Officials of the Philippine Amusement and Gaming Corporations (PAGCOR) were grilled on Monday after Senate learned about the billion-peso contract they entered with a third-party auditor that had no basic documents like a business permit and has alleged spurious bank certifications.
During a hearing of the Senate Committees on Ways and Means and Public Order and Dangerous Drugs, its chairman, Senator Sherwin Gatchalian flagged PAGCOR for entering into a PHP 6-billion consultancy contract with third-party auditor Global ComRCI in 2017 to monitor revenues of Philippine offshore gaming operators (POGOs), despite glaring inconsistencies in its documents.
"The third-party auditor is not qualified. Simple things like address and business permit, wala sila, [they don't have] so how do you expect us, the Filipino people, to believe that what they are supplying us in the form of information is accurate?" Gatchalian said.
He added that his research team found out that Global ComRCI engaged a certain Soleil Chartered Bank to certify that it had at least $25 million (around PHP 1.3 billion) in funds. This indicated that the third-party auditor was compliant with the requirement of having at least P1 billion in capital to serve as PAGCOR’s POGO Consultant.
Gatchalian added that Bangko Sentral ng Pilipinas confirmed that Soleil is not registered in the Philippines and is not allowed to operate.
"You never went to their office, you never checked with the BSP, but yet you took their word for it. So wala silang capital, ‘yung kanilang bank certification is spurious, so pano sila naging [how did they become] compliant sa TOR of 1 billion (pesos)?" Gatchalian asked.
His office also found that Global ComRCI is not registered in Makati City, despite indicating its business address there.
"For the last five years, you never endeavored to verify and yet you signed a contract with them worth how much for the next 10 years? 6 billion? This contract is 6-billion worth for the next 10 years and they were awarded the contract based on a spurious bank certification issued by an entity not registered with BSP," he said.
"Sa dami ng tao sa PAGCOR, ewan ko paano kayo nabudol. Unless sinadya ‘nyong mabudol kayo [With the amount of personnel in PAGCOR, I don't know how you were scammed. Unless you were scammed on purpose]," the senator continued.
In their defense, PAGCOR, through its chief legal counsel Atty. Roderick Consolacion said that the bidding rules "allowed it," without elaborating on the content of Global ComRCI’s documents.
He added that the agency will look into the bank certification.
"We will look into this document and perhaps you can establish, we can ask for their comment on this. We (will) look into this document and if we can ask their comment on this document if only Global RCI are here," Consolacion said.
In another interview, Gatchalian said the Senate requested representatives of the firm to be present, but none attended.
Criminal ties
In the same hearing, Gatchalian also questioned PAGCOR for being lenient with POGOs considering the crimes linked to them.
He sought the agency’s action plan against erring POGO firms Brickhartz Technology Inc. and MOA Cloudzone Corp., who were allegedly behind the kidnapping of a woman in Bacoor City, Cavite.
In December 2022, Senator Grace Poe told regulators and law enforcement authorities that a female victim was brought to a POGO dorm in Shuang Ma Industrial Park in Bacoor City, Cavite, where she was rescued after relatives paid a ransom of P250,000.
"These are accredited service providers and they are connected to the crime that was mentioned by Senator [Grace] Poe in her privilege speech. Tama po ba (Correct)?" Gatchalian said.
“The privilege speech was given [on] December 14 and you’re telling me wala pa kayong ginagawa [you have not done anything]?” the panel chairperson also asked Pagcor.
According to Pagcor Assistant Vice President Jessa Fernandez, Brickhartz was fined around PHP 500,000, while they have yet to receive a report for MOA Cloudzone.
President Ferdinand 'Bongbong' Marcos Jr. earlier said POGOs may not be worth allowing if their conducts bring the social cost to the country.
