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Tuesday, March 08, 2005
RP now a 'gambling republic': senator
* Estrada accuses Pagcor of illegally operating slot machine projects with private investors
* Slot machine arcades existing in Manila, Pasay, Cebu and Davao cities with more to be set up, according to senator
THE Philippines is now becoming a "gambling republic" while Filipinos are not benefiting from the supposed revenues that the government collects from slot machines operated in casinos.
Opposition Senator Jinggoy Estrada expressed these concerns as he asked the appropriate committee to conduct an investigation on the alleged proliferation of illegal slot machines in the country despite the order of President Gloria Macapagal-Arroyo to abort all slot machines arcade projects.
In a privilege speech, Estrada claimed that the Philippine Amusement and Gaming Corporation (Pagcor) allegedly entered into agreements with several private investors to establish slot machines under a 60-40 percent sharing scheme.
He said as of February 2005, almost P2 billion in revenue had been channeled to Pagcor's selected private investors.
"These deals mean that Pagcor was entering into sub-franchise agreements in total violation of its mandate under the Presidential Decree 1896. This also means that revenues from slot machine operations are to be shared with selected investors whom the Pagcor have unilaterally chosen and which eventually will compete with the casinos wholly owned and operated by Pagcor," he said.
Under PD 1869, Pagcor is authorized as the corporate entity solely and exclusively vested with power to undertake gambling activities, primarily casino and gaming operations in the country.
However, Estrada said after the 2002 order, Pagcor allegedly set up 12 slot machine arcades with the private investors located in Binondo and Ermita, Manila; Pasay City; Davao City; Cebu City.
He identified the alleged investors as Yap Boon Ming of the Pacific Palm Corp; Cesar Marcelo of the 6-in-1 Amusement and Entertainment Corp.; Datu Ta Kin Yan of the Wazlian Management Philippines Inc; and Ma. Lourdes Go of the Platinum Gaming Entertainment Corp. The other investors are Skylove Recreation Haus; The Binondo Leisure Resources Inc and the JAB-RDCO.
"How these investors were chosen, what criteria were used, how the selections process was done, what their capitalization are, we do not know. But one thing is certain: there was no transparency in the deals," Estrada said.
Estrada also revealed that another five arcade projects are reportedly in the pipeline. These would be in Cebu City in partnership with the Platinum
Gaming and Entertainment Corp; in Manila Jockey Club in Carmona Cavite in partnership with the Reyno Family; in Hotel Sogo in San Pedro, Laguna with the
Golden View Group; in Subic International Hotel inside Subid Free Port and in undisclosed location in Nueva Ecija.
Estrada criticized the government for allowing the contracts to go on, which allegedly give profits to private partners, while it is in a serious fiscal crisis and in dire need to impose new taxes to the people.
In addition, Estrada said Pagcor allegedly executed antedated lease contracts to make it appear that it is merely leasing slot machines equipment from foreign manufacturers with the rental fees stipulated at 40 percent of the gross revenues derived from the arcades.
"It's patently deceptive. It is a mere cosmetic makeover of a deal that was not only illegal but also immoral and flawed from the very beginning. It is a mere ploy that hopes to avoid criminal liability," he added.
He alleged that the Malacanang is benefiting from the anomaly. He then vowed to expose other anomalies in the next few days. (JPM)
(March 8, 2005 issue)
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