Pagcor junks P6-B deal with third-party POGO auditor

The Philippine Amusement and Gaming Corp. (PAGCOR) has terminated its P6-billion contract with Global ComRCI, the third-party auditor for Philippine offshore gaming operators (POGOs) found to have no business permit and been remiss in paying taxes.

PAGCOR issued its notice to terminate the consultancy contract with Global ComRCI six months after a review of the consortium was started in September last year.

Its action also comes two months after senators grilled the state-run firm over the suspicious credentials of Global ComRCI, which came to light after US-based Soleil Chartered Bank denied issuing any bank certification for the auditing company.

“Upon careful evaluation, PAGCOR has determined the third-party auditor to be in default of its obligations and prima facie evidence to have committed unlawful acts,” PAGCOR said.

It should be noted that PAGCOR is mandated by law to tap the services of an independent or third-party auditor to examine POGO books to determine how much income taxes should be levied on them.

However, lawmakers discovered that Global ComRCI is facing lawsuits and had changed business addresses thrice, among other red flags that drew suspicion to its operation.

Following the contract’s termination, PAGCOR said it has endorsed the matter to the Office of the Solicitor General for the possible filing of administrative, civil and criminal cases against Global ComRCI.

PAGCOR will also temporarily undertake auditing functions for its offshore licensees until it is able to contract another third-party auditor through a “transparent and strict bidding process.”

The state-run gaming firm added that it will explore all legal remedies available for the recovery of more than P800 million in partial payment already released to Global ComRCI during the Duterte administration.

“We would like to reiterate that we have not yet paid the contract amount of P6 billion to Global ComRCI,” PAGCOR said.

“No payment has been made in the past four years due to the shortfall from the minimum revenue stipulated in the contract,” it added.

PAGCOR maintained that Global ComRCI’s contract went through the proper bidding process and met all legal requirements under the procurement law.

Last year, the POGO industry was in the spotlight as the government and lawmakers moved to shut down the sector amid increased POGO-related kidnapping activities and other crimes.

Earlier, the Department of Finance estimated about P65 billion in lost economic contributions should the government decide to discontinue POGOs.

Rainier