Keep POGOS to spite China?

The Philippines and China are at loggerheads over the West Philippine Sea for years, with recent escalating confrontations highlighting the dangerous nature of the dispute. Incidents like near-collisions and use of water cannons against Philippine supply missions to BRP Sierra Madre underscore China’s aggressive maneuvers. Amid these tensions, China’s request for the Philippines to ban Philippine Offshore Gaming Operators (POGOs) — now known as Internet Gaming Licensees or IGLs — adds a layer of irony and complexity to the situation.

China’s call for the Philippines to outlaw POGOs ostensibly aims to protect Chinese citizens from gambling addiction and associated crimes. However, it also inadvertently suggests that allegations of POGOs being used by China to spy on Philippine and U.S. military installations are unfounded. If POGOs were indeed a cover for espionage, it would be illogical for China to push for their closure, as it would dismantle their alleged spy network.

The request from China reveals a certain paranoia among some Philippine officials especially anti-POGO senators, who have been peddling the idea that POGOs are a front for Chinese espionage. This notion of POGOs as tools for spying or invasion groundwork creates an unnecessary bogeyman, detracting from the real issues at hand.

Economic data supports the significance of POGOs to the Philippines. In 2023, POGO collections increased by 71% from the previous year’s P2.99 billion to P5.1 billion, despite a reduction in licenses. These operations provide substantial employment, with around 65,000 Filipinos working directly or indirectly in this sector. The economic benefits and job opportunities generated by POGOs cannot be overlooked, especially in a country striving for economic growth.

China’s persistent opposition to POGOs is primarily rooted in concerns about illegal activities that harm its citizens, such as gambling addiction, human trafficking, and financial fraud. These issues are legitimate and should be addressed through stringent regulatory measures rather than outright bans. The Philippines should focus on regulating POGOs more effectively to mitigate these risks while maintaining the economic benefits they bring.

Considering the ongoing maritime dispute, the Philippines might find it strategically advantageous to resist China’s call to ban POGOs. By continuing to operate these gaming entities, the Philippines can assert its sovereignty and economic independence. 

Ignoring China’s request could serve as a subtle form of resistance against their broader geopolitical pressures.

In the end, the Philippines should prioritize its own interests by maintaining POGOs under stricter regulations to curb illegal activities. At the same time, this stance sends a clear message to China: the Philippines will not be easily swayed by external pressures, especially from a country that consistently violates its maritime sovereignty. Keeping POGOs operational not only benefits the Philippine economy but also serves as a symbolic gesture of defiance in the face of continuing Chinese aggression in the West Philippine Sea.

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Time for Senate to probe its ballooning P23.3B building

“Shocking and in bad taste”. These were words from newly minted Senate President Francis Escudero on the “aggregated cost” of the new Senate building in Taguig city.  The original estimate was P8.9B but grew to   P13-B today and will need an additional   P10.3B for completion.  The said building will not be ready even in 2026 because of escalating costs, quality issues and management inefficiencies discovered by study led by Sen. Alan Cayetano, new chairman of the Committee on Accounts. His report says, “On the Core and Shell of the building alone there are variation costs amounting to P833M”.  “Inspections of the Senate Coordination Team (SCT) also calls into question the workmanship quality as well as the adherence to the original Terms of Reference”. The report further says, “The Senate is in a difficult position where it has to choose between paying for the mistakes in order not to delay the project or withholding payment in order to compel rectification of the issues but at the cost of the project’s timeliness”.  

Former Sen. Panfilo Lacson, then accounts committee chairman clarifies that the P8.9B allocation in 2018 covers only the “core and shell” of the four-tower edifice and the interior and fit outs are entirely separate. It is an approved “multi-year contractual authority” (MYCA) and for 2024, an additional P10.3B fund to complete the project was included.  However, despite repeated requests for cost estimates and variation orders by the implementing agency-DPWH, his predecessor, Sen. Nancy Binay, also former accounts chairman, consistently objected. 

Binay challenged Cayetano including Escudero to publicly discuss with Lacson the issues they are raising. On Cayetano, Binay said, “it would have been better if we met and sat down so that I could answer their questions. “We could have exchanged notes and have a smooth turnover”.  A statement “loaded” with the simmering Taguig-Makati politics.

The idea of its own Senate Building was premised to get rid of the P500M yearly rental of its existing site from   the Government Service Insurance System (GSIS), another government agency. But with P13B now being spent on the new building plus the incoming P10B, this would mean 12 years of rental income for GSIS, again no loss incurred since it is from one govt pocket to the other, had the senators stayed put. 

But to poor Filipinos, this P23.3B building for just 24 senators is so obnoxious, that insinuations that no “commissions or bribes” happened are very difficult to believe. The questioned P833M cost revisions of the DPWH and the contractor, Hilmarcs in the core and shell price, plus the incoming P10.3B for 2024 are two aspects the public need to be clarified. This cannot be done by private meetings or mere exchange of notes of senators in their turnover of new functions. This must be made public since these are taxpayers’ money. There should be a full-blown investigation on this building’s ballooning costs and reveal the why’s and who are behind it.  

In the past, the senators have been proclaiming their “independence”, transparency and being fighters of corruption in society.  Short of badgering resource persons in numerous in aid of legislation investigations, some repeatedly project their no-nonsense morality and untainted persona being elected representatives of the people. Several times, other imprisoned witnesses who do not agree to their line of questioning and who they think deliberately diverts from their “truth”.  In controversies, they utilize their “executive sessions”, a legal way of keeping confidential information only for themselves and not for the public to know. 

This P23-B Senate building triggers the question as who would be left holding the proverbial bag since senators will not take the blame? The whipping boys-DPWH and the contractor again? 

Painful, but the sad truth here is that government, including the Senate, is bad at execution. What the people see are “hidden agendas”, political backscratching, and paid-off election donors, or in the case of financial assistance (ayuda) to citizens, they are bribes to voters. As always, for some legislators, senators, congressmen and local executives, getting reelected is their priority, by hook or by crook.