More stringent rules needed to control Pogo

Author: Tonette T. Orejas – 16 hours ago

CITY OF SAN FERNANDO – An official of the Philippine Amusement and Gaming Corp. (Pagcor) recommended the imposition of additional requirements to enable the national government and local government units (LGUs) to stop the illegal activities of Filipino offshore gaming operators (Pogo) in the country.

“Mas maraming dapat gawin (there are many tasks to be done),” lawyer Jessa Mariz Fernandez, assistant vice president of Pagcor’s foreign gaming licensing division, told Pampanga deputy governor Lilia Pineda as the provincial board concluded its second hearing into illegal activities with Lucky South 99 Outsourcing Inc. on Friday here.

The Presidential Commission on Combating Organized Crime (PAOCC) raided the 10-hectare Lucky South complex on the border of Porac and Angeles City on June 4 and 5 following reports of human trafficking, torture and cash fraud. PAOCC representatives did not appear at Friday’s hearing.

In an interview with the Inquirer after the five-hour hearing, Fernandez said Pogo’s registration process with the Securities and Exchange Commission (SEC) should be more stringent, and that the nodes’ ISPs should also be reported and agreed to terminate service after receiving reports of illegal activity.

READ: Pogo pretended to be a BPO, deceived the local government – Porac management

She also suggested closer coordination with local governments, from application submission to license cancellation.

Section 10 of Republic Act No. 9487, which amended the Pagcor Act, did not cover the provincial government in regulating gaming establishments. However, the law states that Pagcor should cooperate with city and municipal authorities, the Inquirer study found.

Fernandez told the board that Lucky South’s license expired in 2023. The license covered only one building and not the other 45 structures built on the gated property in Barangay Sta. Cruz.

She said that when the company reapplied in 2024, the license was not approved, making it illegal to continue operating in Porac.

One and the same

Porac Mayor Jaime Capil complained that during the five years of Lucky South’s operation in his city, Pagcor “did not communicate” with local authorities about the status of the company’s operations.

“I was never informed (about Lucky South’s status),” he said.

Board member Ananias Canlas Jr., a lawyer, said the board blew the corporate veil of Whirlwind and Lucky South.

“It has the same founders,” he noted, showing SEC documents. The Cruz family reportedly sold the land to Whirlwind, which in turn leased it to Lucky South.

Stephanie Mascareñas, founder of Lucky South, who was invited to the hearing, confirmed that she had a paid-up capital of P9 million, which was settled in cash.

TO READ: Bad for relations: China pressures PH to ban Pogo sales

However, at the hearing she denied that the money was hers and told board members she allowed herself to be exploited in exchange for continued employment after working in 2019 at Dragon Wealth, a service provider for Lucky South.

The Department of Labor and Employment reported issuing foreign employment permits to 149 Lucky South employees, while the Bureau of Immigration (BI) granted tourist visas to 883 foreigners, mostly Chinese, with ties to Pogo.

Apalit Mayor Oscar Tetangco Jr. urged the BI to arrest 643 foreign nationals who may have escaped during the two raids.

Lost revenue

The provincial government lost property tax revenue that was initially estimated at P50 million. “We will demand payment,” Canlas said.

Pineda noticed red flags when Angeles Electric Co. reported that Lucky South faces a monthly bill of £12 million.

Another red flag was raised when it was discovered that a compound in Barangay Señora, also in Porac, also had a residence used by Lucky South. The board learned that the house had been built without a building permit and was registered in the name of one of the helpers working for Lucky South.

The Pampanga chapter of the League of Municipalities of the Philippines submitted a resolution to the board supporting the ban on Pogo in the province.

According to Pineda, Lucky South “destroyed Pampanga’s reputation.”

She asked the Department of Home Affairs and Local Government to refresh local enforcement authorities on the provisions of the Local Government Code 1991 to help them assert their rights to visit suspicious establishments and persons in the face of what she called “lapses” by Porac and several department heads when issuing permits and carrying out inspections.