GOCC commission seeks to split PAGCOR into gaming regulator and casino operator

The Governance Commission for Government-owned and Controlled Corporations (GOCCs) said Wednesday it has recommended the separation of regulatory and commercial functions of Philippine Amusement and Gamong Corp. (PAGCOR).

The commission made the recommendation to President Rodrigo Duterte, saying it was “due to PAGCOR’s conflicting proprietary activities and regulatory functions in which its operation of casinos is in conflict with its function as a gaming regulator.”

The recommendation was a result of a review of 12 state-owned firms.

“It is the firm belief of the Governance Commission that there should be a level playing field between GOCCs and corporations in the private sector performing similar commercial activities,” it said.

PAGCOR chairperson Andrea Domingo told GMA News Online the gaming regulator is not yet aware of the commission’s recommendation.

“If the recommendation is with the President, I will withhold my comments,”  she said.

PAGCOR is among the 12 GOCCs reviewed in relation to competitive neutrality issues, as part of a commitment to the Philippine Development Plan 2017-2022.

Competitive neutrality is clearly among the policies of the state under Republic Act No. 10149 and the Ownership and Operations Manual Governing the GOCC Sector, the commission said.

“Pursuant to Section 5(l) of the GOCC Governance Act of 2011, the Governance Commission is mandated to recommend to the President GOCCs for dispositive action ‘upon determination that there is a conflict between the regulatory and commercial functions of a GOCC’,” it said.

“The Governance Commission is committed to review the mandates of all 125 GOCCs under its jurisdiction, as well as recommend and implement appropriate actions to be undertaken for those with identified competitive neutrality issues, before the end of President Duterte’s term,” it said.

The commission will be working closely with the Philippine Competition Commission (PCC), the National Economic Development Authority (NEDA), the Department of Justice (DOJ), and the Department Trade and Industry (DTI) to review the mandates of GOCCs and recommend and initiate privatization or transfer of regulatory functions to an appropriate government agency.

The Governance Commission said it is committed to its role in the formulation and implementation of the National Competition Policy to improve consumer welfare and market efficiency, and achieve Pagbabago and Patuloy na Pag-unlad as envisioned in PDP 2017-2022. —VDS, GMA News