House probe surfaces links between POGOs and illegal drug trade

MANILA, Philippines — Three committees at the House of Representatives have pieced together a "matrix" linking Philippine Offshore Gaming Operators (POGOs) to the illegal drug trade based on business ties among Filipino and Chinese nationals, including former president Rodrigo Duterte's presidential adviser Michael Yang.

On Wednesday, House public order and safety committee chairperson Rep. Dan Fernandez (Sta. Rosa, Laguna) presented a list of individuals and entities involved in the intricate network based on separate probes by the House committees on dangerous drugs, public order and safety and public accounts.

Fernandez said their findings stem from extensive hearings initiated last year by Rep. Robert Ace Barbers, chairperson of the House committee on dangerous drugs, on the P3.6 billion worth of shabu seized in Mexico, Pampanga.

The lawmaker also cited the findings of the House committee on public accounts that found hectares of land were bought by firms owned by Chinese nationals "in connivance" with local government officials, including former mayor of Mexico, Pampanga, Teddy Tumang. 

"It's not only the criminal activities of POGOs and corporations that was established by the different Chinese nationals but also there was also drugs involved," Fernandez said.

The matrix presented by Fernandez points out that Aedy Yang, an incorporator of Empire 999 Realty Inc., owns the warehouse where the Philippine Drug Enforcement Agency confiscated the P3.6 billion worth of shabu.

Fernandez said Yang is also an incorporator of Golden Sun 999 Realty and Development Corp., alongside Rose Nono Lin, who is married to Alan Lim. Lin is a business associate of Yang, a prominent financier of Pharmally — a company that became the center of the Senate investigation into the alleged multibillion-peso corruption in the government procurement of COVID-19 supplies in 2021.

Aedy Yang, along with associates Willy Ong and Jack Yang, has had his passport revoked, the lawmaker added.

Fernandez pointed out that Michael Yang's brother, Hong Jiang Yang, was found to have transactions worth P3.3 billion with suspended Bamban Mayor Alice Guo. Guo herself has been in hot water for her dubious citizenship records and ties to a raided POGO hub in her locality.

The Anti-Money Laundering Council earlier found Guo had 36 accounts which were involved in combined transactions worth P29 billion.

"Come to think of it. P29 billion, si Alice Guo pa lang ‘yan, at umikot sa kanyang 36 accounts (This only involves Alice Guo, and it revolves around her 36 accounts). So, what more to the others?” Fernandez asked.

This joint committee hearing by the public order and games and amusement panels marks the third motu proprio investigation (automatic investigation even without a complainant) into the rise of criminal activities linked to POGOs, which President Ferdinand Marcos Jr. ordered to be banned and completely dismantled by the end of the year.

Rep. Antonio Ferrer, chair of the House games and amusement committee, said that the House will continue its investigation into the illegal acts related to POGOs despite the ban on its operations as the president's order does not cover illegitimate operators.

The lawmaker said the findings from the committee inquiry will lead to recommended legislative measures to prevent POGOs from resurfacing.