Chiz

Solons review POGO social costs vs economic benefits

October 11, 2022 PS Jun M. Sarmiento 581 views

SENATOR Francis “Chiz” Escudero, during Tuesday’s hybrid hearing of the Ways and Means Committee, October 11, 2022, on the economic costs and benefits of Philippine Offshore Gaming Operations (POGO) under Republic Act (RA) No. 11590 vis-à-vis its social costs, says 36 POGO-related criminal cases were recorded from October 1, 2021 to September 24, 2022, or since the law was passed.

Escudero cited two cases of trafficking in person; kidnap-for-ransom, 19 cases; kidnapping with serious illegal detention, two cases; and one case of less serious physical injuries.

The senator also asked Usec. Bayani Agabin of the Department of Finance (DOF), whether the latter’s statement that the social costs of POGOs outweigh the economic costs was based on data.

Agabin said his statement was based on newspaper reports and anecdotal data.

Escudero also reminded Agabin that based on the data provided by the Philippine National Police (PNP), the total number of POGO-related crimes number less than 50 per year, covering access device violation, anti-trafficking in persons, homicide, illegal detention, kidnap-for-ransom, less serious physical injuries, and serious physical injuries.

“I will inform you, for the record, in 2019, a total of 496,620 criminal incidents were recorded; in 2020, 394 468, criminal incidents were reported; in 2021, 375,731… to be fair to the PNP, it’s been decreasing,” Escudero said.

Sen. Grace Poe, for her part, chided the Philippine Amusement and Gaming Corporation (Pagcor) for allowing the operations of POGOs and service providers despite its awareness that such a form of gambling has been declared “illegal” in China.

During the continuation of the committee on ways and means’ inquiry on the economic benefits of POGO operations vis-à-vis their social costs, Poe noted Pagcor’s position that POGOs should not be banned in the Philippines.

Pagcor also insisted that it does not allow online gambling marketing in jurisdictions where it is not allowed, even as most POGOs and service operators in the Philippines cater to Chinese nationals.

“Are you just turning a blind eye? Because if you can tell us categorically that there are no players from China, because it is prohibited, that’s a big lie,” Poe told the Pagcor.

“Basically, we are condoning them to violate their own laws… You are allowing these POGOs to operate here knowing full well that their clients or their customers are from a country where online gaming is illegal,” Poe stressed.

Sen. Sherwin Gatchalian, the chairperson of the Committee on Ways and Means, probed further the economic impact of POGO business as the committee resumes its hybrid hearing on the issue Tuesday, October 11, 2022.

During the hearing, Gatchalian asked the representatives of the Association of Service Providers and POGOs (ASPAP), which is composed of 16 POGO business members, about the contributions of offshore gaming to the Philippine economy.

“The aim of this hearing is to determine the direct benefits, the indirect benefits, as well as the social costs of POGOs to the country… in your experience, has there been a technology transfer? Are Pinoys employed in POGOs learning to speak in Mandarin? Are they learning much [about] IT programming? Will it be possible that one day, there will be more Filipino workers in the POGO industry than foreigners?” Gatchalian asked.

ASPAP representative Atty. Paul Bongco told the committee that the number of Filipino working in POGOs versus foreign workers is gradually growing as the industry matures.

For his part, Sen. Joseph Victor “JV” Ejercito applauded the PNP for helping reduce POGOs related crimes in the country.

“I see that we can have zero incidences (of POGO-related crimes) as long as the PNP increases its police visibility. I see it when I bike around POGO areas. I see young police officers on patrol, in hotels and other establishments. I hope that the PNP would continue doing this because this will serve as a deterrent (against crimes committed) by foreign nationals that are working here,” Ejercito said in English and Filipino.

According to the report cited by the PNP, there have been no POGO-related crimes in the country since last month when the Senate ramped up its committee hearings regarding the issue.