POGO here, everywhere
German beers were shared with a former staffer on break now from a two-year scholarship in China. Topic of discussion was the piqued interest of Chinese investors in the Philippines. I need not state the obvious, in the limited space of this column — that the Philippines and China have been enjoying a honeymoon that has seen its ups and downs.
Right now, for instance, we have ‘veiled threats’ (kudos to Mayor Inday Sara for making this such a catchphrase) exchanged between Defense Secretary Delfin Lorenzana and Chinese Ambassador Zhao Jianhua over the utilization of spies in each other’s countries. News to Ambassador Zhao: There is not a chance in heaven or hell that overseas Filipino workers will act as spies for their country. They have much bigger problems like putting food to their families’ tables back home and the Philippine government does not have the budget to fund a spy program like what you see on the movies.
Back to my talk with our former staffer who has been going around the country recently. From what he gathered, there is nationwide interest on the Philippine Offshore Gaming Operator (POGO) phenomenon among the big families in Visayas and Mindanao. News to these big families: Please take them from us here in Manila. This city is already congested as it is with around 12 million residents. Add the reported 200,000 Chinese POGO employees, we have something worse than a special halo-halo with leche flan and ice cream for a city!
Latest news is that the Philippine Amusement and Gaming Corporation (PAGCOR) issued a moratorium on the release of new POGO franchises. The net effect will be an increased demand for POGO franchises in the black market. It is common knowledge among the entrepreneurial elite that POGO are being sold off for $4 million, add a couple more million pesos for facilitation of letters of no objections (LONO) from the local government unit, packaged with office facilities in select cities. My group chats have been riddled with offers to sell potential POGO hubs in provinces to act as self-sustaining townships but appear more like military barracks.
POGO and its ancillary operations have become the new get-richquick scheme being peddled like scalpers in an Ateneo vs DLSU game. Those who know nothing about the gambling industry are double-dipping in this which has become game on who-knows-who. Those who get to sell off a POGO with a huge commission can simply walk away and move on to the next. And this has happened numerous times before.
A lot of people are affected by this phenomenon. Our business process outsourcing was pushed away from the limelight with the reported earlier moratorium in allowing new BPO to enter in order to give way to POGO. Call centers are just as vital to our economy and arguably more significant since these cater to Filipino employees. These POGO, as we all know, are restricted to Chinese workers and we can feel their increased presence in central business districts. I had breakfast recently with a friend who lives in a Makati condo which is filled with POGO employees. Another story I heard is that a condo in Pasig has a makeshift POGO operation that has caused so much concern and disturbance to its residents. It was said that this POGO operation is being tolerated by the condo developer to the detriment of the other tenants.
What about the legal issues arising from this? The Philippines may be earning hundreds of billions but it can earn more if proper taxes are being paid by the Chinese employees. Their being “aliens” to the Philippines does not make them tax-exempt at all. There is also the issue of the crimes committed by the Chinese amongst each other. Recently, a Chinese individual fell off a building while being handcuffed to a steel railing for being in debt. Police will not act without a formal complaint filed so we see nothing to come out of this incident.
Though we have to face it — POGO will not last forever. The Chinese government has hinted on a crackdown on illegal gambling and POGO is a loophole figured out by those with thorough knowledge in gambling and the Chinese way of thinking. The Philippines’ policy on POGO may change in the next administration, which may lead to these operations to vanish into thin air. Whenever this will happen, the iron is pretty hot right now, and the Philippines is correct in heavily striking it with all its political might.
“The Chinese government has hinted on a crackdown on illegal gambling and POGO is a loophole figured out by those with thorough knowledge in gambling and the Chinese way of thinking.
“News to Ambassador Zhao: There is not a chance in heaven or hell that overseas Filipino workers will act as spies for their country.