Gatchalian: Committee report on issues surrounding POGOs will be released this week

Senate ways and means panel chairman Senator Sherwin Gatchalian on Sunday said that a committee report on issues surrounding the operations of Philippine Offshore Gaming Operators (POGO) will be released this week.

“May committee report na. May recommendations na kami. Paiikutin na namin ito this week. Target namin Tuesday, latest ang Wednesday,” Gatchalian said during an interview on Super Radyo dzBB.

“Pero noong December nag-review kami ng committee report mayroon kaming nakitang bago na gusto namin pag-usapan sa committee hearing bukas,” he added.

The Senator said that it would be “better to bring the issue” in a hearing “in the spirit of fairness and transparency.”

“Marami kasi mga bagay sa loob ng RA 11590, ito 'yung batas na may saklaw sa mga POGO pagdating sa tax payment, sa  governance,” he explained.

“Nu’ng ni-review namin ang committee report at ibinangga namin sa batas, marami kaming nakitang katanungan, particularly sa 3rd party auditor… at gusto namin marinig sa PAGCOR (Philippine Amusement and Gaming Corporation) at 3rd-party auditor at sa iba pang resource persons natin ang mga issues tungkol dito,” he added.

Gatchalian also said that they want to see how foreigners working in POGOs are paying their income tax.

“Sa batas, nakasulat na 25% or minimum of 12,000 pesos ay dapat binabayaran by way of withholding tax. Hindi ito napag-usapan nu'ng mga nakaraang pagdinig,” he said.

3rd-party auditor

Meanwhile, Gatchalian bared that a third-party auditor is important as this would ensure transparency over the revenues of POGOs in the country.

“Sa batas, ang PAGCOR, dapat kumuha ng third party auditor para may check and balance... Ito 'yung magche-check sa kita ng mga POGO. So ang ibig sabihin ‘yung PAGCOR ginagawa nila ang regulatory function nila, mino-monitor ang kita at yung third party auditor ito naman ang magche-check ng kita ng mga POGO,” the Senator explained.

“Kaya importante ang third party auditor unang-una ‘yung binabayaran sa BIR (Bureau of Revenue) galing doon sa report na binibigay ng third party auditor. Binabayaran sa PAGCOR galing din sa third party auditor,” he said.

“So ang ibig sabihin kung mali ang ibinibigay ng third party auditor, mali ang binabayaran sa BIR at sa PAGCOR… at mali rin dahil yung kita natin pinangagastos natin ay buwis na galing sa POGO. Kaya kritikal ang ginagampanan ng third party auditor dahil dyan nakasalaysay sa binabayaran sa ating gobyerno,” he added.

Moreover, Gatchalian said that POGOs have the “tendency” not to pay their taxes even if they are legally operating.

“Sa mga unang pagdinig, nakita na ang mga POGO hindi nagbabayad ng buwis kahit ligal... hindi accurate ang binabayaran nila... mayroon talagang tendency ang mga POGO na hindi magbayad ng buwis,” he pointed out.

Filipinos working in POGOs

Meanwhile, Gatchalian said that they will give “good reasons” to President Ferdinand Marcos Jr. to ban POGOs, stressing that the industry will not affect the country’s economy.

“Bibigyan namin ang pangulo ng good reasons… at sa aming pag-aanalisa marami kaming nakita for example hindi naman kalakihan domestic employment na nililikha nitong POGO,” he said.

“At the height of POGO 10% lang o less than 15,000 na pinoy ang nagtatrabaho sa POGO.. halos lahat 90% mga dayuhan particularly mga Chinese. Kaya in terms of job generation hindi ganoon kalakihan ang nililikha para sa atin,” he added.

“Mawala man ang POGO, hindi babagsak ang ating ekonomiya. Kahit mawala ang mga POGO, wala itong epekto sa kabuuan ng ating ekonomiya,” according to Gatchalian.

Real estate services firm Leechiu Property Consultants earlier said the country stands to lose over P100 billion should the POGO industry be forced out of the country.

The Association of Service Providers and POGOs (ASAP) also said that some 23,000 Filipinos would lose their jobs if POGOs are banned.

However, Gatchalian said that the government will provide jobs for Filipinos if POGO operations are halted.

He said, “16,000 to 21,000 ang mga Pilipino na nagtatrabaho sa mga POGO... hindi sila papabayaan ng pamahalaan kung sakaling ipatigil na ang operasyon ng POGO... sisiguraduhin nating may trabaho sila.”

“So, in the short term aminado naman tayong may epekto ‘yan. Pero in the long term, mas mabuti sa atin dahil hindi na matatakot ang investors at ‘yung mga tourists na pumunta sa atin,” he added.

Marcos earlier said that the POGOs are no longer worth allowing if their conducts bring social cost to the country, considering the crimes linked to them.

Marcos told reporters in Zurich, Switzerland on Friday that his administration is continuously determining whether the POGOs would still be good for the Philippines.

The President, however, pointed out that only illegal POGOs are the problem in the country as they were the ones usually involved in the abductions and killings.

DOF

On the other hand, Gatchalian bared that the Department of Finance (DOF) was among those that wants to tackle issues surrounding POGOs.

“Una pa naman, ‘yung first hearing talagang napaka-determinado na i-ban ang POGO dahil nakikita nila na may epekto ito sa investments natin,” he said.

“Ang DOF firm na dapat i-ban ang POGO. So tiningnan din namin ang kanilang arguments dahil hindi lang naman namin kinukuha ang kanilang opinyon kundi ine-examine namin ang kanilang arguments,” he furthered.

During the Senate’s panel hearing in November 2022, the Department of Finance has reiterated its stance that the social ills of POGOs outweigh its economic benefits.

“The net cost is still P8.44 billion. It’s inherently difficult to compute loss of lives, mental harm, social fear and anxiety. We have enumerated direct economic costs arising from pogo operations. Additional cost for law enforcement and immigration,” Finance Assistant Secretary Valery Joy Brion said.

Finance Undersecretary Bayani Agabin earlier said the country can recover the potential losses from the exit of POGOs in other industries with high value added. —LBG, GMA Integrated News