MANILA: Department of Finance (DOF) Secretary Ralph Recto on Tuesday gave assurance that the agency would help Filipino Philippine Offshore Gaming Operators (POGOs) find new employment.
This, after President Ferdinand R. Marcos Jr., in his third State of the Nation Address Monday, ordered the Philippine Amusement and Gaming Corp. (PAGCOR) to wind down and cease POGO operations by the end of the year.
‘We have until the end of the year to ensure that all displaced Filipino workers will have new jobs and I think that is more than enough time. The DOF will work closely with the Department of Labor and Employment (DOLE) to ensure that the workers’ incomes will not be severely disrupted and that we provide them with proper reskilling and upskilling training for new employment,’ Recto said in a statement.
Recto said he earlier submitted a cost-benefit analysis that recommended the prohibition of POGO operations due to reputational risks and social costs.
The DOF estimates showed that the net cost of POGO operat
ions amounts to PHP99.52 billion annually while the estimated total economic benefits reach PHP166.49 billion per year.
The economic benefits took into account government revenues, such as tax revenues from the Bureau of Internal Revenue (BlR) as well as gross gaming revenues from PAGCOR.
Other estimated direct economic benefits include estimated income from office and residential space rentals, transportation, and the additional demand from the private consumption of employees and entities.
Recto however said that the estimated total economic costs amount to PHP265.74 billion annually.
The estimated economic costs include the undesired effects of reputational risks which have an impact on foreign direct investments.
According to DOF’s cost-benefit analysis, the POGO-related crimes also bring negative impact in terms of the country’s attractiveness as a tourist destination.
Recto said POGOs also entail social costs, which include the loss of life as well as physical and psychological harm to victims of
criminal activities.
Recto said he fully supports Marcos’ directive to ban POGOs.
“As I have recommended to the President, POGOs come with significant reputational risks and we have seen the negative impacts and destruction they have caused to our country because of crimes. Banning them won’t significantly affect the economy because the costs of keeping them far outweigh the benefits,’ Recto said.
LGU’s compliance
Following the President’s pronouncement of a total ban on POGOs, Department of the Interior and Local Government (DILG) Secretary Benjamin Abalos Jr. said he has already directed local government units (LGUs) to scrutinize documents of establishments as the first line of defense in granting business permits.
The DILG chief said local officials who have reason to believe that a business is engaged in suspicious and illegal activities must coordinate with proper authorities.
‘Nag-iikot na kami, we would make sure ay kailangan maayos yung mga mayor’s permit. Kaya nga nag meeting ako sa mga LGU, n
umber one thing na dapat i-check ang mayor’s permit. Magbibigay sila nito and they can revoke it kung hindi sila magpapa inspect (We are going around, we would make sure that the process in getting a mayor’s permit is organized. I had a meeting with the LGUs, we said the number one thing that must be checked is mayor’s permit. The mayors can grant this and they can revoke it if an establishment will refuse inspections. Of course, we would also check the licenses on sanitation and engineering matters, and also the one coming from the BFP (Bureau of Fire Protection),’ Abalos said in an interview with PTV-4 after the SONA on Monday.
Abalos said he is flying to the Visayas in the coming days to verify information on seven entities monitored by the Philippine Amusement and Gaming Corp. as allegedly linked to POGOs.
Abalos said business process and licensing offices (BPLOs) and village officials must also ensure that only those who do legitimate operations would be given business permits.
Source: Philippines Ne
ws Agency