Salceda: Linking POGO-related crime to decrease in foreign investments a ‘shallow’ take

The Department of Finance's position linking the country's attractiveness as an investment destination to recently reported crimes involving the Philippine Offshore and Gaming Operators (POGO) industry is misplaced, House ways and panel chairperson Joey Salceda said Thursday.

Salceda was referring to the comments made by DOF Undersecretary Cielo Magno, who told the House Labor panel of the DOF's concerns that crimes related to the industry—such as illegal POGOs, the influx of undocumented workers, human trafficking, and unjust labor conditions—would affect the country's stature both as a tourist and investment destination.

"[That take is] shallow and superficial. There are far more factors that affect the flow of foreign direct investments such as ease of doing business and power costs. With respect to the direct correlation between kidnapping of one to 100,000 vis-a-vis FDI, I think that should be reviewed," Salceda said.

“If the justification for shutting down POGOs were the incidents of crime attributed to the POGO industry, then other industries that attract illegal activity should likewise be shut down. Will I close all the PEZA [Philippine Economic Zone Authority] because there’s a lot of smuggling happening there? No!” the Albay congressman added.

Salceda said there are enough laws in place to address the reported crimes related to POGO industry.

GMA News Online has reached out to DOF and will publish its response as soon as it is available.

Magno had said that in one study that the DOF examined covering 67 countries, one crime incident in every 100,000 population could result in a decrease in GDP by one percent.

"Based on our estimation, using that result, the potential losses when it comes to FDI for the Philippines could range from P16.7 to P26.2 billion," Magno said.

Labor leader Sonny Matula, for his part, said that the government should ensure that it is capable of assisting displaced workers in the event that proposals to ban POGO in the country come to fruition.

Matula said the Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers (Tupad), a government program providing emergency employment for displaced workers, underemployed and seasonal workers, is not enough to cover would be displaced workers.

"Tupad Employment is temporary for a minimum period of 10 days, but not to exceed a maximum of 30 days, depending on the nature of work to be performed," Matula said in a text message to GMA News Online.

"The government should provide a transition before totally closing the POGOs for workers to prepare for the impact of unemployment. The SSS' two-month unemployment insurance is not also sufficient to cover the heavy toll of losing jobs," Matula added, referring to the Social Security System. — BM, GMA News