MANILA, Philippines — While billions worth of transactions by Philippine offshore gaming operators (POGOs) have been tied to "suspicious activities," Malacañang won't suspend the operation of the gambling entities for now, saying it needs the money for expenses like efforts to contain the 2019 coronavirus disease (COVID-19).
The Anti-Money Laundering Council (AMLC) Executive Director Mel Georgie Racela told a Senate hearing last Thursday that P14 billion worth of transactions by POGOs from 2017 to 2019 were related to suspicious activities.
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Most of the activities violated the E-Commerce Act while others involved drug trafficking, lack of legal or trade obligations, deviations from clients' profiles, funds not commensurate to the business or personal capacity of a client, lack of proper client identification, and fraud.
Despite the controversies surrounding POGOs, President Rodrigo Duterte still believes that the Philippines needs the revenues raised from the operations of the gambling entities.
"He (President Duterte) will not suspend it nor will he stop it," Panelo said in a radio interview.
"He told me the report of the PAGCOR (Philippine Amusement and Gaming Corp.) head was good, so OK. We need the funds coming from them," he added.
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POGO money for pay hikes
Panelo said several government projects and expenditures require funding including the higher salaries of nurses and teachers. He said revenues from POGOs may also be used to combat the spread of the 2019 coronavirus disease (COVID-19).
"Ngayon meron na naman tayong problema sa coronavirus, pwede rin nating pagkuhanan yun (Now that we have a problem due to the coronavirus, we can get funds from that)," the Palace spokesman said.
"All of these are possible. The money we can get from whatever source, that is supposed to be for the government. So the government can use that in any undertaking," he added.
The government is grappling with the spread of the COVID-19, which has affected more than 101,000 people worldwide. There are six confirmed cases of COVID-19 in the Philippines as of last Saturday. The government has earned at least P7 billion from POGOs but it is only equivalent to 0.29% of the P18.6 trillion worth of the Philippine economy.
Panelo said problems related to POGOs operations can be addressed through the enforcement of laws.
"All you have to do is to implement established law and regulations," the Palace spokesman said.
Last Thursday, Panelo said Duterte has no basis yet to suspend the operations of POGOs but gave assurance that agencies are now probing the illegal activities tied to the gambling entities.
He has also denied allegations that Duterte is being too soft on POGOs, which cater to Chinese nationals.
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