered on May 31 the preventive suspension of Guo, Ocampo and Sigua citing “strong evidence showing their guilt.”

The complaint was based on findings of a task force created by the DILG to investigate the culpability of local officials in abetting POGO firm Zun Yuan Technology Inc.’s illegal activities in Bamban.

Zun Yuan’s Baofu compound was raided in March for alleged human trafficking and serious illegal detention.

The same compound was raided in 2023 when the POGO hub was still called Hongsheng. It was renamed Zun Yuan after the raid.

Based on the task force’s investigation, Guo’s divestment of her shares in Baofu through a deed of assignment “is simulated” as the P2.5 million involved did not appear to be commensurate to the amount of her investment in the company, which is approximately eight hectares of land.

DILG also stressed in its complaint that despite the raid and issuance of a cease and desist against Zun Yuan, Guo “did not cancel or revoke their business permits because of her business interest in Baofu.”

The Ombudsman also noted Guo’s failure to ensure that Ocampo and Sigua would “faithfully discharge” their duties and functions to make Zun Yuan comply with the cease and desist order.

‘Conjectures, speculations’

However, Guo argued that the allegations are “conclusory, mere product of conjectures and speculations, erroneous and are contrary to established facts, laws and jurisprudence.”

“At the onset, it must be emphasized that respondent Guo acted within the scope of her duty by no less than the 1987 Constitution, the Local Government Code and the prevailing jurisprudence,” the motion read.

The mayor also denied having business interest in Zun Yuan, asserting that she had “faithfully complied” with the guidelines for issuing business permits as stipulated in the Local Government Code and the Constitution.

In a television interview, a lawyer for Guo said it is PAGCOR that has the legal duty to monitor the activities of POGOs.

“They are barking up the wrong tree,” lawyer Stephen David said referring to Guo’s detractors. “Why are you asking the mayor (regarding POGO activities), why not the government people who are tasked to monitor that?”

“She created a composite team to do the inspection regularly,” he said “Why not ask the people tasked to monitor (the POGO) 24/7?”

According to David, the liability should be with the agency appointed by the government to do the monitoring.

“The interest of the government is to get the share from the winnings as it (Zuan Yuan) was a legal POGO. They (PAGCOR) have a legal duty to monitor 24/7. Now, whether they are doing that or not, it is not within our knowledge. Supposedly, if they are not doing that, that’s dereliction of duty,” he stressed.

“It’s good that the case is now with the Ombudsman at least there, we expect a fair trial,” David added. – Bella Cariaso