I am writing this article so Star readers are not misled by an article that Pagcor officials face the ax. The mistake comes from ignorance.
The writer and editor did not know of another group also related to gaming, the free port agencies in duty free zones. That is where the abuse came from. This group operates illegally when it issues licenses outside their jurisdiction. APECO one of these is only allowed to do business within their area. They disobey the law when they issue licenses beyond their area.
This is fraud and worse when it issued 75-year licenses which so angered the President. They are not allowed to give licenses to operate outside their jurisdiction and certainly are not empowered to issue 75-year licenses!
For example, the Aurora Pacific Economic Zone and Freeport Authority (APECO), pursuant to its Charter Republic Act 9490, is authorized to license casinos and online gaming facilities only within its territorial jurisdiction.
Gaming is a form of taxation in which those who gamble create revenue and the funds transferred to socio-civic funds of the government.
Recently Pagcor turned over to the Duterte administration to revive the “Botika ng Bayan” or the nationwide community pharmacy program.
The government could use the funds remitted by the Philippine Amusement and Gaming Corporation (Pagcor) to the national coffers to finance the program that will provide free medicines for the poor.
“When we turned over the P5 billion… his (President Duterte) original plan is for the [revival] of the Botika ng Bayan,” Pagcor assistant vice president for community relations and services Arnell Ignacio.
As in any activity, whether government or private there are those who will find a way to disobey the rules. It is PAGCOR that is tasked to make sure these are followed.
It needs the cooperation of other institutions to carry out its mandate successfully. One of them are police agencies like the NBI which recently received a P5 million grant from PAGCOR. It will be spent to fight illegal gambling.
PAGCOR Chairman and CEO Andrea Domingo expressed optimism on the strengthened collaboration among agencies to curb illegal online gambling.
The PAGCOR chief added that the collaboration of different government agencies intensifies monitoring activities to help fight illegal gambling. “We lose millions from unlawful gambling. Through the help of government institutions such as the NBI, we prevent this from happening and we are able to generate more funds from our regulated gaming operations.
NBI and PAGCOR’s partnership in the fight against illegal gambling was further strengthened when President Rodrigo Duterte signed the Executive Order (EO) No. 13 on February 2, 2017. The EO aims to “strengthen the fight against illegal gambling and clarify the jurisdiction and authority of concerned agencies in the regulation and licensing of gambling and online gaming facilities.”
The gaming corporation also allocated P5 million to the PNP’s Anti-Cybercrime Group (ACG) for the purchase of computers and other equipment that will help in policing errant gambling.
To ensure successful regulation, the media should be an important partner. Publishing fake news or inaccurate articles about the work does not help ensure responsible gambling.
The President said “Meron pa, meron pang isang (there’s one more) head of an agency. When you are granted this free port… and you are beginning to abuse by issuing too many franchises of gambling,”
“And you said because it is in the franchise. Correct, it is in the franchise, but everything goes under a regulation. It is rightful to issue permits within your territory, but when you begin to issue gambling permits outside of your territory…”
The President was pertaining to a gaming regulator having control over free ports, which definitely cannot be attributed to PAGCOR.
Furthermore, the power and authority of PAGCOR to issue gaming licenses and permits is nationwide, unlike other regulators which are limited to their territorial jurisdictions as dictated by their charters.
President Duterte has asked two ranking officials of the Aurora Pacific Economic Zone and Freeport Authority (Apeco) to resign.
“The President told them to resign or they would be fired. He told them he did not like gambling. They are from Apeco, not Pagcor (Philippine Amusement and Gaming Corp.),” he said.
The STAR had erroneously reported that the gaming officials Duterte would fire were from Pagcor.
“They followed him to Cebu City to explain their side but the President ignored them,” he said.
A check showed that the top officials of Apeco are Israel Maducdoc, president, and Edward Pineda, deputy administrator.
The President was angry when he learned that the officials granted a 75-year gaming franchise to an unspecified free port locator.
“He also expressed anger over their issuance of permits for gambling activities outside Apeco,” he said.
He likened such permits to those issued by the Cagayan Economic Zone Authority (CEZA).
One firm CEZA has allowed to conduct gambling activities outside the Cagayan free port in Sta. Ana town is Meridien Gaming, which is identified with Charlie “Atong” Ang.
Some Bicol congressmen have complained that Meridien has extended its operations to their region, and that some of its operators were engaged in illegal gambling.
CEZA is the brainchild of former senator Juan Ponce Enrile, while Apeco was a pet project of the late former senator Edgardo Angara.
“Meron pa, meron pang isang (there’s one more) head of an agency. When you are granted this free port… and you are beginning to abuse by issuing too many franchises of gambling,” he said.
“Sabi ko, you go. Both of you, you go,” he said.
He added that the two tried to explain why they issued 75-year gaming franchise and gambling permits outside of Apeco.
“And you give these contracts for foreigners for 75 years? P..... i... di ka ba gago. Ilang presidente ang dadaanan niyan – 75 years, you must be crazy. (Son of a… you must be crazy. How many presidents will the franchise go through)?” Duterte said.
PAGCOR was never the entity the President was pertaining to but a different regulator which apparently went beyond its mandate and authority in granting gaming permits.
“Objective and responsible media excludes any presumptions or alterations on the part of the writer, especially if made in reference to a fact.
The Star has already retracted the story but there will still be readers who will not be able to read the retraction. The reputation of PAGCOR and the integrity of PAGCOR’s licensees are put in bad light, not only within the Philippines but globally in the gaming industry.