Why Ongpin resigned from PhilWeb

Listed gaming firm PhilWeb Corp. on Sunday cleared that businessman Roberto V. Ongpin left his post as chairman and director of the firm to "save the company" after he was tagged by President Rodrigo Duterte as among the oligarchs embedded in the government.

"The main reason why Mr. Ongpin resigned from PhilWeb is to save the company. He recognized that if he stayed on, PhilWeb's e-Games outlets could be shut down, which would lead to the loss of its business and eventual closure, affecting more than 5,000 employees," PhilWeb President Dennis Valdes said in a statement.

Ongpin, who resigned from PhilWeb on Thursday, was tagged by Duterte as among the oligarchs that have an undue influence on the government — something he intends to end during his term.

"Ang plano ko talaga is... destroy the oligarchs that are embedded in government. Iyan-iyan sila. I’ll give you an example, publicly, in front of the — Ongpin, Roberto. Kay [Ferdinand] Marcos noon, trade minister, I think. Malakas siya sa succession. [Fidel] Ramos, he was a hanger on and kay Gloria [Macapagal-Arroyo], PNoy [Benigno Aquino III]. Now he owns the online [gambling]," Duterte said.

Valdes, however, cleared that PhilWeb is not into online gaming, noting that its e-Games cannot be accessed by an office or home computer.

"PAGCOR e-Games is not online gaming... It is a private, members-only network of clubs where players need to be physically present in order to play. Access to these clubs is strictly controlled such that it is only open to members who are over 21 years old and are financially capable of gaming," he said.

During his administration's first Cabinet meeting, Duterte ordered PAGCOR to stop the proliferation of online gambling.

"'Yung online gambling must stop," he told his appointed officials, even suggesting that PAGCOR cancel the licenses of online gambling operators.

According to Valdes, the cancellation of PhilWeb's license to operate would lead to foregone revenues averaging P6 million per day or P2.1 billion annually — the same revenues said to be used by PAGCOR to finance its pro-poor programs — and could affect local markets.

"The sudden closure of a publicly listed company may cause serious concerns to foreign investors," he said.

Aside from this, he said that some P280 million in government revenues would be lost if the company closes shop.

"There are enormous long-term economic and financial considerations that Mr. Ongpin took into consideration when he resigned from PhilWeb, which the government should also look at closely as it decides on the company's fate," Valdes said. —ALG, GMA News